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TVA Group's Financial Results for the First Quarter Ending March 31, 2012 Heavily Affected by the Adoption of Bill 88 Fees

(May 08, 2012)

MONTREAL, CANADA -- (Marketwire) -- 05/08/12 -- TVA Group Inc. (the "Corporation") (TSX:TVA.B) announces that it recorded a net loss attributable to shareholders in the amount of $39.3 million, or $1.66 per share, for the first quarter of 2012, compared with net income attributable to shareholders of $0.3 million, or $0.01 per share, in the same quarter of 2011.

Following the Quebec government's April 2012 adoption of new fees for 2010, 2011 and 2012 with respect to business contributions for costs related to waste recovery services provided by Quebec municipalities, the Corporation was forced to review its business plan for the Publishing segment due to the material adverse impact of these fees on its future operating costs. As a result, the Corporation determined that the recoverable amount of goodwill related to the Publishing segment was lower than its carrying amount and an impairment charge of $32.2 million was recorded in the first quarter of 2012.

First quarter operating highlights:

-- An operating loss(1) in the Television segment of $3,726,000, a negative variance of $6,592,000, mainly due to the following: -- operating loss of the new "TVA Sports" service; -- a decrease in the operating income from TVA Network, due to an increase in operating expenses; and -- the higher operating loss of SUN News, given that the service was in its pre-operating phase in the first quarter of 2011. -- An operating loss in the Publishing segment of $2,028,000, a negative variance of $3,722,000, primarily due to the impact of the liability recorded in relation to the fees set for 2010, 2011 and 2012 for business contributions to the cost of waste recovery services (Bill 88). (1) Refer to operating income (loss) definition on the next page.


"Our financial results in the Television segment for the first quarter were affected by the investment in our new specialty channels and in TVA Network's programming schedule. However, operating income for the segment grew over 12% in the first quarter of 2012, both at TVA Network, where advertising revenues increased by nearly 10%, and at the specialty services, which grew its subscription revenue by 43% and its advertising revenue by 24%. The growth in the specialty services is largely attributable to our new services, "TVA Sports" and "Mlle", but also to existing services "addikTV", "Casa", "Yoopa" and "Prise 2", which confirms our investment and diversification strategy in the segment," said Pierre Dion, President and Chief Executive Officer of the Corporation.

"Results in the Publishing segment were down $3,375,000, with the adoption of the new fees for 2010, 2011 and 2012 with respect to business contributions for costs related to waste recovery services. In our view, the costs put forward, how they are allocated and the new fees for magazines are based notably on an incomplete process and on unreasonable, arbitrary and false premises and conclusions, which makes them legally invalid. Further, they seriously compromise the financial viability and stability of an industry that makes a positive contribution to the cultural sector of our society. We are currently examining the legal remedies available to ensure that our rights are respected," said Mr. Dion.

Cash flows provided by operating activities were $3.1 million for the quarter, compared with $10.2 million in the same quarter of 2011. The $7.1 million decline was essentially due to the decrease in the Corporation's operating income.

The unaudited consolidated financial statements for the three-month period ending March 31, 2012, with notes and the interim Management's Discussion and Analysis, can be consulted on the Corporation's website at http://groupetva.ca.

Definition

Operating income (loss)

In its analysis of operating results, the Corporation defines operating income (loss) as net income (net loss) before amortization of property, plant and equipment and intangible assets, financial expenses, restructuring costs of operations, impairment of assets and other costs, income taxes, share of income of associated corporation and net loss attributable to non-controlling interest. Operating income (loss) as defined above is not a measure of results that is consistent with IFRS. Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. Operating income (loss) is used by the Corporation because management believes it is a meaningful measure of performance.

This measure is used by management and the Board of Directors to evaluate the consolidated results of the Corporation and the results of its segments. Measurements such as operating income (loss) are also commonly used by the investment community to analyze and compare the performance of companies in the industries in which the Corporation is active. The Corporation's definition of operating income (loss) may not be identical to similarly titled measures reported by other companies.

Forward-looking Information Disclaimer

The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), programming content and production costs risks, credit risk, government regulation risks, governmental assistance risks, changes in economic conditions, fragmentation of the media landscape and labour relations risks. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause the Corporation's actual results to differ from current expectations, please refer to the Corporation's public filings available at www.sedar.com and http://groupetva.ca including, in particular, the "Risks and Uncertainties" section of the Corporation's annual Management's Discussion and Analysis for the year ended December 31, 2011.

The forward-looking statements in this news release reflect the Corporation's expectations as of May 8, 2012, and are subject to change after this date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.

