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Annual Meeting of Shareholders 2008

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Transcontinental Launches Custom Publishing Agency

Montreal, August 15, 2007 – Transcontinental Media today announced the launch of Transcontinental Custom Communications, a joint venture with UK agency Seven Squared to provide custom publishing services to clients in Canada and the U.S. Custom publishing involves strategic and creative services that achieve a company’s marketing objectives by delivering unique branded content to customers using print or digital channels.


In addition to the expertise from Seven Squared, recognized as one of the UK’s most successful custom publishing agencies with a pedigree of launching and developing custom magazines for blue-chip clients, Transcontinental Custom Communications will offer fully integrated relationship marketing services that include database marketing, research, variable printing, photo studio and premedia tools.

“Branded content offers marketers the ability to connect in an engaging and non-intrusive way with their target audience, while providing high value returns,” said Natalie Larivière, President, Transcontinental Media. “Combining the experience of Seven Squared with Transcontinental Canadian media expertise will provide best-in-class branded content services to our clients’ increasingly global integrated marketing strategies.”

“Building on Transcontinental’s established array of media and marketing services to create Transcontinental Custom Communications is a great step forward in our group’s evolution,” said Simon Chappell, Director, Seven Squared. “We are looking forward to working with North American clients and showing them how custom publishing and relationship marketing has the potential to unlock great value from a customer base.”

Seven Squared has established a compelling agency reputation, having been named the UK’s “fastest growing custom publishing agency” according to Marketing Magazine’s Customer Publishing League Tables in September 2004 and 2005 and been voted the UK’s “Most admired custom publishing agency” by its peers in Marketing Magazine’s Annual Agency review in December, 2006.

Nino Di Cara from Seven Squared’s operation in London, England, will manage the Toronto-based operation as Director, Custom Publishing.

About Seven Squared
Seven Squared is a UK based, award-winning custom publishing agency with a proven track record in producing high-quality custom magazines. Seven Squared was formed in April 2007 when Seven Publishing Group combined its custom publishing division with Square One Group (www.squareonegroup.co.uk). With total revenues of C$63 million (£30 million), Seven Squared is a top player in the fast-growing custom publishing sector.

Seven Squared’s portfolio includes the UK’s largest paid-for custom magazine, Sainsbury’s Magazine, published on behalf of one of the country’s leading grocers and approximately 30 other publications for blue-chip organizations in sectors as diverse as: financial services, travel, membership, fashion, public, retail, entertainment, etc. Clients include ASOS.com, AXA PPP Healthcare, AVIVA plc (RAC and Norwich Union), Barclays, Capital Shopping Centres, Coutts & Co, David Morris International, English Heritage, First Great Western trains, Fortnum & Mason, Gala Coral Group, LighterLife, Marks & Spencer, Metropolitan Police Service, Sainsbury's, Telewest Business, TUI Thomsonfly.com, Alliance UniChem, Waterstone's Booksellers and several Government departments.

Sean King, Seven Squared director and co-founder, is Chair of the UK’s custom publishing representative organization, the Association of Publishing Agencies.

For more information: www.sevensquared.co.uk

About Transcontinental Media
The fourth-largest print media group in Canada, with more than 3000 employees and annual revenues of $580 million in 2006, Transcontinental Media is the country’s leading publisher of consumer magazines and of French-language educational resources as well as being the largest publisher of community newspapers in Eastern Canada. It publishes the weekday daily Métro in Montreal, owns a number of digital business units, and is also, through Publi-Sac, Quebec’s leading door-to-door distributor of advertising material.

Transcontinental Media is a subsidiary of Transcontinental Inc. (TSX: TCL.A, TCL.B), which has more than 14,500 employees in Canada, the United States and Mexico and reported revenues of C$2.3 billion in 2006.

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For information:

Media
Maxim Labrie
Coordinator, Corporate Communications
Transcontinental Inc.
Telephone: (514) 954-4176
maxim.labrie@transcontinental.ca

Financial Community
Jennifer McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: (514) 954-2821
jennifer.mccaughey@transcontinental.ca

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