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Transcontinental Acquires Editorial Offset, Becomes Largest Printer in Mexico

Tuesday, May 28, 2002

Press release from the issuing company

Expects to install a new Harris 850 web press very soon. MONTREAL, QUEBEC -- May 28, 2002 --Transcontinental Group today announced that it has acquired Editorial Offset, a printing company located in Mexico City. Founded in 1960, Editorial Offset employs 350 people and posted revenues of C$28 million in 2001.The company specializes mainly in book printing; its clients are major national and international publishers. Transcontinental, which already has a plant in Toluca, just outside Mexico City, and another in Mexico City, can now boast a network of three printing plants with annual revenues of C$130 million, making it the largest printer in Mexico. Transcontinental also owns a door-to-door distributor of advertising material. In all, the company employs over 1200 people in Mexico. "ISO 9001 certified since 2000, Editorial Offset is a top-notch printer that is both profitable and well-managed," says Roger Belair, president of Impresora Transcontinental de Mexico. "With this transaction, Transcontinental, already the leading flyer printer in Mexico, becomes one of the country's five leading book printers, the Mexican printing industry's second largest market. The acquisition also adds one of the top perfect binding capabilities in Mexico to our service offering. As well, we are very pleased to be able to count on the founders' two children, already part of the management team, to continue the development of Editorial Offset, a company with excellent growth potential. In fact, we expect to install a new Harris 850 web press very soon. "The addition of Editorial Offset allows us to reach a critical mass and will accelerate the specialization of our plants: the Toluca plant will focus on flyer printing, our other plant in Mexico City on magazine and brochure printing, and Editorial Offset on book printing and perfect binding," added Mr. Belair. "It is to this model of plant specialization that Transcontinental owes its success in Canada." One of the largest commercial printers in North America, Transcontinental Group is also Canada's leading publisher of consumer magazines and one of the country's top two publishers of regional press. The Corporation is also engaged in interactive marketing, Internet solutions and door-to-door distribution of advertising material. The Corporation has over 11,000 employees in Canada, the United States and Mexico.




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