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Montreal, August 26, 2008 – 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 business.”
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.
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For information:
Media
Nessa Prendergast
Director, Media Relations
Transcontinental Inc.
Telephone: (514) 954 2809
nessa.prendergast@transcontinental.ca
Financial Community
Jennifer F. McCaughey
Director, Investor Relations
Transcontinental Inc.
Telephone: (514) 954 2821
jennifer.mccaughey@transcontinental.ca
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