Valassis Posts Revenue Decline, Reduces It 2011 Outlook

• Stock Repurchases: During the quarter, we repurchased $50.0 million, or 2.1 million shares, of our common stock at an average price of $23.86 per share under the stock repurchase program. Year to date, we have repurchased $155.8 million, or 5.9 million shares of our common stock. We currently have 4.5 million shares authorized by our Board of Directors in our stock repurchase program. The stock repurchase program does not obligate us to acquire any particular amount of shares of common stock, and may be modified or suspended at any time at our discretion.

Outlook

Global economic uncertainty has resulted in a combination of factors that have negatively affected our business including: a decline in client advertising budgets, the aforementioned high coupon redemption and subsequent reduction in programs as CPG manufacturers have prematurely exhausted annual consumer promotion budgets.

Based on our current outlook, we have revised our full-year 2011 guidance as follows:

• adjusted EBITDA to be $315.1 million, compared to our previous adjusted EBITDA* guidance of approximately $355 million; and

• 2011 annual capital expenditures to be approximately $27 million, compared to our previous guidance of $30 million.

Business Segment Discussion

• Shared Mail: Revenues for the third quarter of 2011 were $330.5 million, an increase of 1.3 percent compared to the prior year quarter. Segment profit for the quarter was $46.2 million, an increase of 17.6 percent compared to the prior year quarter. The improvement in segment profit was driven primarily by an increase in revenue per package attributed to our pricing initiative and ongoing cost containment efforts.

• Neighborhood Targeted: Revenues for the third quarter of 2011 were $76.9 million, a decrease of 32.5 percent compared to the prior year quarter. Revenue results for this segment were primarily due to a $25.0 million decrease in ROP revenue as well as the aforementioned reduction in CPG programs. Segment profit for the quarter was $0.4 million, a decrease of 94.4 percent compared to the prior year quarter. Segment profit was negatively impacted by margin pressure associated with a changing client mix and the aforementioned revenue shortfall.

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