Abstract: Panels of plastic film are delivered to a perforated vacuum drum which has a knife edged die mounted on its surface. Each panel is laid over the die and rotates with the drum into rolling contact with an anvil roll which firmly presses the film panel against the knife edge to cut the panel. After cutting, the film panel continues to rotate with the drum to a position wherein it registers with a blank having a cut-out opening therein which is covered by the film panel. The areas of the blank surrounding the cut-out opening are covered with an adhesive material which causes the film panel to remain adhered to the blank. The vacuum drum continues to rotate and, after bonding of the panel to the blank, the drum releases the vacuum draw on the panel. The cuts formed in the plastic film panels can be straight lines, lines of perforations, or cut-outs bounding areas which are removed from the panel.