Groupe TVA

TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company involved in the creation, production, broadcast and distribution of audiovisual products, and in magazine publishing. TVA Group Inc. is the largest broadcaster of French-language entertainment, information and public affairs programming and publisher of French-language magazines in North America, and one of the largest private-sector producers of French-language content in North America. The Corporation also operates SUN News, a Canada-wide English-language news and opinion specialty service. The Corporation's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.

TVA GROUP INC. Consolidated Statements of Income (unaudited) (in thousands of dollars, except per share amounts) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- Note 2012 2011 ---------------------------------------------------------------------------- Revenues 2 $ 117,812 $ 107,097 Operating, selling and administrative expenses 3 123,566 102,537 Amortization of property, plant and equipment and intangible assets 5,217 4,037 Financial expenses 4 1,519 1,466 Restructuring costs of operations, impairment of assets and other costs 5 117 - Impairment of goodwill 6 32,200 - ---------------------------------------------------------------------------- Loss before income taxes and share of income of associated corporation (44,807) (943) (Recovery) income taxes (3,103) 171 After-tax share of income of associated corporation (186) (270) ---------------------------------------------------------------------------- Net loss $ (41,518) $ (844) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Net (loss) income attributable to: Shareholders $ (39,341) $ 332 Non-controlling interest (2,177) (1,176) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Basic and diluted earnings per share attributable to shareholders 8 (d) $ (1.66) $ 0.01 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

TVA GROUP INC. Consolidated Statements of Comprehensive Income (unaudited) (in thousands of dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Net loss $ (41,518) $ (844) Other comprehensive loss: Defined benefit plans: Net change in asset limit or in minimum funding liability - (141) Deferred income taxes - 38 ---------------------------------------------------------------------------- - (103) ---------------------------------------------------------------------------- Comprehensive loss $ (41,518) (947) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Comprehensive (loss) income attributable to: Shareholders $ (39,341) $ 229 Non-controlling interest (2,177) (1,176) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

TVA GROUP INC. Consolidated Statements of Equity (unaudited) (in thousands of dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Equity attributable to shareholders -------------------------------------------------- Equity attributable Capital to non- stock Retained controlling Total (note 8) earnings interest equity ---------------------------------------------------------------------------- Balance as of December 31, 2010 $ 98,647 $ 170,784 $ 4,511 $ 273,942 Net income (loss) - 332 (1,176) (844) Other comprehensive loss - (103) - (103) Dividends - (1,188) - (1,188) Contributions related to non-controlling interest (note 10) - - 2,940 2,940 ---------------------------------------------------------------------------- Balance as of March 31, 2011 98,647 169,825 6,275 274,747 Net income (loss) - 25,271 (7,991) 17,280 Other comprehensive loss - (16,914) - (16,914) Dividends - (1,189) - (1,189) Contributions related to non-controlling interest (note 10) - - 7,105 7,105 ---------------------------------------------------------------------------- Balance as of December 31, 2011 98,647 176,993 5,389 281,029 Net loss - (39,341) (2,177) (41,518) Contributions related to non-controlling interest (note 10) - - 1,764 1,764 ---------------------------------------------------------------------------- Balance as of March 31, 2012 $ 98,647 $ 137,652 $ 4,976 $ 241,275 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

TVA GROUP INC. Consolidated Balance Sheets (unaudited) (in thousands of dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- March 31, December 31, Note 2012 2011 ---------------------------------------------------------------------------- Assets Current assets Cash $ 936 $ 1,756 Accounts receivable 115,902 117,644 Current income tax assets 9,186 4,014 Programs, broadcast and distribution rights and inventories 58,946 61,954 Prepaid expenses 4,329 2,690 Assets held for sale 12 10,207 8,370 ---------------------------------------------------------------------------- 199,506 196,428 Non-current assets Broadcast and distribution rights 38,097 35,488 Investments 13,051 12,865 Property, plant and equipment 101,148 102,007 Licences and other intangible assets 114,120 114,539 Goodwill 6 39,781 71,981 Deferred income taxes 570 545 ---------------------------------------------------------------------------- 306,767 337,425 ---------------------------------------------------------------------------- Total assets $ 506,273 $ 533,853 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Liabilities and equity Current liabilities Bank overdraft $ 282 $ 3,980 Accounts payable and accrued liabilities 92,006 82,086 Current income tax liabilities 50 503 Broadcast and distribution rights payable 18,031 15,778 Provisions 1,195 1,533 Deferred revenues 5,708 6,535 Current portion of long-term debt 7 - 17,756 Liabilities held for sale 12 2,321 1,538 ---------------------------------------------------------------------------- 119,593 129,709 Non-current liabilities Long-term debt 7 97,151 74,635 Other liabilities 39,201 39,696 Deferred income taxes 9,053 8,784 ---------------------------------------------------------------------------- 145,405 123,115 Equity Capital stock 8 98,647 98,647 Retained earnings 137,652 176,993 ---------------------------------------------------------------------------- Equity attributable to shareholders 236,299 275,640 Non-controlling interest 4,976 5,389 ---------------------------------------------------------------------------- 241,275 281,029 ---------------------------------------------------------------------------- Total liabilities and equity $ 506,273 $ 533,853 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

