Quebecor Inc. Announces Record 2007 Results of Quebecor Media Inc., a 54.7% Held Subsidiary

Market Wire, February, 2008

Quebecor Media Inc. (TSX: QBR.A)(TSX: QBR.B)

Financial year 2007 highlights

- Quebecor Media Inc. posts revenues of $3.37 billion, a $367.3 million (12.2%) increase from 2006.

- Operating income increases by $164.3 million (20.5%) to record $963.9 million.

- Net income totals record $327.1 million, compared with $169.7 million net loss in 2006, a $496.8 million improvement.

- Cable segment: operating income up $130.2 million (25.4%); customer base increases by 238,600 for cable telephone service, 141,000 for cable Internet access, 65,700 for all cable television services combined (including a 144,600 customer increase for illico Digital TV), 33,900 phones for wireless telephone service.

- Federal government establishes conducive conditions for competition in wireless telephone industry by setting aside segment of new 3G spectrum for market entrants.

- Nurun Inc. taken private: on February 19, 2008, Quebecor Media acquired 91.54% of the outstanding shares of Nurun it did not already hold for a total consideration of $69.5 million.

Quebecor Media's revenues increased by $367.3 million (12.2%) to $3.37 billion in 2007. All of Quebecor Media's business segments reported higher revenues. Operating income grew by $164.3 million (20.5%) to $963.9 million in 2007, mainly because of significantly improved results in the Cable segment, where operating income increased by $130.2 million (25.4%). Operating income also increased in Newspapers (by $18.3 million or 8.8%), primarily as a result of the acquisition of Osprey Media Income Fund ("Osprey Media"), and in Broadcasting ($17.3 million or 41.1%) and Leisure and Entertainment ($7.7 million or 39.9%). Excluding Osprey Media's operating income and the impact of the consolidated stock option plan, operating income increased by 20.0% in 2007, compared with 11.0% in 2006.

"In 2007, Quebecor Media posted the strongest increase in operating income since the acquisition of Groupe Videotron ltee," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor Inc. "Our excellent results are mainly due to robust, sustained growth in the Cable segment, which continues to register substantial customer base increases for all services, year after year. The Newspapers segment was boosted by the favourable impact of the acquisition of Osprey Media, which closed in August 2007, as well as increased operating income from its regular operations, on a comparable basis. In addition, the Broadcasting and Leisure and Entertainment segments both reported significant improvements in operating income. The results testify to the success of the convergence strategy Quebecor Media has been pursuing for several years. Meanwhile, Quebecor Media welcomed the federal government's decision to create favourable conditions for new players to enter the Advanced Wireless Services (AWS) market and recommitted to making a major investment in this communications platform to support its future business growth."

Quebecor Media recorded net income of $327.1 million in 2007, compared with a $169.7 million net loss in 2006. The favourable variance of $496.8 million was due primarily to the favourable impact on the comparative numbers for 2007 of the recognition in 2006 of a $342.6 million loss on debt refinancing ($219.0 million net of income tax and non-controlling interest) and of a $180.0 million charge for impairment of goodwill and broadcasting licences in the Broadcasting segment ($156.6 million net of income tax and non-controlling interest). The $164.3 million increase in operating income in 2007 also contributed to the improvement. These favourable factors were partially offset by, among other things, a $29.7 million increase in the amortization charge and a $15.4 million increase in financial expenses.

Quebecor Media Inc.
Highlights, 2002 - 2007 (in millions of Canadian dollars)

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                       2007     2006     2005     2004     2003     2002
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Revenues           $3,365.9 $2,998.6 $2,695.4 $2,456.9 $2,291.9 $2,253.0
Operating income     $963.9   $799.6   $732.1   $697.2   $611.6   $572.4
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Financial ratios according to financial statements, 2002 - 2007

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                                 2007   2006   2005   2004   2003   2002
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Debt (1)                          3.7    3.9    4.3    4.4    5.1    5.9
Interest coverage(2)              4.1    3.6    2.7    2.5    2.1    1.9
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(1) Long-term debt (including the fair value of derivative financial
    instruments) / operating income.
(2) Operating income / interest on long-term debt (including amortization
    of discount and financing costs).