R.H. Donnelley (RHD) is one of the nation's leading Yellow Pages and online local commercial search companies. The company has more than 4,400 employees operating in 28 states across the United States. Every day, consumers rely on the company's more than 700 directories, online city guides and local search Web sites to find businesses that provide the products and services they need. RHD's directories, which have a circulation of approximately 80 million, are marketed under three of the industry's most recognized brands: AT&T Yellow Pages in Illinois and northwest Indiana; Dex(R) Yellow Pages and EMBARQ Yellow Pages(TM). R.H. Donnelley's expanding presence on the Internet now includes the Best Red Yellow Pages(R) brand at bestredyp.com(R) in its EMBARQ Yellow Pages markets, in RHD's AT&T Yellow Pages markets at CHICAGOLANDYP.com and local search services through Dex at DexOnline.com(R).

    *  Significant Progress on Dex Integration

    *  Builds Solid Foundation in AT&T Markets

    *  Advances Digital Strategy

    *  Repays Over $660 Million of Debt

CARY, N.C., March 1 /PRNewswire-FirstCall/ -- R.H. Donnelley Corporation (NYSE: RHD), one of the nation's leading Yellow Pages and online local commercial search companies, today reported full year 2006 pro forma adjusted free cash flow of $736 million and GAAP cash flow from operations of $768 million. Advertising sales during the full year were $2,648 million, down 1.7 percent from the prior year. GAAP net revenue for the full year 2006 was $1,896 million. Pro forma adjusted EBITDA, excluding FAS 123 R expense, for the full year was $1,490 million, and GAAP operating income for the same period was $443 million. After repaying $662 million of debt during 2006, year-end net debt outstanding, excluding the purchase accounting fair value adjustment, was $10,051 million. On a GAAP basis, year-end net debt was $10,247 million.

"In 2006, we took significant steps to further improve our ability to deliver value to advertisers both near and long-term," said David C. Swanson, chairman and CEO of R.H. Donnelley. "We also made great strides toward our 2006 key initiatives. First, I am very pleased with the progress we made integrating Dex: implementing the RHD business process, delivering on synergies, strengthening sales training and sales incentives and creating a one-team environment. Second, we took major actions to position the AT&T markets for improved sustainable performance. Third, we significantly strengthened our digital product strategy by putting the pieces in place for "Triple Play". This strategy helps advertisers grow their businesses by enabling our highly trained marketing consultants to deliver a solution set that includes leading print directories, our enhanced online search site and search engine marketing and optimization. Lastly, we generated strong free cash flow that was primarily used to repay debt to enhance shareholder value."

Swanson continued, "The fourth quarter was a solid finish to 2006, a year of enormous transition. We generated ad sales in the fourth quarter of $683 million, a -1.6% change, which allowed us to slightly exceed our full year ad sales guidance. I am also pleased with the financial performance in the quarter. We delivered strong EBITDA, healthy free cash flow and higher net synergies, while improving our capital structure by repurchasing warrants and eliminating the private equity overhang."

Further important information regarding operating results and related reconciliations of non-GAAP financial measures to the most comparable GAAP measures can be found in the schedules and the schedule footnotes of this press release, which should be thoroughly reviewed.

RHD is currently in the process of evaluating the appropriate accounting treatment with respect to certain non-cash state tax items for 2006. Because this analysis is not yet complete, the financial results provided in this release do not include tax related items and items affected by tax. The Company estimates the non-cash, deferred tax items currently being reviewed total approximately $30 million. The Company plans on filing a Form 12b-25 with the SEC for an extension and will file its Form 10-K as soon as practicable.

Outlook

The Company affirms its guidance for full year 2007 provided on December 5, 2006 that is summarized below:

    *  Positive advertising sales growth.

    *  Net revenue of approximately $2.67 billion.

    *  EBITDA, excluding FAS 123 R and cost uplift, of approximately
       $1.44 billion.

    *  Free cash flow of approximately $615 million.

    *  Net debt, excluding purchase accounting fair value adjustment, at
       year end of approximately $9.5 billion.

    *  Weighted average fully diluted shares outstanding during 2007 of
       approximately 71.8 million.

See Schedule 8c for a reconciliation of the foregoing non-GAAP measures to the most comparable GAAP measures.

Fourth Quarter and Full Year Conference Call

R.H. Donnelley will host a conference call to discuss the fourth quarter and full year 2006 results today at 10:00 a.m. (ET). The call can be accessed by dialing 888-387-9606 (domestic) or 517-645-6055 (international). The pass code for the call is "RHD". Please dial in to the call by 9:50 a.m. (ET) to ensure a prompt start time. The call will also be available through a Web cast, which can be accessed by visiting our Web site at www.rhd.com, clicking on "Investor Relations" and following the instructions provided. Those unable to participate at the scheduled time may access a recorded replay by dialing 888-566-0577 (domestic) or 203-369-3615 (international). The recording will be available through March 15, 2007. There is no pass code for the replay. In addition, an archived version of the Web cast will be available on RHD's Web site for up to one year from the date of the call.