On May 8, 2012, the Board of Directors approved the consolidated financial statements for the three-month periods ended March 31, 2012 and 2011.

TVA GROUP INC. Consolidated Statements of Cash Flows (unaudited) (in thousands of dollars) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- Note 2012 2011 ---------------------------------------------------------------------------- Cash flows related to operating activities Net loss $ (41,518) $ (844) Non-cash items: Amortization 5,318 4,127 Impairment of goodwill 6 32,200 - After-tax share of income of associated corporation (186) (270) Deferred income taxes 235 677 ---------------------------------------------------------------------------- Cash flows (used in) provided by current operations (3,951) 3,690 Net change in non-cash items 7,006 6,552 ---------------------------------------------------------------------------- Cash flows provided by operating activities 3,055 10,242 ---------------------------------------------------------------------------- Cash flows related to investing activities Additions to property, plant and equipment (5,274) (8,458) Additions to intangible assets (566) (807) Net change in investments - 10 ---------------------------------------------------------------------------- Cash flows used in investing activities (5,840) (9,255) ---------------------------------------------------------------------------- Cash flows related to financing activities Net change in bank overdraft (3,698) (2,507) Net change in revolving term loan 5,003 (304) Financing costs 7 (344) - Non-controlling interest 10 1,764 2,940 ---------------------------------------------------------------------------- Cash flows provided by financing activities 2,725 129 ---------------------------------------------------------------------------- Net change in cash (60) 1,116 Cash at beginning of period 4,638 5,605 ---------------------------------------------------------------------------- Cash at end of period $ 4,578 $ 6,721 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Cash consists of the following: Cash $ 936 $ 6,721 Cash from operations held for sale 12 3,642 - ---------------------------------------------------------------------------- $ 4,578 $ 6,721 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Interest and income taxes reflected as operating activities Interest paid $ 382 $ 333 Income taxes paid (received) 2,287 (1,293) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

See accompanying notes to consolidated financial statements.

TVA GROUP INC. Notes to Condensed Consolidated Financial Statements Three-month periods ended March 31, 2012 and 2011 (unaudited) (Tabular amounts are expressed in thousands of dollars, except per share and per option amounts)

TVA Group Inc. ("TVA Group" or the "Corporation") was incorporated under Part 1A of the Companies Act (Quebec) by certificate and articles of continuance dated December 17, 1981. The Corporation has been governed by the Quebec Business Corporations Act since it came into effect on February 14, 2011. TVA Group is an integrated communications company with two operating segments: Television and Publishing (note 11). The Corporation is a subsidiary of Quebecor Media Inc. ("Quebecor Media" or the "parent corporation") and the ultimate parent corporation is Quebecor Inc. ("Quebecor"). The Corporation's head office is located at 1600 De Maisonneuve Blvd. East, Montreal, Quebec, Canada.

The Corporation's businesses experience significant seasonality due, among other factors, to seasonal advertising patterns and influences on people's viewing, reading and listening habits. Because the Corporation depends on the sale of advertising for a significant portion of its revenue, operating results are also sensitive to prevailing economic conditions, including changes in local, regional and national economic conditions, particularly as they may affect advertising expenditures. Furthermore, the Corporation is investing in the launch of new specialty services in the Television segment. During the period immediately following the launch of a new specialty service, subscription revenues are always relatively modest, while initial operating expenses may prove more substantial. Accordingly, the results of operations for interim periods should not necessarily be considered indicative of full-year results.

1. Basis of presentation

These consolidated financial statements were prepared in accordance with the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. In particular, these consolidated financial statements were prepared in accordance with IAS 34, Interim Financial Reporting, and accordingly, they are condensed consolidated financial statements because they do not include all disclosures required under IFRS for annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the Corporation's 2011 annual consolidated financial statements and the notes thereto. The same accounting policies described in the annual consolidated financial statements have been used herein.

