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Business Description
Harte-Hanks, Inc. is a worldwide direct and targeted marketing company that provides direct marketing services and shopper advertising opportunities to a range of local, regional, national and international consumer and business-to-business marketers. The Company's direct marketing business operates in the United States and internationally, while its shopper business operates in selected local and regional markets in California and Florida. Direct marketing, which represented 62% of the Company's revenues in 2003, improves the return on its clients' marketing investment with a range of services organized around five solution points: construct and update the database, access the data, analyze the data, apply the knowledge and execute the programs. Harte-Hanks Shoppers is a North American owner, operator and distributor of shopper publications, with shoppers that are zoned into 877 separate editions reaching more than 10 million households in California and Florida each week.

Financial Information
For the nine months ended 9/30/04, revenues rose 9% to $753 million. Net income rose 12% to $70 million. Revenues reflect increased Shoppers segment sales driven by increased circulation and geographic expansions into new neighborhoods. Net income also reflects a decrease in depreciation and amortization expenses.