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Valassis to Reach Historic Milestone of $1 Billion in Revenue in 2004

Diversified Products and Integrated Solutions Drive Company's Growth

LIVONIA, Mich., Dec. 20 /PRNewswire-FirstCall/ -- Valassis (NYSE: VCI - News), the leading company in marketing services and Connective Media(TM), announced today it is projected to attain $1 billion in revenue for the first time in its history. The company's ongoing diversification of its product portfolio, expanding customer base and integrated solutions serve as key drivers of its growth.

"Valassis has reached a historic milestone in 2004," said Alan F. Schultz, Chairman, President and CEO. "Our success in becoming a billion-dollar company is a direct result of our employees driving toward our Vision. We are looking forward to building on this momentum in 2005."

Incorporated in 1970, Valassis began with three people in the family room of its founder, George F. Valassis, as a sales agent for printing companies. Once a one-product, one-customer segment business, Valassis has transformed itself into the only marketing services company that offers home-delivered promotional media products and services targeted to the mass, neighborhood and household levels. In 2002 the company launched its integrated solution program to combine three or more of its products and services into a single marketing solution that can synergistically support the marketing objectives of the client.

Valassis sold one integrated solution in the first year of the program; since then the company has grown its integrated solutions sales from 20 in 2003 to 62 in 2004, a 210% increase. At the same time, Valassis has significantly broadened its customer base. In addition to its original consumer packaged goods (CPG) customer segment, the company now does business with 80 of Advertising Age's 100 Leading U.S. Advertisers, including customers from the specialty retail, franchise food, direct marketers, consumer services and grocery retail industries.

"Our integrated solutions strategy not only has expanded our customer base, it has influenced how we approach our business," said Richard Herpich, Valassis' Executive Vice President for U.S. Sales. "Our sales force is fast becoming the best in the business at solution selling that focuses on achieving customer marketing objectives. We are now involved as strategic marketing partners in planning meetings with our customers."

Along with the success of its product diversification and integrated solutions strategies, a number of macro trends, including larger marketing budgets and the movement of marketing dollars towards home-delivered media, have contributed to increased demand for Valassis products in 2004. The company believes that it will continue to benefit from these strategies and trends in 2005.

About Valassis

Valassis offers a wide range of marketing services to consumer packaged goods manufacturers, retailers, technology companies and other customers with operations in the United States, Europe, Mexico and Canada. Valassis' products and services portfolio includes: newspaper advertising & inserts, preprints, sampling, direct mail, 1 to 1 marketing programs, coupon clearing and consulting and analytic services. Valassis has been listed as one of Fortune magazine's "Best Companies to Work For" for seven consecutive years. Valassis subsidiaries and investments include Valassis Canada, PreVision Marketing®, LLC, Coupons, Inc., Promotion Watch, Valassis Relationship Marketing Systems, LLC and NCH Marketing Services, Inc. For additional information, visit the company Web site at .

Certain statements found in this document constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks and uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: price competition from the Company's existing competitors; new competitors in any of the Company's businesses; a shift in customer preference for different promotional materials, strategies or coupon delivery methods; an unforeseen increase in the Company's paper costs; economic disruptions caused by terrorist activity, armed conflict or changes in general economic conditions; or changes which affect the businesses of our customers and lead to reduced sales promotion spending. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Source: Valassis


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