Dex One Reports Third Quarter Performance

  Dex One Reports Third Quarter Performance

     Digital Growth Continues; Company On Track to Achieve 2012 Guidance

Business Wire

CARY, N.C. -- October 25, 2012

Dex One Corporation (NYSE: DEXO) today announced third quarter 2012 results
highlighted by digital bookings growth of 26 percent. Third quarter 2012
adjusted EBITDA of $137 million was down slightly from the prior year period
while adjusted free cash flow of $95 million was up relative to the previous
year.

The company re-affirmed full year 2012 guidance and narrowed the range for net
revenue ($1,275-$1,300 million), adjusted EBITDA ($535-$565 million) and
adjusted free cash flow ($320-$350 million).

Ad sales for the quarter were minus 14 percent, in line with the previously
provided guidance. Quarterly bookings and revenue declined 13 percent and 11
percent, respectively.

The company expects to post digital bookings growth for the year in excess of
30 percent.

“In the quarter, local businesses turned to Dex One to manage and expand their
presence across mobile, social and local platforms,” said Alfred Mockett, Dex
One CEO. “Our digital bookings growth was fueled by customers seeking to
integrate their local marketing efforts and connect with consumers.”

“While merger-related activities required some of our attention, we continued
to focus on efforts to grow our digital business and further reduce costs”
said Dex One CFO Greg Freiberg. “We continue to maintain solid EBITDA margins
despite the topline pressure, and remain on track to achieve our annual
guidance.”

Dex One SuperMedia Merger Update

Following the announcement of the proposed merger between Dex One and
SuperMedia, a joint steering committee of the senior secured lenders for both
companies was formed to evaluate the proposed amendments to the parties’
respective credit agreements as set forth in the merger agreement. The consent
of the lenders to the proposed amendments is a condition to closing the
merger.

Dex One and SuperMedia continue to negotiate with the steering committee to
reach agreement on amendments to the parties’ respective credit agreements.
The parties are also considering alternatives to the current transaction
structure to obtain the necessary lender consents.

Additional information about the proposed merger is included in a Form 8-K
filed with the U.S. Securities and Exchange Commission today.

THIRD QUARTER 2012 PERFORMANCE
                                            
(dollars in millions)
Metric                                      RESULTS
                                           
Year over year change in bookings           
Total                                       (13%)
Digital                                     26%
Print                                       (22%)
                                           
Year over year change in advertising sales  (14%)
                                           
Net revenue                                 $320
Adjusted EBITDA^(1)                         $137
Adjusted EBITDA margin^(1)                  43%
Adjusted free cash flow^(1)                 $95
Adjusted net debt^(1)                       $1,951

Net loss, cash flow from operations and total debt (including fair value
discount) in the third quarter were $13 million, $98 million and $2,005
million, respectively.

2012 GUIDANCE

The company announced fourth quarter ad sales guidance and updated its
existing full year financial guidance for net revenue, adjusted EBITDA and
adjusted free cash flow.

(dollars in millions)                                  
Metric                                Current            Prior
                                      Guidance           Guidance^(2)
Fourth Quarter                                         
Year over year change in net ad sales (13%) – (14%)     n/a
                                                      
Full Year                                              
Net revenue                           $1,275 to $1,300  $1,250 to $1,300
Adjusted EBITDA^(1)                   $535 to $565      $525 to $575
Adjusted free cash flow^(1)           $320 to $350      $310 to $360

The outlook for 2012 operating income (midpoint) and cash flow from operations
(midpoint) are $125 million and $365 million, respectively.

Important information regarding operating results and related reconciliations
of non-GAAP financial measures to the most comparable GAAP measures can be
found in the schedules and related footnotes to this press release, which
should be thoroughly reviewed. All figures are preliminary and subject to
change pending the filing of our Quarterly Report on Form 10-Q.

Advertising sales is a non-GAAP statistical measure and consists of sales of
advertising in print directories distributed during the period and
Internet-based products and services with respect to which such advertising
first appeared publicly during the period.

