Transcontinental Transfers Print Production from Transcontinental Spot Graphics to Transcontinental PLM

WINNIPEG, May 25, 2011 /CNW Telbec/ - Transcontinental (TSX: TCL.A TCL.B TCL.PR.D) announced today that it will be closing its Transcontinental Spot Graphics printing plant at 1615 Inkster Blvd. in Winnipeg by the end of December 2011. Twenty employees left the plant this morning and about 20 remain to handle the book of business in accordance with the transfer plan. In the coming months, print production at the Manitoba facility will be transferred to Transcontinental PLM in Toronto, which has benefited from major investments to improve its efficiency and production capacity, particularly through the addition of highly specialized equipment.

"Customers' needs are changing, both in terms of technology and the expertise required to carry out their projects. This has led us to invest more in our platform and to focus on specific centres of excellence," said Patrice Lacoste, Senior Vice President, Marketing Products Group, Transcontinental Printing. "With this transfer, the Corporation will be able to offer its customers highly efficient and state-of-the-art technology under one roof."

Transcontinental wishes to thank everyone at Transcontinental Spot Graphics for their dedication and outstanding contribution to the success of the Corporation for many years. The employees affected will receive separation packages and out-placement services to help them quickly find new jobs.

About Transcontinental

Transcontinental creates marketing products and services that allow businesses to attract, reach and retain their target customers. The Corporation is the largest printer in Canada and Mexico, and fourth-largest in North America. As the leading publisher of consumer magazines and French-language educational resources, and of community newspapers in Quebec and the Atlantic provinces, it is also one of Canada's top media groups. In addition, its digital platforms deliver unique content through more than 300 websites. Transcontinental also offers interactive marketing products and services that use new communications platforms supported by marketing strategy and planning services, database analytics, premedia, e-flyers, email marketing, custom communications and mobile solutions.

Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has 10,500 employees in Canada, the United States and Mexico, and reported revenues of C$2.1 billion in 2010. For more information about the Corporation, please visit www.transcontinental.com.

SOURCE TRANSCONTINENTAL INC.

For further information:

Media
Nancy Bouffard
Director, Internal and External Communications
Transcontinental Inc.
Telephone: 514 954-2809
nancy.bouffard@transcontinental.ca
  Financial Community 
Jennifer F. McCaughey
Senior Director, Investor Relations and Financial
Communications
Transcontinental Inc.
Telephone: 514 954-2821
jennifer.mccaughey@transcontinental.ca

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TRANSCONTINENTAL INC.

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