ADVO Urges Continued Focus On Postal Reform On Heels Of New Law.

Business Editors

WINDSOR, Conn.--(BUSINESS WIRE)--April 23, 2003

As President Bush signed into law today a bill that fundamentally changes the way the U.S. Postal Service (USPS) funds its employee retirement benefits, ADVO, Inc. (NYSE: AD) announced it will continue to partner with other industry leaders to work with both lawmakers and government officials to find new ways to ensure the long-term viability and strength of the USPS.

ADVO executives noted that the Postal Civil Service Retirement System Funding Reform Act of 2003, which was necessary to respond to a $70 billion overpayment of pension obligations, provides the opportunity to address more fundamental issues that will hamper all U.S. business - and the USPS itself - if left unattended.

"Although this first step clearly recognizes that the Postal Service's core operations are consistently profitable, it is important that we continue to focus beyond this correction," said Gary Mulloy, ADVO's Chairman and CEO, and Secretary of the Mailing Industry's CEO Council. "American business now needs the USPS to concentrate on issues that will help drive both an economic recovery, and economic sustainability, in this country - issues such as competitive pricing strategies, extending payment terms to commercial customers and the preservation of universal service."

While congratulating the White House and Capitol Hill on their bipartisan efforts to pass the current legislation, Mulloy also noted that the new law establishes a framework for executive and legislative branch oversight of future USPS cost savings. In addition, the President's Commission on the United States Postal Service is due to deliver its report on structural and financial opportunities by July 31. "If we remain focused, these two very significant opportunities will help the USPS institute additional needed reforms, thus helping to improve the overall competitiveness of the mail stream, and build both overall mail volumes and the very businesses that use the mail for critical customer communications."

ADVO is the largest full-service targeted direct mail marketing services company in the United States, with annual revenues of over $1.1 billion. The Company's shared mail advertising programs reach 102 million U.S. households on a weekly and monthly basis. This includes its core ShopWise(TM) branded programs, and the reach of its ADVO National Network Extension (A.N.N.E.) program. Additionally, the Company's SuperCoups(R) advertising solutions provide targeted advertising for local neighborhood businesses. ADVO launched the America's Looking For Its Missing Children(R) program in partnership with the National Center for Missing & Exploited Children and the United States Postal Service in 1985, and ADVO's missing child cards are responsible for safely recovering 126 children. ADVO has 23 mail processing facilities and 50 sales offices nationwide. ADVO's corporate headquarters are located at One Univac Lane, Windsor, Connecticut 06095, and the Company can be visited at its Web site at www.advo.com.

This report contains certain forward looking statements regarding the Company's results of operations and financial position within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are based on current information and

expectations and are subject to risks and uncertainties in ADVO's operations and business environment. Such risks and uncertainties include, but are not limited to: changes in customer demand and pricing; the possibility of consolidation throughout the retail sector; the impact of economic and political conditions on retail advertising spending and our distribution system; postal and paper prices; possible governmental regulation or legislation affecting aspects of the Company's business; the efficiencies achieved with technology upgrades; and other general economic factors.