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Bell Globemedia Launched

Release
Backgrounder


RELEASE TORONTO,Jan. 9 2001 --Canada's premier company in the fields of broadcasting, print and the Internet - Bell Globemedia - was created today, following the closing of the deal by its owners BCE Inc. (70.1 per cent), The Thomson Corporation (20 per cent) and The Woodbridge Company Limited (9.9 per cent). Bell Globemedia brings together Canada's strongest media brands - CTV, Canada's leading private broadcaster, The Globe and Mail, Canada's National Newspaper, Globe Interactive, a leading Internet content provider, and Sympatico, Canada's number one Internet portal. The focus of the new company will be to grow these properties through continued investment in content for new and traditional media, thus creating a strong, competitive multi-media company. "BCE's content strategy is to assemble the leading Canadian content brands and leverage them with connectivity and commerce," said Jean C. Monty, Chairman and CEO of BCE. "Bell Globemedia, with its national reach and recognized expertise, is one of the most important content plays in the country. We have 20 million customer connections across Canada and Bell Globemedia will focus on delivering to these customers the news, sports and entertainment they seek through print, broadcast and the Internet." "We are confident that The Globe and Mail, combined with the outstanding products, resources and management of Bell Globemedia, will prosper as Canada's preeminent news and information source while maintaining its strong editorial independence," said Kenneth R. Thomson, Chairman of The Thomson Corporation and The Woodbridge Company Limited. "Our continued ownership role in Bell Globemedia allows our family to maintain its long involvement in Canada's media industry, while The Thomson Corporation and its shareholders benefit from having a strong equity position in a premier Canadian multi-media company." Mr. Thomson will be Chairman of The Globe and Mail. As previously announced, Ivan Fecan is the CEO and President of Bell Globemedia and he will also retain his position and responsibilities as CEO of CTV Inc. Mr. Fecan today announced that Robin Fillingham, formerly Executive Vice- President and CFO of CTV Inc. will be the CFO and Chief Administrative Officer of Bell Globemedia. Other key Bell Globemedia executives will include the publisher of The Globe and Mail, Phillip Crawley; Marc Tellier, President of Sympatico-Lycos Inc.; Lib Gibson, President of Globe Interactive; and Alain Gourd, Group Executive Vice-President, Corporate. Jean Monty will be the Chairman of the Board of Bell Globemedia. Mr. Fecan also announced the appointment of Trina McQueen as President and COO of CTV. She was formerly Executive Vice-President at the broadcaster. Mr. Fecan also announced the appointments of Susanne Boyce as President of CTV Programming and Chair of the Media Group, which will co-ordinate the programming activities of CTV's services and Rick Brace as President of NetStar Communications Inc. Ms. Boyce was previously Senior Vice-President, Programming. Mr. Brace was formerly President, NetStar Sports. Both Ms. Boyce and Mr. Brace will report to Ms. McQueen. "Through Bell Globemedia, we have a unique opportunity to create new products and services by combining the resources and capabilities of our broadcast, print and Internet disciplines," said Mr. Fecan. "We have the extensive news gathering and analysis capability of The Globe and Mail and CTV News, augmented by our ownership in specialty channels such as TSN and CTV NewsNet. The collection of web sites we have reaches more Canadians every day than any other Canadian presence on the web. These properties combine to give us an extensive local and national news and sports gathering and distribution capability." Mr. Fecan added that the $230 million benefits package, created as part of BCE's purchase of CTV, will create quality Canadian programming that will set new standards for the industry. "Through the benefits package, five foreign news bureaus will be established in areas where Canadian interests and ties are strong. Beyond that, we anticipate much of the new programming developed under the auspices of the benefits package - such as the $50 million destined for the production of documentaries - will be first seen by Canadians on the CTV network." Bell Globemedia will have 2001 pro forma revenues of $1.25 billion. The company will have approximately 4,000 employees across Canada with news bureaus or television stations from St. John's to Victoria. The Board of Directors for the new company will consist of: W. Geoffrey Beattie, Ivan Fecan, Donna S. Kaufman, Brian M. Levitt, Jean Monty, Peter J. Nicholson, Marie Poulin, David K.R. Thomson and Peter J. Thomson. Bell Globemedia is Canada's premier multi-media company, owning the country's strongest media brands - CTV, Canada's leading private broadcaster; The Globe and Mail, Canada's National Newspaper; Globe Interactive, a leading Internet content provider; and Sympatico/Lycos, Canada's number-one Internet portal. Bell Globemedia creates superior Canadian content, leveraging it across multiple channels, building connections and forming new commerce opportunities. Headquartered in Toronto, it is owned by BCE Inc. (70.1%), The Thomson Corporation (20%), and The Woodbridge Company Limited (9.9%). BACKGROUNDER Bell Globemedia brings together Canada's strongest media brands - CTV, Canada's leading private broadcaster, The Globe and Mail, Canada's National Newspaper, Globe Interactive, a leading Internet content provider, and Sympatico, Canada's number one Internet portal. The focus of the new company will be to grow these properties through continued investment in content for new and traditional media, thus creating a strong, competitive multi-media company. Bell Globemedia has approximately 4,000 full-time employees in its operations across Canada (CTV Inc. - 2,000; Globe and Mail - 1,000; NetStar Communications Inc. - 700; and Sympatico - 300). BROADCASTING: Bell Globemedia has 18 owned CTV affiliates; six owned CBC affiliates; one independent station, VTV; and a satellite-to-cable service, ASN. It holds affiliation agreements with eight independently-owned