Quebecor Inc.

Quebecor Inc.

August 29, 2005 11:45 ET

Quebecor Inc. Invests $110 million in Ontario

TORONTO, ONTARIO--(CCNMatthews - Aug. 29, 2005) - Quebecor Inc. (TSX:QBR.MV.A)(TSX:QBR.SV.B)

- Pledges major financial and resource commitment for long-term
- Consolidation of printing with announcement of new Ontario facility
- Douglas Bassett to chair newly created Quebecor-Ontario Advisory
- Sun Media properties to converge

Quebecor Inc. today announced a major investment into its Ontario
based media properties. This is more than just a financial commitment
and includes these major initiatives:

- The convergence of the Toronto Sun,, 24 hours, and SUN TV
(formerly Toronto 1) into a true convergence cross-platform format,
the first of its kind in Canada;

- The consolidation of Quebecor's Ontario printing facilities into a
new state-of the art facility in Islington, Ontario.

- The formation of an Advisory Board to oversee Quebecor's Ontario
media interests;

"We are committed to providing funding, resources and our considerable expertise in order to build our Ontario media properties into a strong convergent voice," said Pierre Karl Peladeau, President and Chief Executive Officer, Quebecor Inc.

"We want to take the little paper that grew, the legendary Toronto Sun, and help it grow and prosper with the multitude of convergence opportunities afforded us in SUN TV, and 24 hours. Our intent is to take the Toronto Sun back to its community roots with the benefit of a revitalized multimedia platform. Our objective is to provide our audiences with a unique media environment that they will find stimulating on many different levels."

Advisory Board

"Pierre Karl's vision for media, meeting at the crossroads, is something I am very excited to be a part of and contribute my experience to," said Douglas Bassett, newly appointed Chair, Quebecor-Ontario Media Advisory Board. "I believe the potential of these properties is enormous and that with the commitment of Quebecor the promise will be fully realized."

Other advisory board members representing the most diverse community in the world and a new publisher of the Toronto Sun will be announced shortly.

Sun Media Convergence

The convergence of the Toronto Sun, SUN TV, 24 hours and into a cross-pollination of news, entertainment, sports and community will be an exciting meeting of styles and formats.

Based on Quebecor's successful convergence model, the Ontario format, while utilizing Quebecor's strength and expertise, is incorporating a mix of news and community interests creating a larger content pool with increased opportunities. To that goal plans call for Sun TV to join their colleagues at the King Street local in the near future. The result will be a convergence format that provides a strong sense of community on-air, online, and in the newspaper.

Quebecor strongly believes that convergence in the Ontario market
will create:

- A sustainable competitive edge, in the country's most competitive
media market;
- A higher quality of content;
- An increase in advertising sales;
- A more effective marketing of services;
- Increased power for events and promotions.

The strategy is to position the Quebecor's media properties as the epicenter of multimedia convergence while simultaneously raising the awareness, relevance, necessity and immediacy of SUN TV, Toronto Sun, 24 hours and

On a journalistic note, a significant aspect of the plan calls for the revitalization of Sun Media and the flagship Toronto Sun newspaper, back to its roots as a community focused newspaper. To this goal there will be a series of announcements, shortly, about a number of high profile media personalities, who will be joining the Sun to ensure its indispensable role as a unique and vital voice of the city and the province.

Consolidation of Ontario printing with new State-of-the-art Print Facility

The third component in the plan will see Quebecor consolidate newspaper printing facilities into one, new state of the art facility that will be located in Islington, Ontario.

The new printing presses, manufactured by Man Roland, the world's largest supplier of offset presses, will be equipped with an automated definition and colour density system, an innovative colour printing process that guarantees uniformly brilliant print quality on every copy.

With this new equipment, the Toronto Sun, the London Free Press and 24 hours will have the capacity to produce a full-colour daily newspaper for their readers and advertisers. The papers will be able to use an unlimited selection of colours for both editorial content and advertising in order to deliver a more attractive and readable product. The new presses will also produce other Quebecor print contracts including directories for Yellow Book. Yellow Book is one of the largest directory publishers in the U.S. and recently signed a long-term $900 million contract with Quebecor World to print 100% of its directories.