The year over year change in ad sales is calculated by dividing the difference
between ad sales in the current period and adjusted ad sales in the prior year
divided by adjusted ad sales in the prior year. Adjustments have been made to
prior year’s ad sales in an attempt to create a same store sales metric.

Bookings is another non-GAAP statistical measure that represents sales
activity associated with our print directories and Internet-based marketing
solutions during the period. Bookings associated with our local customers
represent signed contracts during the period. Bookings associated with our
national customers represent what has been published or fulfilled during the
period.

The year over year change in bookings is calculated by dividing the difference
between bookings in the current period and bookings generated in the prior
year divided by bookings generated in the prior year.

It is important to distinguish advertising sales and bookings from net
revenue, which is recognized under the deferral and amortization method.

THIRD QUARTER INVESTOR CONFERENCE CALL

Dex One Corporation will be hosting a conference call to discuss its third
quarter 2012 results today at 8:30 a.m. (ET). Individuals within the United
States can access the call by dialing 800-475-0381- others should dial
517-319-9311. The pass code for the call is “Dex One.” In order to ensure a
prompt start time, please dial into the call by 8:20 a.m. EDT.

In addition, a live webcast will be available at www.DexOne.com and an
archived version will be accessible for up to one year. A replay of the
conference call can also be accessed from within the United States by dialing
866-427-6399 and internationally by dialing 203-369-0893. There is no pass
code for the telephonic replay, which will be available through Nov. 8, 2012

Endnotes

1) These are non-GAAP financial measures. Please see the discussion of
non-GAAP financial measures in the schedules and related footnotes at the end
of this press release.

2) Full year guidance for net revenue, adjusted EBITDA and adjusted free cash
flow originally provided on March 1, 2012.

ABOUT DEX ONE CORPORATION

Dex One Corporation (NYSE: DEXO) is a leading marketing solutions provider
helping local businesses and their customers connect wherever and whenever
they choose to search. Building on its heritage of delivering print-based
solutions, the company provides integrated products and services to help its
clients establish their digital presence and generate leads. Dex One’s locally
based marketing experts offer a broad network of local marketing solutions
including online, mobile and print search solutions, such as DexKnows.com. For
more information, visit www.DexOne.com.

SAFE HARBOR PROVISION

Certain statements contained in this press release regarding Dex One
Corporation’s (“Dex One’s”) future operating results, performance, business
plans, prospects, guidance and any other statements not constituting
historical fact are “forward-looking statements” subject to the safe harbor
created by the Private Securities Litigation Reform Act of 1995. Where
possible, the words “believe,” “expect,” “anticipate,” “intend,” “should,”
“will,” “would,” “planned,” “estimated,” “potential,” “goal,” “outlook,”
“may,” “predicts,” “could,” or the negative of such terms, or other comparable
expressions, as they relate to Dex One or its management, have been used to
identify such forward-looking statements. All forward-looking statements
reflect only Dex One’s current beliefs and assumptions with respect to future
business plans, prospects, decisions and results, and are based on information
currently available to Dex One. Accordingly, the statements are subject to
significant risks, uncertainties and contingencies, which could cause Dex
One’s actual operating results, performance or business plans or prospects to
differ materially from those expressed in, or implied by, these statements.

