Law Offices of Marc S. Henzel Announces Class Action Lawsuit Against Catalina Marketing Corp

Business Wire, Sept 5, 2003

Business Editors/Legal Writers

BALA CYNWYD, Pa.--(BUSINESS WIRE)--Sept. 5, 2003

A class action lawsuit was filed in the United States District Court for the Middle District of Florida, Tampa Division, on behalf of purchasers of the securities of Catalina Marketing Corp. (NYSE:POS) between April 18, 2002 and August 25, 2003, inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

The action, is pending against defendants Daniel D. Granger, Michael G. Bechtol, David M. Diamond, Christopher W. Wolf, and Catalina Marketing Corp.

During the Class Period, the Company represented that its business was performing strongly and that it expected its revenues and earnings to continue to grow rapidly. The Company particularly emphasized the performance and growth of its HRP subsidiary. In fact, the Company was experiencing a slowdown in its revenue growth, in part, due to pharmaceutical clients' reduced spending on promotional items, including HRP's "newsletters." Moreover, retail pharmacies had become increasingly reluctant to distribute HRP's "newsletters" out of concern of the misleading nature of the "switch ads."

On October 1, 2002, Catalina disappointed the market when, in its announcement updating its quarterly revenue and earnings outlook for the second quarter ended September 30, 2002 and the fiscal year ended March 31, 2003, the Company warned that, due primarily to problems experienced at its Health Resource division, it was reducing its earnings guidance for the full fiscal year 2003. The Company announced that it expected second quarter earnings to be in the range of $0.22 to $0.23 per share, on revenue growth of 6 to 8 percent over the prior year versus previous expectations of $.26 per share based on revenue growth of 15 to 20 percent.

Moreover, the Company warned that for the full fiscal year 2003, it expected earnings in the range of $1.12 to $1.17 per share, on revenue growth of 10 to 13 percent versus previous expectations of revenue growth of 20 to 25 percent. As a result of this announcement, the price of Catalina common stock plummeted from the previous day's closing price of $27.97 per share to close at $17.90 per share, a drop of $10.07, or 36%.

Plaintiff is represented by The Law Offices of Marc S. Henzel. If you are a member of the class, you may, no later than September 29, 2003, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.

If you have any questions concerning this case or your rights or interests with respect to these matters, please contact: Marc S. Henzel, Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 Bala Cynwyd, PA 19004-2808, by telephone 888-643-6735 or 610-660-8000, by facsimile 610-660-8080, by e-mail at Mhenzel182@aol.com or visit the firm's website at http://members.aol.com/mhenzel182.