Transcontinental Again Generates Organic Revenue and Profit Growth

For more detailed financial information, please see “Management’s Discussion and Analysis for the Second Quarter Ended April 30, 2011” at www.transcontinental.com, under “Investors.”

Operating Highlights

• Transcontinental continued to invest in new digital products and services. It partnered with Undertone, a leading provider of display, high impact and video advertising solutions, in order to expand its digital advertising representation offering. This agreement enables Transcontinental to provide Canadian advertisers with a full range of digital video ad solutions, namely pre-roll advertising spots in over 25 million online video clips played every month in Canada. In addition, Transcontinental was selected as the official eBook solution provider for the Canadian Booksellers Association (CBA). This partnership will empower book retailers to create new revenue streams and bring more titles to market faster, with easy to use, intuitive software designed with online bookstores in mind.