LIVONIA, Mich., Aug. 25 -- Valassis, the leading company in marketing services and Connective Media, announced today that its Board of Directors has approved a new share repurchase program of up to five million shares of common stock. Sources of funding authorized by the Board for share repurchases under this new program and the existing program include utilizing up to $150 million of existing cash and up to 100% of future free cash flow. Currently, approximately 3.1 million shares remain authorized for purchase under the existing program. Under the new program, Valassis is authorized to acquire five million shares of its common stock from time to time in open market or private transactions. Valassis defines free cash flow as net income plus depreciation and amortization, minus capital expenditures. This new program marks Valassis' sixth share repurchase program. Starting in 1996, Valassis has completed four share repurchase programs and has partially completed the fifth. Although the Board concluded that share repurchase is the best value to shareholders at this time, the Board also noted its interest in offering a cash dividend in the future and indicated it would review a cash dividend plan at its September 2006 meeting. "Our Board considered various alternatives for the use of cash, and reviewed input from interested shareholders and analysts, before making a decision," said Alan F. Schultz, Chairman, President and Chief Executive Officer of Valassis. "This additional authorization by our Board demonstrates our financial strength and commitment to enhance the overall return to our shareholders."