Communisis PLC Regulatory News (CMS)

19 November 2010

Communisis plc

("Communisis" or the "Company")

Strategy Update

In the Company's interim results announcement of August 2010, and following a strategic review of the business, Communisis (LSE: CMS) defined and launched its new go-to-market strategy as a Marketing Services Provider ("MSP"), aligning its business and proposition in a way that better suits the direction of its marketplace and the demands of its customers.

As part of the implementation plans the Company today announces a programme to optimise its cost base and further realign its operations with this new strategy.

The programme will involve significant investment in high growth areas of the business funded by a reduction in cost. This will be achieved through the proposed consolidation of excess logistics capacity into the Newcastle site, with the consequent closure of the Leicester facility, together with a re-organisation of senior management responsibilities and other head-office functions, leading to reduced headcount. Consultation with affected employees will start immediately and the programme will be completed by the end of June 2011.

It is estimated that the programme will yield ongoing annualised savings in the region of £4m of which approximately half will be re-invested in the additional skills needed to expand the new service offerings. The benefit from these savings will be partially realised in the year ending 31 December 2011 with a full year effect in 2012.

The material, non-recurring costs of the programme will be treated as exceptional within the 2010 results and will be offset by an exceptional gain resulting from the settlement of certain pension fund obligations during the year.

Overall, Communisis does not expect these actions to have any effect on management's expectations for operating profit before exceptional items in 2010.

Andy Blundell, Chief Executive, commented; "Our business is changing significantly as we move progressively towards higher-value services and develop our proposition as a Marketing Services Provider. Whilst redundancies associated with this programme are regrettable, we will be reinvesting about half of the cost savings in the new skills needed to meet the increasing demands of our customers for innovative and cost effective solutions."

For further information please contact:

Communisis plc 0113 277 0202Andy Blundell / Peter King

Financial Dynamics 020 7831 3113

James Melville-Ross / Ed Bridges / Nicola Biles

Brewin Dolphin 0845 213 1000

Sean Wyndham Quin / Mark Brady

About Communisis

Communisis is a UK leading marketing services provider, specialising in helping customers make their communications processes more profitable. It helps to reduce costs and improve the effectiveness of the whole business process of customer communications.

Through its proven experience and scale, it works with clients to transform their customer communications processes by enhancing and deploying customer data; providing technology to automate and streamline workflows; and have world-class production capabilities that can output via print and electronic channels.

Ends