Quad/Graphics Creates New Division, Investing $13 Million to Expand Platform

SUSSEX, WI—Dec. 16, 2010—Quad/Graphics Inc., the second largest provider of print, digital and related media services in North America, has created a new Commercial and Specialty print division that combines the recently acquired HGI Co. operations in Burlington and Menomonee Falls, WI, with the commercial and book operations in Enfield, CT, and Leominster, MA. Quad/Graphics purchased the Enfield and Leominster plants earlier this year as part of its acquisition of Worldcolor.

In addition, the company will invest $13 million in equipment and facility expansions in 2011 for the Commercial and Specialty platform. The investment includes the addition of digital and conventional presses with industry-leading capabilities for short- to medium-run commercial work along with specialty print capabilities, such as large-format in-store signage and displays.

“Our new Commercial and Specialty offering complements our leading retail insert, direct mail, book, directory, magazine and catalog operations,” said Joel Quadracci, chairman, president and CEO of Quad/Graphics. “Through our investment in HGI and its Tempt in-store marketing promotions unit, we have broadened our services to all types of marketers and publishers, and positioned our company for future growth.”

Quad/Graphics’ Commercial and Specialty platform specializes in quick-turn and transactional commercial products such as marketing collateral; print-on-demand custom publications; short-run books, catalogs and directories; specialty binding; and in-store/point-of-purchase (POP) materials.

The company has already seen the benefits of offering its clients more services while leveraging its premedia, logistics and procurement capabilities. “We are bringing new value and differentiated services to the commercial and specialty print marketplace,” Mr. Quadracci said.

Added Craig Faust, previously president of HGI and now president of Quad/Graphics’ Commercial and Specialty print division: “Quad/Graphics is committed to redefining the market through an integrated service offering that combines the company’s commercial and specialty print operations with a nationwide network of related imaging, creative, logistics and other print services. At the same time, we remain acutely focused on serving our existing commercial and specialty clients, which includes books and direct mail, and delivering what the marketplace requires: quick turnaround, high quality and focused customer service.”

Quad/Graphics’ investment in state-of-the-art presses “puts an exclamation point on Quad’s promise to apply its successful strategy of innovation and industry-leading technology to this market,” Faust aded. “We are committed to delivering greater value and flexibility to all of our clients and today’s announcement is only the first step in enhancing and expanding our platform.”

About Quad/Graphics
Quad/Graphics (NYSE: QUAD) is a global provider of print and related multichannel solutions for consumer magazines, special interest publications, catalogs, retail inserts and circulars, direct mail products, books and directories. Headquartered in Sussex, Wis. (just west of Milwaukee), the company has approximately 26,000 employees working from approximately 80 locations throughout the United States, Canada, Latin America and Europe. As a printing industry innovator, Quad/Graphics (www.QG.com) is redefining the power of print in today’s multimedia world by helping its clients use print as the foundation of multichannel communications strategies to drive their top-line revenues.

Source: Company press release.