Acquisitions Boost Transcontinental’s Revenues; Agreement with Hearst Renegotiated

Given the new market reality in the San Francisco Area, the Chronicle will only require the use of up to two-thirds of the printing equipment under the original contract. As a result, the Chronicle will benefit from price reductions of approximately US$30 million per year from TC Transcontinental, over the remaining term of the agreement, to account for the upfront payment and the reduction in the use of the printing equipment.