Quebecor World Inc. Sells CD-ROM Business

On August 3, 2000, Quebecor World Inc., the world’s largest commercial print media services company, announced the completion of the sale of its North American CD replicating and fulfillment facilities located in Fife, Washington and Westborough, Massachusetts. Vancouver-based Q.Media Services Corporation purchased the facilities for a total consideration of US$63 million, comprised of US$42 million in cash, US$5 million in special warrants convertible into common shares of Q.Media and US$16 million in a promissory note to be converted into preferred shares of Q.Media upon shareholder approval. In addition, Q.Media has announced an extension of their strategic alliance with Quebecor.

Ogilvy Renault acted for Quebecor on the transaction with a team that included Norman Steinberg, Mary Kelly, Michael Bennett and Andrew Ahonen. US counsel to Quebecor included John A. Willett and Shannon Hassan of Arnold & Porter. British Columbia counsel to Q.Media included David J. Raffa and Mike Varabioff (corporate and securities) of Catalyst Corporate Finance Lawyers, and Deborah Anderson (financing) of Campney & Murphy. US counsel to Q.Media included Stephan Coonrod and Ben Orndorff of Preston Gates & Ellis LLP. On the financing side, Lawson Lundell Lawson & McIntosh, led by Irving D. Laskin and a team that included David Martin and Marnie Munro, represented Royal Bank of Canada. US counsel to the Royal Bank was the Seattle firm of Heller Ehrman White & McAuliffe LLP.