Transcontinental awarded 18-year contract to print the Globe and Mail

    First integrated printing platform in Canada to produce newspapers and

    MONTREAL, Aug. 26 /CNW Telbec/ - Transcontinental Inc. is pleased to
announce it has been awarded a $1.7 B contract to print The Globe and Mail in
most of its major markets in Canada until 2028. This contract represents an
extension of existing contracts with The Globe and Mail in the Atlantic
provinces, Quebec and Ontario, and adds two new markets: Alberta and British
Columbia. This represents approximately $95 M per year in revenue, of which
about $25 M per year is new revenue. The printing will be done in Halifax,
Montreal, Toronto, Calgary and Vancouver. The contract comes into effect when
the current printing contracts expire in 2010.
    In 2009 and 2010, Transcontinental will invest approximately $200 M in a
new and innovative Canada-wide platform for newspaper and flyer printing, the
first Canadian network to integrate the printing of these two products. This
network will provide the capacity to deliver colour on every page for The
Globe and Mail, and it will also address the needs of Transcontinental's
retail customers on the flyer side.
    "Transcontinental has developed a newspaper outsourcing model that
continues to evolve; unique in the industry, it allows publishers to focus on
their core business, producing content, while we focus on delivering the best
possible printed product to their customers," said François Olivier, President
and Chief Executive Officer of Transcontinental. "The Globe and Mail, a leader
in the newspaper industry, understands the value of integrating
Transcontinental into its value chain in order to advance the development of
its brand and its product and quickly adapt to the transformations taking
place in the daily newspaper industry."
    Phillip Crawley, Publisher and CEO, The Globe and Mail, said
"High-quality colour production capacity has always been a key point of
distinction for The Globe and Mail. Transcontinental's commitment to providing
the most progressive high-speed colour printing capability will keep us at the
leading edge. With millions of people every week reading the paper version of
The Globe and Mail, sophisticated printing capability is vital to our
    In print for 163 years, The Globe and Mail, considered the Canadian
newspaper of record, reaches just over 2,800,000 readers each week. It is
consistently recognized by the International Newspaper Color Quality Club
(INCQC), the world's most prestigious quality newspaper production
association, as one of the top 50 newspapers in the world for its printed
quality. Included among the daily newspapers Transcontinental prints are
The New York Times for the upper New York state and Ontario markets and
La Presse. Also, in 2006 Transcontinental won a billion-dollar contract to
print The San Francisco Chronicle.

    Additional Information

    Transcontinental will hold a conference call for the financial community
today at 10:00 a.m. (ET). Media may hear the call in listen-only mode by
calling (416) 644-3414 or 1 800 732-9307 or may tune in to the simultaneous
audio broadcast on Transcontinental's website, which will be archived for
30 days. For Media requests for information or interviews, please contact
Nessa Prendergast, Director, Media Relations, at 514 954-2809.

    About Transcontinental

    The largest printer in Canada and sixth-largest in North America,
Transcontinental is also the country's leading publisher of consumer magazines
and French-language educational resources, and its second-largest community
newspaper publisher. Transcontinental distinguishes itself by creating
strategic partnerships that integrate the company into its customers' value
chain, notably through its unique newspaper printing outsourcing model and its
value-added services. From mass to highly personalized marketing, the
Corporation offers its clients integrated solutions which include a
continent-leading direct marketing offering, a diverse digital platform and a
door-to-door advertising material distribution network. Transcontinental is a
company whose values, including respect, innovation and integrity, are central
to its operation.
    Transcontinental (TSX: TCL.A, TCL.B) has more than 15,000 employees in
Canada, the United States and Mexico, and reported revenues of C$2.3 billion
in 2007.
    %SEDAR: 00000383EF

For further information:

For further information: Media: Nessa Prendergast, Director, Media
Relations, Transcontinental Inc., (514) 954-2809,; Financial Community: Jennifer F.
McCaughey, Director, Investor Relations, Transcontinental Inc., (514)

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