Exhibit 99.1

[CATALINA MARKETING LOGO]


NEWS

CONTACT:                                                   FOR IMMEDIATE RELEASE
Christopher W. Wolf
Chief Financial Officer
(727) 579-5218

Joanne Freiberger
Vice President, Finance
(727) 579-5116


                    CATALINA MARKETING ANNOUNCES RESIGNATION
                             OF INDEPENDENT AUDITORS


ST. PETERSBURG,  Fla., August 25, 2003 - Catalina  Marketing  Corporation (NYSE:
POS)  announced  today  that  Ernst & Young LLP has  resigned  as the  company's
independent  auditors,  effective August 20, 2003. The company's audit committee
has  begun the  process  of  conducting  its  search  for and  interviewing  new
independent  auditors to audit the  company's  fiscal year 2003,  including  the
finalization  of the proper  accounting  treatment  for the revenue  recognition
accounting issues previously disclosed.

The  company  expects  to file a report  on Form 8-K  with  the  Securities  and
Exchange Commission today to report the auditor resignation and disclose certain
"reportable events" identified by Ernst & Young LLP to the company.  The company
is already reviewing the accounting issues underlying the reportable events, and
it will  address all such issues,  as  appropriate,  with its new  auditor.  The
accounting  issues  that  give  rise to the  "reportable  events"  that  will be
described in the Form 8-K filing are as follows: (i) the timing of the company's
accounting for revenues  derived from its customer  arrangements in the Catalina
Health Resource  division in light of the discovery by the company's  management
of certain  agreements  with  customers  that were not  reflected in the written
agreement  and/or  appropriately  considered  in  connection  with the company's
accounting for the  arrangements,  and certain other elements of one significant
multi-year arrangement, (ii) the timing of the company's accounting with respect
to revenue recognition in the Catalina Health Resource division and the Catalina
Manufacturer Services division to the extent that certain customer contracts had
not been  executed  by both  parties  during the period in which the revenue was
first recognized,  (iii) the timing of the company's accounting treatment of its
customer  arrangements in the Catalina Manufacturer Services division and in the
Catalina Health  Resource  division with respect to certain  exclusivity  rights
granted to customers for the contractual  periods of its arrangements,  (iv) the
company's accounting treatment for certain non-cash transactions in the Catalina
Retail  Services  division,   and  (v)  the  company's   disclosure  of  segment
information for financial reporting.


                                    - More -




POS announces resignation of auditor
Page 2


As noted,  the company is continuing  to evaluate the timing  issues  related to
revenue recognition at CHR and its base business and is evaluating the impact of
the  reportable  events  identified  by Ernst & Young  LLP.  Due to the  ongoing
review, the company has delayed the filing of its annual report on Form 10-K for
fiscal 2003, ended March 31, 2003, and its quarterly report on Form 10-Q for the
first quarter of fiscal 2004,  ended June 30, 2003.  Previously  filed financial
statements of the company,  including the  associated  audit opinions and review
reports of the  company's  independent  accountants,  should not be relied  upon
until the company's review is complete.

Daniel D. Granger,  Chairman and Chief Executive Officer  commented,  "While the
resignation  of Ernst & Young is  unfortunate,  the  company  will  continue  to
dedicate the necessary resources to resolve these issues as quickly as possible.
We  expect to  engage a new  independent  auditor  in the near  future  and will
announce  the  engagement  as soon as the  search  process is  complete.  In the
meantime,  we are maintaining  the focus on our key business  strategies and the
performance of our day to day business operations.  It is important to emphasize
that  the  accounting  issues  do not  have  any  impact  on the  health  of our
businesses overall. We are the leaders in behavior-based marketing services, and
intend to maintain our leadership position."

Based   in   St.    Petersburg,    Fla.,    Catalina    Marketing    Corporation
(www.catalinamarketing.com)  provides a wide range of  behavior-based  marketing
services  for  manufacturers  and  retailers.   These  behavior-based  marketing
services are provided by interrelated  operating groups that strive to influence
purchase  behavior  of  consumers  wherever  and  whenever  they  make  purchase
decisions.  Through these operating groups,  Catalina  Marketing  Corporation is
able to reach consumers  internationally  and  domestically  -- in-store,  using
incentives,  loyalty  programs and advertising  messages,  and at-home,  through
direct mail and  sampling.  Personally  identifiable  data that may be collected
from  the  company's  targeted  marketing  programs,  as  well  as its  research
programs,  is never  sold or given to any  outside  party  without  the  express
permission of the consumer.

Certain statements in the preceding  paragraphs are forward looking,  and actual
results may differ  materially.  Statements  not based on historic facts involve
risks and uncertainties,  including, but not limited to, the changing market for
promotional  activities,  especially  as it relates to policies  and programs of
packaged  goods and  pharmaceutical  manufacturers  for the  issuance of certain
product  coupons and other  promotions,  the effect of economic and  competitive
conditions and seasonal variations,  actual promotional  activities and programs
with the company's  customers,  the pace of  installation of the company's store
network, the policies and programs of the company's retail partners, the success
of new services and  businesses  and the pace of their  implementation,  and the
company's ability to maintain favorable client relationships.


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