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IWCO Direct Announces Purchase of Valpak Production Facility in Elm City, North Carolina

Press release from the issuing company

Chanhassen, MN (October 30, 2006) IWCO Direct, a leading national provider of integrated direct mail solutions, and Valpak, a leading direct marketing company owned and operated by Cox Target Media, announced a joint agreement to sell the Valpak production facility in Elm City, N.C., to IWCO Direct. This transaction allows Valpak to complete its strategic expansion initiative to construct a new manufacturing facility in Florida due to its sustained growth while fulfilling the company's desire to provide employment opportunities for the Elm City production facility employees. In turn, IWCO Direct's acquisition of the facility enhances its strategic initiatives to deliver unsurpassed value to customers through expanded capacity, postal optimization, reduced cycle times and integrated solutions. In 2004, Valpak announced its decision to consolidate operations to Florida and launched an aggressive two-year marketing effort to find a buyer for the Elm City facility, working to ensure that employees would be able to retain employment in the area. During that same timeframe, IWCO Direct has aggressively expanded its production and distribution network through key acquisitions and technology investments. In July 2005, IWCO Direct acquired a Long Island, New York production facility and in November 2004, the company established a high-volume mail center at its Chanhassen, Minn., headquarters. "Valpak's mission has been to minimize the impact on employees," said Bill Disbrow, President and CEO of Cox Target Media. "Throughout this process we've searched for a solution like this that would best serve our employees and the Elm City community." "IWCO Direct is pleased to offer enhanced value to our customers through expanded capacity and the attractive geographic location this acquisition brings," commented Jim Andersen, IWCO Direct President and CEO. "This facility and its skilled workforce fully supports IWCO Direct's unique, integrated business model that delivers direct marketing like no one else." As part of the agreement, the 440 employees at the Elm City plant will have the opportunity to transition to IWCO Direct during the next 12 months. The phased-in transition will begin in April 2007 and will be complete by October 2007. In addition, IWCO Direct plans to add nearly 100 new positions over the next two years and invest $18.9 million over the next three years at the Elm City facility. Benefit to Elm City Area The agreement fulfills Valpak's commitment to assist its employees in maintaining their employment in the area. While the company searched for a buyer of the facility, Valpak employees were offered extensive training and the opportunity to apply for positions at the Florida plant, which includes a relocation package if hired. Through the agreement the plant will continue to operate as a production center. The state of North Carolina supported the agreement through a $375,000 One North Carolina Fund grant to IWCO Direct. Wilson County has matched that amount through its economic development program.

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