Transcontinental Reorganizes, Continues to Invest in its Nova Scotia Printing Operations

Halifax, March 25, 2004 – Transcontinental today announced an investment plan in its Nova Scotia printing facilities to better serve its clients in the long term. The plan includes the investment of $3 million in new printing equipment in its installations throughout the province with the opening of more than 40 jobs at Transcontinental Halifax in that city’s Ragged Lake industrial park.

The reorganization follows Transcontinental’s acquisition in January 2004 of Optipress Inc., a printing and publishing company with assets in the four Atlantic provinces. The new positions in Halifax are being relocated from former Optipress printing operations in New Minas and Yarmouth, Nova Scotia. Employees at these plants are being offered the opportunity of moving to the Ragged Lake plant, of pursuing positions elsewhere within Transcontinental, or of agreeing to either an early retirement or severance package, as appropriate. The operations of the nine Nova Scotia community newspapers included in the January acquisition are not affected by the restructuring.

“This reorganization and $3 million investment reflects Transcontinental’s long-term commitment to providing the highest level of printing and publishing services in the Atlantic region,” said François Olivier, Senior Vice President, Newspaper Group, Transcontinental Printing – Information Products. “Recall that last year the company invested close to $10 million in the expansion of its Halifax facility and the construction of a new printing plant in Borden, Prince Edward Island. With today’s announcement we further optimize our Atlantic operations, ensuring for our customers the long-term strength and stability of our printing services network. As far as customers are concerned, the transition will be seamless.”

André Préfontaine, President of Transcontinental Media, added: “As publisher of local newspapers across Canada, we are very conscious of the integral role they play as the record of their community. With that in mind, we are currently looking at new ways of bringing our community newspapers in Nova Scotia even closer to their readers.”

Profile

One of the 10 largest commercial printers in North America, Transcontinental is Canada's largest printer of flyers, books and newspapers, and a strong second in the printing of magazines, catalogues and directories. Through its Canadian and U.S. direct marketing facilities, Transcontinental has the geographic platform and complete service offering needed to cover the entire North American market. The Corporation is also Canada's leading publisher of consumer magazines and its second-largest publisher of local and regional newspapers. In addition, it is engaged in the door-to-door distribution of advertising material, the development and integration of Web solutions, and the electronic aggregation of news and business information. Through this fully integrated network, Transcontinental is able to provide its customers total service. Transcontinental has more than 12,000 employees in Canada, the United States and Mexico, and reported revenues of C$1.9 billion in 2003.

Transcontinental is a Canadian corporation whose Class A Subordinate Voting Shares and Class B Shares are listed on the Toronto Stock Exchange under the ticker symbols TCL.A and TCL.B.

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For information:

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

Financial Community
Stéphane Milot
Director, Investor Relations
Transcontinental Inc.
Tel.: (514) 954-4000
stephane.milot@transcontinental.ca