Transcontinental Has Strong Profitability Gain on Lower Revenue in Q1

For more detailed financial information, please see Management’s Discussion and Analysis for the First Quarter ended January 31, 2010 at www.transcontinental.com, under “Investors.”

Operating Highlights

Below are the main operating highlights to date.

• Transcontinental’s growth is largely based on its ability to provide its customers with advertising personalization services and digital communication platforms that meet their new business needs. This is the exact focus of the Marketing Communications Sector, which was created early in fiscal 2009. The forward momentum of Marketing Communications has continued in the first quarter with the signing of several promising agreements with major retail brands in Canada. These agreements cover our advertising personalization services, which include personalized emails, data analytics and creation of custom content. Also, in March 2010, we launch the pre-shopping platform dealstreet.ca for English-speaking consumers, and publisac.ca for French-speaking consumers, in concert with the Publisac team. This solution allows our retail clients to optimize the return on their advertising dollar and consumers to compare and choose the best deals on the Internet.