Worldcolor Announces Third Quarter Results

MONTREAL, CANADA, Nov 12 (MARKET WIRE) --
- Third quarter combined consolidated adjusted EBITDA increased to $103.4
million compared to $94.2 million for the third quarter of 2008

- Improved combined consolidated adjusted EBITDA margins to 13.4%
compared to 9.5% in the third quarter of 2008

- Combined consolidated revenues of $769.9 million in the third quarter
compared to $993.6 million in the third quarter of last year

- Signed new and renewed agreements with important customers

Worldcolor (TSX: WC)(TSX: WC.U) reported increased combined consolidated
adjusted earnings before interest, tax, depreciation and amortization
(adjusted EBITDA) in the third quarter of 2009 compared to the same
period in the prior year, highlighting the Company's efforts to improve
efficiencies and to align its cost structure with the current challenging
economic environment.

In the third quarter of 2009, Worldcolor generated combined consolidated
revenues from continuing operations of $769.9 million compared to $993.6
million in the third quarter of 2008. Combined consolidated operating
income in the third quarter of 2009 before impairment of assets,
restructuring and other charges was $51.5 million compared to $33.7
million in the third quarter of 2008. Combined consolidated adjusted
EBITDA was $103.4 million in the third quarter of 2009 compared to $94.2
million in the third quarter of 2008. The higher adjusted EBITDA in the
quarter resulted from increased operational efficiencies and ongoing
cost-containment initiatives. In the third quarter of 2009 cost of sales
decreased by 26% compared to the third quarter of 2008 while revenues in
the third quarter 2009 decreased by 23% compared to the same period last
year. For the third quarter ended September 30, 2009, Worldcolor reported
a combined consolidated net income of $13.3 million, compared to a net
loss from continuing operations of $63.6 million for the same period in
2008. These results incorporated impairment of assets, restructuring and
other charges (IAROC), net of income taxes, of $8.9 million compared with
$5.1 million for the same period in 2008, as well as reorganization items
of $13.0 million which, net of income taxes, compared to $24.0 million in
the third quarter of 2008. In addition to the improvement in operating
income, the Company benefited from reduced financial expense mainly due
to gains on foreign exchange and lower interest expenses post emergence
from creditor protection in July, 2009. With $52.9 million of cash on
hand and access to a $350 million credit facility, of which $85 million
was drawn on September 30, 2009, the Company believes it has adequate
liquidity to achieve its operational goals going forward.

"The new Worldcolor is making a satisfactory beginning. The
quarter-over-quarter improvement in profitability exceeded our
expectations. It is spread across most of our businesses and was achieved
despite generally lower volumes related to the difficult global economy
and reduced advertising spending in North America," said Mark Angelson,
Chairman and CEO of Worldcolor. "We have important work ahead, but we see
many opportunities to improve our business and our industry position. We
will continue to take a disciplined and rigorous approach to improving
operational efficiencies through cost-reductions across our entire
platform."

The Company recently announced new and renewed agreements with important
customers including USA Weekend, Pace Communications, Macmillan and ABA
Publishing. Worldcolor continues to expand and diversify its product
offerings including services that allow publishers and retailers to
repurpose content in a timely manner, across multiple platforms to reach
the greatest audience and to maximize the return on their advertising
spend.

"We are encouraged by the positive response we have received from our
customers and other stakeholders. We are focused on proactive
relationships with customers and continue to make progress in renewing
existing partnerships and beginning new ones," commented Mr. Angelson.

Year-to-Date

For the three quarters of 2009, Worldcolor reported a combined
consolidated net loss from continuing operations of $172.1 million,
compared to a net loss from continuing operations of $289.9 million for
the same period in 2008. The results for the three quarters of 2009
incorporate IAROC, net of income taxes, of $21.8 million compared to
$47.8 million for the same period in 2008 as well as reorganization items
of $62.1 million which, net of income taxes, compared to $62.3 million in
the first three quarters of 2008. Combined consolidated revenues for the
first three quarters of 2009 were $2.22 billion compared to $2.98 billion
for the same period in 2008. The lower revenues are mainly due to
decreased volume in addition to price erosion.

Fresh Start Reporting and combined financial results

Upon emergence from protection under the Companies' Creditors Arrangement
Act in Canada ("CCAA") and Chapter 11 in the United States, the Company
is required to adopt "fresh start" financial accounting. Under fresh
start accounting, the Company undertook a comprehensive re-evaluation of
its assets and liabilities based on the estimated enterprise value of
$1.5 billion as established in the Plan of Reorganization. Enterprise
value is generally defined to be the Company's estimated fair value at
the Fresh Start date, less cash and cash equivalents. As a result of
Fresh Start accounting Worldcolor, the Successor, became a new entity for
financial reporting purposes. Accordingly, the Consolidated Financial
Statements of the Successor on or after August 1, 2009 are not comparable
to the Consolidated Financial Statements of the Predecessor prior to that
date. However, for the readers' convenience the current financial results
for the two periods have been combined in this news release.

