R.R. Donnelley Logistics To Open Large, Fully-Automated Distribution Facility In York, Pa In Second Quarter, 2003

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Linda Carlisle
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linda.carlisle@rrd.com


WILLOWBROOK, Ill., Dec. 17, 2002 - R.R. Donnelley Logistics, a leader in print, mail and package distribution, is enhancing its consolidation and distribution network by opening a 670,000 square foot facility in York, PA. The move is part of the company`s business strategy to continuously improve service and expand capacity to support the rapidly increasing demand for its services.

The new "Super Center" will be completed in a phased approach. In phase one, the new facility will combine R.R. Donnelley Logistics package operations in the Northeastern region of the United States. Customers in the Northeast will see their home delivery service improve by up to two days within the region, and one day for the balance of the country.

In addition to delivering significant service improvements, the new facility will also increase package processing capacity by approximately 40 million packages per year. This additional capacity is necessary to service R.R. Donnelley Logistics` growing list of business-to-consumer package shippers located in the Northeast.

The new facility will be equipped with a highly-efficient induction system, integrating the latest scanning technology with a high-speed automated sortation system that generates increased efficiency and throughput. Packages will move through the facility in as little as 10 minutes from inbound to outbound truck. In addition, the automated facility will dramatically reduce the physical demands on the company`s employees, creating a more productive work environment.

"The demand originating from and destined to the Northeast continues to grow, and our capabilities need to grow ahead of demand. Our investment in this new facility represents our comittment to providing our customers the best service levels and delivery performance, enabling them to meet their consumers` demands," says John Campanelli, R.R. Donnelley Logistics president. "We are also committed to providing our employees safe, secure and comfortable working conditions."

During phase two of the network expansion, the company will add capabilities to handle the consolidation and distribution of catalogs, books, magazines and direct mail from the York facility. By leveraging the package volumes already going to postal facilities, Donnelley Logistics will also further improve service for print customers.

In addition to the company`s print and package operations, the York facility will also house Virtual Distribution™, an inventory order management and distribution service for merchandisers that require national distribution of high-volume, single item SKUs, and Lightweight Express™, the company`s express shipping program for time-sensitive packages under one pound. The facility will also support operations for ReturnValet™, a merchandise returns service provided by Newgistics, a company in which R.R. Donnelley Logistics is an equity partner.

Both phases of the York facility will be operational by the end of second quarter, 2003.

About R.R. Donnelley Logistics
R.R. Donnelley Logistics, a division of Chicago-based R.R. Donnelley, provides logistics solutions for a wide range of industries, including leading catalogers, e-retailers, publishers, financial services firms and pharmaceutical companies. As a leader in postal logistics, the company annually directs more than 19 billion print and mail pieces and 160 million packages to homes across the nation. Donnelley Logistics delivers predictable, on-time, cost saving business solutions leveraging its nationwide network of sortation facilities, expedited delivery capabilities and advanced technology systems. For more information about R.R. Donnelley Logistics, contact the company at www.donnelleylogistics.com.

About R.R. Donnelley
R.R. Donnelley prepares, produces and delivers integrated communications across multiple channels for content owners, such as publishers, merchandisers, and telecommunications, financial and healthcare companies. As a single source supplying services up and down the communications value chain, the company excels in premedia, digital photography, content management, printing, Internet consulting, and print and package logistics. With these integrated services, R.R. Donnelley helps customers increase the effectiveness of their targeted communications and delivery needs. Headquartered in Chicago, Ill., R.R. Donnelley serves a global customer market and has 31,000 employees in more than 200 locations in North America, South America, Europe and the Asia/Pacific Basin.