American Color Has Been Granted Final Approval of DIP Financing and Other Motions in Connection with the Company’s Pre-Packaged Restructuring

NASHVILLE, Tenn.--(BUSINESS WIRE)--American Color Graphics, Inc. (“the Company”/ “American Color”) today announced that it has received final Court approval of the Company’s debtor-in-possession (DIP) financing from Bank of America. The order signed today by the U.S. Bankruptcy Court for the District of Delaware in Wilmington grants final approval of financing previously approved on an interim basis on July 16, 2008.

The proceeds of the DIP financing have been and will continue to be used to refinance American Color’s existing first lien indebtedness, meet post-petition obligations, and fund the Company’s ongoing operations in the United States and Canada during the pre-packaged reorganization process American Color is using to implement a merger with Vertis Communications later this summer.

“We appreciate the great support we have seen from our customers, suppliers, and employees during our restructuring process. Our operations continue as usual and this DIP financing agreement should provide more than adequate financial resources to fund our operating requirements throughout North America while we complete our restructuring proceedings and the merger with Vertis,” said Steve Dyott, chairman and CEO of American Color. “We remain very enthusiastic about the substantial benefits this merger will offer the combined company and its customers,” Mr. Dyott added.

Both American Color and Vertis Communications filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington on July 15, 2008. American Color’s case number is 08-11467. Application for recognition of American Color’s Chapter 11 proceedings under Section 18.6 of the Companies’ Creditors Arrangement Act was accepted by the Superior Court of Justice in Ontario on July 16, 2008. A combined hearing to confirm the plans of reorganization for both companies has been set for August 26, 2008.

American Color previously received both U.S. and Canadian Court approval to, among other things, pay pre-petition and post-petition employee wages, salaries, and benefits as usual during the restructuring processes, pay trade creditors in the ordinary course of business, and continue all customer programs. Additional information is available on American Color’s website (http://www.americancolor.com) or by calling the Company’s toll-free information line at (866) 739-8117.

About American Color

American Color is one of North America’s largest and most experienced full-service premedia and print companies, with eight print locations across the continent, a TMC facility, six regional premedia centers, photography studios nationwide and a growing roster of customer managed service sites. Expert in a full range of products such as retail, newspapers, direct mail, catalog, publication, packaging, book, comic, and commercial products, American Color has been an innovative industry leader for over 80 years. The company provides solutions and services such as asset management, photography, and digital workflow solutions that improve the effectiveness of advertising and drive revenues for their customers. For more information, visit www.americancolor.com.

About Vertis Communications

Vertis Communications is a premier provider of print advertising and direct marketing solutions to America’s leading retail and consumer services companies. Vertis delivers marketing programs that create strategic value for clients by using proprietary customer research, database targeting technologies, premedia and media services, combined with its world-class printing expertise. Headquartered in Baltimore with over 100 locations in the U.S., Vertis Communications has been recognized as one of Fortune magazine's "Most Admired Companies" in advertising and marketing. For more information, visit www.vertisinc.com.

This press release may contain forward-looking statements. The words “believes, “anticipates, “expects, “estimates, “plans, “intends,” and similar expressions are intended to identify forward-looking statements. All forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from projected results. Factors that may cause these differences include fluctuations in the cost of raw materials we use, changes in the advertising, marketing and information services markets, the financial condition of our customers, actions by our competitors, changes in the legal or regulatory environment, general economic and business conditions in the U.S. and other countries, and changes in interest and foreign currency exchange rates.

Completion of the merger and consummation of the pre-packaged plan are subject to the satisfaction of customary closing conditions and the receipt of necessary approvals, including approval by the Bankruptcy Court of the Chapter 11 plans referred to above. Certain additional factors could affect the outcome of the matters described in this press release. These factors include, but are not limited to, (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement and/or the plan support agreements Vertis and American Color Graphics executed with certain stakeholders; (2) the outcome of any legal proceedings that may be instituted against the company and others; (3) the failure to satisfy other conditions to completion of the merger and/or consummation of the plans; (4) the failure of the company to obtain the financing necessary to consummate the merger and the plans; (5) risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the announced transactions; (6) the ability to recognize the benefits of the merger, including any synergies that may result from the merger; (7) the amount of the costs, fees, expenses and charges related to the merger and the plan and the actual terms of certain financings that will be obtained for the merger; (8) certain events that may occur in the Chapter 11 cases, including the objections to any of the plan, and (9) the failure of any of the lenders to provide the financing contemplated by the commitment letters due to the failure of a closing condition or otherwise. Many of the factors that will determine the outcome of the subject matter of this press release are beyond the company's ability to control or predict.

Consequently, you should consider any such forward-looking statements only as our current plans, estimates, and beliefs. Even if those plans, estimates, or beliefs change because of future events or circumstances, we decline any obligation to publicly update or revise any such forward-looking statements.