The new print facility will be operated by a new entity co-owned by Quebecor Media and Quebecor World, serving both their customers. Utilizing this innovative technology will provide a better product to readers and advertisers and is a much more efficient process. It is faster; more automated and supports a wide range of insert options, including special sections, advertising supplements and geographically targeted ads. The consolidation of the newspaper printing operations will result in the reduction of 320 employee positions though it will be offset by the creation of 200 positions at the new facility.

Quebecor Inc. (TSX: QBR.MV.A, QBR.SV.B) is a communications company with operations in North America, Europe, Latin America and Asia. It has two operating subsidiaries, Quebecor World Inc. and Quebecor Media Inc. Quebecor World is one of largest commercial print media services companies in the world. Quebecor Media owns operating companies in numerous media-related businesses: Videotron ltee, the largest cable operator in Quebec and a major Internet Service Provider as well as a provider of telephone services; Videotron Telecom Ltd., a provider of business telecommunications services; Sun Media Corporation, Canada's largest national chain of tabloids and community newspapers; TVA Group Inc., operator of the largest French language general interest television network in Quebec, a number of specialty channels, and the English language general-interest station Sun-TV; Canoe inc., operator of a network of English- and French language Internet properties in Canada; Nurun Inc., an important agency in interactive technologies and communications in Canada, the United States and Europe; companies engaged in book publishing, magazine publishing and production, distribution and retailing of cultural products; Archambault Group Inc., the largest chain of music stores in eastern Canada; TVA Films; and Le SuperClub Videotron ltee, a chain of video and video game rental and retail stores. Quebecor Inc. has operations in 17 countries.

Information sheet


The Toronto Sun was first published in November 1971. The paper was founded by, Douglas Creighton, Donald Hunt and Peter Worthington. The story of "the little paper that grew" is the stuff of legend, an entrepreneurial success with a rich tradition of never resting on its laurels. Most recently The Toronto Sun, part of Sun Media Corporation, was acquired by Quebecor Inc. on January 7, 1999.

The uniquely positioned Toronto Sun has been highly successful since its inception in 1971. It has maintained its distinctive approach to local news, sports and entertainment. The Sun brings its readers an entertaining, informative mix they just can't get elsewhere, with plenty of clear, strong opinions. Its columnists, journalists and photojournalists are celebrated locally and nationally.

Although its main readership is in the greater Toronto area, the paper is also available from Kingston to Windsor and from Sault St. Marie to the Niagara border. The majority of Toronto Sun readers are exclusive readers and it has more readers per copy than the competition.


The CANOE network of portals and specialty sites give Canadian Internet users a varied and entertaining Web experience by delivering a wide range of useful and user-friendly content and services. CANOE's portals serve up informational content, on-line exploration, on-line communications, e-commerce and interactivity. In addition to operating a major network of information, news and search portals, Canoe is a leading player in e-commerce and with 5.3 million unique visitors in July 2005. CANOE is the largest Canadian owned portal in the country.


In December 2004, the station formerly known as Toronto 1 became part of the Quebecor Media family. Now eight months later it has been re-branded SUN TV.

SUN TV 's 2005 fall programming begins in September with two new and original SUN TV programs; a daily entertainment show, Inside Jam and The Grill Room, a nightly round table sports talk show. These programs will be the first step in a fully integrated media network.

SUN TV also carries a variety of programs for all ages and tastes. Noteworthy for the upcoming season and exclusive to SUN TV are: 24 (the first two seasons), Charmed, George Lopez, Freddie, Girlfriends, Kathy Griffin: My Life on the D-List, Cold Turkey and The Jerry Springer Show.

Leveraging a strong knowledge base from the #1 network in French Canada, TVA and strong promotional and content ties with the Toronto Sun, and 24 hours, SUN TV is poised for growth and increasing influence in the Toronto market.


The 24 hours concept was launched in October of 2003 with 24 heures in Montreal, followed by Toronto in November 2003 and Vancouver in March of 2005. The 24 Hours template revolutionized the free daily world in a number of areas. Printed on glossy paper on heat set presses it has the physicality of a magazine with all the relevant daily news that a traditional newspaper carries but in a breezy "quick hit" style. Designed to be read in approximately twenty minutes, it is the ideal accompaniment to a morning commute and/or coffee.

