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HOLLINGER SELLS UNIMEDIA

Hollinger International and its subsidiaries Hollinger Inc. and Hollinger Canadian Newspapers Limited Partnership have agreed to sell the French language newspaper group, UniMedia Company, to Gesca Ltd., a subsidiary of Montreal-based Power Corporation of Canada. Financial details were not disclosed. The three dailies, Le Droit, Le Quotidien and Le Soleil, published in Ontario and Quebec, are included in the sale as well as 15 weeklies. Gesca currently hold a 100% interest in the Montreal daily La Presse, three other dailies, Le Nouvelliste of Trois-Rivières, La Tribune of Sherbrooke and La Voix de L'Est and several weekly newspapers. The sale, expected to close within 70 days, follows Hollinger's deal with Winnipeg-based CanWest Global Communications Corporation announced in July. In that deal, CanWest announced plans to acquire the Hollinger Inc. newspaper chain, its Internet properties, its magazines, most of its community publishing operations and 50% of the National Post newspaper for $3.5 billion. Hollinger's sale with Gesca remains subject to regulatory review.

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