Comparative figures for the three-month period ended March 31, 2011, have been reclassified to conform to the presentation adopted for the three-month period ended March 31, 2012.

2. Revenues

The breakdown of revenues between services rendered and product sales is as follows:

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Services rendered $ 91,571 $ 81,591 Product sales 26,241 25,506 ---------------------------------------------------------------------------- $ 117,812 $ 107,097 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

3. Operating, selling and administrative expenses

The main components are as follows:

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Employee and sales commission costs $ 43,252 $ 36,239 Royalties, rights and production costs 51,352 42,311 Printing and distribution 7,919 5,325 Marketing, advertising and promotion 5,315 4,609 Transmission and microwave expenses 1,962 1,145 Other 13,766 12,908 ---------------------------------------------------------------------------- $ 123,566 $ 102,537 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

4. Financial expenses

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Interest on long-term debt $ 1,416 $ 1,367 Amortization of financing costs 101 90 Other 2 9 ---------------------------------------------------------------------------- $ 1,519 $ 1,466 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

5. Restructuring costs of operations, impairment of assets and other costs

In the three-month period ended March 31, 2012, the Corporation recorded $117,000 in restructuring costs of operations following the elimination of several positions in the Publishing segment.

6. Impairment of goodwill

As a result of new fees adopted in 2012 for 2010, 2011 and 2012 with respect to business contributions for costs related to waste recovery services provided by Quebec municipalities, the operating costs of the Corporation's Publishing segment will be adversely affected. Accordingly, the Corporation reviewed its business plan for these activities and performed an impairment test on the Publishing segment's cash-generating unit ("CGU"). The Corporation concluded that the recoverable amount based on value in use was less than the carrying amount of the Publishing CGU and a goodwill impairment charge of $32,200,000 was recorded during the first quarter of 2012. The Corporation used a pre-tax discount rate of 16.26% (15.89% as of April 1, 2011) and a perpetual growth rate of 1.00% (1.00% as of April 1, 2011) to calculate the recoverable amount.

7. Long-term debt

On February 24, 2012, the Corporation completed the renewal of its revolving term loan of $100,000,000 for a five-year term with similar conditions, except for the borrowing cost, which is more favourable for the Corporation. The loan matures on February 23, 2017 and is repayable in full on that date. Given the maturity of the revolving term loan as of December 31, 2011, the Corporation had presented the loan as a current liability.

The costs associated with the renewal of the revolving term loan in the first quarter of 2012 totalled $344,000 and were recorded as financing costs in reduction of long-term debt.

8. Capital stock

(a) Authorized capital stock

An unlimited number of Class A common shares, participating, voting, without par value.

An unlimited number of Class B shares, participating, non-voting, without par value.

An unlimited number of preferred shares, non-participating, non-voting, with a par value of $10 each, issuable in series.

(b) Issued and outstanding capital stock

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- March 31, December 31, 2012 2011 ---------------------------------------------------------------------------- 4 320 000 class A common shares $ 72 $ 72 19 450 906 class B shares 98,575 98,575 ---------------------------------------------------------------------------- $ 98,647 $ 98,647 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

(c) Share redemption

Normal course issuer bid

On March 17, 2011, the Corporation filed a normal course issuer bid to redeem a maximum of approximately 5% of the number of Class B shares of the Corporation at the offer date for cancellation between March 21, 2011 and March 20, 2012. The Corporation redeems its Class B shares at the market price at the time of redemption, plus brokerage fees. No Class B shares were repurchased in the first quarters of 2012 and 2011.

(d) Earnings per share attributable to shareholders

The following table sets forth the computation of basic and diluted earnings per share attributable to shareholders:

Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Net (loss) income attributable to shareholders $ (39,341) $ 332 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Weighted average number of basic and diluted shares outstanding 23,770,906 23,770,906 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Basic and diluted earnings per share attributable to shareholders (in dollars) $ (1.66) $ 0.01 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

The diluted earnings per share calculation does not take into consideration the potential dilutive effect of stock options of the Corporation since their impact is anti-dilutive. During the three-month period ended March 31, 2012, 819,421 stock options of the Corporation's plan (833,610 in 2011) were excluded from the diluted earnings per share calculation.

