FP Newspapers Inc.
TSX : FP

FP Newspapers Inc.

September 19, 2011 19:08 ET

FP Newspapers Inc. Announces Monthly Dividend-September 2011, Winnipeg Pension Funding Update & Brandon Sun Publisher

WINNIPEG, MANITOBA--(Marketwire - Sept. 19, 2011) - FP Newspapers Inc. (TSX:FP) today announced a cash dividend of $0.05 per share, payable on October 31, 2011 to shareholders of record at the close of business on September 30, 2011.

All dividends paid by the Company in 2011 and subsequent years, unless stated otherwise, are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends. Holders of shares who are non-residents of Canada will be required to pay all withholding taxes payable in respect of the dividend.

As previously disclosed, FP Canadian Newspapers Limited Partnership ("FPLP") had requested an extension from five years to ten of the period for funding the Winnipeg defined benefit pension solvency deficiency that was identified in the actuarial funding valuation completed at December 31, 2010. The request for the extension was received as less than one-third of the members, former members and any other person entitled to benefits under the plan filed an objection to the request. As a result, the annual solvency deficiency payments required to be made starting in 2011 which would otherwise have been approximately $1.5 million, are approximately $0.8 million.

FPLP is pleased to announce the appointment of Eric Lawson as Publisher of the Brandon Sun. Mr. Lawson brings twenty eight years of newspapers experience to the Sun, and served most recently as publisher and regional manager of Brunswick News Inc., responsible for the Moncton Times and Transcript and a number of other publications in New Brunswick. Mr. Lawson replaces Ewan Pow, who had served as Publisher of the Brandon Sun since 2004.

FP Newspapers Inc. owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership. FP Canadian Newspapers Limited Partnership owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as the Canstar Community News division, the publisher of eight community and special interest newspapers in the Winnipeg region, and the Carillon in Steinbach with its related commercial printing operations. The Winnipeg Free Press publishes six days a week for delivery to subscribers and single copy sales, serving Winnipeg and Manitoba with an average Monday through Saturday circulation of approximately 122,700 copies. On Sundays the Winnipeg Free Press publishes a newspaper sold through single-copy retail outlets and vending boxes. The Brandon Sun publishes six days a week, serving the region with an average circulation of approximately 13,200 copies. Canstar Community News publishes weekly with an average circulation of approximately 200,000 copies. The businesses employ approximately 570 people in Winnipeg, Brandon and Steinbach. Further information can be found at www.fpnewspapers.com, and in the disclosure documents filed by FP Newspapers Inc. with the securities regulatory authorities, available at www.sedar.com.

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