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Dex One Reports Fourth Quarter and Full Year 2012 Performance

  Dex One Reports Fourth Quarter and Full Year 2012 Performance

                      - Delivers on Financial Guidance -

          - Posts Digital Bookings Growth in Excess of 30 Percent -

          - Remains on Track to Close Merger in First Half of 2013 -

Business Wire

CARY, N.C. -- March 18, 2013

Dex One Corporation (NYSE: DEXO) today announced fourth quarter and full year
2012 results in line with previously provided guidance.

The quarter and year were highlighted by digital bookings growth of 29 percent
and 34 percent, respectively.

Ad sales for the quarter and year declined 14 percent, in line with guidance.
Quarterly bookings and revenue declined 13 percent and 14 percent, while
annual bookings and revenue declined 13 percent and 12 percent.

“Dex One continued to deliver in 2012, as we met all stated guidance
objectives,” said Dex One CEO Alfred Mockett. “Our team found a way to achieve
our business goals despite the continuing pressure on our print business. We
have stemmed the rate of ad sales decline, thanks in large part to our bundled
sales strategy, and are aggressively selling bundles across our business.”

“Since early 2010, Dex One has retired $1.9 billion in debt and we have
consistently met our financial obligations,” said Dex One CFO Greg Freiberg.
“Concurrently, we have built a digital business with growth exceeding industry
averages.”

2012 PERFORMANCE
(dollars in millions)
Metric                                       4Q 2012   FY 2012
                                            Results
Year over year change in bookings                     
Total                                        (13%)     (13%)
Digital                                      29%       34%
Print                                        (23%)     (23%)
                                                     
Year over year change in advertising sales   (14%)     (14%)
                                                     
Net revenue                                  $301      $1,300
Adjusted EBITDA^(1)                          $133      $561
Adjusted EBITDA margin^(1)                   44%       43%
Adjusted free cash flow^(1)                  $88       $335
Adjusted net debt^(1)                        $1,874    $1,874
                                                      

2012 GUIDANCE
(dollars in millions)
2012 Metric                                Guidance^(2)     FY 2012 Results
Fourth quarter year over year change in    (13%) to (14%)   (14%)
net advertising sales
                                                          
Full year net revenue                      $1,275 - $1,300  $1,300
Full year adjusted EBITDA^(1,2)            $535 - $565      $561
Full year adjusted free cash flow^(1,2)    $320 - $350      $335
                                                           

Net loss and cash flow from operations in the fourth quarter were $35 million
and $87 million, respectively. Net income, cash flow from operations and total
debt (including fair value discount) for full year 2012 were $62 million, $348
million and $2,010 million, respectively.

Dex One-SuperMedia Merger Update

On March 13, 2013, stockholders of both Dex One and SuperMedia approved the
merger. Earlier today, Dex One and SuperMedia each filed pre-packaged plans of
reorganization for Chapter 11 Bankruptcy as a means to complete the merger.
This process will allow both companies to finalize the proposed credit
agreement amendments previously agreed to by a significant percentage of
lenders. The companies expect to complete the merger in the first half of
2013.

2013 Guidance

The company will not be providing first quarter or full year 2013 guidance due
to its pending merger with SuperMedia, Inc.

Additional Information

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 Annual Report on Form 10-K.

Advertising sales is a non-GAAP statistical measure and consist 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. The adjustments made to the
prior year’s ad sales are made to align publication dates.

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.

FOURTH QUARTER AND FULL YEAR CONFERENCE CALL

Dex One Corporation will be hosting a conference call to discuss its fourth
quarter and full year 2012 results today at 11:30 a.m. (EDT). Individuals
within the United States can access the call by dialing 888-456-0318 – others
should dial 212-547-0460. The pass code for the call is “Dex One.” In order to
ensure a prompt start time, please dial into the call by 11:20 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
866-424-4002 and internationally by dialing 203-369-0852. There is no pass
code for the telephonic replay, which will be available through March 31,
2013.

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, adjusted free cash
flow and adjusted net debt originally provided on July 28, 2011. Fourth
quarter ad sales guidance was provided on November 3, 2011.

