FP Canadian Newspapers Buys Winnipeg Publishing and Distribution Assets From Transcontinental

Winnipeg, July 13, 2004 – FP Canadian Newspapers announced today it has acquired five weekly newspapers in the Winnipeg area from Transcontinental Media, as well as Transcontinental’s door-to-door advertising delivery businesses in Winnipeg and Brandon, Manitoba and Thunder Bay, Ontario.

The five newspapers acquired are The Lance, The Metro, The Herald, The Times and The Headliner. They have a combined weekly circulation of 169,000 copies. The advertising distribution operations reach approximately 290,000 households. The acquired operations employ about 40 people and engage numerous local contractors and hundreds of independent delivery carriers. Their revenues total approximately $8 million annually.

FP Canadian Newspapers also owns the Winnipeg Free Press and Brandon Sun daily newspapers. The company will create a wholly-owned subsidiary, Canstar Community News Limited, with separate management to operate the newly-acquired weeklies and delivery operations.

“This is an excellent addition for us which complements very well our other holdings and their related businesses,” said Ronald Stern, Chairman of FP Canadian Newspapers. “We will now be able to supplement what our loyal Winnipeg readers and advertisers get from the Free Press every day with more targeted local news, features and promotional material, enhancing our ability to serve their information and advertising needs.”

Canstar management will report to Rudy Redekop, president of FP Canadian Newspapers, who cited the history and local neighbourhood ties of the weeklies as a strength that FP “will seek to preserve and enhance.”

“These Winnipeg community newspapers are well-established titles, one of which was first published in 1917,” said Redekop. “We look forward to seeing them grow and serve their communities by providing excellent neighbourhood news and features.”

For his part, André Préfontaine, president of Transcontinental Media, the publishing arm of Transcontinental Inc., said: “These newspapers and distribution services are sound operations, but are no longer strategic for us and had limited growth potential within our portfolio. Considering that FP Canadian Newspapers is a local company with a strong corporate culture and that the assets it acquired today should add value to its quite complementary holdings, this is good news for the employees and customers of both companies.”

About FP Canadian Newspapers Limited Partnership and FP Newspapers Income Fund

FP Newspapers Income Fund (TSX:FP.UN) owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership.

FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses. The Winnipeg Free Press newspaper publishes seven days a week, serving Winnipeg and Manitoba with an average seven-day circulation of approximately 128,000. The Brandon Sun also publishes seven days a week, serving the region with an average circulation of approximately 15,000. Based in Winnipeg, the businesses employ approximately 580 people in Winnipeg and Brandon. Further information can be found at www.fpnewspapers.com and in the disclosure documents filed by FP Newspapers Income Fund with the securities regulatory authorities available at www.sedar.com.

About Transcontinental Media

The fourth largest print media group in Canada, with more than 3000 employees and annual revenues of $505 million in 2003, Transcontinental Media is the country’s leading publisher of consumer magazines and its second-largest publisher of community newspapers. Its titles in French and English are among the most prestigious in the industry, reaching more than 20 million readers from coast to coast every month. Transcontinental Media is also Canada's leading door-to-door distributor of advertising material, most notably through Publi-Sac, which is distributed to 2.8 million households in Quebec each week.

Transcontinental Media is a wholly-owned subsidiary of Transcontinental Inc., one of the 10 largest commercial printers in North America. Canada's largest printer of flyers, books and newspapers, and a strong second in the printing of magazines, catalogues and directories, Transcontinental also has, through its Canadian and U.S. facilities, the geographic platform and complete service offering necessary to cover the direct marketing needs of the entire North American market. Transcontinental Inc., a Canadian corporation whose shares are listed on the Toronto Stock Exchange under the ticker symbol TCL.A, has more than 12,000 employees in Canada, the United States and Mexico, and reported revenues of C$1.9 billion in 2003.

- 30 -

For information:

FP Canadian Newspaper

Media
Ronald Stern
Chairman
FP Canadian Newspapers Limited Partnership
Telephone: (604) 681-8817

Financial Community
Rudy Redekop
President
FP Canadian Newspapers Limited Partnership
Telephone: (204) 697-7356
rudy.redekop@freepress.mb.ca

Transcontinental

Media
Jake Brennan
Public Relations Department
Transcontinental Inc.
Telephone: (514) 954-4000
jake.brennan@transcontinental.ca

Financial Community
Daniel Denault
Vice President and Chief Financial Officer
Transcontinental Inc.
Telephone: (514) 954-4003
daniel.denault@transcontinental.ca