Exhibit 99.1
ARCADE MARKETING, INC. PRESS RELEASE
July 21, 2004
FROM: Arcade Marketing Inc.
1700 Broadway
New York, NY 10019
www.arcadeinc.com
CONTACT: Louis Zafonte
212 541 2658
lzafonte@arcadeinc.com
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ARCADE TO BECOME UNIT OF SPECIALTY PRINTING
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AND MARKETING SERVICES ENTERPRISE
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ARCADE MARKETING WILL CONTINUE TO FOCUS ON PRODUCT INNOVATION AND VALUE-ADDED
SOLUTIONS FOR ITS CUSTOMERS
NEW YORK, NY, JULY 21, 2004 - ARCADE Marketing, Inc. announced today that it
will become a unit of a newly created dynamic specialty printing and marketing
services enterprise co-owned by Kohlberg Kravis Roberts & Co. (KKR) and DLJ
Merchant Banking Partners, an affiliate of Credit Suisse First Boston's
Alternative Capital Division (DLJMBP).
The new group will consist of three leading printing and marketing services
entities poised to grow organically and through acquisitions: ARCADE, the global
leader in multi-sensory marketing and interactive sampling systems produced
primarily for the fragrance, cosmetics, and consumer packaged goods industries;
Jostens, Inc., the market leader in yearbooks, class rings, and graduation
products; Von Hoffmann Corporation, leading printer of educational textbooks and
supplemental materials and its subsidiary Lehigh Press, which specializes in
book components and direct marketing print services through Lehigh Direct. Each
of these companies is currently owned by DLJMBP and will become part of one
group enterprise through a recapitalization of Jostens and the acquisitions of
ARCADE and Von Hoffmann.
This new group enterprise, which will be renamed at the time of the mergers,
will be led by industry veteran Marc L. Reisch, who has been highly successful
in growing specialty printing and marketing services businesses. He is currently
a senior advisor of KKR and the Chairman of Yellow Pages Group, Canada's largest
telephone directories publisher. He formerly served as the Chairman and CEO of
the North American division of Quebecor World Inc., one of the largest
commercial printers in the world.
"The combination of ARCADE Marketing with Jostens and Von Hoffmann into this new
strategic growth enterprise is a strong fit between market leading companies,"
said William J. Fox, Chairman and CEO of ARCADE Marketing. "All three companies
share a rich history of providing superior value and innovative business
solutions to our respective markets and customers. Our dedication to innovation
and our customer-centric philosophy will remain unchanged. ARCADE will continue
to operate separately as a business unit within the new group. Our entire
management team at ARCADE is looking forward to working with Marc and could not
be more enthused about the opportunities which the creation of this enterprise
will afford our customers. This combination will provide a greater breadth of
resources to support ARCADE's ongoing strategy of aggressive research and
development of new products, and creation of value-added solutions for our
customers."
Mr. Reisch, who will be Chairman and CEO of the group's holding company, said,
"After looking at numerous opportunities, KKR and I decided to approach DLJMBP
with this creative structure for combining three strong assets into one growth
enterprise. We believe there is tremendous opportunity to build a specialty
printing and marketing services company that takes advantage of significant cost
benefits from combined scale, but that is focused on both organic and
acquisition growth. Jostens, ARCADE and Von Hoffmann will each have its own
management team and business plan to address a distinct customer base. I am
delighted that my long-term relationship with KKR has led to this opportunity,
and I am pleased to have the chance to work with DLJMBP as well as the
management and employees of Jostens, ARCADE and Von Hoffmann."
The merger is expected to close in the fall and is subject to customary closing
conditions.
ARCADE Marketing is the global leader in multi-sensory marketing and interactive
sampling systems produced primarily for the fragrance, cosmetics, and consumer
packaged goods industries. With more than a one hundred year history of
innovation and excellence in service to its customers, ARCADE Marketing is
widely recognized as the pioneering developer of interactive, olfactory and
product sampling, and now offers twenty-seven different sampling technologies.
These unique trial vehicles were developed by ARCADE's in-house research
laboratories, whose efforts have resulted in the issuance of over 60 domestic
and international patents. Best known for its ScentStrip(R) sampler, ARCADE also
offers LiquaTouch(R), DiscCover(R), BeautiSeal(R), BeautiTouch(R), ShadeSeal(R),
PowdaTouch(R), and many other proprietary sampling devices, all designed to
increase sales and generate greater brand recall. ISO 9001:2000 certified, FDA
registered, and cGMP compliant, ARCADE is headquartered in New York City and has
primary manufacturing facilities in Chattanooga, Tennessee and Baltimore,
Maryland. Additional manufacturing and sales offices are located in France, the
United Kingdom, Australia, Japan and Brazil. For further information contact:
lzafonte@arcadeinc.com.
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