MONTREAL--Feb. 15, 2005-- Transcontinental Inc. today announced the acquisition of the operating assets of JDM, Inc., one of North America's premier direct mail companies, by its wholly-owned subsidiary Transcontinental Direct U.S.A. Inc. This transaction raises Transcontinental Direct U.S.A.'s production capacity to more than 5 billion direct mail pieces annually while also adding JDM's state-of-the-art production and control systems, mailing logistics, and strong management team. Founded in 1976 by Vincent F. Carosella, its current chairman, JDM operates five facilities in the eastern Pennsylvania area comprising a printing plant and a main direct mail lettershop, both located in Hamburg, and three other direct mail facilities in Reading, Orwigsburg and Frackville. It is a fast-growing company renowned for its operational excellence and a market leader in high-speed inkjet personalization technology. JDM has more than 1,100 employees and generated annual revenues of US$91 million (C$112 million) in 2004. The total consideration for the transaction is US$85 million plus $US2 million for working capital (subject to final adjustments). Transcontinental Direct U.S.A. already had a network of 8 plants in Philadelphia, Los Angeles and Dallas/Ft. Worth. With JDM, its annualized revenues reach over US$246 million (C$303 million) and it becomes the top direct mailer serving the strategic financial services industry. JDM's in-house commingling capabilities will also enable Transcontinental to further increase efficiency and speed in-home deliveries for its clients. Combined with Transcontinental Direct's Canadian facilities in Toronto and Montreal, today's acquisition brings Transcontinental Inc.'s annualized revenues derived from direct marketing activities to US$315 million (C$389 million), which consolidates its position as one of the largest integrated direct marketing services providers in North America. Transcontinental is the only North American company with large direct marketing facilities in both Canada and the U.S. "Since the acquisition of CC3 in December 2003, renamed Transcontinental Direct U.S.A.," said Luc Desjardins, president and CEO of Transcontinental Inc., "we have stated that we were continuing to look for acquisition opportunities in the direct marketing sector in the U.S., a niche that offers value-added services we identified as strategic to our growth. The companies selected would have to meet our strict criteria, and JDM meets them all: with its production-oriented culture and expertise, it complements our current direct marketing activities in the U.S.; it is profitable and has strong growth potential; and it will contribute to earnings within 12 months of the acquisition since it will generate synergies. I am particularly pleased that we will benefit from the knowledge and experience not only of its strong management team, which includes the founder's two sons, Christopher and Bradley, but also from that of all the company's current employees." Don McKenzie, president of Transcontinental Direct U.S.A., said he is enthusiastic about JDM joining the group: "There couldn't be a more natural fit for our ongoing expansion in the direct marketing industry in the United States. With the acquisition of JDM, Transcontinental Direct U.S.A. adds exceptional direct mail production capacity and components to its powerful integrated direct marketing strategy. Today, we have significant capabilities in litho printing, personalization and commingling, strategically located across the United States, which complement our other skills in database design and management, fulfillment, statement processing and printing, list services and print-to-mail disaster recovery. JDM's facilities are consistent with our strategy of emphasizing safety and security. This expansion is very client focused. We believe that our strategy will improve targeting and personalization and help our customers optimize their advertising return on investment." For his part, Christopher Carosella, who joins Transcontinental Direct U.S.A. as vice president of direct mail operations, Eastern U.S.A., said he is "confident that the coming together of Transcontinental Direct U.S.A. and JDM is in the best interests of both customers and employees." He added: "I am especially heartened to know that like JDM, Transcontinental recognizes that social responsibility and ethical practices are inseparable from business excellence. I am very enthusiastic that we are becoming part of a team that will strive to reach a pre-eminent place in our industry."