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CANWEST MAKES $3.5 BILLION DEAL WITH HOLLINGER

Winnipeg-based CanWest Global Communications Corporation has announced plans to acquire 100% of Hollinger Inc.'s newspaper chain, its Internet properties, its magazines, most of its community publishing operations and 50% of the National Post, in a deal valued at $3.5 billion. Subject to regulatory approval including the Canadian Competition Bureau, CanWest's acquisition includes 13 English language dailies, including the Montreal Gazette, Ottawa Citizen, Edmonton Journal, Vancouver Sun and Calgary Herald, 136 daily and weekly newspapers, 85 trade publications and all of Hollinger's and Southam Inc.'s Internet properties. The National Post will be treated separately from other Hollinger newspapers, remaining a stand-alone publication owned jointly by CanWest and Hollinger.

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