RRD.WI Donnelley (R.R.) & Sons Co.

RR Donnelley Announces Expected First-Quarter 2005 Non-GAAP Earnings Per Diluted Share; Increases Full-Year 2005 Guidance CHICAGO, April 11 /PRNewswire-FirstCall/ -- R.R. Donnelley & Sons Company (NYSE:RRD) announced today that it expects its first-quarter 2005 non-GAAP earnings per diluted share from continuing operations to be at least $0.37. This per share amount is based on approximately 217 million weighted average fully diluted shares outstanding for the first quarter. In addition, during the first quarter the Company repurchased a total of 8.2 million shares, including the approximate 6 million share repurchase contemplated within the Company's previous annual guidance. The additional 2.2 million shares were acquired at an average market price of $30.64 per share. Due to the additional opportunistic share repurchases during the first quarter, the Company increased its expected full-year 2005 non-GAAP earnings per diluted share from continuing operations to $1.97, an increase of $0.02 per diluted share from previous guidance, on a weighted average fully diluted share count of approximately 217 million. "Our projected first quarter results reflect a continuation of the positive momentum with which we ended last year and are consistent with our internal plan," said Mark A. Angelson, RR Donnelley's Chief Executive Officer. "While I am pleased by our continued strong operating performance, we are still early in the year. Therefore, we are increasing our annual guidance solely to reflect a decreased share count. I look forward to speaking with you in early May when we report our first quarter financial results." Non-GAAP earnings per diluted share from continuing operations exclude certain items that management believes are unrelated to the ongoing operations of the business. In the first quarter of 2005 and the full year of 2005, these items may include restructuring, impairment and integration charges as well as the resolution of certain tax items that are not currently determinable, but may be significant. For that reason, the company is unable to provide GAAP (Generally Accepted Accounting Principles) earnings estimates at this time. The company believes that non-GAAP earnings per diluted share is useful because that information is an appropriate measure for evaluating the company's operating performance. Internally, the company uses this non-GAAP information as an indicator of business performance, and evaluates management's effectiveness with specific reference to this indicator. This measure should be considered in addition to, not a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. About RR Donnelley RR Donnelley (NYSE:RRD) is the world's premier full-service global print provider and the largest printing company in North America, serving customers in publishing, healthcare, advertising, retail, telecommunications, technology, financial services and many other industries. Founded more than 140 years ago, the company provides solutions in commercial printing, forms and labels, direct mail, financial printing, print fulfillment, business communication outsourcing, logistics, online services, digital photography, color services, and content and database management. The largest companies in the world and others rely on RR Donnelley's scale, scope and insight through a comprehensive range of online tools, variable printing services and market- specific solutions. For more information, visit the company's web site at http://www.rrdonnelley.com/ . Use of Forward-Looking Statements This news release contains "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements and any such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. All forward-looking statements speak only as of the date of this news release and are based on current expectations and involve a number of assumptions, risks and uncertainties that could cause the actual results to differ materially from such forward-looking statements. Many of the factors that could cause material differences in the expected results of RR Donnelley relate to the integration of Moore Wallace Incorporated, which was acquired by RR Donnelley on February 27, 2004. These factors include, without limitation, the following: the development and execution of comprehensive plans for asset rationalization, the ability to eliminate duplicative overhead without excessive cost or adversely affecting the business, the potential loss of customers and employees as a result of the transaction, the ability to achieve procurement savings by leveraging total spending across the organization, the success of the organization in leveraging its comprehensive product offering to the combined customer base as well as the ability of the organization to complete the integration of the combined companies without losing focus on the business. In addition, the ability of the combined company to achieve the expected net sales, accretion and synergy savings will also be affected by the effects of competition (in particular the response to the transaction in the marketplace), the effects of pricing of paper and other raw materials and fuel price fluctuations and shortages of supply, the rate of migration from paper-based forms to digital formats, the impact of currency fluctuations in the countries in which RR Donnelley operates, general economic and other factors beyond the combined company's control, and other risks and uncertainties described in RR Donnelley's periodic filings with the Securities and Exchange Commission (SEC). Readers are strongly encouraged to read the full cautionary statements contained in RR Donnelley's filings with the SEC. RR Donnelley disclaims any obligation to update or revise any forward-looking statements. DATASOURCE: R.R. Donnelley & Sons Company CONTACT: Media, Doug Fitzgerald, Sr. Vice President, Marketing & Communications, +1-312-326-7740, , Investors, Dan Leib Vice President, Investor Relations, +1-312-326-7710, , both of R.R. Donnelley & Sons Company Web site: http://www.rrdonnelley.com/

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