Business News

Valassis Enters Into Sale and Leaseback Agreement for Windsor, Conn. Locations

Wednesday 25. June 2008 - Net Proceeds to be Applied to Debt

Valassis (NYSE:VCI), one of the nation’s leading media and marketing services companies, announced today the sale of three company-owned buildings in Windsor, Conn. and the leaseback of two of those buildings, under long-term lease agreements. The building sales generated net cash proceeds of approximately $29 million. As required under the company’s March 2007 Senior Secured Credit Facility, the net proceeds from the building sales will be used to repay a portion of the company’s term loan B and delayed draw term loan portions of its Senior Secured Credit Facility.

Valassis sold buildings located at Ten Targeting Centre, One Targeting Centre and 235 Great Pond Drive, Windsor, Conn. The company entered into long-term lease agreements for the latter two buildings, used for office space and as a shared mail production facility, respectively.

“This decision is consistent with our overall corporate philosophy, management of our facilities and integration plans to drive efficiencies,” said Alan F. Schultz, Valassis Chairman, President and CEO. “We continue to focus our efforts on our core business and not the management of real estate. Our long-term lease of the Windsor buildings is reflective of our commitment to the shared mail business, the Windsor location and community.”