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’s future
operating results, performance, business plans, prospects, guidance,
statements about the benefits of the proposed merger with SuperMedia Inc.
(“SuperMedia”) and the combined company, and 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 or the combined company’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 discussions of various
factors that may affect the business or financial results of Dex One or the
combined company. Such risks and other factors, which in some instances are
beyond the company’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 the
company’s and the company’s 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; 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.
Neither Dex One nor the combined company is 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 Annual Report on Form 10-K for the year ended December 31, 2012 to
be filed with the SEC may contain updates to the information included in this
release.

With respect to the proposed merger with SuperMedia, important factors could
cause actual results to differ materially from those indicated by
forward-looking statements included herein, including, but not limited to, the
ability of Dex One and SuperMedia to consummate the transaction on the terms
set forth in the merger agreement; risks related to the impact that either Dex
One’s or SuperMedia’s voluntary case under Chapter 11 of title 11 of the
United States Code, filed to consummate the transaction, could have on our
business operations, financial condition, liquidity or cash flow; the risk
that anticipated cost savings, growth opportunitiesand other financial and
operating benefits as a result of the transaction may not be realized or may
take longer to realize than expected; the risk that benefits from the
transaction may be significantly offset by costs incurred in integrating the
companies; potential adverse impacts or delay in completing the transaction as
a result of the bankruptcy cases; and difficulties in connection with the
process of integrating Dex One and SuperMedia, including: coordinating
geographically separate organizations; integrating business cultures, which
could prove to be incompatible; difficulties and costs of integrating
information technology systems; and the potential difficulty in retaining key
officers and personnel.

                (See attached schedules and related footnotes)

DEX ONE                                                       Schedule 1
CORPORATION
INDEX OF
SCHEDULES
                 
                                                                   
   Schedule 1:      Index of Schedules
                                                                   
                    Unaudited Condensed Consolidated Statements of Operations
   Schedule 2:      for the three months and years ended December 31, 2012 and
                    2011
                                                                   
   Schedule 3:      Unaudited Condensed Consolidated Balance Sheets at
                    December 31, 2012 and 2011
`
                    Unaudited Condensed Consolidated Statements of Cash Flows
   Schedule 4:      for the three months and years ended December 31, 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-K.


DEX ONE CORPORATION
UNAUDITED CONDENSED
CONSOLIDATED                                                   Schedule 2
STATEMENTS OF
OPERATIONS
                                                                   
Amounts in millions,
except earnings
(loss) per share
                                                                   
                         Three Months Ended          Years Ended
                         December 31,                December 31,
                         2012           2011       2012         2011
Net revenue ^ (1)        $  301.3        $ 352.0     $ 1,300.0     $ 1,480.6
Expenses                    176.9          203.0       755.6         858.0
Depreciation and            105.5          69.8        418.7         251.8
amortization ^ (2)
Impairment charges         -           -        -          801.1   
^(3)
Operating income            18.9           79.2        125.7         (430.3  )
(loss)
Gain on Debt                -              -           139.6         -
Repurchases, net ^(4)
Gain on sale of             -              -           -             13.4
assets, net ^(5)
Interest expense, net      (44.3  )     (55.7 )   (196.0  )   (226.8  )
Income (loss) before        (25.4  )       23.5        69.3          (643.7  )
income taxes
(Provision) benefit        (10.0  )     (18.0 )   (6.9    )   124.7   
for income taxes
Net income (loss)        $  (35.4  )    $ 5.5     $ 62.4      $ (519.0  )
                                                                   
Earnings (loss) per
share (EPS):
Basic                    $  (0.70  )     $ 0.11      $ 1.23        $ (10.35  )
Diluted                  $  (0.70  )     $ 0.11      $ 1.23        $ (10.35  )
Shares used in
computing EPS:
Basic                       50.9           50.2        50.6          50.1
Diluted                    50.9        50.3     50.7       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-K.


                                                        
DEX ONE CORPORATION                                          Schedule 3
UNAUDITED CONDENSED CONSOLIDATED
BALANCE SHEETS
                                                             
Amounts in millions
                                         December 31,
                                         2012               2011
Assets
Cash and cash equivalents                $     172.0         $   257.9
Accounts receivable, net                       528.8             605.7
Deferred directory costs                       100.3             130.8
Short term deferred income taxes,              39.4              67.8
net
Other current assets                          37.4            51.4      
Total current assets                           877.9             1,113.6
                                                             
Fixed assets and computer                      105.1             151.5
software, net
Intangible assets, net ^(2)                    1,832.7           2,182.1
Other non-current assets                      19.7            13.0      
Total Assets                             $     2,835.4      $   3,460.2   
                                                             
