Valassis Reports Earnings Growth on Lower Revenues

LIVONIA, MI—Feb 22, 2010—Valassis (NYSE: VCI) today announced financial results for the fourth quarter and full-year ended Dec. 31, 2009. We reported quarterly revenue of $605.0 million, a decrease of 3.4% from $626.3 million for the prior year quarter. Fourth-quarter net earnings was $24.0 million compared to a loss of $222.0 million for the prior year quarter which included a $245.7 million non-cash impairment charge ($223.4 million, net of tax) related to goodwill and other intangible assets.

Excluding this impairment charge, earnings for the fourth quarter 2008 would have been $1.4 million or $0.03 per share. For the fourth quarter of 2009, adjusted EBITDA* was $79.9 million, an increase of 27.6% compared to $62.6 million for the prior year quarter.

Full-year 2009 revenue was $2.244 billion, a decrease of 5.8% from full-year 2008 revenue of $2382 billion. Excluding revenue of $23.7 million from divested and discontinued businesses from the prior year, the revenue decline for full-year 2009 would have been 4.8%.

Net earnings for full-year 2009 was $66.8 million, or $1.36 per share, compared to a full-year 2008 net loss of $209.7 million,(1) or $4.37 per share,(1) which included the aforementioned impairment charge. Excluding this impairment charge, full-year 2008 earnings would have been $13.7 million or $0.29 per share. Full-year 2009 adjusted EBITDA* was $262.7 million, up 21.2% from full-year 2008 adjusted EBITDA* of $216.8 million.

“Our team did a tremendous job growing earnings in a challenging economic environment,” said Alan F. Schultz, Valassis Chairman, President and CEO. “I have never been more optimistic about the future of our business. As the combined forces of improved operating leverage and economic conditions come together, I believe we are in a strong position for future growth.”

Some additional highlights include:

• Cost Management: Fourth-quarter 2009 selling, general and administrative (SG&A) costs were $91.4 million, which includes $2.0 million in legal costs related to the recently settled News America lawsuits compared to prior year quarter SG&A costs of $97.9 million, which included $2.5 million in legal costs.

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