New Catalina Marketing Color Prints Yielding 30% Higher Redemption Rates

  
    
  
  
    
      In an environment where traditional coupon redemption rates are steadily 
      declining, Catalina Marketing Corporation (NYSE:POS) announced today 
      that, based on recent research, the company’s 
      point-of-sale communications are delivering even higher redemption rates 
      since transforming from black and white to full-color, full-graphics 
      prints earlier this year.
    
    
      Recent research was conducted by Catalina Marketing with findings and 
      methodology validated by an independent third party, VSI Targeting, a 
      sister company of Carolina Manufacturer Services (CMS) coupon processor. 
      According to the new research, Catalina’s new 
      color print redemption rates are an average of 30% higher than the 
      company’s traditional black and white prints, 
      which have historically redeemed higher than virtually all other 
      mass-delivered coupons.
    
    
      The research, conducted over a four month period, compared the 
      redemption rates of coupons from more than 100 different Catalina 
      Marketing targeted offers printed in both color and black and white. 
      Results showed that the new full-color, full-graphics prints redeemed an 
      average of 30% higher than black and white.
    
    
      “Since our color prints were introduced 
      earlier this year, we’ve had positive feedback 
      from manufacturers, retailers and consumers. Our color initiative is on 
      course to improve what is already a highly effective platform as we 
      continue to significantly enhance the impact and effectiveness of our 
      targeted communications,” said Dick Buell, 
      chief executive officer of Catalina Marketing. “Having 
      these solid numbers to help validate our belief that Catalina’s 
      investment shows we are making a high impact connection with the 
      customer and delivering better results to our clients.”
    
    
      These studies began immediately after Catalina Marketing first announced 
      the company’s investment in new 
      state-of-the-art, Epson-designed color printers, to replace the thermal 
      printers that have been a staple in checkout lanes in major retail 
      chains throughout the U.S. for more than 20 years. Today, the new color 
      printers are installed and functioning in over 89,000 checkout lanes in 
      over 8,200 stores. This number represents over half of the 145,000 new 
      printers targeted for installation through the middle of 2007.
    
    
      About Catalina Marketing Corporation
    
    
      Based in St. Petersburg, Fla., 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.
    
    
      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, and the outcome 
      and impact of the pending shareholder class action and derivative 
      lawsuits.