Big Flower Acquires Marketing Software Company; Proprietary Databases Increase Precision Marketing Capabilities.

NEW YORK--(BUSINESS WIRE)--April 22, 1998--Big Flower Holdings, Inc. (NYSE:BGF) announced today that it has acquired Reach America, Inc., a software development and database marketing company. Reach America, a privately owned, New York-based company, develops proprietary, target audience databases, tracks consumer products category sales potential and maps retail trade zones. The terms of the acquisition were not disclosed.

"By adding Reach America to our software development group, we can unlock new advertising applications for all of Big Flower=s customers," said Edward T. Reilly, President and Chief Executive Officer of Big Flower Holdings, Inc. "We have added another precision marketing tool and further developed our high-impact advertising services, better enabling us to meet advertisers' needs for more precise information about their current and potential customers."

Big Flower's advertising insert producer, TC Advertising, worked with Reach America in 1995 to develop the proprietary Target Reach marketing solution. Target Reach is a database information system that enables advertisers to customize their insert advertising to match the demographic characteristics and other targeting requirements of over 20,000 newspaper delivery zones in the nation=s top 300 markets. The Target Reach program, launched in 1997, has been well received in the software and automotive industries.

"Target Reach is a proven application of Reach America=s precision marketing capabilities. TC Advertising has been successful at combining database marketing with full-color, high-impact advertising inserts to provide remarkably effective advertising pieces," Mr. Reilly said. "Our Webcraft direct marketing campaigns and Columbine JDS' targeted electronic media approach will also benefit from Reach America's marketing tools."

For over six years, Reach America has developed databases and search engines now used by leading national advertisers for precise, cost-effective advertising insert media buys. Reach America is currently developing a geo-demographic software package customized to particular retail chain segments, such as grocery or drug stores.

Big Flower Holdings, Inc. is a leading advertising and marketing services company with three principal lines of business: targeted advertising inserts and circulation-building newspaper products, customized direct mail and direct marketing, and digital services, including outsourced digital premedia and computer-based management systems for the broadcast industry. For the twelve months ended December 31, 1997, the Company=s pro forma revenues were approximately $1.6 billion, including the recently completed acquisitions.

CONTACT: Nancy S. Murray 

Big Flower Holdings, Inc.

212/521-1606

[e-mail]