Liabilities and Shareholders'
Equity (Deficit)
Accounts payable and accrued             $     95.5          $   126.2
liabilities
Accrued interest                               18.9              29.2
Deferred revenue                               529.9             644.1
Current portion of long-term debt             2,009.6         326.3     
^(7) (8)
Total current liabilities                      2,653.9           1,125.8
                                                             
Long-term debt ^(7) (8)                        -                 2,184.1
Deferred income taxes, net                     54.2              75.5
Other non-current liabilities                 86.7            84.7      
Total liabilities                              2,794.8           3,470.1
                                                             
Shareholders’ equity (deficit)                40.6            (9.9      )
                                                             
Total Liabilities and                    $     2,835.4      $   3,460.2   
Shareholders' 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-K.


DEX ONE CORPORATION                                           
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF                                          Schedule 4
CASH FLOWS
                                                                    
                                                                    
Amounts in millions
                               Three Months Ended      Years Ended
                               December 31,            December 31,
                               2012       2011       2012        2011
Net cash provided by           $ 87.1      $ 118.4     $ 348.5      $ 413.3
operating activities
                                                                    
Investment activities:
Additions to fixed assets        (5.5  )     (8.9  )     (22.6  )     (28.1  )
and computer software
Proceeds from sale of           0.1      0.2      0.1       15.5   
assets
Net cash used in investing       (5.4  )     (8.7  )     (22.5  )     (12.6  )
activities
                                                                    
Financing activities:
Long-term debt repurchases       -           (47.5 )     (400.9 )     (254.6 )
and repayments
Debt issuance costs and          (5.5  )     -           (10.8  )     0.5
other financing items, net
Increase (decrease) in
checks not yet presented        0.2      0.3      (0.2   )   (16.6  )
for payment
                                                                    
Net cash used in financing       (5.3  )     (47.2 )     (411.9 )     (270.7 )
activities
                                                                    
Increase (decrease) in           76.4        62.5        (85.9  )     130.0
cash and cash equivalents
Cash and cash equivalents,      95.6     195.4    257.9     127.9  
beginning of period
Cash and cash equivalents,     $ 172.0   $ 257.9   $ 172.0    $ 257.9  
end of period
                                                                    
Non-cash financing
activities:
Issuance of Dex One Senior
Subordinated Notes in lieu     $ -         $ -         $ 17.9       $ -
of cash interest payments
^ (6)
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-K.

                                                             
DEX ONE
CORPORATION
RECONCILIATION                                                      Schedule
OF NON-GAAP                                                         5a
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 December 31, 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 December 31, 2011 is determined by adjusting EBITDA for
stock-based compensation expense and long-term incentive program. Adjusted
EBITDA for the year ended December 31, 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 year ended December 31, 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           Years Ended
                      December 31,                 December 31,
Reconciliation
of net income
(loss) - GAAP         2012           2011        2012            2011
to EBITDA and
Adjusted EBITDA
                                                                    
Net income            $  (35.4  )     $  5.5       $  62.4          $ (519.0 )
(loss) - GAAP
Plus (less):
tax provision            10.0            18.0         6.9             (124.7 )
(benefit)
Plus: interest           44.3            55.7         196.0           226.8
expense, net
Plus:
depreciation            105.5        69.8       418.7        251.8  
and
amortization
EBITDA                $  124.4      $  149.0    $  684.0       $ (165.1 )
                                                                    
Plus:
Impairment               -               -            -               801.1
charges ^(3)
                                                                    
Less: Gain on
Debt                     -               -            (139.6  )       -
Repurchases,
net ^(4)
                                                                    
Less: Gain on
sale of assets,          -               -            -               (13.4  )
net ^(5)
                                                                    
Plus:
Stock-based
compensation
expense and              1.0             1.4          4.9             6.1
long-term
incentive
program
                                                                    
Plus: Merger
transaction and          7.4             -            11.8            -
integration
expenses
                                                              
Adjusted EBITDA       $  132.8      $  150.4    $  561.1       $ 628.7  
                                                                             
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-K.