Factors that could cause actual results to differ materially from current
expectations include risks and other factors described in Dex One’s publicly
available reports filed with the SEC, which contain a discussion of various
factors that may affect Dex One’s business or financial results. Such risks
and other factors, which in some instances are beyond Dex One’s control,
include: the continuing decline in the use of print directories; increased
competition, particularly from existing and emerging digital technologies;
ongoing weak economic conditions and continued decline in advertising sales;
our ability to collect trade receivables from customers to whom we extend
credit; our ability to generate sufficient cash to service our debt; our
ability to comply with the financial covenants contained in our debt
agreements and the potential impact to operations and liquidity as a result of
restrictive covenants in such debt agreements; our ability to refinance or
restructure our debt on reasonable terms and conditions as might be necessary
from time to time; increasing interest rates; changes in our and our
subsidiaries’ credit ratings; changes in accounting standards; regulatory
changes and judicial rulings impacting our business; adverse results from
litigation, governmental investigations or tax related proceedings or audits;
the effect of labor strikes, lock-outs and negotiations; potential adverse
impacts to our operations and customer and vendor relationships resulting from
the announcement of the proposed merger with SuperMedia Inc. (“SuperMedia”) or
any delays in completing, or failure to complete, the same; successful
realization of the expected benefits of acquisitions, divestitures and joint
ventures; our ability to maintain agreements with CenturyLink, AT&T and other
major Internet search and local media companies; our reliance on third-party
vendors for various services; and other events beyond our control that may
result in unexpected adverse operating results. Dex One is not responsible for
updating the information contained in this press release beyond the published
date, or for changes made to this document by wire services or Internet
service providers. This press release is being furnished to the SEC through a
Form 8-K. The company’s Quarterly Report on Form 10-Q for the period ended
Sept. 30, 2012 to be filed with the SEC may contain updates to the information
included in this release.

IMPORTANT INFORMATION FOR INVESTORS AND SECURITY HOLDERS

This communication does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval. The
proposed merger transaction between SuperMedia and Dex One will be submitted
to the respective stockholders of SuperMedia and Dex One. In connection with
the proposed transaction, Newdex, Inc., a subsidiary of Dex One (“Newdex”),
will file with the Securities and Exchange Commission (“SEC”) a registration
statement on Form S-4 that will include a joint proxy statement/prospectus to
be used by SuperMedia and Dex One to solicit the required approval of their
stockholders and that also constitutes a prospectus of Newdex. INVESTORS AND
SECURITY HOLDERS OF SUPERMEDIA AND DEX ONE ARE ADVISED TO CAREFULLY READ THE
REGISTRATION STATEMENT AND JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL
AMENDMENTS AND SUPPLEMENTS) AND OTHER RELEVANT DOCUMENTS FILED WITH THE SEC
WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION
ABOUT THE TRANSACTION, THE PARTIES TO THE TRANSACTION AND THE RISKS ASSOCIATED
WITH THE TRANSACTION. A definitive joint proxy statement/prospectus will be
sent to security holders of SuperMedia and Dex One seeking their approval of
the proposed transaction. Investors and security holders may obtain a free
copy of the joint proxy statement/prospectus (when available) and other
relevant documents filed by SuperMedia and Dex One with the SEC from the SEC’s
website at www.sec.gov. Copies of the documents filed by SuperMedia with the
SEC will be available free of charge on SuperMedia’s website at
www.supermedia.com under the tab “Investors” or by contacting SuperMedia’s
Investor Relations Department at (877) 343-3272. Copies of the documents filed
by Dex One with the SEC will be available free of charge on Dex One’s website
at www.dexone.com under the tab “Investors” or by contacting Dex One’s
Investor Relations Department at (800) 497-6329.

SuperMedia and Dex One and their respective directors, executive officers and
certain other members of management may be deemed to be participants in the
solicitation of proxies from their respective security holders with respect to
the transaction. Information about these persons is set forth in SuperMedia’s
proxy statement relating to its 2012 Annual Meeting of Shareholders and Dex
One’s proxy statement relating to its 2012 Annual Meeting of Stockholders, as
filed with the SEC on April 11, 2012 and March 22, 2012, respectively, and
subsequent statements of changes in beneficial ownership on file with the SEC.
These documents can be obtained free of charge from the sources described
above. Security holders and investors may obtain additional information
regarding the interests of such persons, which may be different than those of
the respective companies’ security holders generally, by reading the joint
proxy statement/prospectus and other relevant documents regarding the
transaction (when available), which will be filed with the SEC.

