Despite Difficult Economy, Transcontinental Improves Profitability

“The market is still fragile,” noted Mr. Olivier, “but we are headed in the right direction. I am certain that we will come out of the recession stronger and in a good position to take advantage of the economic recovery.”

The Corporation has decided to now use the ratio of net indebtedness (including the securitization program) to adjusted operating income before amortization as its primary indicator of financial leverage. In addition, Transcontinental has set the objective of maintaining this ratio within a target range of 2.00 to 2.50 and expects to achieve that by the end of fiscal 2011. As at July 31, 2009, the ratio was 3.18. Furthermore, as at July 31, 2009, the Corporation’s net indebtednessto total capitalization ratio was 49%, within the 35% - 50% range set by management.