Cossette Communication Group - FY 2008 First Quarter Results - Gross income up 9.3%, net earnings relatively stable

    KOS (TSX)

    QUEBEC CITY, Feb. 7 /CNW Telbec/ - Cossette Communication Group Inc.
("Cossette" or the "Company") recorded gross income of $59.3 million for the
first quarter of fiscal 2008, ended December 31, 2007, up 9.3 per cent from
$54.3 million from the corresponding quarter of the previous fiscal year. Net
earnings amounted to $3.4 million ($0.20 per share), the same amounts as in
the first quarter of 2007.
    "During this quarter, we finalized the strengthening of our leadership
team with key new people. This infusion of new talent further enhances the
quality of our service offering in each of our communications disciplines and
further reinforces our Convergent Communications(TM) offer." said
Claude Lessard, Chairman of the Board, Chief Executive Officer and President.
"All of this supports our leadership team as it continues to focus on new
business development opportunities." he concluded.
    For the quarter, earnings from operations were $5.5 million, compared
with $5.8 million in 2007. Cash flows from operating activities before changes
in non-cash working capital items reached $5.6 million, the same amount as in
the first quarter of 2007.
    Management's Discussion and Analysis, containing a full analysis of
financial results, is available on SEDAR (

    Cossette Communication Group 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 planning and buying, sales
promotion, CRM, database and direct marketing, interactive marketing and
technology solutions, public relations and alliance marketing, branding and
design, ethnic marketing, sports marketing, branded content and product
placement and business-to-business communications (B2B practices). Cossette
has approximately 1,650 employees and offices in Quebec City, Montreal,
Toronto, Vancouver, Halifax, New York, Boston, Irvine, Los Angeles, London,
Moscow and Shanghai.

    Forward-looking statements - This press release is not an offer of
securities for sale. It may contain forward-looking statements concerning the
Company's business, operations and strategies, including forward-looking
statements within the meaning of section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 in the United States.The
Company cautions that, by their nature, forward-looking statements involve
risks and uncertainties and the Company's actual results may differ materially
from those expressed or implied in such statements, due to a variety of
factors including downturns in general economic conditions and resulting
changes in client business and marketing strategies, consolidation and
globalisation of client brand strategies, the highly competitive nature of the
communications industry, the greater resources available to much larger global
agencies, low entry barriers for new competitors, dependence upon a limited
number of clients contributing a significant percentage of income, inability
to acquire new clients or new assignments from existing clients due to client
policies prohibiting performance of similar services for competing products or
companies, our ability to successfully integrate our acquired and
to-be-acquired businesses and the retention of key management, creative and
technical personnel. Reference should be made to the most recent annual
Management's Discussion and Analysis for an in-depth description of major risk
factors. The Company assumes no obligation to update or revise any
forward-looking statement, whether as a result of new information, future
events or any other reason.

    Financial analysts are invited to participate in a conference call with
management tomorrow February 7, 2008, at 2:00 p.m. The media and any
stakeholders may attend the call in listening mode only. Please dial (514)
861-1531 or 877-461-2815 (Canada & US) or 00-800-6578-9898 (Global Toll Free).
A replay will be available at (514) 861-2272 or 1-800-408-3053, passcode
3248319# until February 29, 2008 and on the investor relations section of our
website at

    Appendix: Selected Financial Information

                      Cossette Communication Group Inc.
                       Selected Financial Information
       (in thousands of Canadian dollars, except for amounts per share)

       Results for the Three-month Periods ended December 31, 2007 and
                               2006 (unaudited)
                                                            2007        2006

    Gross income                                          59,292      54,262
    Operating expenses                                    53,804      48,460
    Earnings from operations                               5,488       5,802
    Earnings before income taxes and non-controlling
     interest                                              5,671       6,285
    Earnings after income taxes                            3,814       4,085
    Non-controlling interest                                (463)       (647)
    Net earnings                                           3,351       3,438
    Cash flows from operations (before changes in
     non-cash working capital items)                       5,639       5,639
    Net earnings per share
      Basic                                                 0.20        0.20
      Diluted                                               0.20        0.20
    Weighted average number of shares outstanding ('000)
      Basic                                               16,621      17,018
      Diluted                                             16,678      17,018

                                Balance Sheet

                                                           As at       As at
                                                         Dec. 31,   Sept. 30,
                                                            2007        2007
                                                      (unaudited)   (audited)

    Cash and cash equivalents                                 81       3,484
    Current assets                                       165,783     188,788
    Intangible assets and deferred charges                 5,642       6,384
    Goodwill                                              82,783      84,244
    Total assets                                         274,477     299,100
    Current portion of long-term debt                        244         411
    Balances of purchase price of subsidiaries
     (current portion)                                     7,722      16,009
    Long-term debt                                            64         108
    Balances of purchase price of subsidiaries               275         529
    Shareholders' equity                                 133,475     132,123
    %SEDAR: 00012070EF

For further information:

For further information: Jean Royer, Executive Vice-President and Chief
Financial Officer, (418) 521-3784; Source: Cossette Communication Group Inc.,

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