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IWCO Direct To Expand North Carolina And Minnesota facilities

Press release from the issuing company

Chanhassen, Minn. (June 24, 2008) –IWCO Direct, the nation's leading provider of integrated direct mail production services and marketing solutions, has announced it will undertake strategic initiatives to meet the growing demand for low cost, high value marketing solutions in the wake of year-over-year postage increases. These initiatives include enhancing postal optimization opportunities by expanding capacity in North Carolina and Minnesota to realize greater postage savings through increased scale at these facilities. IWCO Direct will close its Melville, NY facility and relocate all equipment assets to North Carolina and Minnesota.

Expanded Postage Optimization and Turnkey Marketing Solutions

The relocation will add capacity and scale to IWCO Direct's platform while lowering operating and logistics costs. To accommodate both the rapid marketplace acceptance of AMP following its April launch, and increased pressure on marketers to reduce the overall cost of both acquisition and retention mailings, IWCO Direct will centralize AMP capabilities in Minnesota with the addition of four-color digital cut sheet and roll-fed capabilities.

The new platform will expand production to more than 250 million packages each month. The higher concentration of work in North Carolina and Minnesota will enhance opportunities for postal savings through IWCO Direct's commingling and logistics solutions. AMP-based campaigns will now be able to achieve postage savings typically available only to high-volume mailers.

 "These changes optimize our powerful turnkey locations with additional capacity and capabilities, improved speed-to-market, and geographic file-splitting," said Jim Andersen, IWCO Direct president and CEO. "In addition to increasing throughput and lowering operating costs, we are addressing environmental concerns about direct mail by concentrating all work in energy efficient facilities equipped with high efficiency machines and processes."

IWCO Direct will add positions in Minnesota to support AMP and the new digital print capabilities. The expansion in North Carolina allows up to 40 employees to relocate from New York. The consolidation of facilities will result in the reduction of approximately 200 New York positions.

IWCO Direct anticipates continuing to demonstrate the strength of its market-leading vertically integrated solution by increasing its geographic reach through an acquisition in the western US in 2009.