Yellow Média inc.

Yellow Média inc.

October 21, 2010 08:21 ET

Yellow Media Inc. Announces Dividend Reinvestment Plan

MONTREAL, QUEBEC--(Marketwire - Oct. 21, 2010) - Yellow Media Inc. (TSX:YLO) announced today that it has adopted a Dividend Reinvestment Plan (the "Plan"). The Plan will come into effect concurrently with the Company's previously announced conversion from an income trust to a corporate structure which is expected to be completed on or about November 1, 2010. Under the Plan, holders of common shares of Yellow Media Inc. who are residents of Canada may elect to have cash dividends paid on their common shares reinvested into additional common shares of Yellow Media Inc.

"Our Dividend Reinvestment Plan is an excellent opportunity for investors who share our confidence in the growth of Yellow Media Inc. to invest their dividends back into the Company," said Christian Paupe, Executive Vice President Corporate Services and Chief Financial Officer of Yellow Pages Group.

The Plan allows the Company to elect to have the common shares purchased on the open market or issued from treasury. The Plan allows the Company to issue common shares from treasury with or without a discount of up to 5%. At this time, under the Plan, the Company intends to have the common shares issued from treasury at a 5% discount from the average market price (as defined under the Plan) of the common shares on the applicable dividend payment date.

Eligible holders of common shares who are residents of Canada may now elect to participate in the Plan commencing with the dividends to be declared, if any, after November 1, 2010. Eligible holders of common shares who wish to participate in the Plan should contact the financial institution, broker or other intermediary through which their common shares are held to provide appropriate enrolment instructions and to ensure that any deadlines or other requirements that such financial institution, broker or intermediary may impose or be subject to are met.

While it is currently the intention of the Company to issue the required additional common shares through treasury, the Company may, from time to time, in its discretion, direct that such common shares be purchased through the facilities of the Toronto Stock Exchange.

Participation in the Plan does not relieve shareholders of any liability for taxes that may be payable in respect of dividends that are reinvested in new common shares of the Company under the Plan. Shareholders should consult their tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.

A copy of the Dividend Reinvestment Plan and an accompanying series of Questions and Answers will be made available on the Company's website at and will also be available from CIBC Mellon Trust Company, as Plan agent, by calling 1-800-387-0825. Shareholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan.

Please note that owners of common shares of the Company who are not resident in Canada are not eligible to participate in the Plan.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. The securities offered have not been and will not be registered under the Untied States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

About Yellow Media Inc.

Yellow Media Inc., a subsidiary of Yellow Pages Income Fund, owns Yellow Pages Group and Trader Corporation. Yellow Pages Group (YPG) is Canada's leading performance media and marketing company. The Company brings local consumers and businesses together through its network of print, digital and mobile properties. YPG enables consumers to make smarter decisions, helping people find what they need wherever and whenever. YPG partners with businesses to build successful marketing and lead generation programs, helping them grow their business. Trader Corporation (Trader) is a leader in print and digital vertical media and offers a broad set of services such as inventory management, web solutions, optimization of media spend, and lead generation campaigns. Trader caters to the automotive, real estate and generalist verticals. Yellow Media Inc. owns and operates some of Canada's leading properties and publications such as Yellow Pages™ directories,™,™, Auto Trader™(.ca), Home Trader™(.ca), and For more information about the Fund, visit

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, business and affairs of Yellow Pages Income Fund and Yellow Media Inc. These statements are forward-looking as they are based on our current expectations, as at October 21, 2010, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed under "Risk Factors" in our annual information form dated March 24, 2010 and in section 7 of our August 5, 2010 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

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