Quebecor Inc. Reports Consolidated Results for Third Quarter 2008

Market Wire, November, 2008

Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) today reported its financial results for the third quarter of 2008. Quebecor consolidates the financial results of its Quebecor Media Inc. subsidiary, in which it holds a 54.7% interest.

Highlights since end of second quarter 2008

- Quebecor's third quarter 2008 revenues amount to $908.1 million, up $73.5 million (8.8%) from third quarter 2007.

- Operating income(1): up $20.6 million (8.0%) to $277.5 million in the third quarter of 2008.

- Net income: $45.6 million ($0.70 per basic share), compared with $35.2 million net loss ($0.55 per basic share), an $80.8 million ($1.25 per basic share) improvement.

- Adjusted income from continuing operations:(2) up $0.3 million to $42.4 million ($0.65 per basic share) in third quarter 2008.

- Cable segment: operating income(1) up $28.7 million (16.7%). Quarter-over-quarter net customer growth: 55,000 for cable telephone service, 42,500 for cable Internet access, 31,500 for all cable television services combined (including 46,200 customer increase for illico Digital TV), 4,000 activated phones for wireless telephone service.

- Advanced Wireless Services ("AWS") network: Quebecor Media confirms plans to invest between $800.0 million and $1.0 billion in new network over next four years, including $554.6 million already disbursed for the purpose of acquiring 17 operating licences.

"In a challenging business environment, Quebecor posted strong third quarter 2008 results, driven by its Cable segment, which continued logging substantial customer growth for all services," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Our cable subsidiary is positioned to further enhance the quality of its line of cable television and telecommunications services. To this end, Quebecor Media will invest between $800.0 million and $1.0 billion over four years to build its own AWS network, including the amounts already disbursed. Videotron will be able to bring consumers and small businesses in its service area a superior offering of advanced wireless services, based on reliable, cutting-edge technology, exclusive original content, and competitive, straightforward pricing.

"Quebecor Media has already arranged the funding needed to acquire the AWS licences," Mr. Peladeau noted. "In these times of tight credit markets, it is important to mention that future investment in this project does not rely on access to capital markets; it will be funded through cash flow generation and available credit facilities."

(1) See "Operating income" under "Definitions".

(2) See "Adjusted income from continuing operations" under "Definitions".

"While the results are still highly favourable, we must note the disappointing results in publishing and at Sun Media," said Mr. Peladeau. "To maximize opportunities for growth, to capture synergies and to facilitate the repurposing of the information and content generated by our publications for multiple platforms, we will place the operations of Sun Media and Canoe under the responsibility of one manager."

Quebecor Inc.
Third quarter financial highlights - 2004 to 2008
(in millions of Canadian dollars, except per share data)
-------------------------------------------------------------------------
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                              2008      2007      2006     2005      2004
-------------------------------------------------------------------------

Revenues                    $908.1    $834.6    $718.6   $649.1    $588.2
Operating income(a)          277.5     256.9     192.9    175.1     169.8
Net income (loss)             45.6     (35.2)     33.8     22.6      41.0
Adjusted income from
 continuing operations
 ((b),(c))                    42.4      42.1      25.6     17.5       9.9
Per share data
  Net income (loss)           0.70     (0.55)     0.53     0.35      0.63
  Adjusted income from
   continuing operations
   ((b),(c))                  0.65      0.65      0.40     0.27      0.15
(a) See "Operating income" under "Definitions".
(b) See "Quebecor Inc. - Discontinued operations".
© See "Adjusted income from continuing operations" under "Definitions".

Analysis of third quarter 2008 operating results

- Quebecor's consolidated revenues from continuing operations rose $73.5
  million (8.8%) to $908.1 million in the third quarter of 2008. Revenues
  increased mainly in the following segments:
  - Cable (by $58.0 million or 14.7% of segment revenues) reflecting
    continued customer growth for all services;
  - Newspapers ($11.3 million or 4.4%) due primarily to the impact of the
    acquisition of Osprey Media Income Fund (Osprey Media) in August 2007.


- Quebecor's operating income from continuing operations grew $20.6 million
  (8.0%) to $277.5 million due mainly to an increase in the Cable segment
  ($28.7 million or 16.7% of segment operating income) resulting primarily
  from customer growth.

- Quebecor's net income was $45.6 million ($0.70 per basic share) in the
  third quarter of 2008, compared with a net loss of $35.2 million ($0.55
  per basic share) in the same quarter of 2007. The increase of $80.8
  million ($1.25 per basic share) was mainly due to:
  - $115.5 million favourable variance related to operating results of
    discontinued operations(3);
  - $20.6 million increase in operating income.
  Partially offset by:
  - $43.5 million unfavourable variance in gains and losses on valuation
    and translation of financial instruments;
  - $7.6 million increase in financial expenses related primarily to
    increased indebtedness;
  - $4.5 million increase in amortization charges.

- Adjusted income from continuing operations totalled $42.4 million in
  the third quarter of 2008 ($0.65 per basic share), compared with
  $42.1 million ($0.65 per basic share) in the same period of 2007, a
  $0.3 million increase.

(3) See "Quebecor Inc. - Discontinued operations".

Analysis of year-to-date operating results

- Quebecor's consolidated revenues from continuing operations increased
  $326.5 million (13.6%) to $2.73 billion. Revenues increased mainly in
  Cable (by $205.4 million or 18.3% of segment revenues) and Newspapers
  ($124.1 million or 17.2%) essentially due, in those two cases, to the
  same factors as those noted above in the discussion of the third quarter
  results, and in Broadcasting ($18.4 million or 6.3%).

- Quebecor generated operating income from continuing operations totalling
  $810.9 million, an increase of $139.7 million (20.8%). Operating income
  increased mainly in Cable (by $112.1 million or 24.0% of segment
  operating income), Newspapers ($21.2 million or 14.2%) and Broadcasting
  ($7.3 million or 19.9%)

- Net income was $531.0 million ($8.25 per basic share) in the first nine
  months of 2008, compared with a net loss of $6.6 million ($0.10 per basic
  share) in the same period of 2007. The increase of $537.6 million ($8.35
  per basic share) was mainly due to:

  - $523.3 million favourable variance in operating results of discontinued
    operations(4);
  - $139.7 million increase in operating income;
  - $10.4 million decrease in reserve for restructuring of operations and
    other special charges.
  Partially offset by:
  - $47.5 million increase in financial expenses;
  - $44.0 million increase in income tax expense;
  - $26.5 million increase in non-controlling interest;
  - $20.8 million increase in amortization charge.

- Adjusted income from continuing operations amounted to $118.1 million
  ($1.84 per basic share) in the first nine months of 2008, compared with
  $96.2 million ($1.49 per basic share) in the same period of 2007, an
  increase of $21.9 million ($0.35 per basic share) or 22.8%.