Cossette updates on its strategic review process

    KOS (TSX)

    QUEBEC CITY, Sept. 8 /CNW Telbec/ - Cossette Inc. ("Cossette" or the
"Company") provided an update today 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").
    Since the update by Cossette on its strategic review process last August
27, BMO Capital Markets, the Company's financial advisor, has continued its
broad solicitation of expressions of interest from third parties in respect of
a potential acquisition. To date, Cossette has executed confidentiality and
standstill agreements with a significant number of potential acquirers and
provided them with access to an extensive electronic data room, and is
currently negotiating confidentiality and standstill agreements with a number
of other potential acquirers. Such potential acquirers are being invited to
submit written expressions of interest for the acquisition of Cossette.
    Cossette's Special Committee has determined that, based on the advice of
the financial and legal advisors of the Company and of its legal advisors,
present circumstances do not warrant allowing Cosmos to participate in the
sale process of the Company. In making this determination, the Special
Committee considered, among other things, the unfair imbalance of knowledge
held by Cosmos relative to other potential acquirers due to the participation
of Cossette insiders among Cosmos investors. A level playing field, in terms
of equal access to confidential information, is essential to achieve a process
that maximizes value for shareholders. In addition, as previously announced,
it is the view of Cossette's Board of Directors, on the advice of its
financial and legal advisors, that:

    - Cosmos' proposal is and remains highly opportunistic; and

    - Cosmos' proposal is and remains highly conditional, continues to
      undervalue Cossette and is still financially inadequate.

    The Company cautions shareholders that there is no assurance that the
Company will receive a definitive proposal with respect to a potential
acquisition as a result of its strategic review process. Also, even if a
definitive proposal is received, there is no assurance that such a proposal
will be recommended by the Special Committee or the Board of Directors or that
such a proposal will be implemented. The Board of Directors and the Special
Committee also remind the shareholders of the Company that no offer has yet
been made for the shares of the Company and that there is no need for any
action at this time.

    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.,

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