Sun Media Corporation Completes Transactions

Posted on September 8, 1998

Sun Media Corporation announced that it finalized the acquisition of four daily newspapers from Southam Inc. and Sterling Newspapers Company, both subsidiaries of Hollinger Canadian Publishing Holdings Inc., The Hamilton Spectator, The Record (Kitchener-Waterloo), The Cambridge Reporter and The Daily Mercury (Guelph) with combined daily circulation of approximately 200,000. Combined annual revenue for the group is approximately $130 million. In addition, Sun Media finalized the sale today of its 80% interest in The Financial Post Company to Southam Inc.

The Hamilton Spectator is the 13th largest daily newspaper in Canada by circulation, selling approximately 104,000 copies daily and 128,000 on Saturday, while The Record (Kitchener-Waterloo) ranks 22nd, with 66,000 copies daily and 85,000 sold on Saturday. The Daily Mercury (Guelph) has a daily circulation of approximately 17,000 and The Cambridge Reporter, 9,500.

Paul Godfrey, President and Chief Executive Officer of Sun Media stated that ``the transaction allowed Sun Media to acquire established dailies in two of Canada's largest markets permitting our company to pursue its objective to build on an already-strong newspaper base. We believe this transaction is in the best long-term interests of our shareholders.''