Use of Non-GAAP Measures

In the discussion of our 2009 results, we use certain financial measures
that are not calculated in accordance with Canadian generally accepted
accounting principles (GAAP) or United States GAAP to assess our
financial performance, including EBITDA (earnings before interest, tax,
depreciation and amortization), Adjusted EBITDA, Adjusted EBIT, and free
cash flow. We use such non-GAAP financial measures because we believe
that they are meaningful measures of our performance. Our method of
calculating these non-GAAP financial measures may differ from the methods
used by other companies and, as a result, the non-GAAP financial measures
presented in this press release may not be comparable to other similarly
titled measures disclosed by other companies. We provide a reconciliation
of these non-GAAP financial measures to the most directly comparable GAAP
financial measures in Figure 4, "Reconciliation of non-GAAP Measures" of
our third quarter 2009 management's discussion and analysis filed with
the Canadian securities regulatory authorities at www.sedar.com and
furnished to the United States Securities and Exchange Commission at
www.sec.gov. A copy of our third quarter 2009 management's discussion and
analysis is also available on the Company's website at www.worldcolor.com.

Cautionary Note

In connection with its insolvency proceedings, the Company was required
to prepare projected financial information to demonstrate to the U.S.
Bankruptcy Court the feasibility of its Plan of Reorganization and its
ability to continue operations upon emergence from bankruptcy protection.
The Company filed projected financial information with the U.S.
Bankruptcy Court as part of its Third Amended Disclosure Statement. The
Company's financial and operating results for periods prior to August 1,
2009, being the effective date of the adoption by the Company of
fresh-start accounting after the implementation of its Plan of
Reorganization, are not necessarily indicative of its financial
performance for any future period, and there is no guarantee that the
Company will achieve its projected financial performance for the
remainder of 2009 or other future periods set forth in the Third Amended
Disclosure Statement. The Company is in no way updating or reaffirming
any projections.

There are numerous factors that can affect the performance of the
Company's business, including the risks and uncertainties described in
the Company's most recent Annual Report on Form 20-F and quarterly
financial statements and corresponding management's discussion and
analysis furnished to the SEC on Form 6-K, including under the captions
"Forward Looking Statements" and "Risk Factors." As they relate to
projected financial information filed with the U.S. Bankruptcy Court, see
Appendix D to the Company's Third Amended Disclosure Statement,
"Financial Projections; Notes to Financial Projections", for cautionary
language regarding the projections.

Forward-looking statements

To the extent any statements made in this press release contain
information that is not historical, these statements are forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, and are forward-looking information within the meaning of the
"safe harbor" provisions of applicable Canadian securities legislation
(collectively "forward-looking statements"). These forward-looking
statements relate to, among other things, prospects of the Company's (the
"Company") industry and its objectives, goals, strategies, beliefs,
intentions, plans, estimates, projections and outlook, and can generally
be identified by the use of words such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "plan," "foresee," "believe" or
"continue" or the negatives of these terms, variations on them and other
similar expressions. In addition, any statements that refer to
expectations, projections or other characterizations of future events or
circumstances are forward-looking statements. The Company has based these
forward-looking statements on its current expectations about future
events. Forward-looking statements do not take into account the effect of
transactions or other items announced or occurring after the statements
are made. For example, they do not include the effect of dispositions,
acquisitions, other business transactions, asset write-downs or other
charges announced or occurring after the forward-looking statements are
made. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, it can give no assurance
that these expectations will prove to have been correct, and
forward-looking statements inherently involve risks and uncertainties,
and undue reliance should not be placed on such statements. Certain
material factors or assumptions are applied in making forward-looking
statements, and actual results may differ materially from those expressed
or implied in such forward-looking statements.

Important factors and assumptions as well as the Company's ability to
anticipate and manage the risks associated therewith that could cause
actual results to differ materially from these expectations are detailed
from time to time in the Company's filings with the U. S. Securities and
Exchange Commission ("SEC") and the securities regulatory authorities in
Canada, available at www.sec.gov and www.sedar.com (copies of which are
available on www.worldcolor.com). The Company cautions that any such list
of important factors that could affect future results is not exhaustive.
Investors and others should carefully consider the factors detailed from
time to time in the Company's filings with the SEC and the securities
regulatory authorities in Canada and other uncertainties and potential
events when relying on its forward-looking statements to make decisions
with respect to the Company.

