Transcontinental - 2004 Annual Meeting of Shareholders

Dear shareholders, colleagues and business partners,
Dear friends,

This year I am delivering my message to you at our annual meeting of shareholders with a great deal of emotion.

As you know, this morning, before the Toronto Stock Exchange opened, Transcontinental issued a press release with two announcements. First, that the functions of Chairman of the Board and Chief Executive Officer would now be separate. Second, that Luc Desjardins is becoming the new CEO and that I will be assuming the role of Executive Chairman of the Board.

So this day marks an important step in the growth and development of your company. The message to our shareholders, our customers and our employees is clear: Transcontinental and its people are firmly committed to maintaining continuity and pursuing their momentum as a team, united by the same values.

For my part, as founder, this day represents both the pursuit of a great dream, that of building a solid and long-lasting company, and the prospect of taking on new and exciting challenges within Transcontinental.

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A lot of water has passed under the bridge since our first shareholders' meeting 19 years ago. At that time we had slightly over 1000 employees and revenues of 108 million dollars. About 70% of our sales were generated in the province of Quebec; now that figure is under 30%.

Today, Transcontinental is a North American corporation with over 12,000 employees in Canada, the United States and Mexico. As a commercial printer we are ranked eighth in North America; in Canada we rank first in almost all our niches. As a publisher, we are the fourth largest print media group in Canada and the only one with offices in all 10 provinces. We are also a leader in the door-to-door distribution of advertising material and we offer Web-based Internet solutions. Our market capitalization is now over two billion dollars.

Transcontinental has achieved maturity, depth and solidity thanks to its stable, committed and experienced management team at head office and in our three operating sectors.

What is more, our 12,000 employees are united and mobilized by shared values that have not changed since Transcontinental was founded. And our Horizon 2005 project has renewed those values and our objectives in light of the economic realities of the 21st century.

For the past four years, the leader of this team of stable and united managers, the architect of Horizon 2005 , the disciplined manager who has implemented his philosophy focused on results and execution, has been Luc Desjardins, now the Corporation's Chief Executive Officer.

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Luc is now in charge of the day-to-day operations of Transcontinental, effective today. This new division of roles is the fruit of a long reflection among members of the board. This means that it is a well-planned decision that reflects how we have actually worked for some time now. Luc has my full and entire confidence. He is a frank and honest team player, a tireless worker, an outstanding company officer and a man of vision.

The decision to appoint Luc as CEO indicates our firm commitment to maintaining continuity as we pursue our growth. In its deliberations, the board of Directors had only one concern: to protect the long-term interest of our employees, our customers and our shareholders, the three pillars of the Corporation.

In addition to being completely at home in Transcontinental's culture, Luc has a long track record as a top executive in Canada and the United States. Before joining Transcontinental, he worked for about ten years with major commercial printers in North America: first as President and CEO of Supremex in Canada, then as head of a major division of Mail-Well in the U.S. So he is very familiar with the U.S. market, which will be a significant area of growth for us in the coming years. Indeed, Luc was the architect of the CC3 acquisition in December 2003, which Daniel just spoke to you about.

Ladies and gentlemen, with Luc and his team, Transcontinental is in good hands en route to becoming a world-class corporation.

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For my part, as of today I am assuming the duties of Executive Chairman of the Board and I remain the Corporation's controlling shareholder. I am looking forward to my new role with a great deal of enthusiasm.

I plan to continue overseeing the main strategic orientations of the Corporation and acting as advisor to the management team. And as for my impromptu visits to our news desks, offices and shop floors, I have always stressed the importance of company officers visiting the operations. So I expect to continue to set an example from time to time!

Also, as you know, the responsibilities of boards of directors have increased significantly in recent years, and Transcontinental intends to remain in the forefront of those changes. While the primary role of the board is to safeguard the interests of shareholders, today this involves taking many elements into account, such as sound corporate governance practices. In short, everything that affects our reputation for integrity and, ultimately, cements our relations with our employees, customers and shareholders.

I am convinced that there is a link between excellent corporate governance and excellent performance. That's why I'm very proud that Transcontinental is recognized as a Canadian leader in this area. Furthermore, in 2003 our board set up a Corporate Governance Committee under Lucien Bouchard.

I am sure you will agree with me that the Board's recommendation that the functions of Chairman of the Board and Chief Executive Officer be split will strengthen our leadership.