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Transcontinental Announces Five-Year Agreement With The Hudsons Bay Company

Press release from the issuing company

Montreal, December 12, 2006 – Transcontinental today announced an agreement to sign an exclusive five-year contract with Hudson’s Bay Company (Hbc) for all flyer printing for Zellers, The Bay, Home Outfitters and Hbc Loyalty Programs. The contract also includes extensive use of Transcontinental’s value-added product and service offering that supports its market-leading flyer-printing capabilities, including catalogue printing, the full suite of direct marketing services including database analytics, custom publishing and, in select regions, flyer distribution. The five-year contract begins February 1, 2007 and is valued at approximately $350 million, of which approximately $75 million is new business for Transcontinental. “This contract with a major retailer of Hudson’s Bay Company’s stature demonstrates the success of our strategy to expand our product and service offering over the past several years,” said Guy Manuel, president of Transcontinental’s Marketing Products and Services sector. “Thanks to that strategy, the 30-year relationship we have enjoyed with Zellers, Transcontinental’s oldest flyer-printing client, has now expanded into a more comprehensive partnership to serve more of the marketing needs of all of Hbc’s divisions. Like many retailers, Hbc is supplementing its flyers with more one-to-one marketing initiatives, something they recognized Transcontinental, as Canada’s number-one direct marketer, is well positioned to help them with. We are extremely pleased to partner with Hbc, and aim to develop more such expansive contracts with other large retailers.” Michael Rousseau, President, Hbc, said: “Hbc’s successful relationship with Transcontinental over the past 30 years coupled with their superior printing network and the depth of products and services made them the best choice as a marketing partner. We look forward to enjoying the same quality and service in our new campaigns with them that we’ve come to depend on from Transcontinental as our long-time flyer printer.”