Transcontinental Inc.

Transcontinental Inc.

March 01, 2005 16:50 ET

Transcontinental Receives Second and Final Portion of US$100 Million Note Offering in the United States




MARCH 1, 2005 - 16:50 ET

Transcontinental Receives Second and Final Portion of
US$100 Million Note Offering in the United States

MONTREAL, QUEBEC--(CCNMatthews - March 1, 2005) - Transcontinental
(TSX:TCL.SV.A)(TSX:TCL.MV.B) today received the second and final portion
of US$100 million of Senior Unsecured Notes issued to institutional
investors through a private placement in the United States on October
27, 2004. The Notes were issued in four tranches maturing in 7, 9 and 11
years and bear interest at a floating rate (see appendix for more
details). Of the US$100 million, US$52.5 million was received in October
and US$47.5 million was received today.

The amount received today will be used to finance a portion of
Transcontinental's most recent acquisition of the assets of JDM, Inc., a
premier provider of direct marketing services in the U.S. That
transaction doubled Transcontinental's direct mail capacity in the U.S.,
from 2.5 billion to 5 billion pieces per year, and makes it North
America's leading direct mail supplier to the financial services sector.

Please note that the securities offered have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or
applicable exemption from the registration requirements. This press
release shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any State
in which such offer, solicitation or sale would be unlawful.


Transcontinental Inc. is the seventh largest printer in North America
and the fourth largest print media group in Canada. Transcontinental is
Canada's leading printer in the flyer, book and newspaper niches, and a
strong second in magazines, catalogues and other commercial products.
Through its Canadian and U.S. direct marketing facilities,
Transcontinental has the geographic platform and complete service
offering needed to cover the entire North American market.
Transcontinental is also Canada's leading publisher of consumer
magazines, the country's second largest publisher of community
newspapers, and a leader in the door-to-door distribution of advertising
material. Transcontinental is a company whose values, including respect,
innovation and integrity, are central to its operation.

Transcontinental's shares are listed on the Toronto Stock Exchange under
the ticker symbols TCL.SV.A and TCL.MV.B. The company has more than
14,000 employees in Canada, the United States and Mexico, and reported
revenues of C$2.05 billion (US$1.7 billion) in 2004.


Details of the US$100 Million Private Placement

Tranche Amount Duration Issue Maturity Interest
date date rate
Series 2004-A US$37.5M 7 years October 27, March 1, LIBOR + 70
2004 2012 basis
Series 2004-B US$37.5M 7 years March 1, March 1, LIBOR + 70
2005 2012 basis
Series 2004-C US$15.0M 9 years October 27, March 1, LIBOR + 80
2004 2014 basis
Series 2004-D US$10.0M 11 years March 1, March 1, LIBOR + 90
2005 2016 basis


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