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Quad/Graphics Begins Plant Consolidation Phase of Integration Plan

August 6, 2010
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(PRESSRELEASE) SUSSEX, WI, August 5, 2010 – Quad/Graphics, Inc. (NYSE: QUAD) (“Quad/Graphics”) announced today it will close a number of plants as part of its ongoing integration plans. The company expects operations to cease at the following plants by the end of 2010: Clarksville, Tenn.; Corinth, Miss.; Lebanon, Ohio; Reno, Nev.; and Dyersburg, Tenn. The Dyersburg plant had been previously announced for closure in the first quarter of 2011 by World Color Press Inc. (“Worldcolor”); however, Quad/Graphics will accelerate its closure to this fall.

“Today’s announcement is a major step in integrating operations and creating the most efficient and modern manufacturing platform in the industry,” said Joel Quadracci, Chairman, President & CEO of Quad/Graphics. “Through this plan, more clients will benefit from our industry-leading technology and automation, while continuing to receive top-quality, on-time services.”

The five plants announced for closure encompass nearly 2.7 million square feet and employ a total of approximately 2,200 employees. Most of the equipment housed in the plants will be shut down and scrapped, thereby permanently removing excess capacity. Quad/Graphics will consolidate work into plants with the most efficient and competitive platforms. It has developed a comprehensive plan designed to smoothly transition client work between facilities.

The company will proactively assist impacted employees in finding new jobs, including those available at other Quad/Graphics locations. “We value the talents and contributions of employees impacted by today's announcement, and want to help them with their career transition,” Mr. Quadracci said. “No plant is closing because of employee performance or client service issues, but rather because we are moving work to locations with the most efficient platforms for serving our clients’ needs. To the extent possible, we’d like employees to continue with the company and we will review transfer opportunities with them.”

Quad/Graphics is on target to achieve approximately $225 million in pre-tax net annualized synergies within 24 months of closing on its transaction with Worldcolor.

“While we are very focused on achieving synergies, we are equally focused on serving our customers and building a foundation for future growth and success,” Mr. Quadracci said. “Now more than ever we are innovative people redefining print and we have the expanded resources and talent to help clients maximize the effectiveness of print as part of a multichannel communications strategy. We are excited about the future of print, our company and the industry.”

 

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