/R E P E A T -- Cosmos proposal highly opportunistic and undervalues Cossette - Cossette to solicit interest from third parties/



    KOS (TSX)

    QUEBEC CITY, Aug. 14 /CNW Telbec/ - Cossette Inc. (Cossette or the
Company) provided today an update on the strategic review process initiated by
Cossette's Board of Directors on July 20, 2009 in response to the unsolicited
and non-binding proposal from Cosmos Capital Inc. (Cosmos). With the
assistance of their financial and legal advisors, the Board of Directors and
the Special Committee of independent directors of Cossette have conducted a
careful review of Cosmos' unsolicited and non-binding proposal and continue to
diligently evaluate all of Cossette's strategic alternatives.
    It is the view of Cossette's Board of Directors, on the advice of its
financial and legal advisors, that:

    
    - Cosmos' proposal is highly opportunistic; and
    - Cosmos' proposal is highly conditional, undervalues Cossette and is
      financially inadequate.
    

    As part of this strategic review process, the Company's financial
advisor, BMO Capital Markets, has been instructed to expeditiously solicit
proposals from third parties interested in acquiring the Company. The Board of
Directors and the Special Committee believe that a public process with active
solicitation of interest from a range of qualified parties is in the best
interests of the Company and its shareholders and will facilitate offers
reflecting the full and fair value of Cossette.
    Mr. Claude Lessard, Cossette's Chief Executive Officer and President,
declared "Mr. Pierre Delagrave, President, Cossette Media and Fjord
Interactive Marketing and Technology, and myself, both founding partners of
the Company, are fully aligned with the Special Committee's and the Board's
decision to solicit proposals to acquire the Company to maximize value for all
shareholders. We will cooperate with the Board and the Special Committee to
successfully implement a Board supported transaction. We are confident that
this exercise will be accomplished with the highest regard for Cossette's
traditional values and in harmony with the best interests of our two key
assets, our employees and clients.
    The Board of Directors and the Special Committee remind the shareholders
of the Company that no offer has yet been made for the shares of the Company
and that they should not take any action at this time. The Board of Directors,
the Special Committee and the management of Cossette remain committed to
building and maximizing value for all shareholders and will provide additional
information to shareholders when appropriate.

    Cossette Inc. offers a full range of leading-edge communication services
to clients of all sizes, including some of the most prestigious brands in the
world. A customer-driven organization built around highly specialized business
units, Cossette also offers Convergent Communications(TM), a unique working
method that brings added value to the client by integrating various services
offered by the Group, including strategic planning and research, advertising,
media buying and channel planning, sales promotion, direct response, database
and direct marketing, customer relationship management, interactive marketing
and technology solutions, public relations, organizational communication and
change management, sponsorship and alliance marketing, branding and design,
ethnic marketing, business-to-business communications (B2B practices) and
print and video production. Cossette has approximately 1,485 employees and
offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York,
Irvine, Los Angeles, London and Shanghai.




For further information:

For further information: Financial Analysts only: Martin Faucher,
Vice-President and Chief Financial Officer, (418) 521-3784; Investors: Francis
Trudeau, Director, Acquisitions and Investor Relations, (514) 282-4633;
Medias: Sylvie Isabelle, Optimum Public Relations, (418) 521-3184; Source:
Cossette Inc., www.cossette.com

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COSSETTE INC.

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