SAO PAULO, BRAZIL and ST. LOUIS, MO., July 18, 2001 - Donnelley Cochrane, a subsidiary of R.R. Donnelley (NYSE: DNY), and Directory Distributing Associates, Inc. (DDA), have formed Matrix Serviços de Logística, a new distribution company serving Brazil and throughout South America. "The vision for the new partnership is to become the leading and model company in distributing telephone directories, catalogs, specialized printings and goods directly to the homes of our customers' clients," said Lourenço Gonçalves, president of Matrix. "DDA is very excited about the partnership with Donnelley Cochrane and the opportunities in South America. Our new company enhances the print and distribution processes by offering customers a quality solution set to their production and delivery needs," said Gary Grimes, vice president international for DDA. "The creation of Matrix is aligned with our strategy to move a step ahead in this market by combining premedia, print and bind and logistics services to create a powerful, customized communications solution for our customers," said Robert O'Neil, senior vice president of sales, R.R. Donnelley. Donnelley Cochrane's customers include several major telephone directory publishers as well independent publishers. Donnelley Cochrane has operated in the South American market since 1994, originally through an association with Editorial Lord Cochrane of Santiago, Chile. With six plants in Brazil, Argentina and Chile, Donnelley Cochrane is the South American market leader in book and telephone directory production. DDA began operations in the 1930s and was incorporated in 1947. Since its inception, DDA's primary business has been telephone directory distribution and related services. DDA has significant knowledge in international consulting with experience on five continents. DDA's clients are Bell South Advertising & Publishing Corporation, SBC, Verizon, Cincinnati Bell Directory, The Berry Company and many independent publishers.