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Catalina Marketing Delays Filing Of Form 10-Q


ST. PETERSBURG, Fla., Aug. 15 /PRNewswire-FirstCall/ -- Catalina Marketing Corporation (NYSE: POS) announced today that it will delay the filing of its quarterly report on Form 10-Q for first quarter of fiscal 2004, ended June 30, 2003. Catalina has filed a notification of late filing with the Securities and Exchange Commission under Rule 12b-25. The company has not yet completed its quarterly financial statements as a result of the previously announced review of certain revenue recognition timing matters within its Catalina Health Resource ("CHR") business unit and its base business. Previously filed financial statements, including the associated audit opinions and review reports, of the company should not be relied upon until the company files its annual report for the year ended March 31, 2003, on Form 10-K, and its quarterly report filed on Form 10-Q for the first quarter of fiscal 2004.

As previously announced, management of the company initiated a review related to the timing of revenue recognition at CHR, and is continuing to work with its auditors, Ernst & Young, to evaluate these issues. The company currently anticipates that upon completion of its review of the financial results of CHR, that certain revenues will shift from fiscal 2003 to fiscal 2004 and will have an impact on the results for the company's first quarter of fiscal 2004, as well as on the forecasted results for the balance of the current fiscal year, but are not expected to impact subsequent fiscal years. The company also continues to evaluate whether the CHR revenue recognition issues affect the company's financial statements for periods prior to fiscal 2003.

In addition to the revenue recognition review at CHR, the company, in conjunction with Ernst & Young, is evaluating the method of revenue recognition in its base business. Historically, the company has recognized revenue on the basis of promotions printed. The company is reviewing this revenue recognition policy and evaluating its appropriateness. As part of this review, the company is still evaluating the effect, if any, on fiscal 2003 and prior year financial statements. The company expects that any resulting changes that could occur from a change in revenue recognition policy in this regard would not have an impact on aggregate revenues.

Daniel D. Granger, Chairman and Chief Executive Officer, commented, "We continue to work with Ernst & Young and other outside advisors to resolve these matters in an expedient manner. While the review is taking longer that we had originally anticipated, we still expect that the primary effect of any restatement that may be required will relate to the timing of revenue recognition. Together with Ernst & Young, and our outside advisors, we are expending every effort to provide the necessary resources to resolve these issues correctly and in a prompt and efficient manner; however, we have no reason to believe the ongoing review is impacting our day to day business operations."

Based in St. Petersburg, Fla., Catalina Marketing Corporation (www.catalinamarketing.com) provides a wide range of behavior-based marketing services for manufacturers and retailers. These behavior-based marketing services are provided by interrelated operating groups that strive to influence purchase behavior of consumers wherever and whenever they make purchase decisions. Through these operating groups, Catalina Marketing Corporation is able to reach consumers internationally and domestically -- in- store, using incentives, loyalty programs and advertising messages, and at- home, through direct mail and sampling. Personally identifiable data that may be collected from the company's targeted marketing programs, as well as its research programs, is never sold or given to any outside party without the express permission of the consumer.

Certain statements in the preceding paragraphs are forward looking, and actual results may differ materially. Statements not based on historic facts involve risks and uncertainties, including, but not limited to, the changing market for promotional activities, especially as it relates to policies and programs of packaged goods and pharmaceutical manufacturers for the issuance of certain product coupons and other promotions, the effect of economic and competitive conditions and seasonal variations, actual promotional activities and programs with the company's customers, the pace of installation of the company's store network, the policies and programs of the company's retail partners, the success of new services and businesses and the pace of their implementation, and the company's ability to maintain favorable client relationships.

SOURCE  Catalina Marketing Corporation
   -0-                   08/15/2003
    /CONTACT:  Christopher W. Wolf, Chief Financial Officer, ,
or Joanne Freiberger, Vice President, Finance, , both of
Catalina Marketing/
    /Web site:  http://www.catalinamarketing.com/

CO:  Catalina Marketing Corporation
ST:  Florida

736 08/15/2003 16:16 EDT http://www.prnewswire.com

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