Catalina Marketing Sells Direct Marketing Services Division to Valassis

Catalina Marketing Sells Direct Marketing Services Division to
Valassis 


ST. PETERSBURG, Fla., Sept. 20  /PRNewswire-FirstCall/ -- Catalina Marketing
Corporation (NYSE:POS) and Valassis (NYSE:VCI) today jointly announced the sale
of Catalina Marketing's direct mail division, Catalina Marketing Direct
Marketing Services, to Valassis out of cash for an undisclosed amount. As part
of the agreement, Valassis is pleased to assume and honor all existing Catalina
Marketing Direct Marketing Services customer contracts and employees.

This transaction supports Catalina Marketing's previously announced strategy to
focus on proprietary applications delivered at the point-of-sale and enhances
Valassis' existing 1 to 1 direct mail business. Both Catalina Marketing Direct
Marketing Services and Valassis' 1 to 1 direct mail business specialize in
direct mail that is targeted based on the actual consumer purchase behavior and
lifestyle changes of consumers.

"With the sale of our Direct Marketing Services division to Valassis, Catalina
Marketing continues our focus on core business applications and positioning the
company for long-term profitable growth," said Dick Buell, chief executive
officer of Catalina Marketing. "We are pleased to have found a partner in this
transaction that values the good work and talent of our Direct Marketing
Services employees and will invest in their further success."

"Combining our expertise provides exceptional solutions and service
capabilities for our customers, and an opportunity for accelerated growth in
the area of targeted direct mail," said Alan F. Schultz, chairman, president
and chief executive officer of Valassis. "We will work with our customers and
explore opportunities to create greater value for them while maintaining the
integrity and confidentiality of their frequent shopper data. Incorporating the
best practices of each organization, including continued relationships with
high-quality vendors, will create 'best in class' direct marketing solutions
for our customers."

Gridley & Company LLC participated as Catalina Marketing's financial advisor
throughout the execution of this deal.

About Catalina Marketing Corporation

Based in St. Petersburg, Fla., Catalina Marketing Corporation
(http://www.catalinamarketing.com/ ) was founded 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 given to any outside party without the express permission of
the consumer.

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, the changing market for
promotional activities, especially as it relates to policies and programs of
packaged goods and pharmaceutical manufacturers for the issuance of certain
product coupons and other promotions, 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, the policies and programs of the company's retail partners, the
success of new services and businesses and the pace of their implementation,
and the company's ability to maintain favorable client relationships.

About Valassis

Valassis offers a wide range of marketing services to consumer packaged goods
manufacturers, retailers, technology companies and other customers and has
operations in the United States, Europe, Mexico and Canada. Valassis'
Connective Media(TM) portfolio includes: newspaper advertising & inserts,
preprints, sampling, direct mail, 1 to 1 marketing programs, coupon clearing
and consulting and analytic services. Valassis has been listed as one of
Fortune magazine's "Best Companies to Work For" for seven consecutive years.
Valassis subsidiaries and investments include Valassis Canada, PreVision
Marketing(R), LLC, Coupons, Inc., Promotion Watch, Valassis Relationship
Marketing Systems, LLC and NCH Marketing Services, Inc. For additional
information, visit the company Web site at http://www.valassis.com/ .

Certain statements found in this document constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements involve known and unknown risks and
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among others, the following:
price competition from the Company's existing competitors; new competitors in
any of the Company's businesses; a shift in customer preference for different
promotional materials, strategies or coupon delivery methods; an unforeseen
increase in the Company's paper costs; economic disruptions caused by terrorist
activity, armed conflict or changes in general economic conditions; or changes
which affect the businesses of our customers and lead to reduced sales
promotion spending. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

  Catalina Marketing Contacts:

  INVESTOR CONTACTS:
  Christopher W. Wolf
  Executive Vice President, Chief Financial Officer
  Catalina Marketing Corporation
  [phone]

  Joanne Freiberger
  Vice President, Finance
  Catalina Marketing Corporation
  [phone]

  MEDIA CONTACT:
  Susan Gear
  Executive Director, Corporate Marketing
  Catalina Marketing Corporation
  [phone]

  Valassis Contact:

  INVESTOR CONTACT:
  Sherry Lauderback
  Director of Investor Relations and Communications
  Valassis
  [phone]
  

  MEDIA CONTACT:
  Tamara Oliverio
  Public Relations
  Valassis
  [phone]
  

DATASOURCE: Catalina Marketing Corporation; Valassis



CONTACT: Investors, Christopher W. Wolf, Executive Vice President, Chief

Financial Officer, [phone], or Joanne Freiberger, Vice President,

Finance, [phone], both of Catalina Marketing Corporation; or Sherry

Lauderback, Director of Investor Relations and Communications,

[phone], or  , of Valassis; or media, Susan

Gear, Executive Director, Corporate Marketing, Catalina Marketing Corporation,

[phone]; or Tamara Oliverio, Public Relations, Valassis,

[phone], or  



Web site:  http://www.catalinamarketing.com/

http://www.valassis.com/ 

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