Valassis Merges Cluster-Targeted Products Into Single Division

Mary Ann Rivers Named Executive Vice President of New Division



Apr 17, 2001, 01:00 ET from Valassis Communications, Inc.

    LIVONIA, Mich., April 17 /PRNewswire/ -- In conjunction with its recent
 market repositioning as the nation's premier provider of Connective Media (TM)
 solutions, Valassis (NYSE:   VCI) announced that it has organized its divisions
 to better reflect its mass, cluster-targeted and one-to-one media services. As
 a result of this change, former Valassis Impact Promotions and Targeted
 Marketing Services divisions will be merged into one, under the leadership of
 Executive Vice President, Mary Ann Rivers.
     The company will report first quarter 2001 earnings on April 26th under
 the new division structure. Division breakdowns and year-ago comparisons
 follow:
 
     Mass-Distributed Products:                Q 1 2000 Revenues (in millions)
 
     Co-op free-standing inserts                           $164.2
     Run-of-press advertising                                 5.0
     Total Mass Distributed:                               $169.2
 
     Cluster-Targeted Products:
     Includes former VIP and TMS divisions
     VIP                                                    $33.9
     Sampling/Advertising segment of TMS                      8.3
     Total Cluster-Targeted:                                $42.2
 
     One-to-One Products:
     Includes:                                               $0.9
     Customer Relationship Marketing products
      and services*
     Internet initiatives*
     Consulting services
 
     *Note: Majority of revenues not consolidated
 
     Other revenue (interest income)                        $0.2
 
     Total Revenues                                       $212.5
 
     "We believe our new structure is more reflective of how Valassis does
 business today. The former VIP and TMS divisions had similar growth rates,
 margin structure and cluster-targeted product offerings, sold primarily to the
 same existing and potential clients," said Al Schultz, chairman, president and
 CEO.  "We offer our clients the broadest spectrum of connective media
 solutions, and this new structure is the most logical way to communicate this
 capability to our clients."
     Valassis connects people to brands through our wide range of marketing
 services programs offered to a variety of premier manufacturers and retailers.
 From mass, cluster targeted, to one-to-one communications, Valassis leads the
 industry in providing Connective Media(TM) solutions. The company does
 business with the majority of the nation's top advertisers, and holds the
 dominant position in all the markets in which it competes. These include
 newspaper-delivered co-op and specialty inserts, advertising, product
 sampling, direct mail, direct-to-door, on-line promotions, customer
 relationship marketing programs, and consulting services -- all of which build
 relationships with consumers on behalf of a brand. Established in 1970,
 Valassis is headquartered in Livonia, Michigan, with printing and
 manufacturing facilities in Michigan, North Carolina, Kansas, and Mexico,
 providing the company low-cost producer status. The company's innovative
 employee practices have resulted in many awards, including status as Fortune
 Magazine's 26th Best Company to Work for in America. Valassis subsidiaries and
 investments include Valassis Canada, PreVision Marketing(R), LLC, Independent
 Delivery Services, Inc., Save.com LLC, Coupons.com, and Valassis Relationship
 Marketing Systems, LLC. For additional information, visit the company website
 at 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:
 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; or general
 business and economic conditions. 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.
 
 

SOURCE Valassis Communications, Inc.
    LIVONIA, Mich., April 17 /PRNewswire/ -- In conjunction with its recent
 market repositioning as the nation's premier provider of Connective Media (TM)
 solutions, Valassis (NYSE:   VCI) announced that it has organized its divisions
 to better reflect its mass, cluster-targeted and one-to-one media services. As
 a result of this change, former Valassis Impact Promotions and Targeted
 Marketing Services divisions will be merged into one, under the leadership of
 Executive Vice President, Mary Ann Rivers.
     The company will report first quarter 2001 earnings on April 26th under
 the new division structure. Division breakdowns and year-ago comparisons
 follow:
 
     Mass-Distributed Products:                Q 1 2000 Revenues (in millions)
 
     Co-op free-standing inserts                           $164.2
     Run-of-press advertising                                 5.0
     Total Mass Distributed:                               $169.2
 
     Cluster-Targeted Products:
     Includes former VIP and TMS divisions
     VIP                                                    $33.9
     Sampling/Advertising segment of TMS                      8.3
     Total Cluster-Targeted:                                $42.2
 
     One-to-One Products:
     Includes:                                               $0.9
     Customer Relationship Marketing products
      and services*
     Internet initiatives*
     Consulting services
 
     *Note: Majority of revenues not consolidated
 
     Other revenue (interest income)                        $0.2
 
     Total Revenues                                       $212.5
 
     "We believe our new structure is more reflective of how Valassis does
 business today. The former VIP and TMS divisions had similar growth rates,
 margin structure and cluster-targeted product offerings, sold primarily to the
 same existing and potential clients," said Al Schultz, chairman, president and
 CEO.  "We offer our clients the broadest spectrum of connective media
 solutions, and this new structure is the most logical way to communicate this
 capability to our clients."
     Valassis connects people to brands through our wide range of marketing
 services programs offered to a variety of premier manufacturers and retailers.
 From mass, cluster targeted, to one-to-one communications, Valassis leads the
 industry in providing Connective Media(TM) solutions. The company does
 business with the majority of the nation's top advertisers, and holds the
 dominant position in all the markets in which it competes. These include
 newspaper-delivered co-op and specialty inserts, advertising, product
 sampling, direct mail, direct-to-door, on-line promotions, customer
 relationship marketing programs, and consulting services -- all of which build
 relationships with consumers on behalf of a brand. Established in 1970,
 Valassis is headquartered in Livonia, Michigan, with printing and
 manufacturing facilities in Michigan, North Carolina, Kansas, and Mexico,
 providing the company low-cost producer status. The company's innovative
 employee practices have resulted in many awards, including status as Fortune
 Magazine's 26th Best Company to Work for in America. Valassis subsidiaries and
 investments include Valassis Canada, PreVision Marketing(R), LLC, Independent
 Delivery Services, Inc., Save.com LLC, Coupons.com, and Valassis Relationship
 Marketing Systems, LLC. For additional information, visit the company website
 at 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:
 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; or general
 business and economic conditions. 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.
 
 SOURCE  Valassis Communications, Inc.