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Value-centric Shoppers Save $3.7 Billion in 2010 Using Coupons

LIVONIA, Mich. Jan. 20, 2011 Valassis $3.7 billion $200 million

the United States

Suzie Brown Valassis Chief Marketing Officer.

Overall, 87.7% of all coupons were distributed in 2010 in the free-standing insert (FSI) coupon booklet. The FSI total growth was 19 billion coupons, the largest volume increase of all media, according to the NCH report. The second largest share of coupons distributed was via handout in-store media, amounting to 5.2% of the 2010 total. NCH also reported a 37% increase in the number of digital coupon offers.

In addition, the report indicates marketers continue to modify their offering characteristics. The following offer trends reveal:

  • $1.46
  • 26% required the purchase of two or more items to obtain the offer discount; and
  • 9.1 weeks average expiration, approximately a week and a half shorter than the prior year, a 14.2% decrease.

the United States

Charlie Brown

www.nchresourcecenter.com

About Valassis

Livonia, Michigan America’s Looking for Its Missing Children http://www.valassis.com http://www.redplum.com http://www.save.com.

Cautionary Statements Regarding Forward-looking Statements

This document contains "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 our actual results, performance or achievements 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 our existing competitors; new competitors in any of our businesses; a shift in client preference for different promotional materials, strategies or coupon delivery methods, including, without limitation, as a result of declines in newspaper circulation; an unforeseen increase in paper or postal costs; changes which affect the businesses of our clients and lead to reduced sales promotion spending, including, without limitation, a decrease of marketing budgets which are generally discretionary in nature and easier to reduce in the short-term than other expenses; our substantial indebtedness, and ability to refinance such indebtedness, if necessary, and our ability to incur additional indebtedness, may affect our financial health; the financial condition, including bankruptcies, of our clients, suppliers, senior secured credit facility lenders or other counterparties; our ability to comply with or obtain modifications or waivers of the financial covenants contained in our debt documents; certain covenants in our debt documents could adversely restrict our financial and operating flexibility; ongoing disruptions in the credit markets that make it difficult for companies to secure financing; fluctuations in the amount, timing, pages, weight and kinds of advertising pieces from period to period, due to a change in our clients’ promotional needs, inventories and other factors; our failure to attract and retain qualified personnel may affect our business and results of operations; a rise in interest rates could increase our borrowing costs; we may be required to recognize additional impairment charges against goodwill and intangible assets in the future; possible governmental regulation or litigation affecting aspects of our business; the credit and liquidity crisis in the financial markets could continue to affect our results of operations and financial condition; uncertainty in the application and interpretation of applicable state sales tax laws may expose us to additional sales tax liability; and general economic conditions, whether nationally, internationally, or in the market areas in which we conduct our business, including the adverse impact of the ongoing economic downturn on the marketing expenditures and activities of our clients and prospective clients as well as our vendors, with whom we rely on to provide us with quality materials at the right prices and in a timely manner. These and other risks and uncertainties related to our business are described in greater detail in our filings with the United States Securities and Exchange Commission, including our reports on Forms 10-K and 10-Q and the foregoing information should be read in conjunction with these filings.  We disclaim 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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