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MDC Unit Awarded Postage Stamp Contract By The United States Postal Service.

TORONTO--(BUSINESS WIRE)--Feb. 26, 1998--MDC Communications C(TSE:MDZ.A.) (AMEX:MDQ) MDC Communications Corporation of Toronto today announced that its wholly owned subsidiary Ashton Potter (U.S.A.) Ltd., of Williamsville, New York, has been awarded a postage stamp contract from the United States Postal Service ("USPS") with an estimated value of up to US$75 million (Cdn$105 million) over a 5 year period.

The contract, which covers a 3 year term with two one year options with projects beginning immediately, is part of the largest stamp printing solicitation ever outsourced by the USPS. This is part of its ongoing program of developing private sector stamp production while still maintaining the U.S. government owned Bureau of Engraving & Printing as a supplier. Ashton Potter's contract involves the production of postage stamps by two printing methods, offset and intaglio, in various formats on gummed stock. In addition, the Company was qualified as a supplier of pressure sensitive postage stamps by the offset printing method.

As part of the award, Ashton Potter will continue to produce the "Celebrate the Century" Commemorative Stamp Program. For the first time ever, the Celebrate the Century Stamp Program will allow the American people to vote for stamp subjects. The USPS will issue 10 separate issues covering each decade of the 20th Century. Each issue will contain 15 individual stamps commemorating different people and events of a particular decade. Currently, the size of each issue is targeted to be 188 million stamps.

"This contract award is an important incremental step in the growth and development of our relationship with the United States Postal Service", said Miles S. Nadal, President & Chief Executive Officer. "The expansion of this relationship is an integral part of our overall strategy to enhance our global presence in the postage stamp business."

MDC, through its operating subsidiaries, is a major producer of postage stamps for Canada Post, United States Postal Service, Royal Mail, Hong Kong, Singapore, Thailand and other postal administrations worldwide. Ashton Potter has supplied postage stamps to the United States Postal Service since 1992. MDC Communications Corporation is a publicly-traded international organization with operating units in Canada, the United States, the United Kingdom, and Australia. The Company is a leading provider of security product solutions and marketing services to customers in over 65 countries around the world. MDC has a strong record of growth, generated both internally and from strategic corporate acquisitions.

MDC offers security product solutions through five core offerings: personal and business cheques; postage and excise stamps; credit, debit and smart cards; event and transportation tickets; and other outsourcing services including remittance processing, data imaging, corporate payables, personalization and fulfillment, and data management. MDC's diversified range of security product solutions will allow the company to fully participate in the ongoing global evolution of secure products and secure electronic transactions.

MDC shares are traded on the Toronto Stock Exchange under the symbol MDZ.A and on the American Stock Exchange under the symbol MDQ.

CONTACT: MDC Communications Corporation

Miles S. Nadal, 416/ 960-9000 x 223


Security and Specialty Products Division

Graham Searle, 416/ 960-9000 x 231
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Publication:Business Wire
Date:Feb 26, 1998
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