An apparatus and process for use in an in-mold labeling application utilizes a rolled label sheet having a multiplicity of pre-printed non-adhesive labels and a pre-printed registration mark associated with each of the labels, a sensor for detecting each of the registration marks to enable alignment of the label sheet in a predetermined longitudinal position before labels are cut therefrom; a set of driven pinch rolls for moving it forward or backward; a circumferential die cutter for cutting one or more labels from the label sheet; a passive float roll following the die cutter for creating a controlled loop in the label sheet that permits the die cutter to operate independently of a vacuum conveyor that follows the float roll, the vacuum conveyor including a sensor to detect each of the registration marks for enabling alignment of the label sheet in a position of registration thereon; and a plurality of vacuum plenums along the vacuum conveyor for selectively receiving hold down vacuum from an external source for maintaining the label sheet in its position of registration during conveyance to a predetermined label removal position, the hold down vacuum then being released to permit removal, by an external pick and place device, of one or more of the previously-cut labels.