Hollinger Inc.

Hollinger Inc.

March 08, 2005 08:02 ET

Hollinger Inc.: Board Proposes Shareholders Vote on Proposed Share Consolidation and Privatization


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: HOLLINGER INC.

TSX SYMBOL: HLG.C
TSX SYMBOL: HLG.PR.B

MARCH 8, 2005 - 08:02 ET

Hollinger Inc.: Board Proposes Shareholders Vote on
Proposed Share Consolidation and Privatization

TORONTO, ONTARIO--(CCNMatthews - March 8, 2005) - Hollinger Inc.
("Hollinger") (TSX:HLG.C)(TSX:HLG.PR.B) announced today that its Board
of Directors (the "Board") has unanimously determined to call a special
meeting of Hollinger's shareholders in connection with the proposed
share consolidation going private transaction (the "Going Private
Transaction") originally announced on October 28, 2004, on the terms
announced on March 7, 2005. The Board has determined not to make a
recommendation as to whether shareholders should accept or reject either
the resolution effecting a consolidation of the outstanding retractable
common shares of Hollinger or the resolution effecting a consolidation
of the outstanding Series II Preference Shares of Hollinger. The special
meeting of shareholders will be held on March 31, 2005.

The Board met following a hearing before Justice Colin Campbell of the
Ontario Superior Court of Justice on March 7, 2005 which had been
initiated by the independent directors of Hollinger requesting advice
and direction as to whether the Going Private Transaction should be put
to a vote by Hollinger's shareholders before Ernst & Young Inc. delivers
its final inspection report on related party transactions. Justice
Campbell ruled that, in the circumstances, it was not appropriate for
the Court to make an order at this time.

The Going Private Transaction remains subject to the approvals and
processes referenced in Hollinger's October 28, 2004 press release.
Formal documentation for the Meeting, including a management proxy
circular, will be mailed to shareholders of Hollinger in the near future.

Retraction Status

In connection with its consideration of the Going Private Transaction,
the Board considered Hollinger's ability to honour retractions of its
outstanding retractable common shares if all necessary corporate,
shareholder and regulatory approvals in connection therewith are
obtained by March 31, 2005. After careful deliberation, the Board
concluded that, in such circumstances, as of the date hereof, Hollinger
anticipates that it will be in a position to complete retractions of all
retractable common shares submitted for retraction (including those
currently submitted and not processed) prior to the implementation of
the Going Private Transaction.

Until such approvals are obtained, retractions of Hollinger's
outstanding retractable common shares continue to be suspended until
further notice.

Company Background

Hollinger's principal asset is its interest in Hollinger International
Inc. which is a newspaper publisher, the assets of which include the
Chicago Sun-Times, a large number of community newspapers in the Chicago
area and a portfolio of news media investments. Hollinger also owns a
portfolio of revenue-producing and other commercial real estate in
Canada, including its head office building located at 10 Toronto Street,
Toronto, Ontario.

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