Acquisitions Boost Transcontinental’s Revenues; Agreement with Hearst Renegotiated

The impact on the profitability of TC Transcontinental’s Fremont, California plant will not be significant as the US$200 million upfront payment will be deferred and transferred to revenues over the remaining life of the contract and the Corporation will be able to reduce its cost base to compensate for the reduction in the use of the required printing equipment. Furthermore, TC Transcontinental will focus on using the available capacity for other potential customers.