Acg Holdings Inc (856710) SEC Filing 10-Q Quarterly report for the period ending Sunday, December 31, 2006

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

AMERICAN COLOR GRAPHICS REPORTS THIRD QUARTER FISCAL YEAR 2007 RESULTS

BRENTWOOD, TN, February 14, 2007 — ACG Holdings, Inc. and American Color Graphics, Inc. (collectively, the “Company”), today reported financial results for the third fiscal quarter and the nine months ended December 31, 2006.

The Company reported revenues of $120.1 million for the quarter and $341.7 million for the nine-month period ended December 31, 2006 versus revenues of $118.7 million and $332.5 million in the comparable periods of the prior year. Consolidated earnings before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) in the third quarter decreased to $10.5 million versus $13.0 million last year and through the nine months decreased to $31.4 million versus $34.8 million last year. EBITDA in the prior year third quarter and nine month results included a $0.5 million benefit related to a net reduction of the Company’s restructuring reserves.

Stephen M. Dyott, Chairman and Chief Executive Officer of American Color Graphics, Inc. stated, “Our third fiscal quarter results were disappointing. Our print operations were negatively impacted by production problems at one of our plants, which in turn had a negative impact at certain other facilities. In addition, our results were negatively impacted by expense associated with the start up of a newspaper service facility. Pure pricing in our print operations during our third quarter was down slightly. We continue to believe that our industry suffers from modest excess capacity.

Our premedia operations continue to be weak due to reduced volume. We continue to believe we have the best suite of premedia services available in our industry, and we are working hard to improve our premedia sales.

Our corporate expenses were higher than last year due largely to spending on two lawsuits in which we are the plaintiff.”

The Company ended the third fiscal quarter with net debt of $351.9 million versus a comparable position of $319.2 million at the end of Fiscal Year 2006, representing an increase in debt of $32.7 million during the nine-month period. In addition to the $31.4 million of reported EBITDA, other sources and uses of cash during the nine-month period included (1) interest payments of $33.6 million, including interest payments on the Notes of $28.0 million, (2) cash capital expenditures of $9.2 million, (3) pension contributions of $4.9 million, (4) debt issuance costs of $2.9 million, (5) cash restructuring payments of $1.1 million, (6) cash taxes of $0.2 million and (7) working capital and other balance sheet net cash uses of $12.2 million.

At December 31, 2006, the Company had additional borrowing capacity of $35.1 million under its two bank credit facilities as follows:

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$6.9 million under the 2005 Revolving Credit Facility; and

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$28.2 million under the Receivables Facility (including $1.0 million based on receivables purchased from Graphics at December 31, 2006 and an additional $27.2 million if Graphics Finance had purchased from Graphics all other eligible receivables at December 31, 2006).