CanWest vindicated in court challenge on foreign ownership in Australia.

WINNIPEG, Manitoba--(BUSINESS WIRE)--Aug. 14, 1995--CanWest Global Communications Corp. (TSE, WINNIPEG STOCK:CWW) has been vindicated in a groundless allegation that it was unlawfully exercising control over Network Ten in Australia.

The allegation by a disgruntled shareholder in one of its affiliates, Capital Television, was unilaterally dropped on the morning the issue was going to trial in the Supreme Court of New South Wales.

In withdrawing the allegation, Capital Television, controlled by Charles Curran, consented to judgment against it. In accepting the capitulation, the court today ordered Capital to pay Network Ten and CanWest's costs of the aborted lawsuit, estimated at approximately $1 million in total.

CanWest announced today that it will seek damages against Curran and his boardroom colleagues in Capital.

The litigation by Capital against Network Ten and CanWest arose out of Capital's failure to buy NRTV last year. Capital alleged that Network Ten and some of its shareholders, including CanWest, had conspired to deprive Capital of the purchase opportunity.

Central to Capital's claims were allegations of breach of the Broadcasting Services Act, including a claim that Network Ten was controlled by CanWest.

Speaking for CanWest following its vindication, Chairman and Chief Executive Officer I.H. Asper, O.C., Q.C., stated: "This is not the end. Mr. Curran has maliciously and frivolously abused legal process to pursue his vendetta against CanWest via these spurious and groundless claims. The protective sham of a baseless lawsuit has spread vicious lies about CanWest which have been widely reported. Curran has engaged in a witch hunt against us on three continents, costing us and Network Ten millions of dollars in expense, as well as company disruption and damage to our long-earned reputation for integrity in all our dealings. We intend to collect every penny, plus damages, from him and his fellow director-accomplices."

Network Ten is currently suing Capital for a court order requiring Mr. Curran to open his company books for inspection of alleged wrongdoing and shareholder impropriety by Curran. Network Ten owns 50 percent of Capital Television but Curran has management control.

Asper said: "The current ABA investigation into the allegation of CanWest control of Network Ten was launched as a result of mysteriously leaked material from Curran's allegations in these proceedings. Now that Mr. Curran has taken the cowardly way out by refusing to keep his court date with us, we will ask the ABA to expeditiously complete the investigation and issue its findings, so that we can put to rest these vicious and baseless allegations arising from these contrived proceedings."

CONTACT: I.H. Asper, O.C., Q.C. or Peter M. Liba, C.M.

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