POSTMEDIA ACQUIRES SUN MEDIAS ENGLISH-LANGUAGE ASSETS

KEY MESSAGES


The newspaper business has faced increasing competition from digital media and
new technological platforms, and its revenues have been declining year by year.

The Canadian newspaper business absolutely needs consolidation to remain
viable and compete with digital media.

The transaction is subject to approval by the Competition Bureau. While it is
under review, Sun Media Corporation will continue managing the assets and
publications in question.

This is a positive development for the Canadian newspaper business as it will
keep Sun Media Corporations properties in the hands of a well-established
Canadian group.

Postmedia possesses extensive expertise and the ability and will to invest in
these publications long-term development.

This industry consolidation is good news for the Canadian newspaper business
and the people who work in it.



EMPLOYEES

For employees covered by the transaction, Sun Media Corporation wishes to
thank them for having devoted their talents and energies every day to informing
their community.

Sun Media Corporations success has been built on their passion and dedication,
year after year.

Postmedia will be able to count on teams that demonstrate the ability to
innovate in a fast-changing industry.