                (See attached schedules and related footnotes)

DEX ONE CORPORATION                                               Schedule 1
INDEX OF SCHEDULES
                                                                   
                                                                   
  Schedule 1: Index of Schedules
                                                                   
  Schedule 2: Unaudited Condensed Consolidated Statements of Operations for
              the three and nine months ended September 30, 2012 and 2011
                                                                   
  Schedule 3: Unaudited Condensed Consolidated Balance Sheets at September 30,
              2012 and December 31, 2011
`
  Schedule 4: Unaudited Condensed Consolidated Statements of Cash Flows for
              the three and nine months ended September 30, 2012 and 2011
                                                                   
  Schedule 5: Reconciliation of Non-GAAP Measures
                                                                   
  Schedule 6: Statistical Measures - Advertising Sales
              and Bookings
                                                                   
  Schedule 7: Notes to Unaudited Condensed Consolidated
              Financial Statements
              and Non-GAAP Measures
                                                       
Note: These schedules are preliminary and subject to change
pending the Company's filing of its Form 10-Q.
                                                                   

                                                              
DEX ONE CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED                                                       Schedule 2
STATEMENTS OF
OPERATIONS
                                                                   
Amounts in millions,
except earnings
(loss) per share
                                                            
                          Three Months Ended          Nine Months Ended
                          September 30,              September 30,
                         2012           2011       2012        2011
Net revenue ^ (1)         $   319.7       $ 360.1     $ 998.7      $ 1,128.6
Expenses                      188.0         215.9       578.7        655.1
Depreciation and              104.4         66.0        313.2        182.0
amortization ^ (2)
Impairment charges           -          -        -         801.1   
^(3)
Operating income              27.3          78.2        106.8        (509.6  )
(loss)
Gain on Debt                  -             -           139.6        -
Repurchases, net ^(4)
Gain on sale of               -             -           -            13.4
assets, net ^(5)
Interest expense, net        (46.6  )    (55.3 )   (151.6 )   (171.1  )
Income (loss) before          (19.3  )      22.9        94.8         (667.3  )
income taxes
Tax (provision)              6.6        (0.7  )   3.1       142.8   
benefit
Net income (loss)         $   (12.7  )   $ 22.2    $ 97.9     $ (524.5  )
                                                                   
Earnings (loss) per
share (EPS):
Basic                     $   (0.25  )    $ 0.44      $ 1.94       $ (10.47  )
Diluted                   $   (0.25  )    $ 0.44      $ 1.93       $ (10.47  )
Shares used in
computing EPS:
Basic                         50.8          50.2        50.6         50.1
Diluted                      50.8       50.2     50.6      50.1    
                                                                   
See accompanying Notes to Unaudited
Condensed Consolidated Financial
Statements and Non-GAAP Measures -
Schedule 7.

Note:These schedules are preliminary
and subject to change pending the
Company's filing of its Form 10-Q.

                                     
DEX ONE CORPORATION                                         Schedule 3
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS

Amounts in millions                                        
                                        September 30, 2012  December 31, 2011
Assets
     Cash and cash equivalents          $      95.6         $    257.9
     Accounts receivable, net                  499.2             605.7
     Deferred directory costs                  98.6              130.8
     Short term deferred income                71.5              67.8
     taxes, net
     Other current assets                     42.7             51.4      
Total current assets                           807.6             1,113.6
                                                            
     Fixed assets and computer                 117.6             151.5
     software, net
     Intangible assets, net ^(2)               1,920.0           2,182.1
     Other non-current assets                 17.7             13.0      
Total Assets                            $      2,862.9      $    3,460.2   
                                                            
Liabilities and Shareholders' Equity
(Deficit)
     Accounts payable and accrued       $      91.7         $    126.2
     liabilities
     Accrued interest                          22.4              29.2
     Deferred revenue                          505.9             644.1
     Current portion of long-term             226.1            326.3     
     debt ^(6)
Total current liabilities                      846.1             1,125.8
                                                            
     Long-term debt ^(6)                       1,778.6           2,184.1
     Deferred income taxes, net                78.2              75.5
     Other non-current liabilities            68.0             84.7      
Total liabilities                              2,770.9           3,470.1
                                                            
Shareholders’ equity (deficit)                92.0             (9.9      )
                                                            
Total Liabilities and Shareholders'     $      2,862.9      $    3,460.2   
Equity (Deficit)
                                                         
                                                            
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements and Non-GAAP Measures - Schedule 7.
                                                        
Note: These schedules are preliminary and subject to change pending the
Company's filing of its Form 10-Q.

