R.H. Donnelley Announces 2008 Guidance and $100 Million Share Repurchase Plan

CARY, N.C., Dec. 4  /PRNewswire-FirstCall/ -- R.H. Donnelley Corporation (NYSE:RHD), one of the nation's leading Yellow Pages and online local commercial search companies, will be providing 2008 financial guidance today at the UBS 35th Annual Global Media & Communications Conference.  During the presentation, which will begin at 8:00 a.m. EDT, the company will forecast:

  -- Advertising sales of $2,745 million.
  -- Adjusted EBITDA, excluding the impact of FAS 123 R expense and purchase
     accounting and related expenses, of at least $1,440 million and
     operating income of $930 million.
  -- Free cash flow of at least $620 million and operating cash flow of
     $710 million.
  -- Net debt at year end, excluding the fair value adjustment of
     $0.1 billion, of approximately $9.5 billion.
  -- Weighted average fully diluted shares outstanding during 2008 of
     approximately 72.5 million


  (Logo: http://www.newscom.com/cgi-bin/prnh/20060731/NYM044LOGO )


During its presentation, the company will also affirm its 2007 outlook, which was last updated on October 25, 2007, with the exception of weighted average fully diluted shares outstanding for the year, which is now expected to be 72.0 million versus the previous guidance of 72.5 million.   See the attached appendix for a reconciliation of the foregoing non-GAAP measures to the most comparable GAAP measures. Advertising sales is a statistical measure and consists of sales of advertising in print directories distributed during the period and Internet-based products and services with respect to which such advertising first appeared publicly during the period.  It is important to distinguish advertising sales from net revenue, which is recognized under the deferral and amortization method.

The company also announced today that its Board of Directors has authorized the purchase of up to $100 million of its common stock over the next 12 months.  These purchases will be made based on market conditions and other factors and may be made or suspended at any time.

For those unable to attend the conferences, a live audio Web cast of the presentation can be accessed by visiting our Web site at http://www.rhd.com/, clicking on "Investor Relations" and following the instructions provided.  In addition, an archived version of the presentation will be available on RHD's Web site for up to one year from the date of the call.

Helping Local Businesses Reach More Customers

R.H. Donnelley's interactive offerings are essential to its Triple Play(TM) solution suite -- an integrated set of products and services that efficiently and effectively extend the marketing reach of local businesses. Spanning multiple media platforms -- print Yellow Pages directories, DexKnows.com search site and the major search engines (e.g. Yahoo!(R) and Google(R)) via the Company's Dex Search Marketing(R) tools -- Triple Play delivers local businesses' advertisements to a wider set of ready-to-buy consumers.

About R.H. Donnelley

R.H. Donnelley connects businesses and consumers through its portfolio of print and interactive marketing solutions.  Small- and medium-sized businesses look to R.H. Donnelley's experienced team of marketing consultants to help them grow their companies and drive sales leads.  Consumers depend on the Company's reliable, local business content to deliver the most relevant search results when they are seeking local goods and services.  For more information, visit http://www.rhd.com/ and DexKnows.com.

Safe Harbor Provision

Certain statements contained in this press release regarding RHD's future operating results or performance or business plans or prospects and any other statements not constituting historical fact are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.  Where possible, the words "believe," "expect," "anticipate," "intend," "should," "will," "planned," "estimated," "potential," "goal," "outlook" and similar expressions, as they relate to RHD or its management, have been used to identify such forward-looking statements.  All forward- looking statements reflect only RHD's current beliefs and assumptions with respect to future business plans, prospects, decisions and results, and are based on information currently available to RHD.  Accordingly, the statements are subject to significant risks, uncertainties and contingencies, which could cause RHD's actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by, these statements.

