Big Flower Acquires Advertising Agency Management Software Firm.

NEW YORK--(BUSINESS WIRE)--Nov. 19, 1998--Big Flower Holdings, Inc. (NYSE:BGF) announced today that its Columbine JDS subsidiary, a leading provider of computer-based management services for the broadcast and advertising industries, has acquired DSI Datatrak Systems, Inc., a private, closely-held provider of automated software management systems for advertising agencies, media buying services and communications companies. The terms of the acquisition were not disclosed.

DSI Datatrak Systems, based in New Jersey, offers fully integrated advanced software systems that enable advertising agencies simultaneously to service multiple aspects of advertising campaigns including media planning, buying, paying and analysis, time billing and reporting, job costing control, project scheduling, general accounting and client profitability analysis.

Commenting on the acquisition, Big Flower President and Chief Executive Officer Edward T. Reilly said, "We believe that providing workflow management software to advertising agencies presents a significant opportunity for our company. The Datatrak acquisition strengthens our growing agency business by affording us an expanded base of agency customers and increasing Columbine's scope of services to the agency community."

Datatrak is the third acquisition Columbine has made in the past six months that targets the advertising agency industry. In June, Columbine acquired Adtraq, Inc., a privately-owned provider of specialty software for advertising agencies and media buying services in Canada, and Adserve, Inc. a New York-based provider of similar software and services. With the addition of these three businesses, Datatrak, Adtraq and Adserve to Columbine's existing agency software MediaLine and BuyFocus, Columbine's products and services will be among the most comprehensive advertising agency systems available.

Big Flower Holdings, Inc. is a leading advertising, marketing and information services company which provides more than 3,000 retail, advertising agency, broadcasting, manufacturing and newspaper customers with highly-targeted, promotional advertising products and services and software. Big Flower specializes in targeted advertising inserts, circulation-building newspaper products, customized direct mail and direct marketing services and digital services, including outsourced digital premedia and computer-based management systems for the broadcast industry. For the twelve months ended September 30, 1998, the Company's pro forma revenues were approximately $1.7 billion, including all acquisitions.