                          
DEX ONE CORPORATION
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH                 Schedule 4
FLOWS
                                                                    
                                                                    
Amounts in millions                                             
                               Three Months Ended        Nine Months Ended
                               September 30,             September 30,
                             2012         2011         2012       2011
Net cash provided by           $  97.6      $  82.4      $ 261.4    $ 295.0
operating activities
                                                                    
Investment activities:
Additions to fixed
assets and computer               (5.1   )     (4.4   )    (17.1  )   (19.2  )
software
Proceeds from sale of            -          -         0.1      15.4   
assets
Net cash used in                  (5.1   )     (4.4   )    (17.0  )   (3.8   )
investing activities
                                                                    
Financing activities:
Long-term debt
repurchases and                   (77.4  )     (52.2  )    (400.9 )   (207.2 )
repayments
Debt issuance costs
and other financing               (2.4   )     -           (5.3   )   0.5
items, net
Decrease in checks not
yet presented for                 -            -           (0.5   )   (17.0  )
payment
                                                                 
Net cash used in                  (79.8  )     (52.2  )    (406.7 )   (223.7 )
financing activities
                                                                    
Increase (decrease) in
cash and cash                     12.7         25.8        (162.3 )   67.5
equivalents
Cash and cash
equivalents, beginning           82.9       169.6     257.9    127.9  
of period
Cash and cash
equivalents, end of            $  95.6     $  195.4    $ 95.6    $ 195.4  
period
                                                                    
Non-cash financing
activities:
Reduction of debt from         $  -         $  -         $ 144.3    $ -
Debt Repurchases ^(4)
                                                               
                                                                    
See accompanying Notes to Unaudited Condensed Consolidated
Financial Statements and Non-GAAP Measures - Schedule 7.
                                        
Note: These schedules are preliminary and subject to
change pending the Company's filing of its Form 10-Q.

                        
DEX ONE CORPORATION
RECONCILIATION OF                                                Schedule 5a
NON-GAAP MEASURES
                                                                 
(unaudited)
                                                                 
EBITDA and Adjusted EBITDA are not measurements of operating performance
computed in accordance with GAAP and should not be considered as a substitute
for net income (loss) prepared in conformity with GAAP. In addition, EBITDA
and Adjusted EBITDA may not be comparable to similarly titled measures of
other companies. Management believes that these non-GAAP financial measures
are important indicators of our operations because they exclude items that may
not be indicative of, or related to, our core operating results, and provide a
better baseline for analyzing our underlying business. Adjusted EBITDA for the
three months ended September 30, 2012 is determined by adjusting EBITDA for
(i) stock-based compensation expense and long-term incentive program and (ii)
merger transaction and integration expenses associated with the proposed
merger between Dex One and SuperMedia, Inc. Adjusted EBITDA for the three
months ended September 30, 2011 is determined by adjusting EBITDA for
stock-based compensation expense and long-term incentive program. Adjusted
EBITDA for the nine months ended September 30, 2012 is determined by adjusting
EBITDA for (i) gain on Debt Repurchases, net, (ii) stock-based compensation
expense and long-term incentive program and (iii) merger transaction and
integration expenses associated with the proposed merger between Dex One and
SuperMedia, Inc. Adjusted EBITDA for the nine months ended September 30, 2011
is determined by adjusting EBITDA for (i) impairment charges, (ii) gain on
sale of assets, net and (iii) stock-based compensation expense and long-term
incentive program.
                                                                 
