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Vertis and American Color finalize Merger

Press release from the issuing company

NASHVILLE, TN (August 26, 2008) American Color Graphics, Inc.  announced today that its pre-packaged plan of reorganization has been confirmed by the U.S. Bankruptcy Court just 42 days after the filing of the Company's plan and related petitions. The confirmation order was signed by the Honorable Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware in Wilmington. It is expected that American Color will emerge from its pre-packaged chapter 11 within 10-20 days, at which time it will complete a planned merger with Vertis Communications. Both companies filed pre-packaged reorganization plans on July 15, 2008 to implement the merger. Vertis also received confirmation of their reorganization plan from Judge Sontchi today.

"During this restructuring, American Color has continued business as usual, meeting all of our obligations to our vendors, employees and customers," said Steve Dyott, Chairman and CEO of American Color. "We are extremely pleased with our progress toward a merger with Vertis. The combined company will be able to offer customers a broader range of capabilities, production options and innovative solutions."

Voluntary reorganization undertaken by the two companies will reduce the combined company's debt obligations by approximately $1 billion before transaction fees and expenses. The noteholders of American Color and Vertis will exchange their notes for an aggregate of $550 million in new notes and substantially all of the equity in the new, combined company.

At exit, American Color will have access to a $250 million Senior Secured Revolving Credit exit facility from GE Commercial Finance and a $400 million exit facility from Morgan Stanley Senior Funding, Inc., as lead arranger, to satisfy obligations under the prepackaged plan.

"The successful completion of our restructuring would not have been possible in such a short time without the dedication and support of our employees. We extend our heartfelt thanks to all of them for their continuing commitment to providing our customers with the high levels of quality and service they have come to expect from us. We also appreciate that our customers, suppliers, bondholders, and others have supported us in this vision," said Mr. Dyott. "Today's action brings us one step closer to realizing the benefits of merging our two great companies. We look forward to a bright future, better positioned to meet the challenges facing our industry, with greater financial strength and new resources," concluded Mr. Dyott.

Additional information on American Color's restructuring is available on the Company's website www.americancolor.com or by calling the Company's toll-free restructuring information line at (866) 739-8117.

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