News Release


January 5, 2015

A. H. Belo Acquires Three Digital and Print Marketing Companies for $15.3 Million

DALLAS - A. H. Belo (NYSE: AHC) today announced it purchased majority ownership of Distribion, Vertical Nerve and Marketing FX for $15.3 million. The three companies specialize in local marketing automation, search engine marketing, direct mail and promotional products.

"The addition of these three new companies to our portfolio represents an opportunity for our advertising clients to take advantage of data driven marketing automation technology and services," said Jim Moroney, chairman, president and chief executive officer of A. H. Belo. "These are first-class companies, and we are excited to provide new opportunities to help our clients grow their businesses."

The existing management team for Distribion, Vertical Nerve and Marketing FX, led by CEO Tim Storer, invested alongside A. H. Belo in the transaction and will maintain their current roles in day-to-day operations. A. H. Belo's acquisition of the three companies represents another step in its ongoing strategy to diversify the Company's revenue sources.

"We are very excited to now have the resources of such a respected company like A. H. Belo behind us to help support and accelerate our ongoing growth initiatives," said Storer. "I'm looking forward to hitting the ground running in 2015 and taking each of these companies to the next level."

The three companies will offer A. H. Belo clients innovative marketing solutions to position their businesses for profitable growth. In 2015, the venture is expected to contribute between $9 - $11 million in revenue and $800,000 - $1.3 million EBITDA for A. H. Belo. The intermediary holding company will be consolidated into the A. H. Belo financial portfolio. Stephens Inc. served as financial advisor to A. H. Belo on the transaction.

Each of the companies was designed to create a more efficient and effective method to market products and services, with each filling critical needs for businesses. Distribion provides a local marketing automation solution that helps businesses generate better results from their marketing campaigns. Vertical Nerve is a digital optimization agency that enables clients to acquire more Web traffic and improve their online conversions. These services, combined with Marketing FX, a turnkey resource that provides print, packaging, ad-specialty and fulfillment services to companies nationwide, will deliver premium local print and digital marketing solutions for A. H. Belo clients. Each company is based in Dallas, Texas.

About A. H. Belo Corporation

A. H. Belo Corporation (NYSE: AHC) is a leading local news and information publishing company with commercial printing, distribution and direct mail capabilities, as well as businesses with expertise in emerging media and digital marketing. With a continued focus on extending our media platform, we are able to deliver news and information in innovative ways to new audiences with diverse interests and lifestyles. For additional information, visit ahbelo.com, email invest@ahbelo.com.

Forward-Looking Statements

Statements in this communication concerning A. H. Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, capital expenditures, investments, dispositions, impairments, business initiatives, acquisitions, pension plan contributions and obligations, real estate sales, working capital, future financings and other financial and non-financial items that are not historical facts, are "forward-looking statements" as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.

Such risks, uncertainties and factors include, but are not limited to the following: changes in capital market conditions and prospects, changes in advertising demand and newsprint prices; newspaper circulation trends and other circulation matters, including changes in readership methods, patterns and demography; audits and related actions by the Alliance for Audited Media; challenges implementing increased subscription pricing and new pricing structures; challenges in achieving expense reduction goals in a timely manner and the resulting potential effect on operations; challenges in consummating asset acquisitions or dispositions upon acceptable terms; technological changes; development of Internet commerce; industry cycles; changes pricing or other actions by new and existing competitors and suppliers; consumer acceptance of new products and business initiatives; labor relations; regulatory, tax and legal changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions, dispositions and co-owned ventures and investments; pension plan matters; general economic conditions and changes in interest rates; significant armed conflict; acts of terrorism; and other factors beyond the Company's control, as well as other risks described in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, and in the Company's other public disclosures and filings with the SEC.