Amounts in millions
                                                            
                            Three Months Ended     Nine Months Ended
                            September 30,          September 30,
Reconciliation of net
income (loss) - GAAP to     2012         2011      2012          2011
EBITDA and Adjusted
EBITDA
                                                                 
Net income (loss) -         $  (12.7  )  $  22.2   $  97.9       $  (524.5  )
GAAP
Plus (less): tax               (6.6   )     0.7       (3.1    )     (142.8  )
provision (benefit)
Plus: interest expense,        46.6         55.3      151.6         171.1
net
Plus: depreciation and        104.4      66.0     313.2       182.0   
amortization
EBITDA                      $  131.7    $  144.2  $  559.6     $  (314.2  )
                                                                 
Plus: Impairment               -            -         -             801.1
charges ^(3)
                                                                 
Less: Gain on Debt             -            -         (139.6  )     -
Repurchases, net ^(4)
                                                                 
Less: Gain on sale of          -            -         -             (13.4   )
assets, net ^(5)
                                                                 
Plus: Stock-based
compensation expense           1.0          1.5       3.9           4.7
and long-term incentive
program
                                                                 
Plus: Merger
transaction and                4.4          -         4.4           -
integration expenses
                                                              
Adjusted EBITDA             $  137.1    $  145.7  $  428.3     $  478.2   
                                                                            
See accompanying Notes to Unaudited
Condensed Consolidated Financial
Statements and Non-GAAP Measures -
Schedule 7.
                                                         
Note:These schedules are preliminary and subject to change pending the
Company's filing of its Form 10-Q.



                    
DEX ONE CORPORATION
RECONCILIATION OF
NON-GAAP MEASURES                                                 Schedule 5b
(cont'd)
(unaudited)
                                                                  
Free cash flow and Adjusted free cash flow are not measurements of operating
performance computed in accordance with GAAP and should not be considered as a
substitute for cash flow from operations prepared in conformity with GAAP. In
addition, Free cash flow and Adjusted free cash flow may not be comparable to
similarly titled measures of other companies. Management believes that these
cash flow measures provide investors and stockholders with a relevant measure
of liquidity and a useful basis for assessing the Company's ability to fund
its activities and obligations. Adjusted free cash flow for the three and nine
months ended September 30, 2012 is determined by adjusting Free cash flow for
merger transaction and integration cash payments associated with the proposed
merger between Dex One and SuperMedia, Inc.
                                                                  
Amounts in millions
                                                             
                       Three Months Ended            Nine Months Ended
                       September 30,                 September 30,
Reconciliation of
cash flow from
operations - GAAP      2012           2011           2012         2011
to free cash flow
and adjusted free
cash flow
                                                                  
Cash flow from         $  97.6        $  82.4        $  261.4     $  295.0
operations - GAAP
Less: Additions to
fixed assets and         (5.1     )    (4.4     )    (17.1  )    (19.2  )
computer software -
GAAP
Free cash flow            92.5        $  78.0          244.3     $  275.8  
Add: Merger
transaction and          2.6                         2.6    
integration cash
payments
Adjusted free cash     $  95.1                      $  246.9  
flow
                                                                  
                                   
Reconciliation of
debt - GAAP to net
debt and net debt -    September 30,  December 31,
eliminating fair       2012           2011
value discount ^(6)
(7)
Debt - GAAP            $  2,004.7     $  2,510.4
Less: Cash and cash      (95.6    )    (257.9   )
equivalents
Net debt                  1,909.1        2,252.5
Fair value discount      41.6         63.2     
Net debt -
eliminating fair       $  1,950.7    $  2,315.7  
value discount
                                                                  
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements and Non-GAAP Measures - Schedule 7.
                                                            
Note: These schedules are preliminary and subject to change pending the
Company's filing of its Form 10-Q.

