Transcontinental Consolidates U.S. Facilities

In light of the significant deterioration of market conditions, the company also completed a goodwill impairment test for its U.S. direct mail business. As a result, Transcontinental will completely write off the goodwill associated with this business in the fourth quarter. The impairment, amounting to approximately C$195 million, is a non-cash charge to income and will not affect the corporation's liquidity, cash flow from operating activities or debt covenants, or have any impact on future operations.