Quebecor Inc. Reports Consolidated Results for 2007 Financial Year

Market Wire, May, 2008

This press release discloses Quebecor Inc.'s (TSX: QBR.A)(TSX.QBR.B) consolidated financial results for the financial year ended December 31, 2007. It should be noted that Quebecor Media Inc. reported its financial results for 2007 on February 26, 2008 and Quebecor World Inc. did so on April 29, 2008.

On January 21, 2008, Quebecor World placed itself under the protection of the Companies' Creditors Arrangement Act in Canada and Chapter 11 of the United States Bankruptcy Code. As a result, Quebecor does not expect to realize any future earnings on its investment in Quebecor World. Quebecor has not secured Quebecor World's commitments, including its debt and advances under its securitization programs. In accordance with generally accepted accounting principles, Quebecor's investment in Quebecor World is no longer consolidated as of January 21, 2008 and Quebecor's investment in Quebecor World has been valued at zero as of that date.

Quebecor Inc.

Quebecor's consolidated revenues totalled $9.38 billion, compared with $9.81 billion in 2006, a decrease of $427.4 million (-4.4%). Revenues increased by $367.3 million (12.2%) at Quebecor Media and decreased by $807.6 million (-11.7%) at Quebecor World.

Quebecor's consolidated operating income was flat at $1.41 billion in 2007. Operating income increased by $164.3 million (20.5%) at Quebecor Media and decreased by $167.3 million (-26.7%) at Quebecor World.

Quebecor recognized a consolidated net loss of $969.2 million ($15.07 per basic share) in 2007, compared with a net loss of $93.9 million ($1.46 per basic share) in 2006. The net loss in 2007 was essentially due to Quebecor's share of the $2.29 billion net loss reported by Quebecor World ($1.30 billion after non-controlling interest, with no impact on Quebecor's liquidity, or $20.25 per basic share of Quebecor), which was partially offset by net income of $327.1 million ($179.0 million after non-controlling interest, or $2.78 per basic share of Quebecor) recorded by Quebecor Media.

It should be noted that a portion of Quebecor Inc.'s share of Quebecor World's net loss was reversed upon deconsolidation on January 21, 2008, generating a $724.5 million gain (after non-controlling interest) in the first quarter of 2008 for Quebecor. This amount represents Quebecor World's net asset deficiency, i.e., the excess of the liabilities and non-controlling interest related to Quebecor World over Quebecor World's assets included in Quebecor's consolidated balance sheet as of December 31, 2007.

Quebecor also recognized a $146.9 million unrealized gain on re-measurement of the floating rate debentures Series 2001 in 2007 ($121.9 million after income tax) compared with $27.7 million in 2006 ($25.5 million after income tax).

Excluding unusual items, i.e., the reserve for restructuring of operations, impairment of assets and other special charges, the unrealized gain on re-measurement of debentures and of a portfolio investment, the loss on debt refinancing, the loss (gain) on sales of businesses and other assets, and impairment of goodwill and intangible assets (all net of income tax and non-controlling interest), net income was $91.7 million in 2007 ($1.42 per basic share), compared with $123.2 million ($1.92 per basic share) in 2006, a decrease of $31.5 million ($0.50 per basic share).

Quebecor Media Inc.

As reported on February 26, 2008, Quebecor Media recorded the following results for the 2007 financial year:

- Revenues of $3.37 billion, up $367.3 million (12.2%) from 2006. Revenues increased in all of Quebecor Media's business segments.

- Operating income up $164.3 million (20.5%) to a record $963.9 million.

- Record net income of $327.1 million.

- Cable segment: operating income up $130.2 million (25.4%). Annual net customer growth: 238,600 for cable telephone service, 141,000 for cable Internet access, 65,700 for all cable services combined (including an increase of 144,600 customers for illico Digital TV), 33,900 activated phones on wireless telephone service.

- Newspapers segment: revenues up $99.9 million (10.8%) to $1.03 billion; operating income up $18.3 million (8.8%) to $225.9 million. The increases mainly reflect the acquisition of Osprey Media Publishing Inc.

- Broadcasting segment: revenues up $22.2 million (5.6%) to $415.5 million; operating income up $17.3 million (41.1%) to $59.4 million.

Quebecor World Inc.

Quebecor World's net loss of $2.29 billion ($1.30 billion after non-controlling interest) was mainly due to the recognition in 2007 of goodwill impairment in the amount of $2.05 billion, recognition of a $329.4 million reserve for restructuring, impairment of assets and other special charges (compared with $127.0 million in 2006), the $167.3 million decrease in operating income and a $56.1 million loss on debt refinancing. In 2006, Quebecor World recognized a net loss of $4.8 million ($2.9 million after non-controlling interest).

2007/2006 FOURTH QUARTER COMPARISON

Quebecor Inc.

Quebecor's consolidated revenues for the fourth quarter of 2007 totalled $2.43 billion, compared with $2.67 billion in the same period of 2006, a $234.9 million (-8.8%) decrease. Revenues increased by $120.7 million (14.3%) at Quebecor Media and decreased by $356.9 million (-19.3%) at Quebecor World.