Quad/Graphics Reports Third Quarter and Year-To-Date September 2012 Results

Quad/Graphics, Inc.:

Highlights:

• Generates third quarter net sales of $1,040 million.

• Achieves Adjusted EBITDA of $155 million and Adjusted EBITDA margin of 14.9% for the quarter.

• Generates $53 million in Recurring Free Cash Flow for the quarter and $220 million year-to-date.

• Raises full-year 2012 Recurring Free Cash Flow guidance to equal or surpass full-year 2011 of $340 million.

• Repays $16 million in debt during the quarter and $148 million year-to-date.

• Announces intent to acquire substantially all the assets of Vertis Holdings, Inc.

Quad/Graphics, Inc. reported results for its third quarter ending September 30, 2012. For full financial results, please see the accompanying information.

“Our third quarter performance was in line with our expectations,” said Joel Quadracci, Quad/Graphics Chairman, President & CEO. “We were able to expand and renew multiple major customer agreements. This was accomplished while we remained diligent in our efforts to implement sustainable cost reductions and improve productivity. Further, our ability to generate significant cash flow and strengthen our balance sheet through consistent debt paydown has allowed us to be flexible with our plans for capital deployment and take advantage of opportunities such as our recently announced agreement to acquire Vertis. The combination of Quad/Graphics and Vertis is a natural and strategic fit that further strengthens and expands our offerings, allowing us to better serve our clients while achieving additional efficiencies and building long-term value for our shareholders. We expect the closing to occur sometime in the first quarter of 2013, subject to Bankruptcy Court and customary regulatory approvals. Until then, it is business as usual and, given ongoing economic and industry challenges, we will remain focused on performing well for our clients, improving productivity and aggressively managing costs.”

Net sales for the third quarter were $1,040 million versus $1,109 million for the same period in 2011. Third quarter 2012 Adjusted EBITDA was $155 million compared to $174 million for the same period in 2011, and Adjusted EBITDA margin was 14.9% as compared to 15.6% in 2011. The quarterly results reflect expected volume declines as well as pricing pressures on print and byproduct sales. Partially offsetting these impacts in the quarter were lower selling, general and administrative costs and $23 million in incremental synergy savings.

For the first nine months of 2012 net sales were $2,964 million versus net sales of $3,109 million for the same period in 2011, reflecting expected volume and price pressures. Year-to-date Adjusted EBITDA was $393 million versus $431 million in 2011, reflecting lower volumes and pricing pressures on print and byproduct sales, partially offset by lower selling, general and administrative costs and incremental synergy savings. Recurring Free Cash Flow was $220 million for the first nine months of 2012 compared to $143 million in the first nine months of 2011, continuing a track record of solid cash flow generation.