Despite Difficult Economy, Transcontinental Improves Profitability

A pre-tax amount of $7.5 million ($5.9 million after tax) was charged to the third quarter with respect to the consolidation of direct mail operations in the United States and the rationalization program announced in February 2009. In the first three quarters of fiscal 2009, these measures generated cost savings of about $50 million. The goal for fiscal 2009 is to save more than $75 million and, on an annualized basis, more than $100 million.