Postmedia Network to Sell Two Real Estate Properties

  Postmedia Network to Sell Two Real Estate Properties

Business Wire

TORONTO -- September 9, 2013

Postmedia Network Canada Corp. (“Postmedia” or the “Company”) today announced
its intention to sell two of its real estate holdings – the Kennedy Heights
printing facility located at 12091 – 88^th Avenue in Surrey, B.C. and the
Calgary Herald building at 215 16th Street S.E. in Calgary. Consistent with
its strategy to reduce legacy costs and pay down debt, Postmedia will apply
the net proceeds from these potential sales to redeem an equal amount of its
8.25% Senior Secured Notes due 2017.

The Company has entered into a print outsourcing agreement with TC
Transcontinental Printing for production of the Calgary Herald newspaper,
beginning November, 2013. Furthermore, the Company has invited union
representatives in Vancouver to work with it to develop alternatives to
Kennedy Heights for the printing of The Vancouver Sun and The Province.

About Postmedia Network Canada Corp.
Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that
owns Postmedia Network Inc., the largest publisher by circulation of paid
English-language daily newspapers in Canada, representing some of the
country’s oldest and best known media brands. Reaching millions of Canadians
every week, Postmedia engages readers and offers advertisers and marketers
integrated solutions to effectively reach target audiences through a variety
of print, online, digital, and mobile platforms.

Forward-Looking Information
This news release may include information that is “forward-looking
information” under applicable Canadian securities laws and “forward-looking
statements” within the meaning of the U.S. Private Securities Litigation
Reform Act of 1995. The Company has tried, where possible, to identify such
information and statements by using words such as “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “may,” “will,” “could,” “would,” “should”
and similar expressions and derivations thereof in connection with any
discussion of future events, trends or prospects or future operating or
financial performance. Forward-looking statements in this news release include
statements with respect to the repayment of debt and statements regarding the
intention to sell real estate in Surrey, B.C. and Calgary. By their nature,
forward-looking information and statements involve risks and uncertainties
because they relate to events and depend on circumstances that may or may not
occur in the future. These risks and uncertainties include, among others:
competition from other newspapers and alternative forms of media; the effect
of economic conditions on advertising revenue; the ability of the Company to
build out its digital media and online businesses; the failure to maintain
current print and online newspaper readership and circulation levels; possible
damage to the reputation of the Company’s brands or trademarks; possible labor
disruptions; possible environmental liabilities, litigation and pension plan
obligations; fluctuations in foreign exchange rates and the prices of
newsprint and other commodities. For a complete list of our risk factors
please refer to the section entitled “Risk Factors” contained in our interim
management’s discussion and analysis for the three and nine months ended May
31, 2013 and 2012 and our annual management’s discussion and analysis for the
years ended August 31, 2012 and 2011. Although the Company bases such
information and statements on assumptions believed to be reasonable when made,
they are not guarantees of future performance and actual results of
operations, financial condition and liquidity, and developments in the
industry in which the Company operates, may differ materially from any such
information and statements in this press release. Given these risks and
uncertainties, undue reliance should not be placed on any forward-looking
information or forward-looking statements, which speak only as of the date of
such information or statements. Other than as required by law, the Company
does not undertake, and specifically declines, any obligation to update such
information or statements or to publicly announce the results of any revisions
to any such information or statements.

Contact:

Postmedia Network
Media Contact
Phyllise Gelfand, 416-442-2936
Vice President, Communications
pgelfand@postmedia.com
or
Investor Contact
Doug Lamb, 416-383-2325
Executive Vice President and Chief Financial Officer
dlamb@postmedia.com
 
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