Big Flower to acquire leading West Coast advertising insert producer; Addition of RCPC increases versioning capacity, enhances geographic coverage.

NEW YORK--(BUSINESS WIRE)--Sept. 21, 1997--Big Flower Press Holdings, Inc. (NYSE:BGF) announced today that it has signed a definitive agreement to acquire Riverside County Publishing Company (RCPC), a leading California-based provider of retail advertising inserts with revenues of approximately $130 million.

With operations in Riverside and San Leandro, Calif., RCPC, a division of Brown Printing, will be a unit of Big Flower s largest operating subsidiary, TC Advertising, an industry leader in producing targetable advertising inserts and circulation-building newspaper products. The terms of the acquisition were not disclosed.

Edward T. Reilly, President and CEOfficer of Big Flower, commented, "RCPC brings important capacity to our nationwide network of offset press facilities. By focusing on offset production, we are able to provide our customers with the most cost-efficient and effective method in which to produce multiple versions of inserts for their growing demand for store-specific, targeted advertising. In addition, RCPC s strong retail customer list adds to our increasing base of grocers, drug stores and home improvement merchants."

The RCPC agreement is the third acquisition Big Flower has announced this month. Last Thursday, Big Flower acquired Olwen Direct Mail, a full-service, UK-based direct mail producer. Earlier today, Big Flower announced it had signed an agreement to acquire Columbine JDS Systems, the leading computer-based management service provider for the broadcast industry. Total consideration for the acquisitions of Olwen, Columbine and RCPC, including the assumption and/or repayment of debt, will be approximately $260 million, including the issuance of approximately 956,000 shares of Big Flower common stock.

"Our strategic acquisition program continues to be an important part of our growth plan. By adding RCPC s capacity to TC Advertising, by increasing our advertising services with Columbine, and by extending our direct marketing capabilities internationally with Olwen, we are carefully adding valuable products and services to our portfolio of advertising and marketing solutions," Reilly said.

Big Flower Press is a leading advertising and marketing services company specializing in advertising insert programs, circulation-building newspaper products, digital image and content management, customized direct mail products and fragrance samplers. Its 1996 annualized revenues were approximately $1.4 billion.

CONTACT: Big Flower, New York 

Nancy S. Murray, 212/521-1606