LIVONIA, Mich., June 26 -- Valassis, the leading company in marketing services and Connective Media(TM), today announced that it lowered its diluted earnings per share (EPS) range for 2006 to $1.60 to $1.80, compared to the previously projected EPS range provided on October 20, 2005 of $1.95 to $2.15. The company attributed this shortfall to continued softness in Free-standing Insert and Neighborhood Targeted page volumes. Both segments are also experiencing pricing pressure. The company also noted that EPS will be negatively affected by the voluntary suspension of the share repurchase program as management reviews strategic alternatives to enhance shareholder value. "While we are disappointed to lower our guidance, we continue to see momentum build toward the second half of the year," said Alan F. Schultz, Chairman, President and CEO. "We believe the fundamentals of our business remain sound, and we have experienced successes in the first half that should better position us for the future." Management noted that the revised EPS guidance range for the second quarter is $0.38 to $0.42, compared to the previously projected EPS range provided on February 16, 2006 of $0.49 to $0.55. Management will provide third and fourth quarter guidance when second quarter results are announced on July 27, 2006.