Transcontinental Reports Gains for Fiscal Year Despite Q4 Loss

MONTREAL—December 11, 2008—Transcontinental kept its momentum in the fourth quarter and ended fiscal 2008 with adjusted earnings per share of $1.73, compared to $1.50 in 2007, up an appreciable 15%. Adjusted net income, which excludes asset impairment, restructuring costs and unusual adjustments to income taxes, is a good indicator of the Corporation’s operating performance. Excluding the negative impact of the foreign exchange rate, adjusted earnings per share would have been $1.78, an increase of 19% over 2007. The good performance of most of the Corporation’s business segments, along with a decrease in the tax rate and interest rates, largely offset the negative impact of the financial crisis on the Corporation’s direct mail operations in the United States, the average rise in the Canadian dollar compared to its U.S. counterpart, and strategic investments in the Media sector.