Argus Corporation Limited: Announces OSC Application And Dividend And Financial Update.

TORONTO -- Argus Corporation Limited ("Argus")(TSX:AR.PR.A)(TSX:AR.PR.B)(TSX:AR.PR.D) announced today that it has applied to the Ontario Securities Commission (the "OSC") for a variance of the Management and Insider Cease Trade Order ("MCTO") issued with respect to Hollinger Inc. ("Hollinger").

A MCTO has also been issued as against Argus and Hollinger International Inc. ("International") as well as Hollinger. The MCTO of each of those companies relate to their failure to prepare and file financial statements and related disclosure when due.

The variance that Argus, together with its immediate subsidiaries, has requested be made to the Hollinger MCTO is to permit the sale by it of up to 200,000 of the 21,596,387 Retractable Common Shares of Hollinger ("Shares") that it indirectly holds through its subsidiaries.

The Shares that Argus proposes to sell represent approximately .0.93 per cent of its holding of Shares and 0.57 per cent of the total number of outstanding Shares.

In its Application, Argus advised the OSC that it is unable to declare and pay dividends that are scheduled to be paid on May 1, 2005 to the holders of its Class A and Class B Preference Shares and its ongoing operational expenses without the requested variance being granted. The anticipated total amount of the dividends that are due to be paid is $251,703.

Argus has further advised the OSC that its viability as an operating company and as a going concern will be severely prejudiced should it not be given permission to sell up to 200,000 Shares as it has no other source of income or funds. It presently has $10,240 of cash with outstanding payables totaling $213,914.

The Shares of Hollinger that Argus holds have a market value at the close of trading on April 12, 2005 on the Toronto Stock Exchange of Cdn. $6.07 per share or an aggregate of Cdn. $131,090,069. This amount is subject to a minority interest of The Ravelston Corporation Limited ("Ravelston"), future income taxes on unrealized net capital gains and other considerations including the Hollinger MCTO.

The operating expenses of Argus have significantly increased over the past year. Amongst the increased expenses that Argus has been incurring, and will continue to incur, are related to legal proceedings and regulatory compliance.

Argus is a defendant in two class action law suits commenced in Illinois and Saskatchewan. It is also a related party for purposes of the ongoing inspection of the related party transactions of Hollinger that is being conducted pursuant to an Order of the Ontario Superior Court of Justice.

Argus is further incurring legal costs related to claims that are being made for coverage of certain of its defence costs pursuant to an Executive and Organization Liability Insurance Policy.

In accordance with OSC guidelines, Argus publicly files bi-weekly Status Update Reports with respect to its material developments and those of Hollinger and International.

Argus has been further providing financial statements prepared on a market valuation basis. These are being filed with its Status Update Reports as alternative financial information in order to keep the public informed of the financial activities of Argus despite its present inability to produce financial statements consolidated with those of Hollinger.

On January 31, 2005, Ravelston, Argus' parent, loaned $251,703 to Argus on a non-interest-bearing basis in order to allow Argus to pay dividends on February 1, 2005 to its holders of Class A and Class B Preference Shares.

Ravelston has now advised Argus that it will not advance additional funds to assist it to pay its May 1, 2005 dividends or operational expenses.

Should the OSC agree to the variance of the Hollinger MCTO to permit Argus to sell up to 200,000 Shares, Argus, as the holder of approximately 61.8 per cent of the Shares of Hollinger, will further file a public notice that it intends to sell Shares from its control block position before any Shares may be sold.

Argus will not be able to declare any dividends unless and until the requested variance is granted by the OSC, of which there can be no assurance, and arrangements are in place for the sale of Shares. There will then need to be seven clear trading days between any declaration of dividends and the record date for the payment of such dividends. There will additionally be certain administrative time required after any record date in order to permit the processing of any dividends that may be declared.

Argus has accordingly advised that there can be no certainty that the dividends scheduled to be paid on May 1, 2005 can or will be declared and paid and, if declared, that they will be paid when scheduled.

Should the requested variance be granted by the OSC, Argus intends, on the required distribution notice being provided and on arrangements being in place to sell the Shares it proposes to sell, to declare and pay the dividends that are presently scheduled to be paid on May 1, 2005.

Argus further intends that a sufficient amount of the proceeds of the proposed sale of Shares will be allocated for payment of the dividends that are next scheduled to be paid to the holders of the Class A and Class B Preference Shares on August 1, 2005.

ARGUS CORPORATION LIMITED (TSX:AR.PR.A) (TSX:AR.PR.B) (TSX:AR.PR.D)