Transcontinental Acquires Mobile Solutions Provider LIPSO

MONTREAL—May 4, 2010—Transcontinental is pleased to announce the acquisition of Montreal-based LIPSO, a leading provider of integrated mobile solutions, including connectivity, transaction management (SMS, MMS, etc.) and applications development. As an enhancement to its marketing communications solutions in new media and digital platforms, this purchase adds a number of key services to Transcontinental's marketing communications offering, including cell phone bar code reading, mobile couponing in retail sales, and electronic ticketing in transportation and entertainment.

"Every day we work with our clients on the analysis, execution and deployment of their marketing strategies based on one-to-one marketing and new communication platforms," said Christian Trudeau, President of the Marketing Communications Sector, Transcontinental. "The LIPSO acquisition fits right in with this approach and makes it possible for us to create a unique centre of excellence for mobile marketing solutions. It also confirms our leading position in the delivery of marketing communications solutions."

Vivianne Gravel, President of LIPSO, added: "I'm very happy that our company is now part of a major corporation like Transcontinental, which will ramp up our development. This acquisition will keep ownership of LIPSO technology and its jobs in Canada. It's exciting news for LIPSO clients and employees."

Sophie Hennion, Chief Executive Officer of LIPSO, said: "This transaction will help LIPSO's growth in terms of both products and services development and business development, in a period of rocketing demand for mobile applications."

Details on the transaction price and information have not been released. As of today, the 30 LIPSO employees, Vivianne Gravel and Sophie Hennion join the approximately 850 employees in Transcontinental's Marketing Communications Sector.

About LIPSO
LIPSO (LIPSO Systems Inc.) develops and markets mobile solutions that facilitate communications and transactions between organizations and mobile users. LIPSO is Canada's leading company in this field and the only technology provider to play the triple role of system integrator, provider of mobile transaction connectivity/management (SMS, WAP push, MMS, etc.) and developer of innovative mobile apps with strong revenue-generating potential. LIPSO solutions are used by Rogers Media, CBC/Radio-Canada, Air Canada and Air Miles.

About Transcontinental
The Marketing Communications Sector provides marketing services and products using new communications platforms supported by database analytics, premedia, e-flyers, email marketing, and custom communications. Transcontinental provides printing, publishing and marketing services that deliver exceptional value to its clients and provide a unique, integrated platform for them to reach and retain their target audiences. Transcontinental is the largest printer in Canada and in Mexico, and fourth-largest in North America. It is also the country's leading publisher of consumer magazines and French-language educational resources, the second-largest community newspaper publisher, and its digital platform delivers unique content through more than 120 Web sites. Transcontinental is a growth-oriented company with a culture of continuous improvement and financial discipline, whose values, including respect, innovation and integrity, are central to its operation.

Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has approximately 11,000 employees in Canada, the United States and Mexico, and reported revenue of C$2.4 billion in 2009. For more information about the Corporation, please visit www.transcontinental.com.