Quebecor tenders for 11 1/8%, 13¾% notes

New York, Dec. 16 - Quebecor Media Inc. said it has begun cash tender offers and consent solicitations for its$586.81 million of 11 1/8% senior notes due July 15, 2011 and $282.875 million principal amount at maturity of 13¾% senior discount notes due July 15, 2011.

For each $1,000 principal amount of the 11 1/8% notes, Quebecor is offering the present value on the early settlement date of the $1,055.63 call price on the July 15, 2006 first call date plus interest payments up to the first call date, discounted using 50 basis points over the yield on the 7% U.S. Treasury note due July 15, 2006, minus accrued interest from the last interest payment date up to but excluding the early settlement date.

For each $1,000 principal amount at maturity of the discount notes, Quebecor is offering the present value on the early settlement date of the $1,068.75 call price on the July 15, 2006 first call date plus interest payments up to the first call date, discounted using 50 basis points over the yield on the 7% U.S. Treasury note due July 15, 2006.

Holders of the 11 1/8% notes will also receive accrued interest up to but excluding the settlement date.

Pricing will be set at 2 p.m. ET at least one day after the consent date and two days before the expiration.

The total amounts include the $30.00 per $1,000 consent payment.

Quebecor is soliciting consents to amend the note indentures to eliminate substantially all of the restrictive covenants and certain events of default. Holders who tender are required to deliver consents.

The consent deadline for both series of notes is 5 p.m. ET on Dec. 30, and the tenders end at 12:01 a.m. ET on Jan. 18.

The Montreal-based media company needs consents from the holders of a majority of each series of notes.

The tender is also subject to Quebecor Media obtaining financing to fund the offers.

Citigroup Corporate and Investment Banking is dealer manager and solicitation agent (800 558-3745 or 212 723-6106). Global Bondholder Services Corp. is the information agent and depositary (866 470-4300 or call collect 212 430-3774).

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