Business News

Fraser Papers and Valassis Announce Settlement Ending Legal Dispute

Monday 23. March 2009 - Valassis Communications, Inc. (NYSE:VCI) and Fraser Papers (TSX: FPS) announced today that they have settled all legal disputes between the two companies on undisclosed terms.

Fraser Papers filed a lawsuit against Valassis in the United States District Court, District of Maine on Dec. 8, 2008 alleging breach of contract for failure to pay for the purchase of specialty paper. In January 2009, Valassis filed an answer and counterclaim against Fraser Papers for breach of contract related to alleged defective paper purchased in 2005. Fraser had previously acknowledged that the paper purchased in 2005 did not meet the requirements for the printing application.

“Fraser did not file this case because of any concerns about Valassis’ ability to pay,” said Jeff Dutton, President and Chief Operating Officer, Fraser Papers. “Both Fraser and Valassis have more to gain from moving forward with their business relationship than litigating the past.”

“What began as a simple business dispute escalated into a lawsuit, and in the end, the dispute was resolved between the parties on mutually agreeable terms,” said Alan F. Schultz, Valassis Chairman, President and Chief Executive Officer. “We are pleased with the terms of the settlement.”