Torstar Announces That it has Acquired an Interest in Blue Ant Media

TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - Torstar (TSX:TS.B) today announced that it has acquired an approximate 25% interest in Blue Ant Media Inc. Blue Ant Media is a newly established independent media company led by media veteran, Michael MacMillan. In addition to a controlling interest in GlassBOX Television which operates specialty channels Travel+Escape, Bite TV and AUX TV, Blue Ant Media owns a minority interest in Quarto Communications (Cottage Life, Outdoor Canada, Explore and Canadian Home Workshop).

Blue Ant Media also announced today it has entered into an agreement to acquire Canadian broadcaster High Fidelity HDTV Inc. and its four premium high definition channels - Oasis HD, eqhd, radX and HIFI. The transaction is pending CRTC approval. Blue Ant Media will initially purchase 29.9% of shares in High Fidelity HDTV, with the remaining 70.1% closing subject to CRTC approval. As part of this transaction, private equity firm Providence Equity Capital Markets has committed to providing additional financing to Blue Ant Media for the completion of the acquisition of High Fidelity HDTV.

Torstar's investment in Blue Ant Media will be $22.7M following the completion of the acquisition of 100% of High Fidelity HDTV.

"We view the investment in Blue Ant Media as strategic, providing Torstar with the opportunity to further diversify our Canadian media asset base" said David Holland, President and CEO of Torstar Corporation. "We see the potential in Michael's vision for a new kind of media company in Canada and we are very pleased to be involved."

Michael MacMillan, CEO, Blue Ant Media said "We are very happy to have Torstar as a partner as we establish and grow a new kind of media company in Canada. In addition to their equity support, we look forward to working with Torstar's Canadian media operation as the media landscape continues to evolve."

ABOUT TORSTAR CORPORATION

Torstar Corporation is a broadly based media and book publishing company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties including thestar.com, toronto.com, Workopolis, Olive Media, and eyeReturn Marketing; Metroland Media Group, publishers of community and daily newspapers in Ontario; and Harlequin, a leading global publisher of books for women.

ABOUT BLUE ANT MEDIA

Blue Ant Media is a privately held Canadian media company. It is a majority shareholder of GlassBOX Television and has a minority interest in Quarto Communications, publishers of Cottage Life, Outdoor Canada, Explore and Canadian Home Workshop.

Forward-looking statements

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These factors include, but are not limited to: general economic conditions in the principal markets in which the Company operates; the Company's ability to operate in highly competitive industries; the Company's ability to compete with other forms of media and media platforms; the Company's ability to attract and retain advertisers; cyclical and seasonal variations in the Company's revenues; the Company's ability to reduce costs; debt financing and availability of capital; reliance on technology and information systems; availability of insurance; litigation; environmental regulations; dependence on key personnel; loss of reputation; privacy and confidential information; product liability; and intellectual property rights. We caution that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results.

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