Insignia Systems, Inc. Announces Valassis’ Termination of Agreement

  Insignia Systems, Inc. Announces Valassis’ Termination of Agreement

Business Wire

MINNEAPOLIS -- March 28, 2014

Insignia Systems, Inc. (Nasdaq:ISIG) (“Insignia” or “the Company”) today
announced that Valassis In-Store Solutions (“Valassis”) has terminated the
Retail Access and Distribution Agreement that was entered into on February 21,
2014 (which superseded the Company’s and Valassis’ prior agreements). The
termination becomes effective August 11, 2014, with all material terms and
conditions of the February 21, 2014 amended agreement in full force and effect
until that time.

Insignia’s President and CEO Glen Dall commented, “While this means that we
will not be accessing certain retailers through our agreement with Valassis,
and therefore creating a risk of reduced revenue, we now have the opportunity
to access these retailers directly to retain them in our network as per our
agreements with Valassis. We are well-positioned to build upon the retail
industry relationships we have cultivated over the past 24 years.”

Mr. Dall continued, “We have already taken advantage of the opportunity for
direct selling of our Insignia POPS® Program to additional CPGs, as a result
of that right we obtained by signing the new agreement with Valassis. Our POPS
Program continues to demonstrate effectiveness and value to CPG brands.”

He concluded, “Concurrent with these activities, we continue to explore new
business opportunities to increase our product portfolio, attract new
customers, and grow our retail network. CPG brands continue to demand options
to market in-store promotional vehicles, and Insignia remains fully committed
to this robust in-store market.”

Additional information regarding the termination of this agreement is
available in the Form 8-K filed by Insignia on March 28, 2014, a copy of which
is available at www.sec.gov.

About Insignia Systems, Inc.

Insignia Systems, Inc. is a developer and marketer of in-store advertising
products, programs and services to retailers and consumer goods manufacturers.
Through its Point-Of-Purchase Services (POPS) business, Insignia provides
at-shelf advertising products in over 13,000 chain retail supermarkets, over
1,600 mass merchants and over 7,000 dollar stores. Through the nationwide POPS
network, over 200 major consumer goods manufacturers, including General Mills,
Kellogg Company, Kraft Foods and Nestlé, have taken their brand messages to
the point-of-purchase. For additional information, contact (888) 474-7677, or
visit the Insignia website at www.insigniasystems.com.

Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995

Statements in this press release which are not statements of historical or
current facts are considered forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, as amended. The words “believes,” “expects,” “anticipates,” “seeks” and
similar expressions identify forward-looking statements. Readers are cautioned
not to place undue reliance on these or any forward-looking statements, which
speak only as of the date of this press release. Statements made in this press
release regarding, for instance: current expectations as to future financial
performance); our ability to continue revenue growth, cost improvements and to
maintain profitability; current sales trends with consumer packaged goods
manufacturers; the expected addition of retailers and the ability to increase
revenue; continued success in our business relationships; our ability to
develop and successfully implement new products to diversify our business and
to increase our retailer access for these products, are forward-looking
statements. These forward-looking statements are based on current information,
which we have assessed and which by its nature is dynamic and subject to rapid
and even abrupt changes. As such, actual results may differ materially from
the results or performance expressed or implied by such forward-looking
statements. Forward-looking statements involve known and unknown risks,
uncertainties and other factors, including: (i) the risk that management may
be unable to fully or successfully implement its business plan to achieve and
maintain profitability in the future; (ii) the risk that the Company will not
be able to expand core product offerings or to develop and implement new
product offerings in a successful manner, including our ability to gain
retailer acceptance of new product offerings; (iii) the unexpected loss of a
major consumer packaged goods manufacturer relationship or retailer agreement
or termination of our relationship with News America or Valassis; (iv)
prevailing market conditions in the in-store advertising industry, including
intense competition for agreements with retailers and consumer packaged goods
manufacturers and the effect of any delayed or cancelled customer programs;
(v) potentially incorrect assumptions by management with respect to the
financial effect of cost containment or reduction initiatives, current
strategic decisions, current sales trends for fiscal year 2014; and (vi) other
economic, business, market, financial, competitive and/or regulatory factors
affecting the Company’s business generally, including those set forth in our
Annual Report on Form 10-K for the year ended December 31, 2013 and additional
risks, if any, identified in our Quarterly Reports on Form 10-Q and our
Current Reports on Forms 8-K filed with the SEC. Such forward-looking
statements should be read in conjunction with the Company's filings with the
SEC. The Company assumes no responsibility to update the forward-looking
statements contained in this press release or the reasons why actual results
would differ from those anticipated in any such forward-looking statement,
other than as required by law.

Contact:

Insignia Systems, Inc.
John Gonsior, 763-392-6200
CFO
 
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