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January 31, 2013

WALTHAM, Mass. — More small-business owners recognizing value of using social and mobile marketing tools: Constant Contact

WALTHAM, Mass. — With the economy still knee-deep in recovery mode, more small-business owners, including coin laundry owners, are recognizing the value of cultivating loyalty with the assistance of social and mobile marketing tools, says online marketer Constant Contact.

The emergence of SoLoMo—the integration of social media, local merchants using location-aware technology, and mobile device usage—is increasing merchants’ ability to tailor marketing efforts to individuals.

“We live in a world that’s more social, more ‘all-the-time’ and interactive than ever before. That’s both bad and good,” says Constant Contact CEO Gail Goodman. “On the plus side, the new tools we have at our fingertips, coupled with the predisposition of our audience to engage, presents a fantastic opportunity for small businesses. On the flip side, standing out from the crowd and respecting the relationship with your audience is more important than ever.”

2013 will bring innovation that integrates marketing channels and helps small businesses market like the “big guys,” Goodman believes. Constant Contact offers these predictions:

Socially integrated, permission-based e-mail marketing campaigns will achieve success

E-mail is expected to grow. It will remain the preferred method of communication among consumers, and continue as their preferred marketing channel because they have control over it, Constant Contact says. The power of video in e-mails will continue to grow, as will integration with social channels. And if e-mail isn’t permission-based, it will be harder than ever to make it to the in box.

Mobile search continues upward trend

Mobile search continues to aggressively trend upward, with millions of Americans shopping by browsing hundreds of directories, web sites and mobile apps that provide local business information.

Events are gateways to engagement marketing

In-person and online events will play a more prominent role in driving customer engagement, with their full impact no longer limited to what happens on-site, Constant Contact says. Small businesses and non-profits are increasingly looking at their events with a wide lens, bringing into focus the role they play in their overall marketing efforts.

Social media marketing is business-critical activity

Small-business attitudes toward social media have evolved from dismissive passivity to cautious curiosity over the past five years. Despite larger brands’ exuberant embrace of social engagement, most small businesses have been slow to implement social as a primary channel in their marketing mix. In 2013, there will be a significant transition as small businesses approach social media marketing as a business-critical daily activity. Small businesses will begin to see the value these channels bring to their businesses, and learn how to measure it.

Constant Contact believes more small businesses than not will be using social media marketing to drive their business results by the end of this year.

December 5, 2012

WALTHAM, Mass. — Hurricane Sandy having near-term effect on much of Mac-Gray’s Northeast and mid-Atlantic laundry operations

WALTHAM, Mass. — Mac-Gray Corp. saw its net revenue for third-quarter 2012 ended Sept. 30 decrease to $77.9 million from $78.5 million for the same period in 2011, according to its latest financial report. Net income increased to $1.5 million compared to $604,000 in 2011.

Adjusted net income for third-quarter 2012—excluding non-cash unrealized gains and losses related to interest rate and fuel commodity derivative instruments—was $1.2 million, compared to $780,000 in 2011.

“Our third-quarter performance closely mirrored what we saw in the second quarter,” says CEO Stewart G. MacDonald. “We again increased profitability despite experiencing a less than 1% decline in total revenue. Laundry facilities management revenue was essentially flat in the quarter, while commercial equipment sales declined 17% due to normal quarterly variability.”

Mac-Gray completed a “successful academic season” by increasing its portfolio by 17 colleges and universities in what MacDonald called a “record year for us.” The increase in the academic segment helped offset a slowdown in Mac-Gray’s multi-housing portfolio.

Hurricane Sandy is having a near-term effect on much of Mac-Gray’s Northeast and mid-Atlantic operations, according to MacDonald. Travel restrictions, power outages and gasoline shortages hampered the efforts of personnel as they tried to visit sites and assess the full extent of the damage to equipment and locations. “Our laundry rooms are typically located at the basement level and can be vulnerable to flooding. We maintain insurance for the equipment at our locations, and will seek recovery, if appropriate, from our insurers.”

Widespread power outages have kept residents in many locations from using Mac-Gray’s equipment, and the CEO expects the storm to have an impact on the company’s fourth-quarter results.

Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities. The company manages laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment.

March 15, 2012

WALTHAM, Mass. — This is the third time the company has received the honor

WALTHAM, Mass. — Mac-Gray Corp. has once again been awarded Whirlpool’s Energy Advantage Award, the third time the company has received the honor since the award began in 2006.

