Valassis Reports Net Earnings Increase, Revenue Decline

Capital Expenditures: Capital expenditures for the third quarter of 2009 were $4.9 million, and we expect full-year 2009 expenditures of approximately $20 million.

Liquidity: Third-quarter 2009 cash flows from operating activities was $14.0 million with a decrease in debt of $40.9 million. Year to date, we have paid down $150.1 million in debt. As of Sept. 30, 2009, our net debt position was $941.6 million. During the quarter, we completed four "modified Dutch" auctions in which we repurchased and retired $39.3 million of our outstanding term loan B and delayed draw term loans under our senior secured credit facility at an average discount of 2.6% to par resulting in an after-tax net gain of $0.4 million.