Catalina Marketing Announces Financial Results for the Quarter Ended June 30, 2007

  
    
  
  
    
      Catalina Marketing Corporation (NYSE:POS):
    
    
      
        Revenues were $117.2 million for the quarter ended June 30, 2007, an 
        increase of $12.0 million over the same period in the prior year
      
      
        EPS of $0.08 per diluted share for the quarter ended June 30, 2007 
        represents a decrease of $0.22 compared with Q2 last year
      
      
        FAS123R expense of $0.06 per diluted share for the quarter ended June 
        30, 2007 as compared to $0.05 per diluted share in the prior year 
        period
      
      
        One time costs related to the pending sale of the company totaled 
        $10.0 million, or approximately $0.21 per diluted share; including the 
        $8.4 million termination fee paid to ValueAct Capital
      
    
    
      Catalina Marketing Corporation (NYSE:POS) today reported financial 
      results for the second quarter ended June 30, 2007.
    
    
      For the quarter ended June 30, 2007, consolidated revenues were $117.2 
      million compared with revenues of $105.2 million in the same period of 
      the prior year. Consolidated net income, which reflected increased 
      expenses associated with the color printer initiative, stock-based 
      compensation expenses and one-time costs related to the pending sale of 
      the company, was $3.7 million, or $0.08 per diluted share, 
      compared with net income of $14.0 million, or $0.30 per diluted share, 
      in the same quarter of the prior year. These results include the effect 
      of one-time costs related to the pending sale of the company totaling 
      $10.0 million which included a fee paid to ValueAct Capital of $8.4 
      million for the termination of the merger agreement between the two 
      companies.
    
    
      The company will not hold an earnings call related to the quarter ended 
      June 30, 2007. For additional information regarding the company’s 
      second quarter performance please review the Form 10-Q for the June 30, 
      2007 period to be filed on August 2, 2007.
    
    
      On July 9, 2007, the company filed a definitive proxy statement for a 
      special meeting of stockholders for the purpose of voting on a proposal 
      to approve its previously announced merger agreement with funds 
      affiliated with Hellman & Friedman LLC. The special meeting is scheduled 
      to be held at the offices of Paul, Hastings, Janofsky & Walker LLP, 75 
      East 55th Street, New York, NY, on August 13, 2007 at 10 A.M. Eastern 
      Daylight Time. Stockholders of record as of the close of business on 
      June 28, 2007 will be entitled to vote at the special meeting of 
      stockholders.
    
    
      About Catalina Marketing Corporation
    
    
      Based in St. Petersburg, FL, Catalina Marketing Corporation (www.catalinamarketing.com) 
      was founded over 20 years ago based on the premise that targeting 
      communications based on actual purchase behavior would generate more 
      effective consumer response. Today, Catalina Marketing combines 
      unparalleled insight into consumer behavior with dynamic consumer 
      access. This combination of insight and access provides marketers with 
      the ability to execute behavior-based marketing programs, ensuring that 
      the right consumer receives the right message at exactly the right time. 
      Catalina Marketing offers an array of behavior-based promotional 
      messaging, loyalty programs and direct-to-patient information. 
      Personally identifiable data that may be collected from the company's 
      targeted marketing programs, as well as its research programs, are never 
      sold or provided to any outside party without the express permission of 
      the consumer.
    
    
      Cautionary Statement
    
    
      Certain statements in the preceding paragraphs are forward-looking, 
      and actual results may differ materially. Statements not based on 
      historic facts involve risks and uncertainties, including, but not 
      limited to, potential complications, hardware and software issues and 
      delays related to the schedule, installation and operation of color 
      printers, the effectiveness of color printers to increase sales and 
      redemption rates or provide a more effective advertising medium, the 
      changing market for promotional activities, especially as it relates to 
      policies and programs of packaged goods and pharmaceutical manufacturers 
      and retailers, government and regulatory statutes, rules, regulations 
      and policies, the effect of economic and competitive conditions and 
      seasonal variations, actual promotional activities and programs with the 
      company's customers, the pace of installation of the company's store 
      network including as it relates to the installation of color printers in 
      existing and future retail channels, the acceptance by the company's 
      manufacturer clients and retailers of color printers and related new and 
      additional terms and conditions, the success of new services and 
      businesses and the pace of their implementation, the company's ability 
      to maintain favorable client and retailer relationships, the occurrence 
      of any event, change or other circumstances that could give rise to the 
      termination of the merger agreement with funds affiliated with Hellman & 
      Friedman LLC, the outcome of any legal proceedings that have been or may 
      be instituted against the company related to the merger agreement; the 
      inability to complete the merger due to the failure to obtain 
      stockholder approval for the merger or the failure to satisfy other 
      conditions to completion of the merger; and risks that the proposed 
      transaction diverts management or disrupts current plans and operations 
      and any potential difficulties in employee retention as a result of the 
      merger and the impact of the substantial indebtedness to be incurred to 
      finance the consummation of the merger.