MDC Corp. Acquires Leading International Security and Specialty Printing Company; Expands Security and Specialty Printing Division

Business Wire, Feb 9, 1995

TORONTO--(BUSINESS WIRE)--Feb. 9, 1995--MDC Corp. of Toronto Thursday announced that it has acquired an 80 percent interest in Mercury Graphics Corp., a leading security and specialty printer serving a variety of high-end domestic and international niche markets.

The shares in Mercury Graphics were purchased from management (55 percent) and from Working Ventures Canadian Fund Inc. (25 percent), Canada's leading national labour sponsored venture fund.

Based in Saskatoon, Saskatchewan, Mercury Graphics is a world class manufacturer of specialized high-end event tickets, airline ticketing products, lottery tickets, direct mail, laser forms, and more.

Among Mercury's clients are more than 40 NHL, NBA, NFL, CFL, and Major League Baseball teams throughout North America. With the benefit of proprietary technology, Mercury is also an IATA-registered supplier of premium quality encodable magnetic strip airline boarding and ticketing systems for 11 international air carriers.

The acquisition is the latest step in a major expansion for MDC's Security and Specialty Printing division which, through Ashton-Potter in the United States and Canada, is one of the world's largest suppliers of postage stamps and other security products. The division also includes Globe Graphic Communications, a leading specialty printer.

From a modern 50,000 square foot plant -- equipped with state-of-the-art specialized multi-coloured press and finishing facilities and leading edge technology for magnetic encoding, interrupt holography, and more -- Mercury Graphics is a recognized leader in its market areas. The company expects to generate approximately $15 million in revenue in its 1995 fiscal year.

Mercury Graphics President and Chief Executive Officer Paul Mariash and Vice-President Gord Bayda will remain as significant shareholders in the company and will assist MDC as partners in developing and expanding Mercury's business from its strong foundations.

"Our affiliation with MDC will help build a significantly greater presence and profile in global markets for Mercury Graphics," Mariash stated. "In addition, greater financial and strategic resources will assist us in expanding both our technological capability and penetration of world markets."

"Mercury Graphics represents an excellent opportunity to expand our security and specialty printing division into a number of new and growing product categories and international markets," stated MDC President and Chief Executive Officer Miles Nadal. "It is the first of a number of strategic acquisitions we expect to make in this area as part of a long-term strategic plan."

MDC Corp. is a publicly traded multi-disciplined communications and marketing organization with a strong record of growth through three operating divisions: Marketing and Communications Services, Direct Marketing and Home Shopping, and Security and Specialty Printing. MDC's shares are traded on The Toronto Stock Exchange under the symbol MDZ.A, and the Electronic Bulletin Board in the United States.

CONTACT: MDC Corp.

Miles Nadal, 416/960-9000

Mercury Graphics, Saskatoon

Paul Mariash, 306/384-8000