Cosmos Group announces that it has entered into an additional lock-up agreement with Beutel, Goodman & Company Ltd. Consequently, approximately 37.3% of Cossette's outstanding shares now support the Cosmos proposal to acquire all of the issued and outstanding shares of Cossette for a price of $4.95 per share

    MONTREAL, Aug. 14 /CNW Telbec/ - Cosmos Group ("Cosmos") announces that,
in addition to its current lock-up agreement with Burgundy Asset Management
("Burgundy"), it has further entered into an additional lock-up agreement (the
"Lock-up Agreement") whereby Beutel, Goodman & Company Ltd. ("Beutel,
Goodman") has agreed to tender the shares held by it to the Cosmos Proposal,
subject to certain conditions.
    Beutel, Goodman collectively holds (or exercises control or direction
over) 1,266,091 subordinated voting shares representing approximately 7.6% of
the outstanding shares of Cossette on a fully diluted basis. Cosmos, directly
or indirectly holds 2,911,580 multiple voting shares and 205,733 subordinate
voting shares representing approximately 18.7% of Cossette's outstanding
shares on a fully diluted basis. Accordingly, the Shares covered by the
Burgundy Lock-up Agreement, the Beutel, Goodman Lock-up Agreement and the
Shares held directly or indirectly by Cosmos now represent approximately 37.3%
of the outstanding shares of Cossette on a fully diluted basis.
    As previously disclosed on July 20th, 2009, Cosmos submitted a proposal
to acquire all of the issued and outstanding shares of Cossette for a price of
$4.95 per share, subject to various conditions including due diligence. This
price represents a 52.3% premium over the closing price prior to the
announcement and a 45.7% premium over the average trading price of Cossette's
subordinate voting shares on the TSX for the 30 trading days preceding this
    This is clearly a very compelling proposal, made at a significant premium
that will provide shareholders with an opportunity to receive cash proceeds
for their investment. Moreover, it is now strongly supported by two of the
largest institutional shareholders of Cossette. Cosmos has therefore
reiterated its request to gain initial access to Cossette's books and records
to enable it to conduct its confirmatory due diligence.
    The Lock-up Agreement that Cosmos has entered into with Beutel, Goodman
stipulates that the latter has agreed to tender all Shares held by it, or over
which it exercises control or direction, to the Proposal. Under the terms of
the Lock-up Agreement, Beutel, Goodman has the right to support or tender its
Shares to another transaction which exceeds the price under the Proposal,
subject to the right of Cosmos to match such other transaction in accordance
with the terms of such agreements. The Lock-up Agreement constitutes a
"Permitted Lock-up Agreement" within the meaning of the Rights Plan instated
by the Board of Directors of Cossette on August 4th, 2009.

    Cautionary Note:

    This news release contains "forward-looking statements" regarding the
proposal of the Cosmos Group to purchase all of the subordinate voting shares
of Cossette including subordinate voting shares resulting from the conversion
of all outstanding multiple voting shares (other than shares owned by members
of the Cosmos Group and their affiliates), including statements regarding the
terms and conditions of the proposed offer. Readers are cautioned not to place
undue reliance on forward-looking statements. Actual results and developments
may differ materially from those contemplated by these statements depending
on, among others, the risks that the Cosmos Group will not proceed with a
formal offer or its offer will be unsuccessful for any reason.
    The forward-looking statements contained in this document are made as of
the date of this document and the Cosmos Group does not undertake any
obligation to update publicly or revise any of the forward-looking statements
contained in this news release, whether as a result of new information, future
events or otherwise, except as required by law. The forward-looking statements
contained in this news release are expressly qualified by this cautionary

    Legal Notice:

    This news release does not constitute an offer for or solicitation of
shares in any jurisdiction. Any such solicitation would be made only by formal
offer and only in those jurisdictions where the Cosmos Group may legally do
so. The issuance of this news release is not an admission that anyone named
herein owns or controls any securities described herein or is a joint actor
with another named entity (except as expressly disclosed).

For further information:

For further information: Media: Claude Bédard, (514) 515-6024,; Shareholders and financial analysts: Jean-François
Desjardins, (514) 281-3245,

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