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R.R. Donnelley Acquires Momentum Logistics

Press release from the issuing company

Chicago, IL - March 6 - R.R. Donnelley announced today that it has acquired Momentum Logistics, Inc. (MLI) a Florida-based provider of package distribution services in the Southeastern United States, for approximately $17 million. MLI's revenues were approximately $60 million in 2002. "This investment strengthens our logistics capabilities and supports R.R. Donnelley's strategy to grow high-return businesses," said William L. Davis, chairman, president and chief executive officer of R.R. Donnelley. "We continue to expand our suite of services to create additional value for our customers." MLI operates sortation facilities and a dedicated fleet of vehicles to provide business-to-business and business-to-consumer package distribution services. In the business-to-consumer segment, MLI leverages the United States Postal Service (USPS) for last mile delivery to the home. By reaching over 1,000 local post offices each day, MLI has established itself as the premier delivery service provider in the Southeast. The acquisition gives R.R. Donnelley Logistics direct access to hundreds of local entry points in the USPS network in the Southeast. The investment improves capabilities and enables further growth in package logistics, and improves the efficiency and control of print shipments for R.R. Donnelley's print customers. "R.R. Donnelley Logistics is positioned well for profitable growth in 2003," said John Campanelli, president of R.R. Donnelley Logistics. "This acquisition and the York, PA SuperCenter opening later this year, together enhance our capabilities and improve the service offering we'll deliver to print and package customers." As part of the R.R. Donnelley Logistics national network, current MLI customers will see improved nationwide delivery service, as well as additional offerings that are economical, reliable and easy to use. These offerings include more predictable delivery schedules to local post offices across the country and end-to-end package tracking, offered in conjunction with the USPS.