9. Stock-based compensation and other stock-based payments

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31, 2012 ---------------------------------------------------------------------------- Quebecor Class B Media stock stock options options ---------------------------------------------------------------------------- Weighted Weighted average average exercise exercise Number price Number price ---------------------------------------------------------------------------- Balance as of December 31, 2011 833,610 $ 16.35 393,252 $ 46.66 Cancelled (14,189) 16.84 - - ---------------------------------------------------------------------------- Balance as of March 31, 2012 819,421 $ 16.34 393,252 $ 46.66 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Of the number of options outstanding as of March 31, 2012, 706,077 Class B stock options at an average exercise price of $16.58 and 177,649 Quebecor Media stock options at an average price of $46.29 could be exercised.

During the three-month period ended March 31, 2012, none of the Quebecor Media stock options were exercised (15,230 stock options were exercised for a cash consideration of $108,000 in 2011).

During the three-month period ended March 31, 2012, the Corporation recorded a compensation expense of $5,000 ($85,000 in 2011) in relation to the Corporation's Class B stock options and a compensation expense of $596,000 ($375,000 in 2011) in relation to the Quebecor Media stock options.

10. Related party transactions

During the three-month period ended March 31, 2012, the partners in SUN News made a total capital contribution of $3,600,000 ($6,000,000 in the same period of 2011), including $1,836,000 from the Corporation ($3,060,000 in 2011) and $1,764,000 from Sun Media Corporation ($2,940,000 in 2011).

11. Segmented information

The Corporation's operations consist of the following segments:

-- The Television segment includes the operations of TVA Network (including the subsidiaries and divisions of TVA Productions Inc., TVA Ventes et Marketing Inc., TVA Acces, TVA Creation, TVA Nouvelles, TVA Interactif), the specialty services, the national English-language specialty service SUN News Network, the marketing of the digital products of the different televisual brands, the home and online shopping services of the TVA Boutiques division, and the distribution of audiovisual products by the TVA Films division. -- The Publishing segment includes the operations of TVA Publications Inc., a producer of content specializing in the publication of French-language magazines in various fields such as the arts, entertainment, television, fashion and decoration; marketing of the digital products of the different brands related to the magazines and the operations of the TVA Studio division specializing in customized publishing, commercial print production and premedia services.

The intersegment items represent the elimination of normal course business transactions between the Corporation's business segments regarding revenues and expenses.

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Three-month periods ended March 31 ---------------------------------------------------------------------------- 2012 2011 ---------------------------------------------------------------------------- Revenues Television $ 102,820 $ 91,273 Publishing 15,906 16,869 Intersegment items (914) (1,045) ---------------------------------------------------------------------------- 117,812 107,097 Operating, selling and administrative expenses Television 106,546 88,407 Publishing 17,934 15,175 Intersegment items (914) (1,045) ---------------------------------------------------------------------------- 123,566 102,537 (Loss) income before amortization, financial expenses, restructuring costs of operations, impairment of assetsand other costs, impairment of goodwill, income taxes and share of income of associated corporation Television (3,726) 2,866 Publishing (2,028) 1,694 Intersegment items - - ---------------------------------------------------------------------------- $ (5,754) $ 4,560 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- March 31, December 31, 2012 2011 ---------------------------------------------------------------------------- Total assets Television $ 454,281 $ 449,943 Publishing 51,992 83,910 ---------------------------------------------------------------------------- $ 506,273 $ 533,853 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Goodwill Television $ 2,539 $ 2,539 Publishing 37,242 69,442 ---------------------------------------------------------------------------- $ 39,781 $ 71,981 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

12. Assets held for sale

On December 22, 2011, the Corporation announced an agreement under which the Corporation will sell its 51% interest in The Cave and its 50% interest in Mystery to Shaw Media Global Inc., the other partner of these joint ventures. The transaction is valued at $17,500,000. The application to transfer the licences was approved by the Canadian Radio-television and Telecommunications Commission ("CRTC") on April 25, 2012. The transaction should be finalized in the second quarter of 2012.

The following table shows the breakdown of assets and liabilities held for sale as of March 31, 2012 and December 31, 2011:

---------------------------------------------------------------------------- ---------------------------------------------------------------------------- March 31, December 31, 2012 2011 ---------------------------------------------------------------------------- Current assets Cash $ 3,642 $ 2,882 Accounts receivable 2,143 2,274 Broadcast rights 4,422 3,214 ---------------------------------------------------------------------------- 10,207 8,370 Current liabilities Accounts payable and accrued liabilities 1,940 1,099 Broadcast rights payable 381 439 ---------------------------------------------------------------------------- 2,321 1,538 ---------------------------------------------------------------------------- Net assets $ 7,886 $ 6,832 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Contacts:
Denis Rozon, CA
Vice-President and Chief Financial Officer
(514) 598-2808


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