Unless mentioned otherwise, the forward-looking statements in this press
release reflect the Company's expectations as of November 12, 2009, being
the date at which they have been approved, and are subject to change
after this date. The Company expressly disclaims any obligation or
intention to update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, unless required
by applicable securities laws.

About Worldcolor

Worldcolor is an industry leader in providing high-value and
comprehensive print, digital and related services to retailers,
catalogers, publishers, branded-goods companies and other businesses
worldwide. Founded in 1903, Worldcolor's products include advertising
inserts and circulars, catalogs, direct mail products, magazines, books,
directories, digital premedia, logistics and mail list technologies.
During its century-long existence, Worldcolor has had a rich tradition of
leadership and excellence. Its team of approximately 20,000 employees is
focused on helping clients meet their needs from facilities located in
the U.S., Canada, Argentina, Brazil, Chile, Colombia, Mexico and Peru.
More information about Worldcolor can be found on its Web site at
www.worldcolor.com

World Color Press Inc.
Financial Highlights

(In millions of US dollars)
(Unaudited)

-------------------------------------------------------------------------
Three-month periods ended Nine-month periods ended
September 30 September 30
Combined Predecessor Combined Predecessor
2009 2008 2009 2008
-------------------------------------------------------------------------

Consolidated Results from
Continuing Operations
Operating revenues $769.9 $993.6 $2,224.5 $2,983.6
Adjusted EBITDA 103.4 94.2 197.0 261.1
Adjusted EBIT 51.5 33.7 42.1 70.7
IAROC 12.3 6.7 31.2 54.3
Operating income 39.2 27.0 10.9 16.4
Net income (loss) from
continuing operations 13.3 (63.6) (172.1) (289.9)
Net income (loss) 13.3 (64.2) (172.1) (1,005.3)
Adjusted EBITDA margin (i) 13.4% 9.5% 8.9% 8.8%
Adjusted EBIT margin (i) 6.7% 3.4% 1.9% 2.4%
Operating margin (i) 5.1% 2.7% 0.5% 0.6%
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Segmented Information from
Continuing Operations
Operating revenues
North America $709.7 $921.1 $2,053.0 $2,765.8
Latin America 60.2 72.5 171.5 217.8

Adjusted EBIT
North America $51.9 $32.3 $43.0 $70.0
Latin America 1.5 2.9 6.5 7.6

Adjusted EBIT margin (i)
North America 7.3% 3.5% 2.1% 2.5%
Latin America 2.5% 4.0% 3.8% 3.5%
-------------------------------------------------------------------------

Selected Cash Flow
Information
Cash provided by (used
in) operating activities $(24.9) $19.7 $116.8 $99.4
Free cash flow
(outflow) (ii) (57.7) 4.1 45.4 88.7
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September 30, December 31,
2009 2008
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Financial Position
Working capital $376.5 $(2,767.3)
Total assets 2,522.4 2,820.4
Shareholders' equity (deficit) 644.9 (1,554.7)
-------------------------------------------------------------------------

EBITDA: Operating income before depreciation and amortization
IAROC: Impairment of assets, restructuring and other charges
Adjusted: Defined as before IAROC

(i) Margins calculated on operating revenues
(ii) Cash provided by operating activities, less capital expenditures, net
of proceeds from disposals of assets and business disposals

Note:

The implementation of the Plan of reorganization on July 21,
2009 (the "Effective Date") resulted in a substantial realignment of the
interests in the Company between its existing creditors and shareholders
as of the Filing Date. As a result, the Company adopted fresh start
accounting effective July 21, 2009. In light of the proximity of the
Effective Date to the end of its accounting period immediately following
July 21, 2009, which is July 31, 2009, the Company has elected to adopt
fresh start accounting and account for the effects of the Plan, including
the cancellation of the old capital stock of QWI and the creation and
issuance of Worldcolor's new capital stock, as if such events had
occurred on July 31, 2009 (the "Fresh-start Date").

Due to our adoption of fresh start accounting, the consolidated statement
of income (loss) include the results of operations for (i) the one month
ended July 31, 2009 of the Predecessor and (ii) the two months ended
September 30, 2009 of the Successor. Therefore, for the purpose of the
analysis of the results of operations, we combined the period and
year-to-date results of operations of the Predecessor and the Successor.
The resulting combined results of operations for the three and nine
months ended September 30, 2009 are then compared to the corresponding
periods in the prior year. However, the application of fresh start
accounting results in the financial statements of the Successor not being
comparable to the Predecessor in many respects.

Contacts:
Worldcolor
Tony Ross
Vice President, Communications
514-877-5317
800-567-7070

Worldcolor
Roland Ribotti
Vice President, Corporate Finance and Treasurer
514-877-5143
800-567-7070

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