Transcontinental Reports Improved Profitability in Fourth Quarter

As announced at the end of the third quarter, the Corporation has now decided to use the ratio of net indebtedness (including the securitization program) to adjusted operating income before amortization as its primary indicator of financial leverage. Management also set the objective of maintaining this ratio within a target range of 2.00 to 2.50 and expects to achieve that target before the end of fiscal 2011. At October 31, the ratio was at 2.59. Furthermore, as at October 31, 2009, the Corporation’s net funded debt to total capitalization ratio was 42%, within the range of 35% - 50% set by Management.