CTV stations, with its network operations reaching 99 per cent of English-speaking Canadians. It has a leading presence in pay and specialty channels, owning interests in 13 Canadian networks and holding five newly licensed category-1 digital specialty licences and 19 in category-2. (Cable companies must carry category-1 licences, while category-2 licences are subject to discretionary placement). OWNED CTV AFFILIATES (18): __________________________________________________________________ CJCH Halifax CJCB Sydney/Cape Breton __________________________________________________________________ CKCW Moncton CKLT Saint John __________________________________________________________________ CJOH Ottawa CFTO Toronto __________________________________________________________________ CKCO Kitchener/London CICI Sudbury __________________________________________________________________ CITO Timmins CKNY North Bay __________________________________________________________________ CHBX Sault Ste. Marie CFQC Saskatoon __________________________________________________________________ CKCK Regina CIPA Prince Albert __________________________________________________________________ CICC Yorkton CFCN Calgary __________________________________________________________________ CFCN Lethbridge CFRN Edmonton __________________________________________________________________ INDEPENDENTLY-OWNED CTV AFFILIATES (8): __________________________________________________________________ CJON St. John's CFCF Montreal __________________________________________________________________ CJBN Keewatin CHFD Thunder Bay __________________________________________________________________ CKY-5 Winnipeg CITL Lloydminster __________________________________________________________________ CHAN Vancouver CHEK Victoria __________________________________________________________________ OWNED CBC AFFILIATES (6): __________________________________________________________________ CKNC Sudbury CFCL Timmins __________________________________________________________________ CHNB North Bay CJIC Sault Ste. Marie __________________________________________________________________ CKBI Prince Albert CKOS Yorkton __________________________________________________________________ SPECIALTY AND PAY CHANNELS (13) AND CATEGORY-1 DIGITAL SPECIALTY CHANNELS (5): _________________________________________________________________________ SERVICE BRIEF DESCRIPTION OWNERSHIP INTEREST _________________________________________________________________________ CTV Newsnet Canada's only 24-hour all-news network,committed to breaking news. 100% by CTV Inc. _________________________________________________________________________ Discovery Channel An award-winning specialty channel, 80% owned by exploring the fascinating worlds of NetStar nature, science and technology, Communications and adventure. Inc. CTV Inc. owns 68.53% of NetStar. _________________________________________________________________________ The Sports Network Inc. TSN is Canada's most-watched 100% owned by specialty channel and offers a NetStar world-class sports programming Communications schedule. Inc. CTV Inc. owns 68.53% of NetStar. _________________________________________________________________________ Le Réseau des sports A 24-hour French-language 100% owned by all-sports network, available in NetStar all Quebec's cabled homes as well Communications as select markets outside of the Inc. CTV Inc. province. owns 68.53% of NetStar. _________________________________________________________________________ Sportsnet Canada's only 24-hour regional 40% by CTV Inc. sports network, offering viewers (CRTC requires distinct programming in four CTV to divest regions. its interest in Sportsnet in March) _________________________________________________________________________ Outdoor Life Network A 24-hour specialty network that 33.34% by CTV delivers the most compelling and Inc. comprehensive selection of outdoor programming for athletes and explorers of all ages. _________________________________________________________________________ The Comedy Network Canada's only 24-hour all-comedy 65.1% by CTV specialty channel. Inc. _________________________________________________________________________ Talk TV A 24-hour digital specialty channel 100% by CTV focussing on talk. Inc. _________________________________________________________________________ Viewer's Choice Canada Viewer's Choice is the largest 24.95% owned by English-language pay-per-view NetStar offering in Canada, which delivers Communications hit movies, sports, music and comedy Inc. CTV Inc. specials. owns 68.53% of NetStar _________________________________________________________________________ History Television A specialty channel covering 12% by CTV Inc. Canadian and world history. _________________________________________________________________________ Canal Evasion A French-language travel channel 50.1% by Bell Globe Media _________________________________________________________________________ Télé des Arts A French-language arts channel 16.1% by Bell Globemedia _________________________________________________________________________ CTV Pay-Per View Sports A 24-hour pay-per-view digital 60% by CTV Inc. specialty channel that has not officially launched. _________________________________________________________________________ The Women's Sports Network (WSN) WSN will be a 24-hour-a-day sports 100% owned by television specialty service TSN, which is dedicated to showcasing the events, wholly owned by achievements, and the talent of NetStar women in sport. Communications Inc. CTV Inc. owns 68.53% of NetStar _________________________________________________________________________ Travel TV Travel TV will offer timely, usable 89.8% by Bell travel information. Globemedia _________________________________________________________________________ LCN Affaires French Specialty channel dedicated 19.9% by Bell to business life and financial Globemedia information for consumers. _________________________________________________________________________ Le Réseau Info Sport A French-language specialty network 100% owned by offering up-to-the-minute sports RDS, which is news. wholly owned by NetStar Communications Inc. CTV Inc. owns 68.53% of