News

Montreal, Canada – Quebecor World Inc. (TSX: IQW) announces today that it has signed a definitive purchase agreement providing for the sale of Quebecor World’s European operations to Hombergh/De Pundert Group (HHBV), a Netherlands based investment group. The transaction is valued at approximately €133 million and is expected to close by the end of June, 2008.



Under the terms of the agreement, HHBV has deposited €46.5 million in escrow to be released to Quebecor World at closing. This cash amount will be adjusted higher to cover all funds disbursed by Quebecor World to support any seasonal financing needs of the European operations between the signature date and closing. HHBV will assume approximately €65 million of net debt, and a €21.5 million five-year note bearing interest at 7% per year which will remain payable to Quebecor World post-closing. The sale is being made substantially on an “as is, where is” basis. The only condition to closing is court approval. The transaction is not subject to the approval of either Quebecor World’s or HHBV’s shareholders. Assuming completion of the transaction, the net cash proceeds to be received by Quebecor World will be €46.5 million, less certain customary deductions and expenses permitted by its debtor-in-possession (DIP) credit facility, which are intended to be used by Quebecor World to partially reimburse indebtedness under such credit facility.



“The sale of our European operations is an important step in our restructuring activities that we believe should enable us to exit creditor protection in North America as a stronger player in our industry,” said Jacques Mallette, President and CEO of Quebecor World. “I would like to thank our European customers and employees for their support and assure them that we intend to assist HHBV in ensuring a smooth transition. We also look forward to continue servicing our European customers’ needs in North America and Latin America.”

Mr Hendrik van den Hombergh, founder and partner of HHBV stated “We are very excited about this opportunity and we are looking forward to working with local management to make this transaction a success for our employees and our customers. This transaction is a first and major step in our goal of building a Pan-European printing platform.”



Quebecor World’s European operations currently include 17 printing and related facilities employing approximately 3,500 people in Austria, Belgium, Finland, France, Spain and Sweden. Quebecor World Europe produces magazines, catalogs, retail inserts, direct mail products, book and directories for many of the world’s largest retailers, publishers and branded goods companies.