CanWest Global Communications Corp. New Statement.

WINNIPEG, Manitoba--(BUSINESS WIRE)--April 4, 1997--

Australian Broadcast Authority Issues Report on CanWest Control of Network Ten

CanWest Global Commu (TSE CGS.A. CGS.S., NYSE CWG.) The Australian Broadcast Authority (ABA) has today issued a report concluding that because of the financing arrangements CanWest entered into to enable two unrelated Australian companies to purchase shares in Network Ten, these arrangements breach the foreign ownership restrictions of the Broadcast Services Act (BSA).

The ABA has notified CanWest that it must remedy the breach within six months.

Speaking for CanWest Global Communications Corp., I.H. Asper, O.C., Q.C., Chief Executive Officer stated: "We are surprised at the ABA ruling, given that we and all the Australian parties entered into these arrangements on the individually-obtained advice of senior counsel to the effect that the transactions and the documents implementing them were fully in compliance with the BSA.

"We note that the ABA Report does not object to CanWest having increased its economic interest in Network Ten, but merely concludes that the transaction documents might, or could grant CanWest undue influence over the new shareholders. It is this 'potential' influence with which the ABA finds fault.

"CanWest rejects the validity of this conclusion.

"We are comforted somewhat by the fact that the ABA has specifically concluded that there was no deliberate attempt by any of the parties to breach the rules, and that all parties intended that the transactions should comply with the rules and that therefore, any breach, if the ABA's view is upheld by the courts, was unintentional and inadvertent.

"The ABA has invited us to discuss with them ways in which the alleged breach may be rectified, and we certainly intend to explore several mutually acceptable options by which that can be done. In fact, prior to the issuance of the ABA Report, we had already tabled with them, and other relevant government agencies for their respective approvals, a plan whereby the shares in question would be sold to the public in a listed stock offering.

"However, the Foreign Investment Review Board (FIRB) has not yet ruled on the same transactions, so any dialogue between us will have to be conducted in accordance with the anticipated ruling by FIRB.

"Furthermore, any restructuring of these share purchases and financings, if necessary, will have to be done in a manner which complies with the Australian government's long term policy intentions with respect to media ownership.

"We don't want to resolve one issue only to find later that the solution doesn't work as a result of future government policy changes. For a resolution of this dispute to be fair, it must also cover future eventualities.

"We have enjoyed an open and cooperative relationship with the ABA and government officials ever since we entered Australia four-and-a-half years ago and have been widely commended as a good corporate citizen. We fully intend to continue that conduct, regardless of the final outcome of this dispute.

"However, because of the potential of litigation over the issue, we will make no further comment on the matter at this time."

CONTACT: CanWest Global Communications Corp.

Thomas C. Strike, 204/956-2025