Hollinger Canadian Publishing Holdings Inc. Announces Agreement To Purchase An Additional 10.6 Percent Of The Common Shares Of Southam Inc.

TORONTO--(BUSINESS WIRE)--Aug. 19, 1998--(TSE:HCP.U.) (Alberta Stock Exchange:HCP.U.) (NYSE:HLR) (NASDAQ:HLGCF) (TSE:HLG.C.) (ME:HLG.C.) (VSE:HLG.C.) Hollinger Canadian Publishing Holdings Inc., Hollinger International Inc. and Hollinger Inc. announce that Hollinger Canadian Publishing Holdings Inc. ("HCPH") has entered into an agreement with five funds managed by Franklin Mutual Advisers, Inc. for the purchase of 8,268,900 common shares of Southam Inc. (TSE, ME: STM) representing approximately 10.6 percent of the outstanding Southam common shares. The purchase price is C$31.68 per share or C$261,958,752 in the aggregate. This acquisition will increase the interest of HCPH in Southam to approximately 69.2 percent and is scheduled to close on August 31, 1998.

On May 15, 1997 HCPH made a bid to purchase all Southam shares not already owned by it for $13.50 cash and one HCPH Special Share. When currency fluctuations and the increased value of the HCPH Special Shares (now trading at approximately $15.00 per share) are taken into account, the price per share to be paid to the Franklin Mutual funds is not inconsistent with the price offered in the May, 1997 bid.

HCPH is a company in the Hollinger International Inc. consolidated group. HCPH currently owns a 58.6 percent equity interest in Southam Inc. and all of the Hollinger group's Canadian newspapers.

Hollinger International Inc. is a U.S.-based international newspaper company that engages primarily in the publishing, printing and distribution of newspapers and magazines in the United Kingdom, the United States, Canada and Israel.

Hollinger Inc. is a Canadian-based international newspaper company that, through its subsidiaries, is engaged primarily in the publishing, printing and distribution of newspapers and magazines in Canada, the United States, the United Kingdom and Israel.

    CONTACT:  Hollinger Canadian Publishing Holdings Inc.
               Hollinger Inc.
               Peter Y. Atkinson, 416/363-8721
                   or
               Hollinger International Inc.
               Peter Y. Atkinson, 416/363-8721
                   or
               Hollinger International Inc.
               Paul B. Healy, 212/586-5666
     INDUSTRY KEYWORD:  COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS