EX-99.(C)(4) 3 g07912a1exv99wxcyx4y.htm EX-99.(C)(4) GOLDMAN SACHS PRESENTATION 12/13/06 EX-99.(C)(4) GOLDMAN SACHS PRESENTATION 12/13/06
 

Exhibit (c)(4)
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Presentation to Colorprint Preliminary Board Discussion Materials Goldman, Sachs & Co. 13-Dec-2006

 


 

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Table of Contents I. Executive Summary II. Valuation Update III. LBO Analysis Appendix A: Financial Sponsors Profiles Appendix B: Additional Information Appendix C: Sponsor Proposals Goldman Sachs does not provide accounting, tax, or legal advice. Notwithstanding anything in this document to the contrary, and except as required to enable compliance with applicable securities law, you (and each of your employees, representatives, and other agents) may disclose to any and all persons the US federal income and state tax treatment and tax structure of the transaction and all materials of any kind (including tax opinions and other tax analyses) that are provided to you relating to such tax treatment and tax structure, without Goldman Sachs imposing any limitation of any kind.

 


 

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I. Executive Summary
Executive Summary 3

 


 

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csdtampa 29 Jun 2007 19:18 4/40 Comparison of Preliminary Indications of Interest Key Transaction Terms Carlyle            Hellman & Friedman            Texas Pacific Group WCAS Equity consideration per $30.00-$32.00 $33.00-$34.00 $32.00-$34.00 $28.00-$30.00 share Enterprise Value ($mm) $1,509 — $1,618 $1,673 — $1,727 $1,618 — $1,727 $1,400 - $1,509 Equity provided by Carlyle Residual balance sheet cash            Equity provided by TPG Partners Equity provided by WCAS X ($3.9 Partners IV ($7.9 bn) Equity provided by Hellman & V, L.P. ($15 bn) bn) and affiliates Debt financing up to 7.5x CY Friedman Capital Partners VI ($9 Additional equity provided by Subordinated debt from WCAS Expected Sources of 2006 EBITDA bn) management should they choose Capital Partners IV ($1.3 bn Financing Debt financing consistent with to co-invest mezzanine fund) Goldman indicative leverage Debt financing consistent with Additional third party debt levels Goldman indicative leverage levels (7.0x) Prepared to begin due Prepared to begin due diligence Prepared to begin due diligence Prepared to begin due diligence diligence immediately immediately immediately immediately Timing Issues Can commit resources to Can meet required timeline to Confident acquisition can be close transaction on an sign an agreement in Q1 2007 completed in a timely fashion expedited basis and close on an expedited basis Plan to retain senior            Expectation that senior            Intend to offer senior            Considers management team and management            management team will continue            management the opportunity to            employee base to be a key Open to and encourage to run the organization and be co-invest determinant of the value of the rollover and direct co- shareholders in post transaction Will implement a customary company Position Regarding investment company equity incentive program for Following the transaction propose Existing Management certain key employees structuring an incentive equity plan to retain managers Expect senior management to rollover a significant portion of their current ownership Due diligence focused on: Due diligence focused on: Key Assumptions (2007-2011): GS debt financing package of 1. Evaluation of each 1. The Company’s financial and — Assume 10% Revenue $1.134 bn segment’s growth drivers, historical projections CAGR — $648 mm senior credit facilities the color opportunity, and 2. Opportunities for growth — Steady state CapEx of 9%- — $486 mm of senior and sub Other Considerations / future product extensions 10% of revenue notes 3. Retailer and manufacturer Assumptions 2. Accounting, tax, and legal relationships — 36% EBITDA Margin Purchase price based on diligence management’s expected pro forma 4. Management team’s intentions — Goldman Sachs financing 3. Information Technology due regarding their involvement in guidance ($1.1bn in total EBITDA of $179.2 million for CY diligence the Company’s management debt; 7.0x) 2007 and ownership going forward NA: NA            Accountants: Deloitte & Touche NA Advisors Legal: Cleary Gottlieb Executive Summary 4

 


 

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csdtampa 29 Jun 2007 19:18 5/40 Other Process Considerations ($ in millions) Withdrawn from Process: Apollo Blackstone Kohlberg Kravis Roberts Thomas H Lee Partners Inbound calls received: Fund Size Apax $1,500 Bain Capital 12,000 Cerberus Partners 22,000 Clayton, Dubilier & Rice 4,000 First Data 19,3361 General Atlantic 4,000 Golden Gate 1,800 Madison Dearborn 6,500 Platinum Equity 700 Providence Equity (Oral indication of $31-$34 per share) 4,250 Quadrangle Group 1,800 TA Associates 3,500 Veronis Suhler Stevenson 1,300 Warburg Pincus 8,000 WPP Group 16,5911 1Market capitalization. Executive Summary 5

 


 

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csdtampa 29 Jun 2007 19:18 6/40 Illustrative Analysis at Various Prices ($ in millions, except per share data) Price Per Share $ 28.58 $ 30.00 $ 31.00 $ 32.00 $ 33.00 $ 34.00 Premium to Current Price (12-Dec-06)0.0 % 5.0 % 8.5 % 12.0 % 15.5 % 19.0 % Equity Value 1,352 1,430 1,484 1,539 1,593 1,648 Net Debt (at 30-Sep-06) 797979 79 7979 Enterprise Value 1,432 1,509 1,564 1,618 1,673 1,727 Premium to: Undisturbed Closing Price (07-Dec-06) $ 24.23 18.0 % 23.8 % 27.9 % 32.1 % 36.2 % 40.3 % 30 Day Average 24.91 14.8 20.5 24.5 28.5 32.5 36.5 60 Day Average 26.39 8.3 13.7 17.5 21.2 25.0 28.8 90 Day Average 26.97 6.0 11.2 15.0 18.7 22.4 26.1 180 Day Average 26.84 6.5 11.8 15.5 19.2 22.9 26.7 52 Week High Closing Price 29.77 (4.0) 0.8 4.1 7.5 10.8 14.2 5 Year High Closing Price (23-Jan-2002)39.01 (26.7) (23.1) (20.5) (18.0) (15.4) (12.8) EBITDA 1 Management / IBES LTM — 9/30/06 $ 151.9 9.4 x 9.9 x 10.3 x 10.7 x 11.0 x 11.4 x CY2006E — IBES 2 $ 154.4 9.3 x 9.8 x 10.1 x 10.5 x 10.8 x 11.2 x CY2006E — Management 153.8 9.3 9.8 10.2 10.5 10.9 11.2 CY2006E - Management Adjusted 3 162.3 8.8 9.3 9.6 10.0 10.3 10.6 CY2007E — IBES4 $ 163.6 8.8 x 9.2 x 9.6 x 9.9 x 10.2 x 10.6 x CY2007E — Management 175.4 8.2 8.6 8.9 9.2 9.5 9.8 CY2007E - Management Adjusted 3 179.2 8.0 8.4 8.7 9.0 9.3 9.6 EPS 1 CY2006E — IBES 2 $ 1.56 18.3 x 19.2 x 19.9 x 20.5 x 21.2 x 21.8 x CY2006E — Management 1.53 18.7 19.6 20.3 20.9 21.6 22.2 CY2007E — IBES4 $ 1.62 17.6 x 18.5 x 19.1 x 19.8 x 20.4 x 21.0 x CY2007E - Management 1.51 18.9 19.9 20.5 21.2 21.9 22.5 PEG (LT — IBES) CY 2006E P/E 8.5 % 2.1 x 2.3 x 2.3 x 2.4 x 2.5 x 2.6 x CY 2007E P/E 8.5 2.1 2.2 2.2 2.3 2.4 2.5 Executive Summary 6

 


 

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csdtampa 29 Jun 2007 19:18 7/40 Analyst Sentiment Post Public Announcement “The stock jumped on [Friday’s] news and is now trading at 9.6x our F2008 EBITDA estimate versus our comp group average of 10.4x. If a deal were to occur we don’t expect it to be much higher than 10.5x F2008 EBITDA, suggesting a price in the low $30’s. While the promise of better growth exists if the color printer introduction is a success, given the early stage of this initiative, the lower margin expectations of this new product and the near-term earnings deterioration, we believe there is some risk to this investment which may put a cap on the purchase price.” — Alexia Quadrani, Bear Stearns, 12/8/06 “We believe many shareholders would likely view any buyout short of $35 to $40 as premature given Colorprint is only half way through its much-touted color printer installation. In addition, the company only recently completed the Walgreen rollout, giving current investors very little time to assess how much of a hit the drugstore channel may prove to the CMS segment. A sale by the company at this point could be viewed as a giveaway to private equity buyers.” — Todd Van Fleet, First Analysis Securities, 12/11/06 “We believe Colorprint’s healthy cash flow generation coupled with its ongoing transformative growth initiatives make the company a logical target for private equity firms.” “Rumored takeout discussions are in the $30/share range, which would value the business at around 9x CY07 EBITDA and 20x CY07 EPS. We believe it’s plausible the multiple could creep slightly higher in a competitive auction.” “We do not expect a deal to be reached at a significant premium above Friday’s closing price.” — Mark A. Bacurin, Robert W. Baird, & Co., 12/11/06 “While the shares have rallied...since the news broke [Friday] afternoon, we still see potential for further material upside. Assuming a conservative 11x multiple on consensus F2008 EBITDA, we estimate that Colorprint could fetch $38 per share. Utilizing our current F2008 EBITDA estimate of $189.8 MM, we estimate Colorprint could be worth north of $40 per share. Notably, mature businesses in our space with lower growth prospects than Colorprint have been acquired at higher than 11x. We remain convinced that Colorprint’s color roll-out will yield high returns and snare material incremental dollars.” — Frederick Searby, JPMorgan, 12/8/06 Executive Summary 7

 


 

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csdtampa 29 Jun 2007 19:18 8/40 Colorprint Illustrative Timetable December 2006 January 2006 February 2006 March 2006 S M T W T F S            S M T W T F S            S M T W T F S            S M T W T F S 1 2 1 2 3 4 5 6 1 2 3 1 2 3 3 4 5 6 7 8 9 7 8 9 10 11 12 13 4 5 6 7 8 9 10 4 5 6 7 8 9 10 10 11 12 13 14 15 16 14 15 16 17 18 19 20 11 12 13 14 15 16 17 11 12 13 14 15 16 17 17 18 19 20 21 22 23 21 22 23 24 25 26 27 18 19 20 21 22 23 24 18 19 20 21 22 23 24 24 25 26 27 28 29 30 28 29 30 31 25 26 27 28 25 26 27 28 29 30 31 31 Important Dates            Holidays Date: Event: December 12th            Preliminary indications of interest due from Sponsors December 13th Review bids with Board / Special Committee December 15th            Notify Sponsors selected to continue in process Dec 14th – 26th Prepare due diligence items, refine management five year projections, develop management presentations and populate on-line data room Dec 27th Deliver 5 year financial projection model to Sponsors; open on-line data room Dec 28th – 29th Calls with Sponsors to review financial model Jan 1st, Jan 8th Sponsor due diligence with Colorprint (2 days each with broader Company management participation) Jan 8th, Jan 15th Process follow-up request items from Sponsors Deliver draft Purchase Agreement to Sponsors Jan 24th            Final bids due from Sponsors with mark-up of Purchase Agreement Jan 26th            Review final bids with Board / Special Committee Week of Jan 29th            Select final bidder, negotiate Purchase Agreement Week of Feb 5th Colorprint announces quarterly financial results Announce transaction Mid March            Shareholder vote Late March / Early April            Launch Financing Transaction Closing Executive Summary 8

 


 

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II. Valuation Update

 


 

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csdtampa 29 Jun 2007 19:18 10/40 Market Performance Price Appreciation by Sector 2000 2001 2002 2003 2004 2005 2006YTD1 Colorprint 0.9% (10.9)% (46.7)% 9.0% 47.0% (14.4)% 12.7% Sectors            Marketing Services2 8.9% 12.9% (17.4)% 21.1% 19.4% (12.5)% 3.2% Information Services3 18.7 42.2 (0.3) 30.9 17.6 20.4 8.7 Advertising4 (17.1) (17.3) (37.6) 23.5 (3.4) 1.0 14.8 Publishing5 (13.1) (9.0) (14.4) 24.6 21.2 5.4 27.9 Industry Standards            S&P 500 (10.1)% (13.0)% (23.4)% 26.4% 9.0% 3.0% 12.9% NASDAQ Composite Index (39.3) (21.1) (31.5) 50.0 8.6 1.4 10.5 1As of 12-Dec-2006. (4.4)% for YTD 2006 for Colorprint based on undisturbed closing price on 7-Dec-2006. 2Marketing Services: Acxiom, Harte Hanks, InfoUSA, Valassis, and Advo. 3Information Services: Moody’s, Dun & Bradstreet, Equifax, Alliance Data Systems, Fair Isaac, First Advantage and ChoicePoint. 4Advertising: Omnicom Group, Interpublic, Publicis, Havas, and WPP Group. 5Publishing: News Corp, Thomson Corporation, McGraw-Hill, and Wolters Kluwer. Valuation Update 10

 


 

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csdtampa 29 Jun 2007 19:18 11/40 Colorprint Shares Traded at Various Prices Last 3 Months            Last 6 Months 7,000 Weighted Average Price: 26.85 USD 18,000 Weighted Average Price: 27.52 USD Total Shares Traded as Percent of Shares 16,000 Total Shares Traded as Percent of Shares 6,000 Outstanding: 42.84% 14,000 Outstanding: 90.12% 5,000 (000) (000) 12,000 Volume Volume 4,000 10,000 3,000 8,000 6,000 2,000 4,000 1,000 2,000 0 0 24.23 25.04 25.86 26.67 27.48 28.30 24.23 25.11 25.98 26.86 27.74 28.61 to to to to 25.03 Daily from 12-Sep-2006 to 12-Dec-2006 29.11 25.10 Daily from 12-Jun-2006 to 12-Dec-2006 29.49 Last 12 Months            Last 24 Months 30,000 Weighted Average Price: 26.09 USD 60,000 Weighted Average Price: 25.74 USD Total Shares Traded as Percent of Shares Total Shares Traded as Percent of Shares 25,000 Outstanding: 213.77% 50,000 Outstanding: 461.65% (000) 20,000 (000) 40,000 Volume            Volume 15,000 30,000 10,000 20,000 5,000 10,000 0 0 21.71 23.05 24.4 25.74 27.08 28.43 21.71 23.13 24.56 25.98 27.4 28.83 to to to to 23.04 Daily from 12-Dec-2005 to 12-Dec-2006 29.77 23.12 Daily from 10-Dec-2004 to 12-Dec-2006 30.25 Valuation Update 11

 


 

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csdtampa 29 Jun 2007 19:18 12/40 Historical Trading Performance Three Years Index Price Performance            P/E Performance Colorprint Peers 180% 24x            High 22.9 x 20.7 x Low 15.8 15.6 Avg 18.9 18.3 21.5x 160% 22x 49.1% (NTM) 140% Months 20x Price 31.4% P/E (x) Indexed Forward Twelve 24.8% 120% 18x 17.8x Next 100% 16x 80% 14x Dec- May- Oct- Mar- Aug- Jan- Jun- Dec- Dec- May- Oct- Mar- Aug- Jan- Jun- Dec-2003 2004 2004 2005 2005 2006 2006 2006 2003 2004 2004 2005 2005 2006 2006 2006 Daily from 12-Dec-2003 to 12-Dec-2006 Daily from 12-Dec-2003 to 12-Dec-2006 Colorprint 1 S&P 500 Marketing Services Composite 2 Valuation Update 12

 


 

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csdtampa 29 Jun 2007 19:18 13/40 Colorprint Enterprise Value / EBITDA Trading History Three Years

 


 

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Comparison of Selected Companies ($ in millions, except per share data) \ Closing      % of Equity            Calendarized 5-Year 2007 PE LTM Price 52 Week Market Enterprise Enterprise Value / EBITDA P/E Multiples 2 Est. EPS to 5-Year EBITDA Company 12-Dec-06 High            Cap 1 Value 1 LTM 1 2006E 2007E 2006 2007 CAGR 2 CAGR 2 Margin 1 Colorprint $ 28.58 96 % $ 1,352 $ 1,432 9.4 x 9.3 x 8.8 x 20.4 x 20.2 x 8.5 % 2.4 x 34.5 % Colorprint — Management 9.3 8.2 18.7 18.9 Colorprint — Management Adjusted 3 8.8 8.0 Marketing Services Acxiom $ 25.42 96 % $ 2,026$ 2,729 6.7 x 6.8 x 6.4 x 26.1 x 21.3 x 15.0 % 1.4 x 29.7 % Harte Hanks 26.55 89 2,097 2,228 10.1 10.2 9.5 19.2 17.4 11.2 1.6 18.8 Advo 29.08 79 926 1,012 11.9 9.7 8.4 30.4 20.7 10.0 2.1 5.9 Valassis Communications 16.44 54 786 959 7.0 6.9 7.0 10.4 11.0 7.0 1.6 12.9 InfoUSA 12.16 93 680 809 8.8 9.1 7.5 19.0 13.7 NA NA 22.6 Median 89 % 8.8 x 9.1 x 7.5 x 19.2 x 17.4 x 10.6 % 1.6 x 15.9 % Mean 82 8.9 8.5 7.8 21.0 16.8 10.8 1.7 16.8 Information Services Moody’s $ 69.58 96 % $ 20,312 $ 20,318 18.9 x 18.2 x 16.6 x 31.8 x 27.8 x 15.0 % 1.9 x 56.0 % Alliance Data63.22 96 5,212 5,835 13.1 11.5 10.3 20.5 17.9 18.0 1.0 23.6 Dun & Bradstreet 83.15 100 5,312 5,574 12.0 12.3 11.3 21.0 18.3 13.8 1.3 30.8 Equifax 41.31 100 5,272 5,760 11.2 10.8 10.0 20.6 18.8 10.5 1.8 34.0 ChoicePoint 37.93 82 3,102 3,455 10.1 10.2 9.8 22.7 20.0 15.0 1.3 32.2 Fair Isaac 41.41 87 2,735 2,908 13.1 10.8 10.1 18.3 15.9 12.5 1.3 26.8 First Advantage 22.14 72 1,289 1,521 9.9 9.4 8.4 21.1 18.3 20.0 0.9 21.1 Median 96 % 12.0 x 10.8 x 10.1 x 21.0 x 18.3 x 15.0 % 1.3 x 30.8 % Mean 90 12.6 11.9 10.9 22.3 19.6 15.0 1.4 32.1 Advertising Omnicom Group $ 104.86 100 % $ 18,404 $ 20,804 12.1 x 12.5 x 11.4 x 21.0 x 18.7 x 12.0 % 1.6 x 15.4 % WPP Group 13.49 97 16,959 19,515 10.7 10.4 9.6 17.0 15.3 9.9 1.5 16.1 Publicis Groupe 39.21 88 8,663 8,602 7.2 8.0 7.5 16.2 14.9 3.0 5.0 20.8 Interpublic Group 11.75 95 5,184 6,899 19.7 16.7 10.2 NM 43.5 10.0 4.4 NM Havas 5.65 100 2,427 3,289 13.6 14.1 11.9 31.4 22.5 6.5 3.5 12.4 Median 97 % 12.1 x 12.5 x 10.2 x 19.0 x 18.7 x 9.9 % 3.5 x 15.7 % Mean 96 12.7 12.3 10.1 21.4 23.0 8.3 3.2 16.2 Publishing News Corp $ 21.18 98 % $ 67,733 $ 73,453 15.9 x 14.4 x 12.9 x 22.7 x 19.2 x 17.0 % 1.1 x 18.3 % Thomson Corporation 42.22 9827,069 30,983 14.0 12.3 11.4 25.1 22.8 13.5 1.7 24.3 McGraw-Hill 68.00 100 25,477 25,402 14.1 15.3 13.3 27.3 23.9 12.0 2.0 29.0 Wolters Kluwer28.03 95 8,704 9,874 12.9 10.4 9.0 17.2 14.2 9.0 1.6 16.0 Median98 % 14.1 x 13.4 x 12.1 x 23.9 x 21.0 x 12.8 % 1.6 x 24.3 % Mean 98 14.2 13.1 11.6 23.1 20.0 12.9 1.6 23.9 Valuation Update 14

 


 

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csdtampa 29 Jun 2007 19:18 15/40 Illustrative Discounted Cash Flow Analysis Valuation Date December 13, 2006 ($ in millions, except per share data) As of 31-December 2006 2007 2008 2009 2010 2011 Sales $ 460.3 $ 506.9 $ 547.5 $ 591.2 $ 638.5 $ 689.6 Growth 11.1 % 10.1 % 8.0 % 8.0 % 8.0 % 8.0 % EBIT $ 115.3 $ 126.0 $ 139.3 $ 154.9 $ 171.7 $ 189.8 EBIT Margin 25.0 % 24.9 % 25.5 % 26.2 % 26.9 % 27.5 % Taxes1 43.8 47.9 53.0 58.9 65.2 72.1 D&A $ 38.5 $ 53.2 $ 55.0 $ 55.0 $ 55.0 $ 55.0 Change in Working Capital (7.4) 2.32.0 2.2 2.3 2.5 Capex 110.0 65.0 55.0 55.0 55.0 55.0 Unlevered Free Cash Flow $(7.4) $ 68.6 $ 88.4 $ 98.2 $ 108.8 $ 120.2 Adjustment to year 12 8.1 Unlevered Free Cash Flow 0.7 68.6 88.4 98.2 108.8 120.2 PV of Cash Flow 0.7 65.2 76.3 77.1 77.6 78.0 Discounted Cash Flow            Assumptions Value of FCF $ 374.9 Projections5 Management Terminal Value 1,287.0 Colorprint WACC 10.0 % PV of FCF’s 1,661.8 Change in Working Capital5 Management Tax Rate1 38.0 % Net Debt3 $ 79.3 Terminal LTM EBITDA Multiple 8.5 x Equity Value 1,582.5 Diluted Shares Outstanding4 48.2Valuation as of 13-Dec-06 Implied Share Price $ 32.80
Valuation Update 15

 


 

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csdtampa 29 Jun 2007 19:18 16/40 Illustrative DCF Sensitivities Implied Share Price Terminal LTM EBITDA Multiple $ 0.0 8.0 x 8.5 x 9.0 x 9.5 x 10.0 x Discount 9.0 % $32.63 $34.08 $35.54 $36.99 $38.45 Rate 10.0 % 31.41 32.80 34.19 35.58 36.97 11.0 % 30.26 31.59 32.92 34.24 35.57 Implied Share Price            Implied Share Price Revenue Growth1 EBITDA Margin2 $ 0.0 6.0 % 7.0 % 8.0 %9.0 % 10.0 % $ 0.0 33.5 % 34.5 % 35.5 % 36.5 % 37.5 % Discount 9.0 % $31.53 $32.78 $34.08 $35.44 $36.86 9.0 % $32.04 $33.06 $34.08 $35.10 $36.12 Rate 10.0 % 30.36 31.56 32.80 34.11 35.46 10.0 % 30.84 31.82 32.80 33.78 34.77 11.0 % 29.25 30.39 31.59 32.84 34.14 11.0 % 29.70 30.64 31.59 32.54 33.48 Valuation Update 16

 


 

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Selected Precedent Transactions Since 2003 ($ in millions) LTM Multiples Date Announced            Target            Acquiror            Levered Value Sales            EBITDA            EBIT Consideration Sep-06 CPC            ADS $ 70 NA            NA 14.0 x            Cash Jul-06 ADVO            Valassis 1,316 0.9 9.1x / 12.6x 1 21.6 Cash Aug-06 PRIMIS            Parthenon Capital 115 NA 8.0 NA            Cash Feb-06 Doubleclick Email ADS 90 2.3 10.0 NA Cash Jan-06Clarity Blue Experian 188 2 3.3 NA 20.0 Cash Jan-06VNU NV Valcon Acquisition 11,566 2.211.3 19.0 Cash Sep-05 Bigfoot Interactive            ADS 1204.0 14.0 NA Cash Aug-05 Communications Group            WPP Group plc 68 NA            NA            NA Cash Jul-05 Cendant Marketing Services Division            Apollo 1,825 1.4 8.2 10.5 Cash Mar-05 Digital Impact Inc. Acxiom 115 NA            NA NA            Cash Mar-05 Tampa Flyer            Harte Hanks 60 NA            NA NA            Cash Apr-05 DoubleClick            Hellman & Friedman 805 2.0 13.4 37.1 Cash Oct-04 Epsilon Data Management ADS 300 2.5 12.5 NA            Cash Sep-04 Grey Global Group WPP Group plc 1,520 0.917.2 NA            Cash/Stock Jul-04 Seisint, Inc. Reed Elsevier 7756.7 17.2 NA Cash Jun-04 Information Holdings            Thomson Corp. 4415.4 NA            NA Cash May-04 TradeWeb            Thomson Corp. 535NA            NA            NA Cash Apr-04 OneSource Information Services            infoUSA Inc 85 1.5 NA 18.6 Cash Apr-04 Direct Group            Investor Group 50 NA            NA            NA Cash Aug-03 INFO1 LandAmerica Finl Group Inc 47 NA            NA            NA Cash Aug-03 Peter Black Direct Marketing            Merck 25 NA            NA             NA Cash Jun-03 Factual Data Corp            Kroll Inc 1131.6 NA 7.3 Cash/Stock Jun-03 Cordiant Communications            WPP Group plc 331 0.7 6.5 NA            Cash May-03 Tele-V            National Mgmt Consulting 42 NA NA            NA            Common Stock May-03 Mosaic Sales Solutions JLL Partners 76 NA            NA            NA Cash May-03NFO WorldGroup Taylor Nelson Sofres 435 0.98.3 11.6 Cash Apr-03 Insurance Mgmt Solutions Group            Fiserv Inc 41 1.4 NM            NM Cash Mar-03 Scorex            Experian 1112.4 NA            NA Cash Feb-03 Zenith Optimedia            Publicis Groupe SA 119NA            NA            NA Undisclosed Jan-03 Nordic Info Group A/S            Experian 142 3.0 8.2 15.2 Cash Median 2.1 x 11.3 x 16.9 x Valuation Update 17

 


 

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Comparison of Selected Premiums 100% Cash Consideration, Last 3 Years1 ($ in millions) Premium Announced            Target            Acquiror            Equity Value 1 Day 1 Week 4 Weeks 11/30/06 Digital Insight Corp            Intuit Inc $ 1,354 18.2 % 16.7 % 30.2 % 11/16/06 Conor Medsystems Inc            Johnson & Johnson Inc 1,459 23.8 29.3 36.7 11/06/06 Per-Se Technologies            McKesson Corp 1,095 14.5 16.5 19.3 10/31/06 Banta Corp            RR Donnelley & Sons Co 1,306 16.6 14.8 11.9 10/30/06 Sirna Therapeutics Inc            Merck & Co Inc 1,132 95.8 83.0 128.8 10/30/06 Trustreet Properties Inc            GE Capital Solutions Franchise 1,151 36.3 36.4 38.2 10/30/06 Trammell Crow Co            CB Richard Ellis Group Inc 1,971 28.1 31.6 38.8 10/26/06 Kanbay International Inc            Capgemini SA 1,162 15.9 24.8 36.8 10/25/06 Universal American Financial            Investor Group 1,107 12.2 14.4 9.5 10/11/06 Jacuzzi Brands Inc            Apollo Management LP 1,240 20.8 20.2 20.8 10/25/06 Yankee Candle Co Inc            Madison Dearborn Partners LLC 1,724 21.0 19.0 21.3 08/23/06 Internet Sec Sys Group Inc            IBM Corp 1,303 7.7 8.2 16.9 08/10/06 FileNet Corp            IBM Corp 1,557 1.0 4.0 29.1 07/09/06 Heritage Ppty Invest Trust Inc            Centro Properties Group 1,753 3.3 3.5 3.6 05/14/06 SSA Global Technologies Inc            Infor Global Solutions 1,529 25.1 24.0 25.8 05/01/06 Aviall Inc            Boeing Co 1,716 27.3 28.7 27.2 04/27/06 Diagnostic Products Corp            Siemens Medical Solutions Inc 1,767 20.7 17.7 24.5 04/25/06 Serologicals Corp            Millipore Corp 1,389 35.3 34.3 33.1 04/20/06 Ubiquitel Inc Sprint Nextel Corp 1,035 1.6 1.9 3.1 01/22/06Sports Authority Inc            Investor Group 1,021 20.0 26.0 20.8 11/20/05 Beverly Enterprises Inc            Fillmore Capital Partners LLC 1,593 33.3 35.9 36.8 11/10/05 SERENA Software Inc            Silver Lake Partners 1,026 2.7 7.3 24.4 11/08/05 Linens n Things Inc            Investor Group 1,295 7.9 14.9 17.0 10/24/05 Amli Residential Ppty Trust Prime Property Fund 1,177 20.7 22.7 19.1 10/16/05 Adv Neuromodulations Sys Inc            St Jude Medical Inc 1,369 30.4 22.8 21.8 09/29/05 IDX Systems Corp            GE Healthcare Ltd 1,488 25.1 33.6 38.8 09/15/05 UICI            Investor Group 1,719 19.1 17.1 19.9 08/04/05 Metris Cos Inc            HSBC Finance Corp 1,575 1.1 0.5 3.2 07/21/05 Priority Healthcare Corp            Express Scripts Inc 1,252 7.7 9.3 10.7 07/10/05 US Unwired Inc            Sprint Corp 1,072 1.5 4.3 24.3 06/16/05 Vicuron Pharmaceuticals Inc            Pfizer Inc 1,916 84.2 78.6 68.4 06/13/05 Commercial Federal,Omaha,NE            Bank of the West,CA 1,367 34.1 34.8 36.1 06/07/05 Gables Residential Trust            Investor Group 1,272 14.1 19.5 17.1 05/16/05 Overnite Corp            UPS 1,220 46.2 35.8 42.7 05/12/05 Cuno Inc 3M Co 1,290 31.3 34.7 36.8 04/21/05 Transkaryotic Therapies Inc            Shire Pharmaceuticals Grp PLC 1,384 21.6 38.1 55.5 03/14/05 Ascential Software Corp IBM Corp 1,121 17.8 17.0 16.8 01/31/05 Pulitzer IncLee Enterprises Inc 1,432 1.8 (1.5) (0.9) 01/27/05 Genencor International Inc Danisco A/S 1,151 23.9 22.4 15.8 11/24/04 Ionics Inc GE Infrastructure Inc 1,072 47.9 43.0 52.5 11/03/04 Argosy Gaming Co            Penn National Gaming Inc 1,408 16.4 11.1 17.8 10/20/04 Boca Resorts Inc            Blackstone Real Estate Advisor 1,031 27.9 30.7 31.1 10/19/04 Robert Mondavi Corp            Constellation Brands Inc 1,030 49.9 52.3 50.9 10/18/04 Select Medical Corp            EGL Holding Co 1,983 26.6 27.8 39.3 09/29/04 Orbitz Inc            Cendant Corp 1,229 34.5 33.8 48.4 07/13/04 National Processing Inc            Bank of America Corp 1,425 (9.5) (8.0) (8.8) 05/24/04 NeighborCare Inc            Omnicare Inc 1,410 96.7 94.4 44.2 05/24/04 WFS Financial Inc            Westcorp,Irvine,CA 1,940 3.5 6.2 5.1 05/19/04 ALARIS Medical Systems Inc Cardinal Health Inc 1,743 18.4 11.6 17.8 05/18/04 Kroll Inc            Marsh & McLennan Cos Inc 1,958 32.4 32.9 34.6 03/22/04 US Oncology Inc            Welsh Carson Anderson & Stowe 1,302 18.5 20.3 17.3 03/15/04 InVision Technologies Inc GE Infrastructure Inc 1,159 21.3 23.3 31.3 01/13/04 TheraSense Inc            Abbott Laboratories 1,243 33.0 35.5 50.0 12/21/03 Esperion Therapeutics Inc Pfizer Inc 1,281 54.2 52.8 57.6 Median—100% Cash Transactions 20.9 % 22.7 % 25.2 % 1. Includes equity values between $1 billion and $2 billion over last three years. US public company targets only. Valuation Update 18

 


 

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III. LBO Analysis

 


 

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csdtampa 29 Jun 2007 19:18 20/40 Illustrative LBO Analysis Assumes $33.00 Purchase Price Sources and Uses 7.0 x Total Debt / EBITDA Sources of Funds            Uses of Funds Amount            Expected Cost of      % of            x 12/31/06E Amount ($mm) Rating            Debt            Total            Adj. EBITDA1 ($mm) Revolver2 $ 0.0 Ba3/B            L + 250 0.0% 0.0x            Equity Consideration3 $ 1,593.2 1st Lien Term Loan B 700.0 Ba3/B            L + 250 40.1% 4.3x            Existing Debt Retired 111.6 Bank Debt $ 700.0 40.1% 4.3x            Total Purchase Price 1,704.8 Senior Unsecured Notes 275.0 B3/CCC+ 9.0% 15.8% 1.7x            Legal / Advisory Fees 12.0 Senior Debt $ 975.0 55.8% 6.0x            Financing Costs 29.2 Senior Subordinated Notes 160.0 Caa1/CCC+ 10.5% 9.2% 1.0x Total Debt $ 1,135.0 65.0% 7.0x Sponsor Equity Contribution 611.0 35.0% 3.8x Total Sources $ 1,746.0 100.0% 10.8x            Total Uses $ 1,746.0 LBO Analysis 20

 


 

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Illustrative LBO Returns Analysis Returns at Various Exit Dates – Assumes 7.0x Leverage, Exit at 8.5x LTM EBITDA Entrance Premium to Undisturbed Stock Price 19.7 % 23.8 % 27.9 % 32.1 % 36.2 % 40.3 % 1540% $ 29.00 $ 30.00 $ 31.00 $ 32.00 $ 33.00 $ 34.00 2010 27.6 % 23.2 % 19.5 % 16.3 % 13.4 % 10.9 % Exit Date 2011 26.6 23.2 20.3 17.7 15.4 13.4 2012 25.6 22.8 20.4 18.3 16.4 14.7 Returns at Various Exit Multiples – Assumes 7.0x Leverage Entrance Premium to Undisturbed Stock Price 19.7 % 23.8 % 27.9 % 32.1 % 36.2 % 40.3 % 32% $ 29.00 $ 30.00 $ 31.00 $ 32.00 $ 33.00 $ 34.00 EBITDA Multiple 8.0x 23.8 % 20.5 % 17.6 % 15.1 % 12.9 % 10.8 % 8.5x 26.6 23.2 20.3 17.7 15.4 13.4 9.0x 29.2 25.7 22.7 20.1 17.8 15.7 2011 Exit 9.5x 31.6 28.1 25.0 22.4 20.0 17.8 10.0x 33.9 30.3 27.2 24.5 22.0 19.9 Returns at Various Leverage Levels – Assumes Exit at 8.5x 2011 LTM EBITDA Entrance Premium to Undisturbed Stock Price 19.7 % 23.8 % 27.9 % 32.1 % 36.2 % 40.3 % 15% $ 29.00 $ 30.00 $ 31.00 $ 32.00 $ 33.00 $ 34.00 EBITDA 6.0x 21.8 % 19.4 % 17.3 % 15.3 % 13.6 % 11.9 % 6.5x 23.9 21.1 18.6 16.4 14.4 12.6 Debt / at Close 7.0x 26.6 23.2 20.3 17.7 15.4 13.4 LTM 7.5x 30.5 26.1 22.5 19.4 16.7 14.3 8.0x 36.0 30.1 25.5 21.6 18.4 15.6 LBO Analysis 21

 


 

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Base Case for Illustrative LBO Analysis1 ($ in millions) Pro Forma            CY Ended December 31, ($ in millions) LTM 12/31/06E 2007E 2 2008P 2009P 2010P 2011P 2012P OPERATIONAL DATA Total Sales $460.3 $506.9 $547.5 $591.2 $638.5 $689.6 $744.8 growth 10.1% 8.0% 8.0% 8.0% 8.0% 8.0% Adjusted EBITDA 162.3 176.9 194.3 209.9 226.7 244.8 264.4 margin 35.3% 34.9% 35.5% 35.5% 35.5% 35.5% 35.5% EBIT $123.8 $123.7 $139.3 $154.9 $171.7 $189.8 $209.4 Total Interest Expense 1.4 94.9 89.8 87.5 84.6 80.4 74.8 Net Income (Loss) to Common 77.1 17.9 30.7 41.8 54.0 67.8 83.5 SELECTED CASH FLOW DATA: Adjusted EBITDA $162.3 $176.9 $194.3 $209.9 $226.7 $244.8 $264.4 +/- Changes in Working Capital (7.4) 2.3 2.0 2.2 2.3 2.5 2.7 — Total Capital Expenditures (110.0) (65.0) (55.0) (55.0) (55.0) (55.0) (55.0) = Operating Cash Flow 44.9 114.2 141.3 157.1 174.0 192.3 212.1 — Cash Taxes (46.5) (10.9) (18.8) (25.6) (33.1) (41.6) (51.2) — Cash Interest Expense (net) (1.4) (92.0) (86.8) (84.6) (81.6) (77.5) (71.8) = Cash for Debt Service (3.0) 11.3 35.7 46.9 59.3 73.3 89.1 Cumulative Cash for Debt Service 11.3 46.9 93.8 153.1 226.3 315.5 CAPITALIZATION: Cash $36.0 $15.0 $15.0 $15.0 $15.0 $15.0 $15.0 Revolver 0.0 0.0 0.0 0.0 0.00.0 0.0 1st Lien Term Loan B700.0 667.7 632.1 585.2 525.9 452.7 363.5 Total Bank Debt$700.0 $667.7 $632.1 $585.2 $525.9 $452.7 $363.5 Senior Subordinated Notes160.0 160.0 160.0 160.0 160.0 160.0 160.0 Total Debt $1,135.0 $1,102.7 $1,067.1 $1,020.2$960.9 $887.7 $798.5 Shareholders’ Equity 611.0 628.9 659.6 701.4 755.4 823.3 906.7 Total Capitalization 1,746.0 1,731.6 1,726.7 1,721.6 1,716.4 1,710.9 1,705.3 CREDIT STATISTICS: Adjusted EBITDA / 1st Lien Interest 3.1x 3.5x 4.3x 4.9x 5.7x 6.8x 8.7x Adjusted EBITDA / Cash Interest 1.7x 1.9x 2.2x 2.5x 2.8x 3.2x 3.7x Adjusted EBITDA / Total Interest 1.6x 1.9x 2.2x 2.4x 2.7x 3.0x 3.5x (Adjusted EBITDA – Capex) / Total Interest 36.9x 1.2x 1.6x 1.8x 2.0x 2.4x 2.8x 1st Lien Debt / Adj. EBITDA 4.3x 3.8x 3.3x 2.8x 2.3x 1.8x 1.4x Senior Debt / Adj. EBITDA 6.0x 5.3x 4.7x 4.1x 3.5x 3.0x 2.4x Total Debt / Adj. EBITDA 7.0x 6.2x 5.5x 4.9x 4.2x 3.6x 3.0x Free Cash Flow / Total Debt (0.3)% 1.0 % 3.3 % 4.6 % 6.2 % 8.3 % 11.2 % Total Debt / Total Capitalization 65.0 % 63.7 % 61.8 % 59.3 % 56.0 % 51.9 % 46.8 % 1Based on management projections. Management projections have not yet been reviewed by Colorprint’s board. LBO Analysis 22

 


 

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Appendix A: Financial Sponsors Profiles

 


 

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Apollo Management Overview            Senior Investment Team Apollo Management began investing its first fund in 1990 and is currently Leon Black Chairman and Founding Partner managing its sixth private equity fund, Apollo Investment Fund VI, which has John Hannan Founding Senior Partner $10 billion of committed capital Josh Harris Founding Senior Partner Since its inception, Apollo has invested more than $20 billion in over 125 Marc Rowan            Founding Senior Partner companies representing a wide variety of industries, both domestically and internationally            Andrew Africk Senior Partner Apollo maintains a 4 part organization structure, with each fund group            Larry Berg            Senior Partner managed separately: Marc Becker            Senior Partner — Apollo Corporate – $25 billion across 6 funds            Peter Copses            Senior Partner — Apollo Real Estate – $4.1 billion across 4 funds — Apollo Distressed Investment Fund – ~$650 million fund — Apollo Investment Corp – $1.7 billion, publicly-traded closed end fund dedicated to mezzanine investments in private, middle-market companies In August 2006, Apollo raised $8 billion in an IPO of AP Alternative Assets (AAA) on the Euronext Amsterdam Exchange. Approximately 50% of the capital of AAA will be invested in private equity and 50% in Apollo’s capital markets-focused funds Apollo is based in Purchase, New York with offices in Los Angeles and London Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Harrah’s Entertainment            Pending $26,600 Cendant Corp, Marketing Services Division 26-Jul-2005 $1,825 Jacuzzi Brands 11-Oct-2006 $1,250 Metals USA Inc. 18-May-2005 459 GE Advanced Materials 14-Sep-2006 3,800 Goodman Global Holdings Inc. 19-Nov-2004 1,430 Berry Plastics Corp. 28-Jun-2006 2,250 Intelsat Ltd. 16-Aug-2004 5,000 Verso Paper Inc. 05-Jun-2006 1,400 AMC Entertainment Inc. 22-Jul-2004 1,892 Rexnord Corp. 25-May-2006 1,825 Borden Chemical Inc. 06-Jul-2004 1,200 SourceCorp Inc. 07-Mar-2006 393 United Agri Products 31-Oct-2003 610 Tyco, Plastics & Adhesives Business 20-Dec-2005 975 General Nutrition Cos . 17-Oct-2003 750 Linens ‘n Things Inc. 08-Nov-2005 1,290 Nalco Co. 04-Sep-2003 4,350 Financial Sponsors Profiles 24

 


 

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The Blackstone Group Overview            Senior Investment Team The Blackstone Group has been a leader in the field of private equity investing since 1987, Peter Peterson            Co-Founder, Senior Chairman managing almost $30 billion through its Blackstone Capital Partners I, II, III, IV, and V and Stephen Schwarzman Co-Founder, Chairman and CEO Blackstone Communications Partners funds            Hamilton James            President In July 2006, the Group closed Blackstone Capital Partners V with $15.6 billion of Tomlinson Hill Vice Chairman committed capital and has recently announced plans for a second closing at approximately Joe Baratta Senior MD (London) $20 billion David Blitzer Senior MD (London) Blackstone has invested in approximately 100 companies in a variety of industries, Michael Chae            Senior MD (New York) geographies and economic environments The total enterprise value of all transactions effected up to June 30, 2006, is over $158 Chinh Chu Senior MD (New York) billion            David Foley            Senior MD (New York) Blackstone’s target investment size is between $250 million to $3 billion            Larry Guffey            Senior MD (London) Blackstone specializes in the communications and healthcare sectors            Akhil Gupta            Senior MD (Mumbai) North America and Western Europe are primary markets, although the firm has invested in Prakash Melwani            Senior MD (New York) Latin America and emerging European markets            Garrett Moran            Senior MD (New York) — In recent years, Blackstone’s Private Equity Group has increased its focus on Europe            Hanns Ostmeier            Senior MD (Hamburg) — In February 2001, Blackstone entered into a strategic alliance with Roland Berger James Quella Senior MD (New York) Strategy Consultants GmbH, one of Europe’s leading management consultants. This Chip Schorr Senior MD (New York) alliance was created to provide Blackstone with access to proprietary deal flow, Neil Simpkins Senior MD (New York) preeminent intellectual capital and local knowledge of key European markets David Tolley Senior MD (New York) The Group has offices in New York, Atlanta, Boston, Los Angeles, London, Hamburg, Kenneth Whitney            Senior MD (New York) Paris and Mumbai Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Equity Office Properties            Pending $36,000 TeamHealth Inc. 11-Oct-2005 NA United Biscuits 25-Oct-2006 £2,400 UICI 15-Sep-2005 $1,800 Trizec Properties 05-Oct-2006 $7,200 Wyndham International Inc. 14-Jun-2005 3,240 Freescale Semiconductor Inc. 15-Sep-2006 19,000 Su nGard Data Systems Inc 28-Mar-2005 11,300 Michaels Stores Inc. 30-Jun-2006 6,046 Boca Resorts Inc 20-Oct-2004 1,230 Travelport Inc. 30-Jun-2006 4,300 Prime Hospitality Corp 18-Aug-2004 790 Encore Medical Corp. 30-Jun-2006 870 Vanguard Health Systems Inc. 23-Jul-2004 1,750 CarrAmerica Realty Corp. 06-Mar-2006 5,600 Texas Genco Holdings Inc. 21-Jul-2004 3,650 MeriStar Hospitality Corp 21-Feb-2006 2,600 Extended Stay America Inc. 05-Mar-2004 3,100 VNU NV 16-Jan-2006 11,000 RAG American Coal Holding Inc. 16-Feb-2004 1,000 La Quinta Corp. 09-Nov-2005 2,300 Freedom Communications 14-Oct-2003 2,070 Susquehanna Radio Corp. 31-Oct-2005 1,200 Financial Guaranty Insurance Co. 04-Aug-2003 1,900 Financial Sponsors Profiles 25

 


 

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The Carlyle Group Overview            Senior Investment Team The Carlyle Group launched its first fund in 1987 and has since made            Louis V. Gerstner, Jr. Chairman more than 500 corporate and real estate investments            Daniel A. D’Aniello            Founding Partner Carlyle, now one of the world’s largest private investment firms, is            William E. Conway            Founding Partner managing Carlyle Partners IV, which has $7.85 billion in committed capital            David M. Rubenstein            Founding Partner Carlyle invests in management led buyouts, minority equity positions, W.W. (Bill) Boisture            Senior Advisor real estate, venture capital, and leveraged finance opportunities in the            Herman H. Chang            Senior Advisor aerospace & defense, automotive & transportation, consumer & retail, Robert Coxon            Senior Advisor energy & power, healthcare, industrial, real estate, technology & business services, and telecommunications & media sectors            Richard G. Darman            Senior Advisor The Group manages over $44 billion in capital with 42 funds across            James H. Hance, Jr. Senior Advisor four investment disciplines (buyouts, venture & growth capital, real            Kent Kresa            Senior Advisor estate and leveraged finance) Duncan Lewis            Senior Advisor Carlyle is engaged in a joint venture with Riverstone to make Energy & Norman Pearlstine            Senior Advisor Power investments (approximately $6 billion of equity commitments) David L. Squier            Senior Advisor Carlyle is based in Washington, D.C. and maintains offices in 16 countries Eliot Merrill            Principal Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Open Solutions            Pending $1,300 SS&C Technologies Inc. 28-Jul-2005 $947 Freescale Semiconductor Inc. Pending 17,500 Insight Communications Co Inc. 07-Mar-2005 2,100 Kinder Morgan Inc. Pending 22,000 Verizon, Wireline Related Business 21-May-2004 1,650 EnCana Corp, Gas Storage Business 06-Mar-2006 1,500 PanAmSat Corp. 20-Apr-2004 4,300 VNU NV 16-Jan-2006 11,000 Williams Energy Partners LP 21-Apr-2003 1,100 Dunkin Brands 12-Dec-2005 2,500 FiatAvio Inc. 07-Apr-2003 1,700 Com Hem AB 05-Dec-2005 1,170 Qwest Communications International Inc. 20-Aug-2002 7,050 Hertz Corp. 12-Sep-2005 15,000 Vivendi Publish , Business Publishing 18-Apr-2002 1,409 Financial Sponsors Profiles 26

 


 

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Hellman & Friedman Overview            Senior Investment Team Hellman & Friedman, founded in 1984, is a private equity investment Warren Hellman Co-Founder and Chairman firm well respected for its distinctive investment philosophy and Brian Powers CEO approach During its 18-year investing history, the Firm has raised and managed            C. Andrew Ballard            Managing Director over $8 billion of capital and has invested in over 50 companies            Mitchell Cohen            Managing Director Hellman & Friedman is currently investing its fifth fund, Hellman & Jeffrey Goldstein            Managing Director Friedman Capital Partners V, with $3.5 billion of committed capital. Philip Hammarskjold            Managing Director Hellman & Friedman is raising $8 billion for its sixth fund, Hellman & Friedman Capital Partners VI. Patrick Healy            Managing Director The Firm looks to invest long-term equity capital to support the strategic Georgia Lee Managing Director and financial objectives of outstanding management teams operating Thomas Steyer Managing Director businesses with defensible positions in growing markets The Group has a target investment size of $100 million — $1 billion            Allen Thorpe            Managing Director Offices are located in San Francisco, London, and New York            David Tunnell            Managing Director Frank Zarb            Managing Director Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Intergraph Corp. 31-Aug-2006 $1,331 Texas Genco Holdings Inc. 21-Jul-2004 $3,650 Activant Solutions Inc. 13-Mar-2006 825 Delaware International Ltd. 05-May-2004 200 VNU NV 16-Jan-2006 11,000 Arch Capital Group Limited 20-Nov-2001 250 LPL Group 27-Oct-2005 2,500 NASDAQ 28-Mar-2001 240 DoubleClick Inc. 25-Apr-2005 1,100 Mitchell International 29-Feb-2000 NA Vertafore 23-Nov-2004 NA Financial Sponsors Profiles 27

 


 

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Kohlberg Kravis Roberts & Co Overview            Senior Investment Team Founded in 1976, Kohlberg Kravis Roberts & Co (KKR) is one of the world’s Henry Kravis* Co-Founder oldest and most experienced private equity firms George Roberts* Co-Founder Since its inception, KKR has completed approximately 140 transactions, invested more than $25 billion in equity capital, and raised more than $195 Michael Calbert            Partner, Retail billion in acquisition financing            Brian Carroll            Partner, Chemicals and Consumer KKR’s approach to private equity investing focuses on acquiring attractive Adam Clammer            Partner, Technology business franchises and working closely with management over the long term to design and execute value-creating strategies Todd Fisher* Partner, Chemicals and Financial Institutions — KKR has a long track record of investing large pools of capital and generating Fred Goltz Partner, Energy and Power attractive returns and multiples of invested capital Johannes Huth* Partner, Healthcare The Firm specializes in management buyouts, with a focus on transactions of greater than $1 billion in enterprise value Mark Lipschultz            Partner, Energy and Power KKR is expecting to close a $16.5 billion fund at the end of 2006. Additionally, Michael Marks Partner, Technology KKR has raised the following funds: Mike Michelson* Partner, Healthcare — 4.5 billion for its European fund — $ 800 million from the IPO of KKR Financial Corp, a diversified real estate            Alex Navab* Partner, Media & Telecom investment trust, in July 2004 (NYSE: KFN) Scott Nuttall            Partner, Financial Institutions and KKR REIT — $ 5 billion through IPO of KKR Private Equity Investors, KKR’s publicly-traded            John Saer            Partner, General Industrials fund, in May 2006 (Euronext Amsterdam: KPE) Headquartered in New York, the Firm has offices in Menlo Park, London, Paris, Hong Kong, and Tokyo Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Seven Media Group 20-Nov-2006 $3080 Capmark 03-Aug-2005 $1,500 Kion – unit of Linde 06-Nov-2006 5,100 SunGard Data Systems Inc. 28 Mar-2005 11,300 Tarkett 23-Oct-2006 1,760 Toys “R” Us Inc. 17-Mar-2005 7,000 Philips Semiconductors 03-Aug-2006 10,600 Visant 21-Jul-2004 2,200 HCA Inc. 24-Jul-2006 32,919 Texas Genco Holdings Inc. 21-Jul-2004 3,650 VNU NV 16-Jan-2006 11,000 PanAmSat Corp 20-Apr-2004 4,300 Accellent Inc. 10-Oct-2005 1,270 Sealy Corp 04-Mar-2004 1,500 Avago 14-Aug-2005 2,660 MTU Aero Engines GmbH — DaimlerChrysler 21-Nov-2003 1,800 * Member of Investment Committee Financial Sponsors Profiles 28

 


 

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Providence Equity Partners Overview            Senior Investment Team Providence Equity Partners Inc. is a private investment firm specializing in            Jonathan M. Nelson (Providence) CEO equity investments in communications and media companies around the Glenn M. Cream(Providence) Senior Managing Director world The principals of Providence Equity manage funds with over $9.0 billion in Paul J. Salem (Providence) Senior Managing Director equity commitments, including Providence Equity Partners V, which has Albert Dobron (Providence) Managing Director $4.25 billion in committed capital Michael Dominguez (Providence) Managing Director Providence is in the market now with Providence Equity Partners VI, which is expected to raise $10 billion and to close in early 2007 Alexander Evans (New York) Managing Director Since 1990, the principals of Providence Equity have invested in more than John Hahn (London) Managing Director, London Head 80 companies with operations in over 20 countries Mark Masiello (Providence) Managing Director Current and previous areas of investment include wireless and wireline telephony, cable television content and distribution, publishing, radio and            Jörg Mohaupt (London) Managing Director television broadcasting, and other media and communications sectors Mark Pelson (Providence) Managing Director Providence’s target investment size per transaction is $100 million to $1 Julie Richardson (New York) Managing Director, New York Head billion Gustavo Schwed (London) Managing Director — The fund’s institutional limited partners have co-invested directly in transactions that require substantially greater funding Biswajit Subramanian (London) Managing Director Providence Equity currently has offices in Providence, London, and New            Peter Wilde (Providence) Managing Director York Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Idea Cellular 26-Oct-2006 NA TDC A/S 30-Nov-2005 15,600 Open Solutions            Pending $1,300 Grupo Corporativo Ono SA 29-Jul-05 $1,213 Caudwell Group 6-Aug-06 2,785 SunGard Data Systems Inc. 28-Mar-2005 11,300 Univision Communications Inc. Pending 13,510 Recoletos Grupo Comunicacion 14-Dec-04 1,300 Kerzner International Ltd. 20-Mar-06 3,800 Telcordia Technologies Inc 18-Nov-04 1,350 Education Management Corp. 6-Mar-06 3,354 Metro-Goldwyn-Mayer Inc 13-Sep-04 4,840 Kabel Deutschland GmbH & Co KG 7-Dec-05 3,750 PanAmSat Corp 20-Apr-2004 4,300 Com Hem AB 05-Dec-2005 1,170 Warner Music Group 24-Nov-2003 $2,600 Financial Sponsors Profiles 29

 


 

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Texas Pacific Group Overview            Senior Investment Team Founded in 1992, Texas Pacific Group (TPG) is one of the largest U.S. David Bonderman Founder buyout firms with over $20 billion of capital under management James G. Coulter Founder TPG focuses on turnarounds, management-led buyouts and recapitalizations in the media and telecommunications, industrials, William S. Price            Founder technology and health care businesses John Marren            Partner, Technology & Telecom The Firm is currently investing its fifth fund, TPG Partners V, with Justin Chang Partner, Technology & Telecom approximately $14 billion of committed capital Jonathan Coslet Partner, Generalist TPG has made significant investments in many important brand-name companies including Burger King, Seagate, J.Crew, Bally, and Ducati            Kelvin Davis            Partner, Generalist TPG seeks to invest in established businesses requiring equity capital Rick Schifter Partner, Generalist between $100 million and $750 million Stephen Peel Partner, Europe Headquartered in San Francisco with offices in Fort Worth and New York            Bryan Taylor            Partner Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) TDF SA 11-Oct-2006 $4,140 Univision Communications Inc. 27-Jun-2006 13,511 Harrah’s Entertainment            Pending 26,600 LPL Group 27-Oct-2005 $2,500 Freescale Semiconductor Inc 15-Sep-2006 $19,000 Neiman Marcus Group Inc. 02-May-2005 5,095 Intergraph Corp. 31-Aug-2006 1,331 SunGard Data Systems Inc. 28-Mar-2005 11,300 Field Container Co. 18-Aug-2006 325 Fidelity National Information Services 08-Dec-2004 500 Aleris International Inc. 08-Aug-2006 3,307 Metro-Goldwyn-Mayer Inc. 13-Sep-2004 4,840 Petco Animal Supplies Inc. 14-Jul-2006 1,800 Texas Genco Holdings Inc. 21-Jul-2004 3,650 Smurfit-Stone Container Corp, 30-Jun-2006 1,040 Iasis Healthcare 05-May-2004 1,400 Consumer Packaging Unit Burger King Corp. 25-Jul-2002 2,260 Freescale Semiconductor Inc 15-Sep-2006 $19,000 Financial Sponsors Profiles 30

 


 

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Thomas H. Lee Partners Overview            Senior Investment Team Founded in 1974, Thomas H. Lee Partners (TH Lee) currently manages Anthony DiNovi Co-President approximately $14 billion of committed capital Scott Schoen Co-President TH Lee recently raised $9 billion for its latest fund, Thomas H. Lee Equity Fund VI            Scott Sperling            Co-President Known as a “friendly” leveraged buyout firm, it uses a mix of debt, Richard J Bressler            Managing Director funds from institutional investors, and its own money to buy companies            Seth Lawry            Managing Director Thomas H. Lee Partners employs 75 people, including 20 partners Joseph F. Pesce            Managing Director The company is headquartered in Boston Soren Oberg            Managing Director Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Clear Channel Communications Inc. Pending $26,775 Grupo Corporativo Ono SA 29-Jul-2005 $1,213 Hawkeye Holdings Inc. 30-Jun-2006 1,082 Azoffmusic Management 06-Jan-2005 200 Univision Communications Inc. 27-Jun-2006 13,510 Fidelity National Information Services Inc. 08-Dec-2004 500 West Corp 31-May-2006 4,100 Warner Chilcott PLC 27-Oct-2004 2,980 Aramark Corp 01-May-2006 7,600 Nortek Holdings Inc 15-Jul-2004 1,750 Sedgwick CMS 30-Jan-2006 635 Warner Music Group 24-Nov-2003 2,600 VNU NV 16-Jan-2006 11,000 Simmons Co 17-Nov-2003 1,100 Dunkin Brands 12-Dec-2005 2,500 Liquidnet 2001 29 Susquehanna Radio Corp 31-Oct-2005 1,200 Currenex 17-Apr-2000 22 Financial Sponsors Profiles 31

 


 

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Welsh, Carson, Anderson & Stowe Overview            Senior Investment Team Founded in 1979, Welsh, Carson, Anderson & Stowe (WCAS) is a New Bruce K. Anderson Co-Founder, General Partner York-based investment firm that concentrates its investments Russell L. Carson Co-Founder, General Partner exclusively in healthcare, information & business services, and communications industries and typically taking an active role in their Patrick J. Welsh Co-Founder, General Partner management Jonathan M. Rather General Partner and CFO WCAS is currently investing out of its tenth fund, WCAS X, with $3.5 John Clark            Partner billion in committed capital With more than 200 deals under its belt since its start in 1979, the firm            Tony de Nicola            Partner invests in management buyouts, restructurings and recapitalizations, and public to private transactions WCAS typically invests between $50 million and $500 million in a company, often holding controlling stakes Notable Recent Investments Investment            Date            Size ($mm) Investment            Date Size ($mm) Caribe Information Investments 02-Mar-2006 $260 US Oncology 20-Aug-2004 $1,282 Select Medical 18-Oct-2005 2,300 AmeriPath Inc 09-Dec-2002 792 Ozburn-Hessey Logistics 27-Jun-2005 NA            US Investigations Services Inc 04-Dec-2002 545 Ruesch International 02-Dec-2004 NA Qwest Commun Intl Inc, QwestDex 20-Aug-2002 7,050 Select Medical Corp 18-Oct-2004 2,300 Amdocs Ltd 01-May-1998 NA            US Oncology Inc 22-Mar-2004 1,700 JC Penny Business Services 15-Jan-1996 NA Financial Sponsors Profiles 32

 


 

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Appendix B: Additional Information

 


 

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Colorprint Summary Financials ($ in millions) For FY Ended Mar 31, For CY Ending Dec 31, 20021 2003 2004 2005 2006 2006E2 2007E2 Income Statement Net revenues $ 367.9 $ 383.8 $ 408.6 $ 410.1 $ 417.7 $ 460.3 $ 506.9 % YOY growth 8.2 % 4.3 % 6.5 % 0.3 % 1.9 % 14.0 % 10.1 % EBITDA $ 136.5 $ 127.0 $ 143.4 $ 151.2 $ 150.2 $ 153.8 $ 175.4 % YOY growth 9.1 % (6.9)% 12.9 % 5.5 % (0.7)% 9.2 % 14.0 % % EBITDA margin 37.1 33.1 35.1 36.9 35.9 33.4 34.6 D&A $ 40.9 $ 40.9 $ 45.2 $ 42.4 $ 36.0 $ 38.5 $ 53.2 % of revenue 11.1 % 10.6 % 11.1 % 10.4 % 8.6 % 8.4 % 10.5 % Operating income $ 95.6 $ 86.1 $ 98.1 $ 108.8 $ 114.2 $ 115.3 $ 122.2 % YOY growth 17.3 % (9.9)% 13.9 % 10.9 % 4.9 % 10.9 % 6.0 % % Operating margin 26.0 22.4 24.0 26.5 27.3 25.0 24.1 Net Income from Operations $ 66.6 $ 51.6 $ 60.4 $ 68.6 $ 71.6 $ 72.1 $ 69.3 % YOY growth 19.8 % (22.6)% 17.1 % 13.6 % 4.4 % 10.1 % (3.9)% Diluted EPS $ 1.17 $ 0.94 $ 1.15 $ 1.31 $ 1.46 $ 1.53 $ 1.51 % YOY growth 21.5 % (19.5)% 22.9 % 13.5 % 11.7 % 22.4 % (1.3)% Diluted Shares Outstanding 57.1 54.9 52.3 52.4 48.9 46.9 45.9 Balance Sheet PP&E, Net $ 146.1 $ 148.7 $ 126.8 $ 103.3 $ 128.5 $ 203.0 NA            Total assets 415.9 422.4 386.8 392.7 337.1 433.7 NA Cash & securities 13.7 1.772.7 116.2 28.1 36.0 NA Debt 60.9 68.2 66.9 64.6 61.9 137.0 NA Shareholders equity 223.3 216.0 184.7 196.4 143.2 162.7 NA Selected Data ROACE 32.8 % 23.5 % 30.1 % 36.0 % 42.2 % 43.4 % NA Debt / Total Capital 21.4 24.0 26.6 24.8 30.2 45.7 NA Debt / EBITDA 0.4 x 0.5 x 0.5 x 0.4 x 0.4 x 0.9 x            NA Free Cash Flow $ 73.3 $ 64.7 $ 96.3 $ 85.6 $ 42.6 $(10.4) $ 64.0 Additional Information 34

 


 

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Adjusted EBITDA Calculations ($ in millions) CY 2006E CY 2007E EBIT $ 115.3 $ 122.2 Depreciation & Amortization 38.5 53.2 EBITDA $ 153.8 $ 175.4 One time items Year End Change Accounting Expense $ 0.6 $ 0.0 Color Installation 2.9 0.8 Severance 1.7 0.0 Office Closure 0.5 0.0 Shareholder Settlement 0.3 0.0 $ 6.0$ 0.8 Public Co. Activities Investor Relations $ 0.7 $ 0.7 Audit Firm Services 0.6 0.6 Internal Audit SOX 1.0 1.0 Accounting Organization 0.7 0.7 $ 3.0$ 3.0 Total Adjustments $ 9.0 $ 3.8 Reduction in Adjustments For Conservatism (0.5) 0.0 Adjusted EBITDA $ 162.3 $ 179.2 Additional Information 35

 


 

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Research Analysts’ Recommendations and Estimates Analyst Recommendations            Evolution of Estimates1 Strong $1.49 Buy $1.60 2009E 13% $1.46 Underperform            Estimate Buy 2008E 25% $1.20 $1.25 $1.46 13% $1.27 2005A 2006A 2007E EPS $1.19 $0.80 2004A Hold 50% $0.40 Dec-2003 Jul-2004 Feb-2005 Sep-2005 Apr-2006 Nov-2006 Monthly from 31-Dec-2003 to 12-Dec-2006 Recommendations: 8 2004 2005 2006 2007 2008 2009 Price Targets Individual Analyst Estimates2 $ 30.00 Growth Estimates CY Ended Dec $29.00 Estimate Current = $28.58 Broker Date Rating ‘05-’06E ‘06-’07E 5-Yr. ‘06E ‘07E $ 28.00 Goldman Sachs3 26-Oct-2006 Underperform 24.0% -1.3% — $1.55 $1.53 $ 26.00 Bear, Stearns 01-Nov-2006 Hold 25.6% -0.6% 8.5% 1.57 1.56 $24.62 $25.00 Deutsche Bank 31-Oct-2006 Hold 24.8% 12.8% — 1.56 1.76 $ 24.00 First Anal. Sec. 01-Nov-2006 Hold 24.0% 5.8% 10.04 1.55 1.64 $23.00 JMP Securities 22-Nov-2006 Underperform 27.2% 1.9% 10.0 1.59 1.62 $ 22.00 J.P. Morgan 02-Nov-2006 Buy 27.2% 13.2% — 1.59 1.80 Robert W. Baird 01-Nov-2006 Hold 23.2% 1.3% — 1.54 1.56 $ 20.00 Goldman Robert Deutsche JMP            William Blair 13-Nov-2006 Strong Buy 20.8% 9.3% 7.0 1.51 1.65 Sachs 2 Baird            Bank Securities            Median 24.4% 3.8% 8.5% $1.56 $1.62 1Evolution of EPS estimates based on fiscal year-end Mar-31 estimates, estimates unadjusted for FAS123R expense. 2EPS estimates adjusted to exclude FAS123R expense. 3 Goldman Sachs coverage of POS was temporarily suspended on 8-Dec-2006. 4 First Analysis Securities estimate excluded from IBES median 5 year growth estimate. Additional Information 36

 


 

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Management vs. Analysts Estimates ($ in millions, except per share data) CY 2006 Estimates1 EPS            Revenue            EBITDA            EBIT            Net Income Avg. Shares Management2 $ 1.53 $ 460.3 $ 153.8 $ 115.3 $ 72.1 47.1 Goldman, Sachs & Co. 1.55 452.5 NA NA 75.3 48.6 Bear, Stearns & Co. 1.57 449.0 156.4 118.0 73.4 46.8 Deutsche Bank North America 1.56 451.9 153.0 114.7 73.0 46.8 First Analysis Securities Corp 1.55 451.2 150.3 113.1 72.7 46.9 JMP Securities 1.59 452.8 NA 116.2 74.2 46.7 JP Morgan 1.59 NA            NA NA            NA NA Robert W. Baird & Co., Inc. 1.54 456.4 155.7 117.1 72.1 46.8 William Blair & Company, L.L.C. 1.51 450.7 NA NA            NA NA Analyst Median $ 1.56 $ 451.9 $ 154.4 $ 116.2 $ 73.2 46.8 Analyst Range — High to Low 5.3 % 1.6 % 4.0 % 4.3 % 4.4 % 4.0 % CY 2007 Estimates3 EPS            Revenue            EBITDA            EBIT            Net Income Avg. Shares Management2 $ 1.51 $ 506.9 $ 175.4 $ 122.2 $ 69.3 45.9 Goldman, Sachs & Co. 1.53 465.4 163.6 106.7 72.4 47.2 Bear, Stearns & Co. 1.56 470.7 162.7 107.0 71.0 45.5 Deutsche Bank North America 1.76 492.1 172.9 123.3 79.9 45.5 First Analysis Securities Corp 1.64 477.7 156.9 113.4 76.3 46.6 JMP Securities 1.62 490.7 NA 113.5 75.0 46.2 JP Morgan 1.80 NA            NA NA            NA NA Robert W. Baird & Co., Inc. 1.56 504.3 172.1 122.6 71.5 45.9 William Blair & Company, L.L.C. 1.65 485.5 NA NA            NA NA Analyst Median $ 1.62 $ 485.5 $ 163.6 $ 115.1 $ 73.8 46.1 Analyst Range — High to Low 17.6 % 8.4 % 10.2 % 15.6 % 12.5 % 3.8 % Additional Information 37

 


 

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Peer Beta Calculation Average of Different Beta Sources 5-Year Levered Betas Barra            Bloomberg1 Average Colorprint 0.97 1.19 1.08 Harte Hanks 0.81 0.71 0.76 Acxiom 0.79 1.02 0.91 Valassis 1.56 0.91 1.23 Advo 1.15 0.81 0.98 InfoUSA 1.21 1.19 1.20 Median 1.06 0.97 1.03 Additional Information 38

 


 

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Cost of Equity and WACC Analysis ($ in millions) Risk            Cost of Pre-Tax Effective Risk-Free Premium Equity Beta Equity            Cost of Tax Rate Current Curr. Mkt. Val. Rate1 2 3 4 (t)5 Debt (D)6 of Equity (E)7 WACC (Rp) (Be) (Ke) Debt (Kd) Colorprint8 4.54 % 5.00 % 1.08 9.93 % 5.34 % 38.0 % $ 112 $ 1,352 9.42 % Harte Hanks 4.54 % 5.00 % 0.76 8.35 % 5.96 % 38.0 % $ 167 $ 2,097 8.00 % Acxiom 4.54 5.00 0.91 9.07 6.63 39.0 795 2,026 7.65 Valassis9 4.54 5.00 1.23 10.71 6.23 35.0 260 786 9.06 Advo 4.54 5.00 0.98 9.45 7.10 35.1 124 926 8.87 InfoUSA 4.54 5.00 1.20 10.53 7.08 36.0 137 680 9.53 Median 1.03 9.69 % 8.96 % Additional Information 39

 


 

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Appendix C: Sponsor Proposals