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Alternate Marketing Networks Sells Offline Sampling Business to Valassis.

GRAND RAPIDS, Mich., Sept. 19 /PRNewswire/ --

Alternate Marketing Networks, Inc. (Nasdaq: ALTM) announced today that it has sold its offline sampling business to Valassis Communications, Inc. (NYSE: VCI).

The Grand Rapids, Mich.-based marketing services company said the deal includes its in-home sampling programs that provide door-to-door delivery of targeted consumer goods, as well as proprietary delivery products such as its Media Optimizer(TM) national database. The Company will retain its recently developed online sampling site. Terms of the deal were not disclosed.

"We are pleased that we have been able to find such a good fit for our sampling programs in Valassis," said Phillip Miller, chairman and chief executive officer of Alternate Marketing Networks. "Valassis is the nation's leader in newspaper sampling, and our door-to-door operation will be a great complement to their current initiatives.

"This decision will allow Alternate Marketing Networks to focus attention and resources on our new online products and services, as well as on our newspaper advertising network."

Alternate Marketing Networks operates its in-home sampling programs from offices in Grand Rapids, Mich. and Norwalk, Conn. that handle the sales, marketing and distribution for its door-to-door delivery services, which includes the branded La Canasta ethnic in-home sampling program.

Valassis Communications is a leading marketing services company that offers consumer package goods companies and franchise retailers a variety of products and services, including: Sunday newspaper coupons, targeted specialty promotions, newspaper-delivered product samples and online promotions. Valassis, which reported revenues of $795 million in 1999, allows advertisers to reach more than 50 million households through its stable of targeted marketing services.

"We look forward to adding the strengths of door-to-door delivery to our current in-home sampling program," said Alan Schultz, chairman, president and CEO of Valassis. "We have been impressed with the scope of its offerings and its client base, and feel the in-home sampling division of Alternate Marketing Networks will be able to immediately contribute to meeting our clients' needs."

Alternate Marketing Networks said it expects the gain from the sale of its in-home sampling business would allow it to utilize a significant amount of its accumulated tax-loss carryforwards.

"We believe this divestiture, which was unanimously approved by our board of directors, will allow us a better opportunity to provide increased returns to our shareholders," Miller said.

About Valassis Communications:

Valassis connects people to brands by offering a wide range of specialty media programs to manufacturers, retailers, and Internet/e-commerce companies. From mass to one-to-one communications, Valassis leads the alternative media industry in comprehensive marketing solutions, including newspaper-delivered co-op and specialty inserts, advertising, product sampling, direct mail, on- line promotions, loyalty marketing programs, and consulting services. Established in 1970, Valassis is headquartered in Livonia, Michigan, with printing and manufacturing facilities in Michigan, North Carolina, Kansas, and Mexico. Valassis affiliates and subsidiaries include Independent Delivery Service, , , Valassis Relationship Marketing Systems (VRMS), PreVision Marketing, and Valassis of Canada. For additional information, visit the company website at .

About Alternate Marketing Networks:

Alternate Marketing Networks ( ) is a single-source provider of marketing services, offering a broad range of offline and online products and services. Building on its entrepreneurial heritage, the Company has developed and launched several online initiatives that provide complementary products to its offline marketing programs. Alternate Marketing Networks delivers comprehensive services in three primary areas: Online marketing products; offline advertising and marketing; and directory marketing. The Company serves the newspaper, consumer package goods, telecommunications, automotive, tourism and e-commerce industries.

Some of the statements included in this news release are not historical facts but are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created by that statute. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Some of these risks and uncertainties are discussed in Alternate Marketing Networks' filings with the Securities Exchange Commission, which are publicly available. Readers are cautioned not to place undue reliance on the forward-looking statements. Alternate Marketing Networks does not undertake to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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Publication:PR Newswire
Date:Sep 19, 2000
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