Quebecor Printing Announces First Two South American Acquisitions - Purchases Interest in Editorial Antartica.

MONTREAL--(BUSINESS WIRE)--July 8, 1997--Quebecor Printing (ME, TSE IQI., NYSE PRW. ) announced Tuesday its entry into South America with the purchase of interests in Editorial Antartica S.A., Chile's second largest commercial printer and in Editorial Antartica SACIFE in Argentina.

The move extends the company's global operations to another continent and provides access to a rapidly growing multi-billion dollar print market.

Under the terms of the agreement, Quebecor Printing acquires 50 percent of Editorial Antartica S.A. in Santiago, Chile and 70 percent of Editorial Antartica SACIFE in Buenos Aires, Argentina.

The creation of Mercosur, (the South American free trade accord with Chile, Argentina, Uruguay, Paraguay, Bolivia and Brazil as members or associates) has created a favourable economic climate and a growth opportunity for Quebecor Printing. The acquisition in Chile was a logical first step because of the Canada-Chile Free Trade Agreement.

"The globalization strategy of Quebecor Printing continues," said Charles G. Cavell, president and chief operating officer of Quebecor Printing. "With our No. 1 position in Europe and our strong global infrastructure, we are ready to open up yet another frontier of opportunity for our shareholders," he added.

With economic conditions and consumer spending in South America becoming increasingly favorable, the market for print and print advertising will expand dramatically in the near term. The potential in magazines alone is significant. The current unit sales level of five magazines per person per year is forecast to climb closer to the American average of 30 magazines per person per year.

With 835 employees, Editorial Antartica's revenue in 1996 was approximately 25 billion Chilean Pesos (US $62 million). The company will be managed by the Aguirre family in partnership with Quebecor Printing South America.

Quebecor Printing will bring its well-regarded expertise as an efficient, low-cost producer and its strong supplier relationships while benefiting from the market expertise and industry experience of one of the most highly respected commercial printing operations in South America.

Guy Trahan is appointed president of Quebecor Printing South America. He will represent the shareholders interests in the newly acquired companies and will spearhead the planned future development in South America. Trahan is an experienced printing executive and former president of Quebecor Printing (Quebec).

With print industry restructuring continuing on a global basis, Quebecor Printing intends to follow its successful European formula and play an important role in the consolidation of the highly fragmented South American print market.

Of the company's annual worldwide sales of US $3.1 billion in 1996, more than US $2.5 billion came from print operations outside of Canada including US $1.8 billion from the United States and US $700 million from Europe.

Quebecor Printing Inc. (NYSE:PRW; ME:IQI; TSE:IQI), a diversified global commercial printing company, is the second largest commercial printer in the United States and the largest in Canada and in Europe.

The company is a market leader in most of its major product categories which include magazines, inserts and circulars, books, catalogues, specialty printing, related services, chip cards and CD-ROM mastering and replicating as well as directories, cheques, bonds and banknotes.

The company has over 27,000 employees working in more than 110 printing and related facilities in Canada, the United States, France, the United Kingdom, Spain, Chile, Argentina, Mexico and India. Quebecor Printing Inc. is a subsidiary of Quebecor Inc.

BACKGROUNDER QUEBECOR PRINTING IN SOUTH AMERICA OVERVIEW

With literacy rates in Brazil, Argentina and Chile comparable to that of Canada and the United States, but with only 1/10th the per capita paper consumption, the South American print market is poised for growth. Annual GDP growth in Brazil and Argentina and Chile is equaling or outpacing Canada and the United States.

As economic conditions and consumer spending become increasingly favourable, print advertising dollars will increase, resulting in a rise in the total number of pages printed.

Current government policies are helping to ensure that the market potential is realized. Governments have brought inflation under control through tight monetary policies, privatization and encouragement of the free market.

The creation of the Mercosur free trade area (Argentina, Brazil, Uruguay and Paraguay with Chile and Bolivia as members or associates) is lowering duties and non-tariff barriers and stimulating regional trade. The Canada-Chile Free Trade Agreement will further standardise trading rules.

The South American printing industry is fragmented and undergoing rapid change. According to CONLATINGRAF, the Latin American Confederation of the Printing Industry, the most important areas of focus for the industry now are its integration and consolidation, increased technological development and better productivity.

There is a significant new generation of web offset capacity being installed throughout the industry that threatens those medium-sized printers unable to assume the technical and investment challenges facing them. The high quality gravure market remains more concentrated and dominated by the largest printer/publishers, Brazil-based Abril and Bloch Editores and Argentina's Perfil.

