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Press release from Marketwire

Torstar Announces That it has Acquired an Interest in Blue Ant Media

Wednesday, December 21, 2011

Torstar Announces That it has Acquired an Interest in Blue Ant Media17:01 EST Wednesday, December 21, 2011TORONTO, ONTARIO--(Marketwire - Dec. 21, 2011) - Torstar (TSX:TS.B) today announced that it has acquired an approximate 25% interest in Blue Ant Media Inc. Blue Ant Media is a newly established independent media company led by media veteran, Michael MacMillan. In addition to a controlling interest in GlassBOX Television which operates specialty channels Travel+Escape, Bite TV and AUX TV, Blue Ant Media owns a minority interest in Quarto Communications (Cottage Life, Outdoor Canada, Explore and Canadian Home Workshop).Blue Ant Media also announced today it has entered into an agreement to acquire Canadian broadcaster High Fidelity HDTV Inc. and its four premium high definition channels - Oasis HD, eqhd, radX and HIFI. The transaction is pending CRTC approval. Blue Ant Media will initially purchase 29.9% of shares in High Fidelity HDTV, with the remaining 70.1% closing subject to CRTC approval. As part of this transaction, private equity firm Providence Equity Capital Markets has committed to providing additional financing to Blue Ant Media for the completion of the acquisition of High Fidelity HDTV. Torstar's investment in Blue Ant Media will be $22.7M following the completion of the acquisition of 100% of High Fidelity HDTV."We view the investment in Blue Ant Media as strategic, providing Torstar with the opportunity to further diversify our Canadian media asset base" said David Holland, President and CEO of Torstar Corporation. "We see the potential in Michael's vision for a new kind of media company in Canada and we are very pleased to be involved."Michael MacMillan, CEO, Blue Ant Media said "We are very happy to have Torstar as a partner as we establish and grow a new kind of media company in Canada. In addition to their equity support, we look forward to working with Torstar's Canadian media operation as the media landscape continues to evolve."ABOUT TORSTAR CORPORATION Torstar Corporation is a broadly based media and book publishing company listed on the Toronto Stock Exchange (TS.B). Its businesses include the Star Media Group led by the Toronto Star, Canada's largest daily newspaper, and digital properties including thestar.com, toronto.com, Workopolis, Olive Media, and eyeReturn Marketing; Metroland Media Group, publishers of community and daily newspapers in Ontario; and Harlequin, a leading global publisher of books for women.ABOUT BLUE ANT MEDIA Blue Ant Media is a privately held Canadian media company. It is a majority shareholder of GlassBOX Television and has a minority interest in Quarto Communications, publishers of Cottage Life, Outdoor Canada, Explore and Canadian Home Workshop.Forward-looking statements Certain statements in this press release may constitute forward looking statements that reflect management's expectations regarding future growth, results of operations, performance and business prospects and opportunities as of the date of this release. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "forecast", "expect", "intend", "would", "could", "if", "may" and similar expressions. All such statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. These statements reflect current expectations of management regarding future events and operating performance, and speak only as of the date of this release. In addition, forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes.By their very nature, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that management's assumptions may not be accurate and that actual results, performance or achievements may differ significantly from such predictions, forecasts, conclusions or projections expressed or implied by such forward-looking statements. We caution readers not to place undue reliance on the forward-looking statements in this press release as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, outlooks, expectations, goals, estimates or intentions expressed in the forward-looking statements. These factors include, but are not limited to: general economic conditions in the principal markets in which the Company operates; the Company's ability to operate in highly competitive industries; the Company's ability to compete with other forms of media and media platforms; the Company's ability to attract and retain advertisers; cyclical and seasonal variations in the Company's revenues; the Company's ability to reduce costs; debt financing and availability of capital; reliance on technology and information systems; availability of insurance; litigation; environmental regulations; dependence on key personnel; loss of reputation; privacy and confidential information; product liability; and intellectual property rights. We caution that the foregoing list is not exhaustive of all possible factors, as other factors could adversely affect our results. In addition, a number of assumptions, including those assumptions specifically identified throughout this press release, were applied in making the forward-looking statements set forth in this press release. Some of the key assumptions include, without limitation, assumptions regarding the performance of the North American economy; tax laws in the countries in which we operate; continued availability of financing on appropriate terms; market competition; expected future revenues, expected future cash flows and successful development of new products. There is a risk that some or all of these assumptions may prove to be incorrect. When relying on our forward-looking statements to make decisions with respect to the Company and its securities, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not intend, and disclaims any obligation to, update any forward-looking statements, whether written or oral, or whether as a result of new information or otherwise, except as may be required by law. For more information, please see the discussion of risks affecting Torstar and its businesses in Torstar's 2010 Management's Discussion & Analysis which is available at www.sedar.com and on Torstar's corporate website www.torstar.com. Torstar's news releases are available on the Internet at www.torstar.com.FOR FURTHER INFORMATION PLEASE CONTACT: Lorenzo DeMarchiTorstar CorporationExecutive Vice-President and Chief Financial Officer(416) 869-4776www.torstar.com