CanWest Australian consortium acquires last 50 percent of Capital Television.

WINNIPEG, Mb--(BUSINESS WIRE)--Nov. 27, 1995--CANWEST GLOBAL COMM.(TSE, WINNIPEG STOCK EXCHANGE: CWW) Australia's Network Ten announced today that it has acquired 100 percent of the shares of its two affiliates in Perth and Adelaide. The seller is Capital Television in which Ten already owned a 50 percent non-voting interest. As part of the transaction, Capital will buy back the 50 percent interest owned by Ten.

The net effect is that Network Ten, in which CanWest holds a 15 percent voting interest and a 57.5 percent overall economic interest, will exit Capital and end up with 100 percent ownership of the Perth and Adelaide stations.

Ten will pay cash consideration of approximately A$110 million, from which Capital will retire its bank debt of approximately A$27 million and discharge all of its other liabilities.

"The companies that Network Ten has purchased are free from any financial indebtedness," said I.H. Asper, O.C, Q.C., CanWest's Chairman and Chief Executive Officer. "We acquired our initial 50 percent stake in Capital two years ago for A$12.5 million. Looking at the acquisition of what effectively amounts to the second half of Capital on a comparable basis, the acquisition price would have been approximately A$75 million."

The acquisition will significantly increase Ten's earnings in its 1996 fiscal year. The Adelaide and Perth stations are forecast to earn A$30 million in operating profit for the year ending June 30, 1996. Although Network Ten previously owned an indirect 50 percent interest, under Australian accounting rules, it has neither consolidated nor equity accounted its share of these profits. The addition of Perth and Adelaide to Network Ten's Sydney, Melbourne and Brisbane stations brings its signal to approximately 70 percent of the Australian population through its owned stations. It reaches the rest of the country through affiliated stations. Australian television networks are limited by law to a maximum owned signal reach of 75 percent of the country's population.

"This puts Network Ten on third base, with no outs," said Mr. Asper, who also serves as Network Ten's Deputy Chairman. "A few more development actions are still required to complete the building of the Network, but this is a great leap forward and the rest is in sight. The possibilities for further development in Australia are truly remarkable."

As part of the Capital deal, Network Ten also acquires an additional 4 percent interest in one of its other affiliates, Southern Cross Broadcasting. Among other things, Southern Cross owns the Network ten affiliate in regional Victoria and regional southern New South Wales. Its broadcast coverage includes the Australian national capital of Canberra. When added to the 11 percent interest that Network Ten acquired earlier this year, it now owns 15 percent of Southern Cross, the maximum presently allowed by Australian law.

Since Network Ten acquired its initial 50 stake, Capital TV and Network Ten had been locked in acrimonious and extensive litigation ever since. As a further result of this acquisition, that litigation will be discontinued and the parties will exchange releases.

Australian Network Ten Chairman John Studdy said: "Ten has emerged significantly strengthened by the settlement of the litigation with Mr. Curran and Capital. More importantly, we have consolidated a five capital city network under Ten's ownership. This provides a substantial boost to synergies throughout the Network, increases our competitiveness and gives us a major head start to the 1996 television season."

CanWest's new president of CanWest Pacific Communications, Anthony Hollis, served on the Capital acquisition team. "Although CanWest's Canadian financial reporting has reflected Ten's 50 percent interest in the after-tax earnings of these stations, we will now add the remaining 50 percent," he said. "Therefore, our 1995-96 earnings from Australia should show a significant increase."

CanWest operates the CanWest Global System in Canada and has significant broadcast interests internationally.

CONTACT: I.H. Asper

Chairman and CEO 

or

Tom Strike

204/956-2025, (fax) 204/947-9841 REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-236-4266 or

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