Transcontinental Reports Improved Profitability in Fourth Quarter

• In the fourth quarter 2009 — Growth of 15% in adjusted operating income before amortization despite 9% decrease in revenues compared to 2008.

• For fiscal 2009 — Decrease of 3% in adjusted operating income before amortization4 and 6% in revenues compared to fiscal 2008.

MONTREAL—December 15, 2009—Cost savings of close to $80 million from the rationalization plan which Transcontinental quickly instituted to counter the recession and the multiple efficiency gains which resulted; start of major printing contracts, including those for the San Francisco Chronicle and Rogers Communications; ongoing investments over the past several years in technology, new media and brand development; and the solid performance of educational book publishing and door-to-door distribution operations: those are the main factors that enabled Transcontinental to improve its profitability from quarter to quarter in 2009 and to end the year with a strong fourth quarter.