                                                               
DEX ONE
CORPORATION
RECONCILIATION
OF NON-GAAP                                                          Schedule
MEASURES                                                             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 months
and year ended December 31, 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                 Years Ended
                      December 31,                       December 31,
Reconciliation
of cash flow
from operations
- GAAP to free        2012             2011            2012       2011
cash flow and
adjusted free
cash flow
                                                                     
Cash flow from
operations -          $  87.1           $  118.4         $ 348.5     $ 413.3
GAAP
Less: Additions
to fixed assets         (5.5     )      (8.9     )    (22.6 )   (28.1 )
and computer
software - GAAP
Free cash flow           81.6           $  109.5          325.9     $ 385.2 
Add: Merger
transaction and         6.8                             9.4   
integration
cash payments
Adjusted free         $  88.4                           $ 335.3 
cash flow
                                                                     
                                      
Reconciliation
of debt - GAAP
to net debt and
net debt -            December 31,     December 31,
eliminating           2012              2011
fair value
discount ^(8)
(9)
Debt - GAAP           $  2,009.6        $  2,510.4
Less: Cash and
cash                    (172.0   )      (257.9   )
equivalents
Net debt                 1,837.6           2,252.5
Fair value              36.7           63.2     
discount
Net debt -
eliminating           $  1,874.3      $  2,315.7  
fair 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-K.


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
                                 Three         Three       Three      Three
                 Year Ended     Months       Months     Months    Months
                                 Ended         Ended       Ended      Ended
Advertising      December 31,   December     September  June 30,  March
Sales ^(10)      2012            31, 2012      30, 2012    2012       31, 2012
                                                                      
Advertising      $  1,194        $  332        $  232      $ 334      $ 296
Sales
                                                              
Advertising
sales
percentage         (14    %)     (14  %)     (14 %)   (12 %)   (16 %)
change over
prior year
periods
                                                                      
                                 Three         Three       Three      Three
                 Year Ended     Months       Months     Months    Months
                                 Ended         Ended       Ended      Ended
Bookings         December 31,   December     September  June 30,  March
^(10)            2012            31, 2012      30, 2012    2012       31, 2012
                                                                      
Bookings:
                                                                      
Print            $  837          $  194        $  200      $ 206      $ 237
bookings
                                                                      
Digital            285          77         72      69      67  
bookings
                                                                      
Total            $  1,122        $  271        $  272      $ 275      $ 304
Bookings
                                                                      
Bookings
percentage
change over
prior year
periods:
                                                                      
Print
bookings            (23    %)       (23  %)       (22 %)     (24 %)     (21 %)
percentage
change
                                                                      
Digital
bookings           34     %      29   %      26  %    53  %    32  %
percentage
change
                                                                      
Total
bookings
percentage         (13    %)     (13  %)     (13 %)   (13 %)   (13 %)
change over
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-K.

            
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
            Dex Net. Advertising revenues are affected by several factors,
            including changes 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
(1)         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 Dex Net, 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
(2)         useful lives of our directory services agreements, local and
            national customer relationships and tradenames and trademarks. As
            a result of reducing the estimated useful lives of these
            intangible assets, the company recognized an increase in
            amortization expense of $161.6 million in 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
(3)         long-lived assets indicated 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 of $69.5 million to repurchase loans under
(4)         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
            year ended December 31, 2012.
            
            On February 14, 2011, we completed the sale of substantially all
(5)         net 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.
            
            For the semi-annual interest periods ending September 30, 2012 and
            March 31, 2012, the company made interest payments 50% in cash and
(6)         50% in paid-in-kind interest, as permitted by the indenture
            governing the Dex One senior subordinated notes, resulting in the
            issuance of an additional $17.9 million of Dex One senior
            subordinated notes.
            
            The company's voluntary filing for Chapter 11 on March 18, 2013
            triggered the acceleration of financial obligations under our Dex
            One senior subordinated notes and credit facilities. Although we
(7)         believe that any efforts to enforce the acceleration of these
            financial obligations are stayed as a result of filing Chapter 11
            in the bankruptcy court, we have classified our Dex One senior
            subordinated notes and credit facilities as current obligations on
            our consolidated balance sheet as of December 31, 2012.
            
            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
(8)         carrying amount of these 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 $36.7
            million at December 31, 2012.
            
            Net debt represents total debt less cash and cash equivalents on
            the respective date. Net debt – eliminating fair value discount
(9)         eliminates the fair value discount as a result of fresh start
            accounting described in Note 8 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 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.
(10)        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-K.


Contact:

Dex One Corporation
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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