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Transcontinental Gets Favorable Ruling over Quebecor in Newspaper Issue

Monday, August 11, 2003

Press release from the issuing company

Montreal, August 8, 2003 – Today, the Superior Court of Quebec ruled in favour of the Société de transport de Montréal in its case against Sun Media Corporation Inc. In her judgement, the Honourable Judge Dionysia Zerbisias rejected the lawsuit brought by the subsidiary of Quebecor Inc. alleging a violation of its rights to freedom of the press. Moreover, she confirmed the validity of the exclusivity granted by the Société de transport de Montréal to the newspaper Métro, a publication owned by Publications Métropolitaines Inc., a partnership between Transcontinental Media Inc., Metro International S.A. and Gesca Ltd. “We are very pleased about this judgement,” said André Préfontaine, President of Transcontinental Media Inc. “It encourages us to pursue our efforts to make Métro, already read by 205,000 readers, a newspaper that exceeds the exacting standards set by our readers, our advertisers and our partners. As a publisher, we of course regard freedom of the press as paramount. However, in this particular case involving the metro system, we argued, along with our partners at the STM, that important security issues required that only one free newspaper be distributed within the system. We also argued that the 19 other subway systems worldwide that offer this type of service allow for the distribution of only one newspaper and that there just simply isn’t enough room in a given market for two profitable newspapers to co-exist. The judge agreed with our position.”




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