“We are delighted to have been selected to receive this prestigious award, which reflects our strong commitment to both technology innovation and environmental sustainability,” says Stewart D. MacDonald, Mac-Gray CEO. “We believe that an environmentally friendly approach to business and cost-effective customer solutions are not mutually exclusive.”

Mac-Gray deployed the most ENERGY STAR®-rated washers and dryers of any Whirlpool distributor in 2011, Mac-Gray says. “Mac-Gray remains the top provider of laundry facilities management to colleges and universities as a direct result of our well-established position as a ‘green’ company,” MacDonald adds.

“Whirlpool Corp. is pleased to announce this award,” says Robert English, Whirlpool’s general manager of Global Commercial Laundry. “Mac-Gray stands out as a company dedicated to energy conservation. They have long been the industry leader when it comes to the conversion of laundry facilities from coin to their various card technology platforms, reducing both operational expenses and the CO2 emissions associated with the collection of coins, while increasing customer satisfaction.”

December 20, 2011

WALTHAM, Mass. — Mac-Gray Corp., a leading provider of laundry facilities management services to multi-unit housing locations, has received the Carbonfund.org Foundation’s first For People and Planet award in the education category.

Since Mac-Gray launched its Lighten the Load™ initiative in 2008 with Carbonfund.org, they have partnered with 29 academic institutions to offset more than 40 million pounds of carbon.

“We are honored to receive the For People and Planet award from our partner, Carbonfund.org,” says Stewart G. MacDonald, Mac-Gray’s CEO. “This award highlights Mac-Gray’s commitment to environmental sustainability. Our Lighten the Load™ initiative is helping to reduce the carbon footprints of college and university laundry programs, while educating students on the benefits of being ‘green’ in the laundry room.”

“We applaud Mac-Gray for taking a leadership role in combating climate change,” says Eric M. Carlson, Carbonfund.org Foundation president. “In partnering with Mac-Gray, we are encouraging campuses to reduce the environmental impact of their properties and facilities.”

November 17, 2011

WALTHAM, Mass. — Mac-Gray Corporation saw its net revenues for third-quarter 2011 increase to $78.5 million from $78.2 million for the same period in 2010. Net income was $604,000, compared to $826,000 in 2010.

Third-quarter 2011 net income includes a pre-tax unrealized gain of $45,000 related to interest rate derivative instruments and a non-cash, pre-tax loss of $255,000 related to fuel commodity derivative instruments. Third-quarter 2010 net income included a pre-tax unrealized gain of $1.1 million related to interest rate derivative instruments. Excluding these items from both periods, adjusted net income for third-quarter 2011 was $780,000, compared to $185,000 in 2010.

“This was a steady financial performance in the third quarter — achieving our fourth consecutive quarter of incremental year-over-year growth,” says Stewart G. MacDonald, Mac-Gray chief executive officer. “We continue to see stabilization in the multi-housing industry across the majority of the markets we serve. As a result, multi-housing same location revenue during the quarter rose by 1%, with particular strength in the Northeast and Northwest, and lesser improvement in the Southwest. Only our Southeast region was down. We continued to channel our resources toward generating organic growth through both new and renewal facility contracts in the most promising markets.”

Mac-Gray derives its revenue principally through the contracting of debit-card- and coin-operated laundry facilities in multi-unit housing facilities. The company manages approximately 86,000 laundry rooms located in 43 states and the District of Columbia. Mac-Gray also sells and services commercial laundry equipment.

October 27, 2011

WALTHAM, Mass. — The board of directors for Mac-Gray Corp. has unanimously rejected an unsolicited written proposal from KP Capital to acquire Mac-Gray for $17.50 in cash per share, Mac-Gray reports.

Mac-Gray manages laundry rooms in multi-unit housing facilities, and sells and services commercial laundry equipment to Laundromats and other customers.

The board determined that pursuing the transaction proposed by KP Capital, or a sale process, would not be in the best interests of the company’s shareholders at this time. Mac-Gray can best maximize long-term shareholder value by continuing to aggressively implement the strategic, operational and financial initiatives under way, as well as those specific initiatives contemplated in an updated business plan, the board believes.

“The board of directors, with the help of two top-tier outside financial advisers and counsel, carefully evaluated all relevant aspects of the KP Capital proposal and of a possible sale process, including undertaking the significant risks and uncertainties with such a process at this time,” says Thomas E. Bullock, board chairman.

Mac-Gray’s strengths, growth opportunities and financial prospects were among the factors considered by the board.

KP Capital stated that its proposal was backed by both debt and equity financing sources, but would not identify those sources absent execution of a confidentiality agreement and a commitment by Mac-Gray to pursue discussions, Mac-Gray says.