                                                              
DEX ONE CORPORATION
RECONCILIATION OF NON-GAAP MEASURES (cont'd)                    Schedule 5c
(unaudited)
                                                                
Amounts in millions
                                                             
                                                                Full Year 2012
Reconciliation of adjusted EBITDA outlook - Midpoint to        Outlook
operating income - GAAP outlook
                                                                
Adjusted EBITDA outlook - Midpoint                              $    550
Less: depreciation and amortization                                 (415   )
Adjusted operating income outlook                                    135
Less: Stock-based compensation expense and long-term                (10    )
incentive program
Operating income - GAAP outlook                               $    125    
                                                                
                                                             
                                                                Full Year 2012
Reconciliation of adjusted free cash flow outlook - Midpoint   Outlook
to cash flow from operations outlook - GAAP
                                                                
Adjusted free cash flow outlook - Midpoint                      $    335
Plus: Additions to fixed assets and computer                        30     
software
Cash flow from operations outlook - GAAP                      $    365    

                                                                 
DEX ONE
CORPORATION
STATISTICAL
MEASURES
CALCULATION OF ADVERTISING SALES AND BOOKINGS PERCENTAGE CHANGE       Schedule
OVER PRIOR YEAR PERIODS                                               6
(unaudited)

                                                                      
Amounts in
millions,                                                     
except
percentages
               Nine Months   Three Months   Three         Three       Three
               Ended        Ended         Months       Months     Months
                                            Ended         Ended       Ended
Advertising    September    September     June 30,     March 31,  December
Sales ^(8)     30, 2012      30, 2012       2012          2012        31, 2011
                                                                      
Advertising    $  862        $   232        $  334        $  296      $ 387
Sales
                                                              
Advertising
sales
percentage       (14  %)      (14  %)     (12  %)     (16 %)   (13 %)
change over
prior year
periods
                                                            
               Nine Months   Three Months   Three         Three       Three
               Ended        Ended         Months       Months     Months
                                            Ended         Ended       Ended
Bookings ^(8)  September    September     June 30,     March 31,  December
               30, 2012      30, 2012       2012          2012        31, 2011
                                                                      
Bookings:
                                                                      
Print bookings $  644        $   200        $  206        $  237      $ 253
                                                                      
Digital          208         72         69         67      60  
bookings
                                                                      
Total Bookings $  852        $   272        $  275        $  304      $ 313
                                                                      
Bookings
percentage
change over
prior year
periods:
                                                                      
Print bookings
percentage        (22  %)        (22  %)       (24  %)       (21 %)     (18 %)
change
Digital
bookings         36   %       26   %      53   %      32  %    34  %
percentage
change
                                                                      
Total bookings
percentage
change over      (13  %)      (13  %)     (13  %)     (13 %)   (11 %)
prior year
periods
                                                                      
                                                                      
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements and Non-GAAP Measures - Schedule 7.
                                                            
Note: These schedules are preliminary and subject to change pending the
Company's filing of its Form 10-Q.

                                      
DEX ONE CORPORATION                   Schedule 7
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NON-GAAP
MEASURES
    
      Our advertising revenues are earned primarily from the sale of
      advertising in yellow pages directories we publish. Advertising revenues
      also include revenues from our Internet-based marketing solutions
      including online directories, such as DexKnows.com and DexNet.
      Advertising revenues are affected by several factors, including changes
(1)   in the quantity and size of advertisements, acquisition of new clients,
      renewal rates of existing clients, premium advertisements sold, changes
      in advertisement pricing, the introduction of new marketing solutions,
      an increase in competition and more fragmentation in the local business
      search market and general economic factors. Revenues with respect to
      print advertising and Internet-based marketing solutions that are sold
      with print advertising are recognized under the deferral and
      amortization method whereby revenues are initially deferred when a
      directory is published, net of sales claims and allowances, and
      recognized ratably over the directory’s life, which is typically 12
      months. Revenues with respect to Internet-based marketing solutions that
      are sold standalone, such as DexNet, are recognized ratably over the
      life of the contract commencing when they are first delivered or
      fulfilled. Revenues with respect to our marketing solutions that are
      performance-based are recognized as the service is delivered or
      fulfilled.
                                      