The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: (1) the risk that the legacy Dex and RHD businesses will not continue to be integrated successfully; (2) the risk that the expected strategic advantages and remaining cost savings from the Dex Media merger may not be fully realized or may take longer to realize than expected; (3) disruption from the Dex Media merger making it more difficult to maintain relationships with customers, employees or suppliers; and (4) general economic conditions and consumer sentiment in our markets. Additional factors that could cause RHD's results to differ materially from those described in the forward-looking statements are described in detail in RHD's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 in Item 1A "Risk Factors" as well as RHD's other periodic filings with the SEC that are available on the SEC's website at http://www.sec.gov/.

   Amounts in millions, except for percentages

                                            Full Year 2008    Full Year 2007
                                                Outlook           Outlook
  Reconciliation of adjusted EBITDA(1)
   to operating income - GAAP and
   adjusted EBITDA excluding SFAS
   No. 123 R outlook to
   operating income - GAAP outlook

  Adjusted EBITDA
  Adjusted EBITDA excluding SFAS
   No. 123 R outlook                            $1,440            $1,440
  Less: Depreciation and amortization             (470)             (440)
  Less: SFAS No. 123 R expense and
   amounts related to former BDC
   restricted stock awards                         (40)              (40)
  Adjusted operating income
  Adjusted operating income outlook                930               960

  Less: Deferred cost uplift                         -               (30)
  Operating income - GAAP
  Operating income - GAAP outlook                 $930              $930



                                           Full Year 2008     Full Year 2007
                                               Outlook            Outlook
  Calculation of adjusted EBITDA margin
   excluding SFAS No. 123 R outlook

  Net revenue - GAAP outlook                    $2,745            $2,680
  Adjusted EBITDA excluding SFAS
   No. 123 R outlook                            $1,440            $1,440

  Adjusted EBITDA margin excluding SFAS
   No. 123 R outlook                                53%               53%



                                           Full Year 2008     Full Year 2007
                                               Outlook            Outlook
  Reconciliation of cash flow from
   operations - GAAP to free cash flow
   and cash flow from operations - GAAP
   outlook to free cash flow outlook

  Cash flow from operations - GAAP
  Cash flow from operations - GAAP
   outlook                                        $710              $685
  Less: Additions to fixed assets and
   computer software                               (90)              (85)
  Free cash flow                                     -                 -
  Free cash flow outlook                          $620              $600



   Amounts in billions, except for ratios

                                           Full Year 2008     Full Year 2007
                                               Outlook            Outlook
  Reconciliation of net debt - GAAP and
   GAAP outlook to net debt - excluding
   fair value adjustment outlook(2)

  Net debt - GAAP
  Net debt - GAAP outlook                         $9.6             $10.0
  Less: Fair value adjustment due to
   purchase accounting                            (0.1)             (0.1)
  Net debt - excluding fair value
   adjustment                                        -                 -
  Net debt - excluding fair value
   adjustment outlook                             $9.5              $9.9


  Notes to Schedules

  (1)  EBITDA represents earnings before interest, taxes, depreciation and
       amortization.  Adjusted EBITDA represents adjusted earnings before
       interest, taxes, depreciation and amortization. Adjusted pro forma
       EBITDA represents adjusted pro forma earnings before interest, taxes,
       depreciation and amortization. EBITDA, adjusted EBITDA and adjusted
       pro forma EBITDA are not measurements of operating performance
       computed in accordance with GAAP and should not be considered as a
       substitute for operating income or net income prepared in conformity
       with GAAP.  In addition, EBITDA may not be comparable to similarly
       titled measures of other companies.

  (2)  As a result of purchase accounting, RHD was required to adjust the
       carrying value of Dex Media's debt at January 31, 2006 to its fair
       value. Net debt -- GAAP represents total debt less cash and cash
       equivalents for the respective period. Net debt -- excluding fair
       value adjustments represents net debt -- GAAP adjusted to remove the
       remaining fair value purchase accounting adjustment of Dex Media's
       debt.


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DATASOURCE: R.H. Donnelley Corporation



CONTACT:  Investors, James M. Gruskin, 1-800-497-6329, or media, Tyler D.

Gronbach, [phone], both of R.H. Donnelley Corporation



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

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