DEX ONE (NYSE:DEXO)

Third Quarter 2011 Results

Net income, cash flow from operations and total debt (including fair value discount) in the third quarter were $22 million, $82 million and $2,552 million, respectively.

Mockett continued, “We marginally exceeded third quarter ad sales guidance despite both the secular pressure on our print products and difficult local business conditions. We are making steady progress towards our goal of returning to growth, albeit more slowly than we originally expected.”

Newly appointed CFO Gregory W. Freiberg added, “Third quarter financial performance was in line with expectations, which gives us confidence to affirm our full year guidance. We remain on track to achieve our 2011 cost reduction target. We also continue to reduce net debt and look for other ways to increase balance sheet flexibility, including obtaining credit agreement amendments to allow us to repurchase debt below par.

“We continue to deliver on our strategic plan and position Dex One to be the one partner local business needs to successfully navigate the complicated and rapidly changing marketing landscape,” said Dex One CEO Alfred T. Mockett.

“We are working diligently to transform our business to have the best people selling a broad portfolio of marketing services through simple and effective packages. Evidence of early success includes driving double digit sales growth in both digital and bundled packages,” he concluded.

2011 OUTLOOK

The company announced fourth quarter ad sales guidance and affirmed its previously issued full year guidance.