Quebecor Media is now the largest publisher in Canada.

DATE: Aug. 7, 2007
To: All employees of Quebecor Media and Osprey Media
From: Pierre Karl Péladeau, President, CEO, Quebecor Inc.
Re: Osprey Acquisition

With the successful conclusion of the acquisition of the Osprey Media publications, we now can formally welcome employees of those organizations to our broader Quebecor media family. First, I want to remind everyone of the enormous opportunity this represents in our changing media universe. We are strong believers in the future of print
media and the addition of so much talent and experience brightens that outlook considerably.

The acquisition establishes Quebecor Media as the largest publisher in Canada, reaching more Canadians than any other media organization in the country, bar none. This extensive reach means we can offer exclusive benefits to advertisers, whose partnership determines success in our industry.

Quebecor is first and foremost a Media company. We’ve incorporated the Think media concept into our logo, to underscore the extent to which we are focused on this unique industry, its journalistic traditions and its capacity to adapt to the new realities of the media universe. We have set an objective: Quebecor Media will be Canada’s #1 source of trusted multiplatform media for both local and national audiences through integration, innovation and collaboration.

This is a time of significant change and great opportunity in the media world. Newspapers, the Internet, broadcasting and mobile devices are among the channels Canadians choose, at a time when there is a proliferation of sources of content of varying value. While the expectations of Canadians are changing, the constants remain the value of solid editorial content, credibility and the ability to reach beyond commodity news.

The quality of editorial content is one of the reasons for the success of such respected organizations as the Kingston Whig-Standard, the Sudbury Star, the Barrie Examiner and the St. Catherines Standard, to name only a few of the Osprey publications. Quebecor Media is delighted to acquire the longevity of the Whig Standard, as Canada’s oldest continuously published daily, and to recognize the historic relationship of Robertson Davies whose contributions to Canadian culture include his editing of The Peterborough Examiner. At the same time, we can point also to the traditions of the Toronto Sun and its sister tabloid publications, and the roots of all the many publications in our extended family. The common thread is that all share a commitment to the practice of journalism and to offering valuable content to readers.

I believe that whatever the differences in the cultures of the various organizations, the shared vision of all of the publications and all of us as individuals is to succeed in today’s rapidly evolving media industry.

This acquisition comes at a time when the entire media world is seeking innovative and better ways of communicating news and related content to readers. Developing a robust online presence, using multimedia techniques and delivering news and advertising content across multiple platforms are among the changes in the way the industry operates
today. Change has become an increasingly large part of our world.

While we are still some weeks away from being able to offer you more insight into howthe organizations will work together, I can assure you that our underlying objective is to operate in such a way as to sustain the creation of good content that is the raison d’être of any media organization. In the coming weeks members of our senior management team
will be visiting as many of the Osprey locations as possible to meet with individuals as we prepare a way forward.

I believe that this time of change constitutes a great opportunity for all of us and that this expansion of the Quebecor Media family will be an invaluable asset as we move forward.

I will keep you informed of significant changes in the weeks ahead. For now, let’s all focus on ways in which we can adapt and succeed together in the years ahead.

Regards,

Pierre Karl Péladeau, President, CEO, Quebecor Inc.