Acg Holdings Inc (856710) SEC Filing 10-Q Quarterly report for the period ending Saturday, September 30, 2006

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

AMERICAN COLOR GRAPHICS REPORTS SECOND QUARTER FISCAL YEAR 2007 RESULTS

BRENTWOOD, TN, November 13, 2006 – ACG Holdings, Inc. and American Color Graphics, Inc. (collectively, the “Company”), today reported financial results for the second fiscal quarter and the six months ended September 30, 2006.

The Company reported revenues of $111.7 million for the quarter and $221.7 million for the six-month period ended September 30, 2006 versus revenues of $105.5 million and $213.7 million in the comparable periods of the prior year. Consolidated earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) in the second quarter increased to $10.2 million versus $10.1 million last year and through the six months decreased to $20.9 million versus $21.8 million last year.

Stephen M. Dyott, Chairman and Chief Executive Officer of American Color Graphics, Inc. stated, “Although our second quarter results improved versus last year, our overall performance was somewhat disappointing. Our print operations improved substantially due to a modest increase in volume and continued cost reductions which more than offset price erosion. Pure pricing in our print operations during our second quarter was down slightly. We continue to believe that our industry suffers from modest excess capacity.

Our premedia operations were weaker than expected due to reduced volume. We continue to believe that we have the best suite of premedia services available in our industry, and we are working hard to improve our premedia sales effort.”

On September 26, 2006, the Company further improved its liquidity position with the formation of a new wholly-owned subsidiary, American Color Graphics Finance, LLC (“Graphics Finance”), and the execution of a new $35 million revolving trade receivables facility (the “Receivables Facility”) between this subsidiary, Bank of America, N.A. and certain other lenders. At September 30, 2006, there were no borrowings under this facility as Graphics Finance had not purchased any receivables from American Color Graphics. Availability under the Receivables Facility will commence when Graphics Finance in fact purchases receivables from American Color Graphics.

The Company ended the second fiscal quarter with net debt of $345.7 million versus a comparable position of $319.2 million at the end of Fiscal Year 2006, representing an increase in debt of $26.5 million during the six-month period. In addition to the $20.9 million of reported EBITDA, other sources and uses of cash during the six-month period included (1) net cash interest payments of $17.9 million, including interest payments on the Notes of $14.0 million, (2) cash capital expenditures of $7.3 million, (3) pension contributions of $4.7 million, (4) debt issuance costs of $2.6 million, (5) cash restructuring payments of $0.9 million, (6) cash taxes of $0.2 million and (7) working capital and other balance sheet net cash uses of $13.8 million.

On September 30, 2006, the Company had borrowings outstanding under its existing Revolving Credit Facility of $23.3 million and had letters of credit outstanding of $24.2 million. As a result, the Company had additional borrowing capacity at September 30, 2006 under this facility of $7.5 million. In addition, if Graphics Finance had purchased from American Color Graphics all eligible