NetStar _________________________________________________________________________ Télé Ha! Ha! French Specialty Channel dedicated 19.9% by Bell to comedy and humour. Globemedia _________________________________________________________________________ No.1 in news No.1 all day No.1 in prime time No.1 Canadian specialty channel: TSN NEWS: The Globe and Mail is Canada's number-one national newspaper and CTV News With Lloyd Robertson is the most-watched national news program in Canada. Audited paid circulation for The Globe and Mail is 368,857 from Monday to Friday, with a Saturday circulation of 405,732. Its print assets include The Globe and Mail, Report on Business Magazine, and Globe Television (formerly Broadcast Week). The Globe and Mail and CTV have news bureaus domestically and internationally. GLOBE AND MAIL NEWS BUREAUS: _____________________________________________________________________ Beijing Los Angeles Queen's Park _____________________________________________________________________ Brussels Montreal Vancouver _____________________________________________________________________ Calgary Moscow Victoria _____________________________________________________________________ Edmonton New York Washington _____________________________________________________________________ Halifax Ottawa Winnipeg _____________________________________________________________________ London UK Quebec City _____________________________________________________________________ CTV NEWS BUREAUS: _____________________________________________________________________ Beijing Montreal Vancouver _____________________________________________________________________ Calgary Moscow Washington _____________________________________________________________________ Halifax Ottawa Winnipeg _____________________________________________________________________ Jerusalem Quebec City _____________________________________________________________________ London UK Toronto _____________________________________________________________________ CTV News employs more than 750 full-time news-gathering staff members, while The Globe and Mail has editorial personnel of more than 350. THE INTERNET: Sympatico.ca is Canada's leading Internet portal with approximately 140 million page views per month. Other properties include: _____________________________________________________________________ calgaryplus.ca montrealplus.ca tripod.ca _____________________________________________________________________ canada411.ca quebecplus.ca vancouverplus.ca _____________________________________________________________________ edmontonplus.ca toronto.com yellowpages.ca _____________________________________________________________________ Globe Interactive's family of Web sites attracted almost 105 million page views in October 2000, with its financial and careers sites proving to be the biggest attraction. During 2000, the Globe Interactive Web sites scored more than one billion page views. These sites include: _____________________________________________________________________ GlobeAdvisor.com GlobeFund.com GlobeTechnology.com _____________________________________________________________________ GlobeandMail.com GlobeInvestor.com ROBmagazine.com _____________________________________________________________________ GlobeBooks.com GlobeMegawheels.com Workopolis.com _____________________________________________________________________ CTV Inc. adds its stable of Internet sites to Bell Globemedia, including TSN.ca, the top-rated sports site in Canada which attracts an average of 1.2 million page impressions per day.Other Web sites are: The Discovery Channel site, exn.ca; CTVNEWS.com, which launched in September 2000; ctv.ca; ctvsportsnet.com; facetheelements.com; rds.ca; talktv.ca; and thecomedynetwork.ca. OTHER INVESTMENTS: Landscape Entertainment Corp. (50% owned by CTV Inc.), a Canadian production and content venture, is expected to become a premier producer of worldwide content for film, television, and the Internet. Dome Productions Inc. (100% owned by NetStar Communications Inc. of which CTV Inc. owns 68.53%), is a complete service provider and producer, offering a full-range of services with clients nationally and abroad. Agincourt Productions Inc. (100% owned by CTV) has created many critically-acclaimed productions including "eNow" and "Vicki Gabereau". Extend Media Inc. (25% owned by Bell Globemedia) is a provider of digital media production services. BENEFITS PACKAGE: As part of its purchase of CTV, BCE developed a $230 million benefits package that is intended to foster the development of new Canadian content. The benefits package will deliver a significant and lasting contribution to Canada's production community and the Canadian broadcasting system." The vast majority of the benefits envisioned in the BCE application - representing more than 92 per cent of the money to be allocated - will be either directly visible "on the screen" or will indirectly assist the development of talent and content that ends up on the screen. The benefits will create an important and incremental body of priority programming - a minimum of 175 hours - without requiring any financing from existing funds. The benefits package provides a range of major investments in Canadian priority programming, from $45.5 million for movies of the week, $18 million for production of documentaries, $25 million for dramatic series and $3- million for the fledgling Aboriginal Peoples Television Network, to $23 million for a new interactive entertainment series that will marry conventional television with enhanced interactive features. In the area of news, it will open unprecedented Canadian windows on the world, and provide a never-before-seen level of professional development to journalists in the field, to the benefit of Canadian viewers. The benefits also include significant measures to support Canadian talent development and the broadcasting industry as a whole. (Additional details on the Benefits Package are available on the BCE Web site (www.bce.ca) under the news release section.) -30- For further information: Tom Curzon, Vice-President, Bell Globemedia Corporate Communications, 416-332-5281


SOURCE Corporate

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