As in North America and in Europe, there is on-going pressure for the major publishers to sell their printing assets and concentrate on their publishing activities resulting in economies of scale in purchasing, improved scheduling and workflow and focused manufacturing expertise. -0-

EMERGING PRINT MARKETS ARE SET FOR GROWTH

                         CHILE  ARGENTINA   BRAZIL    U.S.A.   CANADA
                         _____  _________   ______    ______   ______

Population (in millions) 14.2        34.3    160.7     263.8     28.4
Literacy (percent)         94          95       80        97       97
Paper Consumption
 (Kgs. Per capita)       42.0        26.5     41.9     332.6    220.3
GDP (1994 PPP) (US$)
 (in billions)          $97.7      $270.8   $886.3   $6738.4   $639.8
GDP/Capita (1994)      $7,010      $7,990   $5,580   $25,850  $22,760
GDP Growth (1997)
 (percent)                6.5         8.1      4.2       4.1      2.8
Inflation (1997)
 (percent)                5.4         0.7      7.0       2.2      1.5

Sources: CIA World Factbook 1996-97; The Economist; Pulp & Paper
International Factbook

-0-

Following its successful European formula, Quebecor Printing enters South America by purchasing 50 percent ownership in Editorial Antartica's Chilean operation and 70 percent of its Argentine plant.

Quebecor Printing will bring its well-known expertise as an efficient, low-cost producer and its strong supplier relationships while benefiting from the market expertise and industry experience of one of the most respected commercial printing operations in South America.

EDITORIAL ANTARTICA

Chile's second largest commercial printer, Editorial Antartica was founded in 1958 and employs 835 people. It operates a pre-press, web offset and sheetfed printing and stitching/binding facility in Santiago as well as a web offset and sheetfed printing and stitching facility in Buenos Aires.

The 1996 gross sales of US $62 million are approximately 40 percent in Chile, 35 percent in Brazil and 25 percent in Argentina with modest exports to other South American countries. The operations produce 60 percent magazines, 16 percent inserts and 16 percent books. The company is a leader in each of its market segments. -0-

COMPETITION IN CHILE AND ARGENTINA

               EDIT.     EDIT. LORD  MORGAN     ANSELMO ARTES GRAFICA
               ANTARTICA COCHRANE    IMPRESORES MORVILLO RIOPLATENSE
               _________ __________ __________ ________ _____________

Sales (est.)
($US millions)   $62       $130          $52        $38         $40
Web Presses        6         11            2          4           4
Plants          Chile;     Chile;        Chile   Argentina   Argentina
               Argentina  Argentina;
                           Brazil

PRODUCTS (MANAGEMENT ESTIMATES)

Magazines         60 p.c.    50 p.c.     50 p.c.   50 p.c.    40 p.c.
Inserts           16 p.c.    30 p.c.     20 p.c.   50 p.c.    20 p.c.
Books             16 p.c.                10 p.c.
Directories                  20 p.c.                          40 p.c.
Labels                                   20 p.c.

-0-

Antartica's biggest customer is the Brazilian printer/publisher Abril in magazines and books. Other major customers include Televisa in magazines, Falabella and Amereida in inserts and Santillana in books. The company has grown rapidly by building a reputation for quality and timely delivery.

This has permitted the ongoing installation of new presses and a consistent increase in market share.

STRATEGY

The owners of Editorial Antartica, the Aguirre family are highly respected in Chile and have built a talented manufacturing and sales team.

In order to continue their success, they have been looking to enter into a partnership with a major printer because of the increasing consolidation of medium-sized printers in South America and the resources required to keep these operations technologically current and competitive.

Quebecor Printing is well-positioned to be that partner given its experience in the building of a North American and European network of low-cost, efficient printing facilities.

Of the company's annual worldwide sales of US $3.1 billion in 1996, more than US $2.5 billion came from print operations outside of Canada including US $1.8 billion from the United States and US $700 million from Europe (up from only $4 million in 1993).

By partnering with Editorial Antartica, Quebecor Printing establishes a presence in South America that allows it to better serve existing international customers particularly in the book and magazine sectors.

Quebecor Printing can also evaluate future growth opportunities, particularly for those printer/publishers who wish to sell their printing assets and concentrate more on their publishing activities. In turn, Editorial Antartica can obtain technical assistance, more competitive input costs, and access to Quebecor Printing's worldwide sales network.

With print industry restructuring continuing on a global basis, Quebecor Printing will, following its successful European formula, play an important role in the consolidation of the fragmented South American print market through growth by acquisition and reinvestment.

CONTACT: Quebecor Printing Inc.

John Paul Macdonald, 514/877-5317

514/249-6312 Cell.

or

Quebecor Printing South America

Guy Trahan, 514/954-0101

800/567-7070