Catalina Marketing, Anaheim

Nature of Business: Distributes promotions at the checkstand using scanner data.

Total Employees: 260

In Orange County: 100

Stock Listing in The Times: On NYSE as “CatMktn”

Ticker Symbol: “POS”

Friday’s Close: $26.25

Change: None

Analyst Review: “Catalina’s product is a device that issues cupons or incentives at the checkstand. The beauty of it is in the integration--vendors can target target specific customers by using a trigger product. If you’re Coca Cola, for example, you can use Pepsi as a trigger product. Each time the checker passes a Pepsi over the scanner, a printer adjacent to the cash register issues a coupon for Coca-Cola. I think Catalina will earn about 25% a year for three years. We really like the company. What I’m telling my clients is that it is a great company, it has no clear competitor, and it has the capacity to be extremely profitable. At the moment, though, its price-to- earnings ratio on the high side, but if you hold on to the stock for the next six to 18 months, you’ll see a very healthy return.”

--Brian E. Stack, analyst, Robertson Stephens & Co., Boston

SALES VS. PROFITS

(Dollar amounts in millions)

Fiscal year ending Mar. 31 Mar. 31 Mar. 31 1st Qtr. 1st Qtr. 1990 1991 1992 1992 1993 Net Sales $24.6 $33.1 $51.7 10.6 16.5 Net Profit (Loss) $.600 $1.4 $4.8 .635 $2.2

Corporate Outlook: “Catalina Marketing is now in 4,600 stores nationwide, and we will probably be in 5,500 stores by the end of the year. Our checkout coupons are all targeted to individual consumers based on their buying habits and we have a number of new applications for manufactuers and retailers. Looking toward the future, we expect to develp more international markets.”

--Tommy D. Greer, chief executive officer

RETURN ON STOCKHOLDER INVESTMENT: 3-YEAR SUMMARY AND YEAR-TO-DATE

Fiscal year ending Mar. 31 Mar. 31 Mar. 31 1st Qtr. 1st Qtr. 1990 1991 1992 1992 1993 52-Week High* N/A N/A $29.50 N/A $30.50 52-Week Low* N/A N/A $27.63 N/A $24.25 Book Value Per Share $0.67 $0.77 $2.00 $0.86 $2.10 Price Per Share* N/A N/A $28.00 N/A $29.13 Net Earnings Per Share* $0.06 $0.16 $0.51 $0.07 $0.22 Price-to-Earnings Ratio N/A N/A 55:1 N/A 33:1 Avg. Return on Investor Equity 1% 2% 26% 8% 10%

* Catalina Marketing sold 2.5 million shares in its initial public offering March 26, 1992; net proceeds: $9.3 million.

Source: Catalina Marketing Corp.

For more information call or write, Catalina Marketing Corp.: 721 E. Ball Road, Anaheim, Calif. 92805. (714) 956-6600