July 10, 2007 11:00 ET

Canada Post to Invest $10 Million; Building Located at 300 Saint-Paul Street to Be Put Up for Sale

QUEBEC CITY, QUEBEC--(Marketwire - July 10, 2007) - Canada Post announces the implementation of several phases of a project started two years ago, which will involve investments of some $10 million in the Quebec City region over the course of a year :

- Purchase and upgrade of the building located at 5055 Hugues-Randin Street, which houses the parcels ans courrier processing plant and the new parcel pick-up and delivery hub;

- Purchase of land on Leon-Harmel Street and construction over the next few months of a building that will house a letter carrier depot;

- Signing of a lease and fit-up of a building to be constructed on Joly Street that will house a second letter carrier depot;

- Signing of a lease and fit-up of new spaces located at 6700 Pierre-Bertrand Blvd, for administrative personnel as of November.

Furthermore, in the next few days, Canada Post will put up for sale, through CB Richard Ellis, real estate broker, its authorized brokerage service provider, its building located at 300 Saint-Paul Street in Quebec, which will become vacant in the spring 2008.

Since the announcement in August 2005 of the transfer to Montreal of the processing of letters, Canada Post has completed six of the seven operational phases of the transfer. Not only have no regular employees lost their jobs nor have been required to move, but Canada Post has also already successfully relocated most of the employees who became surplus in positions that became vacant following the retirement of their colleagues, a situation that happened more quickly than originally planned. Canada Post will even have to start hiring externally again.

Canada Post continues to maintain a significant presence in Quebec with its more than 1,100 jobs and many facilities. Canada Post provides the region with approximately $90 million in direct economic fallout. Furthermore, the retirement of some 300 employees over a five-year period translates into the maintenance of an economic fallout of $10 million a year in the region.

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