NEW YORK--July 25, 2001--Quebecor World, the global leader in the commercial print media industry, today held a ribbon-cutting ceremony for its new $23 million KBA, 4-color, web offset, heatset, Directory Press project in its Merced, California plant. Producing 144 pages per impression, this is the world's largest web offset heatset press, and will be used primarily to enhance the quality of telephone directories produced for SBC Communications, Inc. This investment was the cornerstone of a multi-year, $500 million contract extension with one of Quebecor World's major, long-standing customers, SBC. The press will be used to produce directories for Pacific Bell customers in 120 cities in California and Nevada. To date, heatset directories are the industry standard in Europe, South America and Canada. With this purchase, Quebecor World continues to set the standard throughout North America by expanding heatset into the U.S. market as well. "This investment in new technology was made to enhance product quality, and at the same time, improve efficiencies for our customers,'' says Marc Reisch, CEO, Chairman and President of Quebecor World North America. "Even in a challenging economy, Quebecor World will continue to make major strategic capital investments in support of key customers like SBC.'' In addition to producing directories for Pacific Bell, Quebecor World also prints for SBC's SNET and Ameritech business divisions. Quebecor World Merced is the largest printing operation on the West coast and is one of the largest employers in Merced County. The plant is in operation around the clock, 365 days-per-year, and produces directories, catalogs, and specialized and commercial publications.