      The Company evaluated the remaining useful lives of definite-lived
      intangible assets and other long-lived assets during the first quarter
      of 2012. Based on our evaluation, we reduced the estimated useful lives
      of our directory services agreements, local and national customer
(2)   relationships and tradenames and trademarks to a combined weighted
      average useful life of 9 years. As a result of reducing the estimated
      useful lives of these intangible assets, the Company expects an increase
      in amortization expense of $161.6 million and total amortization expense
      of $349.4 million for 2012.
                                      
      The Company concluded there were indicators of impairment as of May 31,
      2011. As a result, we performed impairment tests of our goodwill,
      definite-lived intangible assets and other long-lived assets as of May
      31, 2011. The impairment testing results for recoverability of our
      definite-lived intangible assets and other long-lived assets indicated
(3)   they were recoverable and thus no impairment test was required as of May
      31, 2011. Based upon the testing results of our goodwill, we determined
      that the remaining goodwill assigned to each of our reporting units was
      fully impaired and thus recognized an aggregate goodwill impairment
      charge of $801.1 million during the second quarter of 2011, which was
      recorded at each of our reporting units.
                                      
      On April 19, 2012, the Company utilized cash on hand of $26.5 million to
      repurchase $98.2 million aggregate principal amount of Dex One senior
      subordinated notes. On March 23, 2012, the Company utilized cash on hand
(4)   of $69.5 million to repurchase loans under our credit facilities of
      $142.1 million. These debt transactions are hereby referred to as the
      "Debt Repurchases." The Debt Repurchases have been accounted for as an
      extinguishment of debt resulting in a non-cash, pre-tax gain of $139.6
      million during the nine months ended September 30, 2012.
                                      
      On February 14, 2011, we completed the sale of substantially all net
(5)   assets of Business.com. As a result, we recognized a gain on sale of
      these assets of $13.4 million during the first quarter of 2011.
                                      
      In conjunction with our adoption of fresh start accounting, an
      adjustment was established to record our outstanding debt at fair value
      on the Fresh Start Reporting Date. The Company was required to record
      our credit facilities at a discount as a result of their fair value on
      the Fresh Start Reporting Date. Therefore, the carrying amount of these
(6)   debt obligations is lower than the principal amount due at maturity.
      This fair value adjustment is amortized as an increase to interest
      expense over the remaining term of the respective debt agreements and
      does not impact future scheduled interest or principal payments. The
      unamortized fair value adjustment resulting from fresh start accounting
      was $41.6 million at September 30, 2012.
                                      
      Net debt represents total debt less cash and cash equivalents on the
(7)   respective date. Net debt – eliminating fair value discount eliminates
      the fair value discount as a result of fresh start accounting described
      in Note 6 and represents principal amounts due at maturity.
                                      
      Advertising sales is a non-GAAP statistical measure and consists of
      sales of advertising in print directories distributed during the period
      and Internet-based marketing solutions with respect to which such
(8)   advertising first appeared publicly during the period. In order to
      calculate a percentage change over prior periods, adjustments have been
      made to the prior year’s advertising sales in an attempt to create a
      same store sales metric. Bookings is also a non-GAAP statistical measure
      and represents sales activity associated with our print directories and
      Internet-based marketing solutions during the period. Bookings
      associated with our local customers represent signed contracts during
     the period. Bookings associated with our national customers represent
      what has been published or fulfilled during the period. It is important
      to distinguish advertising sales and bookings from net revenue, which is
      recognized under the deferral and amortization method.
                                   
Note: These schedules are preliminary and subject to change pending the
Company's filing of its Form 10-Q.

Contact:

Dex One Corporation
Media Contact:
Chris Hardman, 303-784-1351
chris.hardman@dexone.com
or
Investor Contact:
Cobb Bay Partners
James Gruskin, 800-497-6329
invest@dexone.com
 
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