Recession Creates Opportunites to Innovate, Expand and Take Marketshare

BOSTON, MA--(Marketwire - July 1, 2009) - The newly released 2009 State of the Market: Mid Year Insights Report by Aberdeen Group, a Harte-Hanks Company (NYSE: HHS), has been hailed as the 2009 guide to assist business leaders in comparing goals, strategies, tactics, and investment priorities with their peers while seeking opportunities to contextualize and embrace the findings to improve their own business. The report reveals where business has been over the past year, where it stands today and -- for those able to recognize opportunity -- what the future brings.

Given the current economic conditions, it is not surprising that the top two 2009 organizational goals are organic revenue (32%) and profitability / margin growth (30%). It is interesting to note however that revenue has decreased slightly in importance (from 37% to 32%) on a year-over-year basis while profitability / margin growth remained relatively constant (30% to 31%).

Insights from the Aberdeen Report exposed the top three challenges for 2009:

* 84%   Economic Conditions        * 16%   Brand Management
* 51%   Market Volatility          * 15%   Supply Chain / Sourcing Risk
* 45%   Execution of Strategy      * 13%   Increasing Regulatory Compliance
* 19%   Shortage of Labor / Talent

Similar to last year, organizations are strategically focused on increasing the sales and capabilities footprint through channel expansion and strategic partnerships. However, instead of staff development / expansion, the strategic agenda now includes a focus on reducing the cost of materials and production -- not surprising given the increased focus on sustainability and the year-long fluctuations in some raw materials and commodities prices.

The top three strategies identified by survey participants in the Aberdeen Report include:

57%  Improve Business Execution
43%  Create / Expand Sales Channels
39%  Develop Strategic Partnerships
36%  Develop New Products & Services
34%  Reduce Cost of Materials / Production
30%  Improve Brand Visibility
28%  Reengineer Processes
24%  Staff Development / Expansion

"Although roughly half of the organizations surveyed for the 2009 State of the Market Report have struggled to adjust to a new economic reality and thus adopted a defensive position for the year causing reduction in budgets, staffing and deferred capital spending, many of the organizations view the current economic conditions as an opportunity to innovate, expand and take market share," comments Andrew Boyd, President of Aberdeen Group.

About The 2009 Aberdeen Report State of the Market: Mid-Year Insights:

Each section of the report is designed to serve two purposes: 1) educate the CEO on key trends, initiatives and developments; and 2) provide guidance to functional leaders as they encounter new challenges, embrace new opportunities and adapt to the changing economic environment, providing executive teams with a roadmap to navigate through uncertain times. A copy of the report can be obtained at: http://resources.aberdeen.com/2009AberdeenReport.

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

© 2009 Aberdeen Group, Inc., a Harte-Hanks Company
451 D Street, Suite 710
Boston, Massachusetts 02210-1928
Telephone: (617) 854-5200
Fax: (617) 723-7897
www.aberdeen.com

Contact Information: Media Contact: Tracey Jones Aberdeen Harte-Hanks (925) 264-1838 tracey.jones@aberdeen.com