Hollinger Inc.: Court Approves Settlement with Significant Secured Creditor and Sun-Times Media Group

Hollinger Inc. ("Hollinger")(TSX: HLG.C)(TSX: HLG.PR.B) announced today that the Ontario Superior Court of Justice has issued an order approving its previously announced settlement (the "Settlement") with Davidson Kempner Management LLC and certain of its affiliates (collectively, "DK") and Sun-Times Media Group, Inc. ("Sun-Times"). The order authorizes and directs the parties to carry out each of the steps described in the Settlement and declares the Settlement to be fair and commercially reasonable.

DK is the holder of approximately 42% of the outstanding principal amount of Hollinger's secured notes issued pursuant to indentures dated March 10, 2003 and September 30, 2004. The Settlement agreement was amended by agreement of all parties in paragraph 18 to include the expenses of the indenture trustees of these secured notes. A copy of the revised Settlement agreement will be posted on SEDAR.

Hollinger, prior to implementation of the Settlement, holds an approximate 70% voting interest and 19.7% equity interest in Sun-Times.

Hollinger and its subsidiaries, Sugra Ltd. and 4322525 Canada Inc., are currently subject to proceedings in Canada under the Companies' Creditors Arrangement Act (Canada) and in the United States under Chapter 15 of the U.S. Bankruptcy Code.

Contacts: Hollinger Inc. Media contact: William E. Aziz Chief Restructuring Officer (416) 363-8721 ext. 262 Email: baziz@hollingerinc.com