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Transcontinental to Consolidate Winnipeg Printing Operations

Press release from the issuing company

WINNIPEG, Manitoba--Aug. 19, 2004-- Transcontinental today announced plans to consolidate its Winnipeg printing operations, with production ending at its Dunlop Avenue facility in March 2005. The plant prints flyers, catalogues and inserts for major retail chains and has annual revenues of about $25 million. As production is phased out at the Dunlop Avenue facility, the majority of its production will be transferred to the Calgary and Brampton plants. Some of the printing equipment and production from the Dunlop Avenue plant will be transferred to the LGM Graphics plant on Moray Street in Winnipeg to service local and regional customers. Guy Manuel, President of Transcontinental Printing - Marketing Products, met this morning with the Dunlop Avenue plant's 150 employees to explain the reasons and timetable for the consolidation. "The rapidly increasing competitiveness of the printing marketplace in Canada as well as the wave of consolidations in the retail market mean that we must consolidate our operations in larger and more efficient plants in order to reduce our fixed costs," Mr. Manuel explained to the employees. "I want to stress that this decision in no way reflects the quality of work that you have done here, which is excellent; it was made strictly on the basis of a sound business case in order to continue to be competitive in our industry and to protect the maximum number of jobs in the company as a whole. "Transcontinental has a reputation of being responsible and fair to its workers, and we will live up to this reputation," Mr. Manuel added. "A number of workers will be offered jobs in other Transcontinental Printing facilities. Others will receive severance payments and outplacement counselling. These arrangements will be discussed with the unions. Employees will be provided with sufficient time over the coming 24 hours to discuss this announcement with their families."