Reader response to 24 hours has been nothing short of phenomenal. In less than two years 24 hours Toronto has grown to be Canada's eleventh largest newspaper by circulation, advertisers have responded positively across all markets, and circulation pick up rates in Montreal, Toronto and Vancouver have accelerated beyond trends causing competitors to scramble in an effort to keep up.




Driving value for clients and investors requires creativity and a willingness to challenge existing paradigms. The investment in a state of the art printing facility to produce Sun Media newspapers offered the affiliated companies, Quebecor World Inc. and Quebecor Media Inc the opportunity to display just such creativity in leveraging the capital investments to meet dual customer objectives.

In the last six months, Quebecor World signed major new directory printing contracts with Yellow Book USA and with Dex Media, Inc. These long-term directory contracts for over 1,100 directory titles and over a trillion pages require a significant investment in new directory capacity in Quebecor World's North American directory network, particularly when also considering the growth of other existing directory clients. In the same period in 2005 Quebecor Media has been exploring ways to deliver a more attractive and readable newspaper product in Canada's largest city. As the two companies respective needs were defined, a common solution emerged.

These two Quebecor companies have combined resources to configure a new printing facility to manufacture both newspapers and telephone directories. Typically, daily newspapers have highly underutilized printing equipment and it is a challenge to economically justify new investments. By combining the two product lines, utilization is raised to close to 100%. This enhances returns and drives shareholder value. It also drives value and quality for readers, advertisers and directory publishers.

Newspapers are printed each day to a demanding schedule. Upon completion of the newspaper press run, the presses are seamlessly switched to production of white and yellow page telephone directories. The quick make-ready technology and high-speed output of the new Man Rolland presses ensures that such product changes are made rapidly with minimal waste.

The presses are equipped with automated registration and color control systems that guarantee brilliant print quality on both newspapers and directories. The heatset press capabilities are similar whether producing one, two or four color products. Finally, the high page output of the presses (measured in the billions of pages per year) permits compression of print cycles for even the largest of telephone directories.

Information sheet

Three Man Roland COLORMAN™ presses (10 printing towers), including 15 reelstands and 3 jaw-type folders:

- Improved print quality (colour range and definition)

- Increased printing speed: up to 86,000 cph (copies per hour)

- Automated colour density system to guarantee uniform quality for
entire print run

- Capacity of up to 128 pages in four-colour process for a 128-page

- Capacity of up to 96 pages in four-colour process and 64 pages in 2
colours for a 160-page edition

- Ability to staple supplements and produce different formats

Shipping and automated inserting equipment:

- Shipping room processes automated, from inserting to shipment to

- Capacity to automatically insert all supplements and retail inserts
into the newspaper

- Ability to target advertising geographically

Information sheet

MAN Group

The MAN Group is one of Europe's foremost suppliers of specialized
systems and services for the construction of commercial vehicles and
industrial equipment.

The MAN Group has five divisions and subsidiaries, all leaders in
their fields:

- MAN Roland (printing systems): number one global supplier of offset
printing systems, number two supplier of sheet-fed printing;

- MAN (commercial vehicles): number three manufacturer of commercial
vehicles and supplier of related services in Europe, Africa and

- MAN Ferrostaal (industrial services): highly respected provider in
the field of industrial design, planning, construction and delivery
of turn-key industrial facilities, plants and naval construction

- MAN B&W (diesel equipment): world's number one supplier of two-
stroke diesel engines (for boats), number two supplier of large
four-stroke engines;

- Man Turbo, Man Technologie, RENK, SMS Group, SHW and Man Financial
Services (industrial facilities and equipment, financial services):
a wide variety of highly specialized services related to industrial
- world's third supplier of compressors and turbines;
- major European supplier of leading-edge equipment for the
petrochemical industry, refineries, oil companies, the steel
and iron, aerospace, aviation and military equipment
- worldwide provider of personalized financial services.

More than 60,000 employees in 120 countries (2004).

Head office in Munich, Germany.

Contact Information