Transcontinental Reports Organic Growth in All Three Market Sectors

Other Financial Highlights

• Free cash flow from operations increased significantly as cash flow from operations, before changes in non-cash operating items, increased 9 percent, from $64.5 million to $70.2 million and capital expenditures decreased, from $62.7 million to $20.7 million.

• As at Jan. 31, 2011, the ratio of net indebtedness (including the securitization program) to adjusted operating income before amortization was 1.78x, as compared to 1.82x as at October 31, 2010 and 2.40x as at Jan. 31, 2010. The ratio of net indebtedness to operating income before amortization is slightly above the target of 1.5x set by management. Over the next few quarters, it should get closer to the target given the expected increase in cash flow generation and reduction in capital expenditures.