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Valassis Authorizes Its Fourth 5-Million Share Repurchase

Thursday, January 17, 2002

Press release from the issuing company

LIVONIA, Mich., Jan. 16 - Valassis announced that its board has authorized the company's fourth consecutive 5-million share repurchase program. The new 5 million-share allotment represents approximately 9% of the shares outstanding. Management stated that it remains committed to allocating at least 50% of its yearly free cash flow to share repurchase. The company still has approximately 500,000 shares left under its current authorization, and expects to complete the purchase of these shares by the end of the first quarter of 2002. "We expect to generate between $120 - $130 million in cash flow in 2002,'' said Alan F. Schultz, Valassis Chairman, President and CEO. "With moderate capital expenditure requirements and low debt levels, share repurchase is a great way to enhance shareholder returns.'' Certain provisions in the company's public debt restrict share repurchase to approximately 50% of net income, until the company reaches a debt/ebitda ratio of 1:1. Valassis expects to reach this level within the next year, giving it the option to increase share repurchase levels beyond their current spending. Over the last 6 years, the company has bought in over 14.5 million shares of Valassis stock.




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