Transcontinental Has Strong Profitability Gain on Lower Revenue in Q1

• As a printer, Transcontinental has always stood out for its manufacturing efficiency, technological innovation and comprehensive offering. Its technological superiority attracts major new clients year after year. Customers include Shoppers Drug Mart-Pharmaprix, Rogers Communications and the San Francisco Chronicle, now being printed at our new plant in Fremont, California. In this context, in the first quarter Transcontinental started to implement a unique hybrid newspaper and flyer printing platform through its network of plants across Canada. This hybrid platform, a first in Canada, comes under an 18-year and $1.7 billion contract with The Globe and Mail that will start in early fiscal 2011. It will make it possible for The Globe and Mail to print on glossy paper with colour on every page, and retail clients will have access to the latest printing technology. This highly promising project will require a total investment of about $175 million.