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Quad/Graphics to Become Exclusive Printer of U.S. News & World Report

Press release from the issuing company

SUSSEX, Wis.--Feb. 24, 2004-- Under terms of a newly signed contract extension, Quad/Graphics will become U.S. News & World Report's exclusive printer beginning in January 2005. At that time, Quad/Graphics will print all of U.S. News & World Report's 2.2 million weekly copies for distribution throughout the United States. The work, which will be produced entirely between Quad/Graphics' plants in Saratoga Springs, N.Y., and Oklahoma City, Okla., is another sign of Quad/Graphics' rapid growth. To accommodate this growth, the printer will install another web offset press in its Oklahoma City plant, requiring the construction of a new pressroom. When complete later this fall, the pressroom will measure 137,000 square feet - large enough to accommodate up to six web offset presses - and bring the Oklahoma City plant's square footage to 750,000 square feet. "Quad/Graphics presented us with a manufacturing and distribution plan that was breathtaking in its ambition and elegance," said Michael Armstrong, Senior Vice President of Operations for U.S. News & World Report. "The idea is to split production between two Quad plants, each serving half the country. This plan means a significant number of our subscribers will receive their copy a day sooner. And because we'll use state-of-the-art presses, our ads and editorial pages will print consistently with the highest quality. We are elated to partner with Quad in such a forward-thinking plan!" "We, too, are excited to be fortifying our long-standing relationship with such a well-known, well-respected publisher," said Thomas A. Quadracci, President & CEO. "As partners, we challenge each other to improve every aspect of our respective businesses, creating a win-win situation. We look forward to innovating solutions with U.S. News for many years to come." With the award of the work, Quad/Graphics will move production from its Hartford, Wis., plant to Saratoga Springs and Oklahoma City - two other company plants well located for expedited distribution nationwide. "One of Quad's great strengths is in distribution," Mr. Armstrong said. "We have complete confidence in Quad's ability to pool ship. This has worked well out of Hartford for many years, and it saves us a ton of money. We were amazed and pleased to learn just how well Saratoga and Oklahoma could meet our distribution requirements." Quad/Graphics' Saratoga Springs plant - the nation's largest producer of weekly magazines - is ideally suited for expedited distribution to the entire East Coast, while the company's Oklahoma City plant, which has been undergoing continuous expansion since its grand opening last fall, offers timely distribution to the Central and Western United States. Quad/Graphics first started printing for U.S. News & World Report in 1980. Its most recent contract with the publisher dates back to 1995, when the printer was awarded production and distribution of the weekly's 1.7 million copies to markets east of the Rocky Mountains, including the densely populated East Coast.