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Quad/Graphics to Print Newsweek in Oklahoma, Gets $85 Million Extension

Tuesday, March 11, 2003

Press release from the issuing company

SUSSEX, Wis.--March 10, 2003-- Quad/Graphics will print Newsweek magazine through 2009 under a new 5-year, $85 million dollar contract extension signed with Newsweek Inc. As part of the agreement, Newsweek becomes the first client of Quad/Graphics' all-new Oklahoma City plant, which will open later this year. "We have long valued our relationship with Newsweek and appreciate the publisher's ongoing confidence in our company, which it has just confirmed with a generous contract extension and the placement of additional work in our Oklahoma City facility," commented Tom Quadracci, President and CEO of Quad/Graphics. Production of Newsweek is slated to begin in Quad/Graphics' Oklahoma City plant this fall, joining the printer's other Newsweek production facilities in The Rock, Ga.; Hartford, Wis.; and Saratoga Springs, N.Y. Together the plants will produce more than 2 million combined copies of the magazine each week. Strategically located west of the Mississippi River, Quad/Graphics' Oklahoma City plant will offer Newsweek unparalleled newsstand distribution capabilities to growing markets in nearby states, particularly Texas. "It has been a goal of Newsweek's to have production in the central part of the country for many years, which is why the decision to add production of Newsweek in Oklahoma City was a vital part of this contract extension," said Angelo Rivello, Newsweek's senior vice president of Distribution and World-Wide Manufacturing. "The plant's location will provide the opportunity for us to better service newsstands and subscribers in Oklahoma, Texas and Louisiana, which are growing states for our business." Printer of the Year In other news, Quad/Graphics' Hartford, Wis., plant has been named Newsweek's Printer of the Year for 2002. The coveted achievement marks the 18th consecutive year a Quad/Graphics facility has earned the distinction. Newsweek judges its printers on nine key criteria: 1) quality, 2) paper waste on covers, 3) paper waste on current forms, 4) turnaround time from the last file to the first book, 5) time needed to produce the first 100,000 books, 6) bindery speeds, 7) press speeds, 8) bindery books per hour, and 9) service and support. "Quad/Graphics' performance is unquestionably at the top end of our production food chain, week in and week out," Mr. Rivello explained. "This business requires first-class state-of-the-art equipment, but at the end of the day, the personal relationship that exists with my staff and Quad's staff is most important to our overall production success." "We are elated to receive this honor for an 18th consecutive year," Mr. Quadracci said. "It is a testament to our ability to deliver consistently high-quality product in record speeds with minimal waste. I extend my congratulations to each and every Quad/Graphics employee." In addition to Quad/Graphics' Hartford plant, the printers' facilities in Saratoga Springs, N.Y., and The Rock, Ga., took third and fourth place, respectively. Newsweek is produced in five U.S. plants. A Newsworthy Partnership The renewed contract strengthens a relationship that began in 1977 and is considered the watershed moment for the then-6-year-old printer with a single facility in Pewaukee, Wis. Highlights of the 26-year relationship include: January 1977: Newsweek production begins in Quad/Graphics' Pewaukee plant with the printing of a single form - the covers for the February 7 issue featuring the gas crisis. October 1978: Quad/Graphics begins printing and binding full copies of Newsweek in its Pewaukee plant. 1984: Quad/Graphics receives Newsweek's coveted Printer of the Year award for the first time - a designation the company has never relinquished. May 1991: Quad/Graphics' plant in Saratoga Springs, N.Y., becomes the company's second Newsweek-producing plant. January 1994: Quad/Graphics transfers Midwest production of Newsweek from its Pewaukee facility to its two-year-old Hartford, Wis., plant. January 1996: Quad/Graphics' plant in The Rock, Ga., becomes the company's third Newsweek-producing plant. February 1997: Together, Quad/Graphics and Newsweek initiate an industry first: The March 3 issue represents the first complete computer-to-plate production of a newsweekly magazine. Press makeready time on covers is reduced by nearly 65 percent. March 2003: Quad/Graphics is named Newsweek's Printer of the Year for 2002, marking the 18th consecutive year in which a Quad/Graphics plant has won the award. The company's Pewaukee plant received the award between 1984 and 1993. In the nine years since, the company's Hartford plant has claimed the title with the exception of 1997 when Quad/Graphics' plant in The Rock placed first among Newsweek's printers.




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