TRANSCONTINENTAL PRINTS THE GLOBE AND MAIL'S NEWSPAPER OF THE FUTURE

MONTREAL, Oct. 1 /CNW Telbec/ - Transcontinental Inc. is pleased to announce that as of today it is printing the new edition of The Globe and Mail in most of its major markets in Canada. In 2008, Transcontinental announced it had won a $1.7 B contract with The Globe and Mail. Since then, Transcontinental has invested more than $200 M in innovation related to the acquisition and modernization of its hybrid presses in Vancouver, Calgary, Toronto, Montreal and Halifax, in order to give The Globe and Mail the flexibility to deliver colour on every page, and glossy magazine-quality production.

"Transcontinental's investment in innovation-one of the biggest projects in our history - has resulted in the successful roll-out of our Canada-wide network of hybrid presses and the only network of this kind in the country," said François Olivier, President and Chief Executive Officer of Transcontinental. "Transcontinental is now producing The Globe and Mail's newspaper of the future, allowing it to build on the strength of its brand while opening up new opportunities for its advertisers."

"The Globe and Mail and Transcontinental have had a long, successful partnership because we are both committed to delivering the best products to our customers," said Phillip Crawley, Publisher and CEO, The Globe and Mail. "Transcontinental has invested in innovative technology for The Globe and Mail to produce a dramatically redesigned newspaper which will deliver a new level of excellence to our readers and our advertisers."

Transcontinental's investment in innovation also more effectively serves the needs of its retail customers. The Canada-wide network of ultra-fast hybrid presses has redefined the way flyers are printed for national advertisers and offers retailers advantages in terms of more flexible deadlines and proximity to the markets they serve.

Transcontinental has been printing The Globe and Mail in Ontario, Quebec and the Atlantic provinces since 1998. The new printing contract, which now includes the Alberta and British Columbia markets, will add about $25 M in new revenue annually.

In print for 166 years, The Globe and Mail, considered the Canadian newspaper of record, reaches just over 2,800,000 readers each week. It is consistently recognized by the International Newspaper Color Quality Club (INCQC), the world's most prestigious quality newspaper production association, as one of the top 50 newspapers in the world for its printed quality.

About Transcontinental

Transcontinental creates marketing products and services that allow businesses to attract, reach and retain their target customers. The Corporation is the largest printer in Canada and Mexico, and fourth-largest in North America. As the leading publisher of consumer magazines and French-language educational resources, the second-largest community newspaper publisher, and with its digital platforms that deliver unique content through more than 120 websites, it is also one of Canada's leading media groups. In addition, Transcontinental offers marketing products and services that use new communications platforms supported by database analytics, premedia, e-flyers, email marketing, custom communications and mobile solutions.

Transcontinental (TSX: TCL.A, TCL.B, TCL.PR.D) has 11,000 employees in Canada, the United States and Mexico, and reported revenues of C$2.4 billion in 2009. For more information about the Corporation, please visit www.transcontinental.com.

For further information: Media: Nancy Bouffard, Director, External Communications, Transcontinental Inc., Telephone: [phone], [email protected], www.transcontinental.com; Financial Community: Jennifer F. McCaughey, Director, Investor Relations, Transcontinental Inc., Telephone: [phone], [email protected]