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Quad/Graphics Makes Multimillion-Dollar Investment in Direct Marketing Platform

  Quad/Graphics Makes Multimillion-Dollar Investment in Direct Marketing
  Platform

Investment Creates Two Regional Commingling Centers to Drive Postal Savings,
and Expands Capabilities in Effingham and Westampton Plants

Business Wire

SUSSEX, Wis. -- April 02, 2013

Quad/Graphics, Inc. (NYSE: QUAD), is strengthening its direct marketing
platform and solutions this year with multimillion-dollar investments in mail
processing and equipment, including creating two regional commingling centers
to drive greater postal savings and efficiencies for direct mail marketers;
investing in a new custom web press and other equipment upgrades in its
Effingham, Ill., plant; and adding print capabilities to its Westampton, N.J.,
plant.

“Direct mail continues to be one of the most powerful ways to drive consumer
response, and we have the solutions today’s marketers need to acquire and
retain customers, and grow their business,” said Steve Jaeger, President of
Quad/Graphics Direct Marketing. “With these new investments, we advance our
commitment to helping direct marketers maximize the revenue from their print
spend while minimizing their total cost of production and distribution.”

New Regional Commingling Centers

Quad/Graphics will enhance its well-established commingling capabilities with
the creation of two new regional commingling centers: A Midwest center in New
Berlin, Wis., and an East Coast center at its existing direct mail production
plant in Westampton, N.J.

The commingling process merges individual mail pieces together to improve
presort discounts and drop-ship savings, reducing postal handling and delivery
time. “Postage is typically our clients’ single largest production-related
expense and can be as much as 60 percent of their budget,” Jaeger said. “By
consolidating direct mail volume into these two new mailing centers,
Quad/Graphics will help our clients qualify for greater postal discounts.”

The Midwest commingling center will start up in May in a 225,000-square-foot
building in New Berlin not far from Quad/Graphics’ other Southeastern
Wisconsin facilities. “In the near future, we will add co-palletization
capabilities to this location to further enhance postal discounts for our
clients,” Jaeger said.

The East Coast commingling center will start up later this month in the
Westampton plant, and will support Quad/Graphics’ nearby direct marketing
production facilities, newly acquired from Vertis.

Effingham and Westampton Plant Expansions

Quad/Graphics will add print capabilities to its Westampton plant and enhance
Effingham’s platform with a new custom web offset press. In addition,
equipment upgrades to other Effingham presses will allow the plant to produce
promotional gaming pieces, such as scratch-off products.

The Effingham plant’s new custom web press, scheduled to start up by the end
of the summer, is a highly productive and versatile, 11-unit double-web press
featuring high output and maximum flexibility for producing complex mail
pieces. Unique features include duplex inkjet capability so both sides of both
webs can be personalized with coupons, barcodes and highly customized
messaging to drive consumer engagement and elicit response. The 11 printing
units allow complex combinations of PMS colors and varnish coatings. The press
is modular, providing flexibility for inline finishing such as die-cutting,
gluing and UV coatings that can be set up in any order depending on the job.

Two other presses at the Effingham plant, scheduled to start up in May, will
be upgraded with equipment for game piece production. Enhancements to the
plant’s variable imaging and inkjet capabilities are also planned, giving
direct marketers more options to drive response.

The Westampton plant is in the process of adding print capabilities to
complement the plant’s existing, advanced finishing operations. Quad/Graphics
will relocate several laser printers and two forms presses from other
Quad/Graphics’ direct marketing facilities.

“Quad/Graphics Direct Marketing is dedicated to offering the best, most
sophisticated platform and direct mail solutions,” Jaeger said. “Our goal is
to continually redefine the value we bring to the marketplace and be the best
one-stop resource for our clients.”

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements regarding, among other things,
our current expectations about the Company's future results, financial
condition, goals, strategies, revenue, earnings, free cash flow, margins,
prospects and/or outlook and are indicated by words or phrases such as
"anticipate," "estimate," "expect," "project," "believe" and similar words or
phrases. These forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause actual results to be
materially different from those expressed in or implied by such
forward-looking statements. Forward-looking statements are based largely on
the Company's expectations and judgments and are subject to a number of risks
and uncertainties, many of which are unforeseeable and beyond our control.

The factors that could cause actual results to materially differ include,
among others: the impact of significant overcapacity in the highly competitive
commercial printing industry, which creates downward pricing pressure and
fluctuating demand for printing services; the inability of the Company to
reduce costs and improve operating efficiency rapidly enough to meet market
conditions; the impact of electronic media and similar technological changes
including digital substitution by consumers; the impact of changing future
economic conditions; the failure to renew long-term contracts with clients on
favorable terms or at all; the failure of clients to perform under long-term
contracts due to financial or other reasons or due to client consolidation;
the failure to successfully identify, manage, complete and integrate
acquisitions and investments, including the integration of the operations of
Vertis Holdings, Inc.; the impact of changes in postal rates, service levels
or regulations; the impact of fluctuations in costs and the availability of
raw materials; the impact of increased business complexity as a result of the
Company’s entry into additional markets; the impact of regulatory matters and
legislative developments or changes in laws, including changes in privacy and
environmental laws; the ability of the Company to make the significant capital
expenditures needed to remain technologically and economically competitive;
the impact on Quad/Graphics class A common shareholders of a limited active
market for Quad/Graphics common stock and the inability to independently elect
directors or control decisions due to the class B common stock voting rights;
and the other risk factors identified in the Company's most recent Annual
Report on Form 10-K, as such may be amended or supplemented by subsequent
Quarterly Reports on Form 10-Q or other reports filed with theSecurities and
Exchange Commission.

Except as required by the federal securities laws, the Company undertakes no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.

About Quad/Graphics

Quad/Graphics (NYSE: QUAD), a leading global printer and media channel
integrator, is redefining print in today’s multichannel media world by helping
marketers and publishers capitalize on print’s ability to complement and
connect with other media channels. With consultative ideas, worldwide
capabilities, leading-edge technology and single-source simplicity,
Quad/Graphics has the resources and knowledge to help its clients maximize the
revenue they derive from their marketing spend through channel integration,
and minimize their total cost of production and distribution through a fully
integrated national distribution network. The Company provides a diverse range
of print solutions, media solutions and logistics services from multiple
locations throughout North America, Latin America and Europe.

Contact:

Media Contact:
Nicole Mosca
Manager of Corporate Communications, Quad/Graphics
414-566-2960
Nicole.Mosca@qg.com
or
Investor Relations Contact:
Kelly Vanderboom
Vice President & Treasurer, Quad/Graphics
414-566-2464
Kelly.Vanderboom@qg.com
 
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