Label assembly and method of forming same

A composite label assembly (10) includes a release sheet (11) having first and second sides (13, 12), with a first cellulose paper label (16) attached by repositional adhesive (17) on the first side (13), and a second polyester label (22) with permanent pressure sensitive adhesive (23) on the second side. The first label has first indicia (18, 19, 20) relating to an appliance, such as a water heater (40), while the second label has second indicia (24, 25, 26) relating to the same appliance, e.g. model number and/or serial number. The assembly also includes a shipping label (28) and a warning label (35). The composite label assembly is easily and readily produced from a web (43) of paper label stock associated with a web of release paper by die cutting paper labels from the label stock and removing the matrix material, and then affixing on the polyester labels directly to the release web (11).