October 25, 2006 09:18 ET

Yellow Pages Income Fund Completes the Consolidation of its Supply Chain: Consolidation Translates Into Significant Cost Savings

MONTREAL, QUEBEC--(CCNMatthews - Oct. 25, 2006) - Yellow Pages Income Fund (TSX:YLO.UN) announces that its directory operating company, Yellow Pages Group (YPG), has completed the consolidation of its supply chain through the signing of an exclusive contract with Quebecor World Inc. (QW). YPG has early renewed its previous QW contracts, consolidating them into one national contract, while at the same time extending the term to 2020. The contract will come into full effect on a progressive basis over the next three years and will result in significant manufacturing cost savings.

"Our approach has been to negotiate our printing contracts on a national rather than local basis and consolidate our volumes of printing with a sole printer. This strategy will allow us to reduce our manufacturing costs and protect our margins for directories over the long term," said Marc P. Tellier, President and CEO of Yellow Pages Group and CEO of Trader Corporation.

The Fund has also announced that Trader Corporation (Trader), its vertical media operating company, has taken a similar approach with its print supply chain. The company recently renegotiated and extended its printing contracts with St.Joseph Print and Transcontinental Inc. Under a 10-year agreement, Trader Corporation will now outsource all of its Toronto-based printing and binding activities to St.Joseph Print in addition to the printing of most of Trader's Ontario publications. Trader has also entered into a 10-year contract with Transcontinental for the majority of Trader's publications in Quebec, Manitoba, Saskatchewan, and the Atlantic provinces.

"Trader Corporation is on track to achieve the $10 million in cost savings synergies that were anticipated at the time of the acquisition thanks in large part to these new supply chain agreements," stated Mr. Tellier.

About Yellow Pages Income Fund

Yellow Pages Income Fund indirectly holds an approximate 96% ownership interest in Yellow Pages Group and Trader Corporation. Yellow Pages Group is Canada's largest telephone directories publisher. It publishes annually more than 340 Yellow Pages™ and residential directories. The Company owns and manages Canada's most visited online directories,™ and, as well as™, a network of seven local city sites. Trader Corporation is a Canadian leader in print and online vertical media with approximately 200 publications and 20 web sites covering four product verticals: automotive, real estate, general merchandise and employment. Its main brands include Auto Trader™, Auto Hebdo™, The Bargain Finder™, Buy&Sell™, Renters News™ and Home Renters' Guide™. For more information about the Fund, visit

Contact Information

  • Yellow Pages Income Fund
    Media: Annie Marsolais
    Director, Corporate Communications
    Yellow Pages Income Fund
    Investor Relations: Anne-Sophie Roy
    Senior Manager, Corporate Finance