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Hollinger International Sells Substantially All Remaining Canadian Assets for US$104 Million

Thursday, January 12, 2006

Press release from the issuing company

NEW YORK, Jan. 11 -- Hollinger International Inc. and its Canadian affiliate, Hollinger Canadian Publishing Holdings Co., have entered into an agreement to sell substantially all of their remaining Canadian assets, consisting of, among other things, approximately 87% of the outstanding Units of Hollinger Canadian Newspapers, Limited Partnership ("HCNLP") and all of the shares of Hollinger Canadian Newspapers GP Inc., Eco Log Environmental Risk Information Services Ltd. and KCN Capital News Company, to an affiliate of Glacier Ventures International Corp. ("Glacier") (TSX: GVC) for an aggregate purchase price of C$121.7 million, or US$104.4 million. HCNLP owns and operates: 1) the Business Information Group ("BIG"), which publishes a variety of trade magazines, directories, newsletters, electronic databases and specialty websites, 2) a group of daily and weekly newspaper and related printing operations in British Columbia, including the Nelson Daily News, West Kootenay Weekender, Cranbrook Daily Townsman, Kimberley Daily Bulletin, East Kootenay Weekly Extra, East Kootenay Weekly Weekender, Trail Times, Fernie Free Press, Grand Forks Gazette, Grand Forks Boundary Bulletin, Creston Valley Advance, Kamloops Daily News, Kamloops The Extra, Prince George Citizen, Prince George This Week, Prince George Extra, Alaska Highway News, North Peace Express, The Northener, Peace River Block News, The Regional Advertiser, The Northern Horizon, The Mirror, Prince Rupert Daily News, and Prince Rupert Daily News Extra, 3) the Real Estate Weekly and Kodiak Press in Vancouver, B.C., and 4) The Sherbrooke Record and Brome County News in the eastern townships of Quebec. KCN publishes the Merritt News and Merritt News Extra in B.C. Eco Log is an electronic information and report service provider that accesses key federal, provincial and private sector databases to help identify potential environmental risks in Canada for real estate developers, banks, insurance companies and a variety of other customers. "With the transaction announced today, we can now focus our efforts entirely on leveraging the strength of our more than 100 media properties across the Chicago area, our Sun-Times News Group," said Gordon A. Paris, Chairman and Chief Executive Officer. "We feel confident that our Canadian portfolio of publications will continue to be outstanding contributors to the communities they serve and see ongoing success with their new owner." In December 2005, Hollinger International sold to Glacier its 70 percent interest in Great West Newspaper Group Ltd. and its 50 percent interest in Fundata Canada Inc. to Jamison Newspapers Inc. and Glacier ("Glacier") for total consideration for total consideration of approximately CDN$47.1 million, or approximately US$40.5 million. Closing is subject to customary conditions, including obtaining all required approvals under the Competition Act (Canada), and is expected to occur prior to the end of February, 2006. Hollinger International's financial adviser in the sale of its Canadian portfolio of publications is Lazard.




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