CanWest Lifts Australian Network Interest to 76 Percent; Invests $150 Million.

WINNIPEG, Manitoba--(BUSINESS WIRE)--Jan. 16, 1997--CANWEST GLOBAL COMMUNICATIONS (NYSE: CWG; TSE: CGS.S, CGS.A) -- CanWest Global Communications Corp. announced today that it had entered into a series of financial transactions with an unrelated Australian company, Donholken Pty. Limited, to enable it to acquire a 20 percent voting and a 10 percent equitable interest in Network Ten.

The net result will be that while Donholken will retain the voting authority over the shares, CanWest will increase its economic interest in Network Ten from 66 percent to 76 percent. Under Australian media foreign ownership laws, CanWest is restricted, at present, to a 15 percent voting interest. CanWest, through an affiliate, advanced the purchaser $150 million.

CanWest initially held a 15 percent voting and 57.5 percent economic interest in Network Ten. In November, it entered into similar financial arrangements with another Australian investment company who bought 17 percent of the voting shares in the Network, advancing them $110 million, and lifting CanWest's economic interest to 66 percent.

The Australian Broadcasting Authority is reviewing the first transaction to determine whether it complies with the foreign control provisions.

"We are cooperating fully with the ABA, and having acted on the advice of highly reputable senior counsel in Australia, we are quite confident that the appropriateness of these transactions will be found to comply fully with all law and regulations," said Tom Strike, CanWest Executive Vice-President.

CanWest Chief Executive Officer Israel Asper said he had advised both the Australian Minister of Communications and the Chairman of the Broadcasting Authority that the increase in CanWest's holdings may be scaled back if Network Ten can successfully attract a public float of its shares.

"We have always supported the idea of bringing the public into Network Ten, but have resisted having our interests diluted in order to do so," he said. "Hopefully, these transactions will support both objectives."

The Australian government is in the middle of a media inquiry into ownership rules and is expected to table proposed legislation in the next month or two.

"Clearly," said Mr. Strike, "that may have a major bearing on our future investment in Network Ten."

Network Ten contributed C$58 million to CanWest's August 31, 1996 year-end after tax profits. The Company is forecasting an increase in 1997, which will be augmented by the increased economic interest which will be fully absorbed by CanWest in its second and third quarters of 1997.

CanWest Global Communications Corp. (NYSE: CWG; and TSE: CGS.S and CGS.A) is a leading international television broadcaster. In Canada, the Company owns and operates the CanWest Global System, Canada's largest private sector broadcaster. Internationally, the Company owns substantial economic interests in Australia's Network Ten and New Zealand's TV3. Through these broadcasting operations, CanWest reaches approximately 35.9 million English-speaking people in markets that are estimated to have generated approximately $4.4 billion in advertising revenue in 1995.

CONTACT: CanWest Global Communications Corp.

Thomas C. Strike, 204/956-2025

204/947-9841 (fax)

or

CanWest Global Communications Corp.

I.H. Asper, 204/956-2025

204/947-9841 (fax)