The Ravelston Corporation Limited

March 29, 2005 19:17 ET

Ravelston Responds to Hollinger Inc. Lawsuit


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: THE RAVELSTON CORPORATION LIMITED

MARCH 29, 2005 - 19:17 ET

Ravelston Responds to Hollinger Inc. Lawsuit

TORONTO, ONTARIO--(CCNMatthews - March 29, 2005) - The Ravelston
Corporation Limited issued the following statement in response to an
announcement by Hollinger Inc. that it had filed a lawsuit in the
Ontario Superior Court of Justice:

"The Hollinger Inc. lawsuit against The Ravelston Corporation and some
of its principals is largely simply rehashing litigation previously
commenced by others. We have made clear that we believe those actions
are without merit and that we look forward to the opportunity to try
them in a court of law. Virtually all of the matters that are now
alleged to be improper, such as the payment of management fees, were
fully known by the independent directors of Hollinger Inc. at the time.
We are confident that, as with those other suits, we will prevail in
this case. Further, we remain concerned about the burden on Hollinger
Inc. and its public shareholders of excessive spending that will deliver
no value to shareholders - such as the cost of compensation to
non-executive directors which is running at the unprecedented annual
rate of approximately $1 million per director. The company should take
meaningful steps to conserve and protect the assets of Hollinger Inc.
The public shareholders, who were yesterday denied the opportunity to
benefit from a transaction that would have delivered a substantial
premium to them, have our entire sympathy, but they should not imagine
that they will gain anything from the spurious lawsuit announced today."

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    The Ravelston Corporation Limited
    Jim Badenhausen
    (646) 805-2006