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                                                                    EXHIBIT 11.1

                             ADFLEX SOLUTIONS, INC.

                   COMPUTATION OF NET INCOME (LOSS) PER SHARE

                    (in thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                 Year Ended            Year Ended              Year Ended
                                                 December 31,          December 31,            December 31,
                                                    1994                  1995                    1996
                                                   ------               -------                --------
<S>                                              <C>                   <C>                     <C>      
Net income (loss)                                  $7,046               $(3,723)               $(25,024)

Computation of shares used in net
income (loss) per share:

Weighted average common
shares  outstanding                                 5,028                 6,855                   8,580


Incremental common equivalent
shares
representing shares issuable
upon exercise of stock options                        550                    --                      --
and warrants (1)
                                                   ------               -------                --------


Total weighted average shares -                     5,578                 6,855                   8,580
primary
                                                   ======               =======                ========

Total weighted average shares -
fully diluted                                       5,578                 6,855                   8,580
                                                   ======               =======                ========

Primary net income (loss) per common
and                                                $ 1.26               $  (.54)               $  (2.92)
common equivalent share
                                                   ======               =======                ========

Fully diluted net income (loss) per
common and common equivalentent
share                                              $ 1.26               $  (.54)               $  (2.92)
                                                   ======               =======                ========
</TABLE>


--------
(1) Amount calculated using the treasury stock method and fair market values for
stock.
