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QUEBECOR CONTINUES TO PERFORM IN SPITE OF THE LOSSES RECORDED BY MIRCOR (DONOHUE INC.)

               QUEBECOR CONTINUES TO PERFORM IN SPITE OF
              THE LOSSES RECORDED BY MIRCOR (DONOHUE INC.)
    MONTREAL, Feb. 12 /PRNewswire/ -- For the fiscal year ended Dec. 31, 1991, Quebecor Inc.'s (AMEX: PQB) consolidated revenues amounted to $2.37 billion, compared to $2.43 billion in 1990, a decrease of 2.6 percent. For the same period, Quebecor Inc.'s net income was $18.5 million, or $0.39 per share, compared to $77.9 million, or $1.65 per share the previous year. One will recall that the 1990 results included a gain on dilution of $42.1 million resulting from the issuance of capital stock by a subsidiary. Excluding this one-time gain, Quebecor Inc.'s net income would have been $35.8 million, or $0.76 per share.
                             QUEBECOR INC.
             (in millions of dollars except per share data)
    Periods ended               Three months           12 months
     Dec. 31                   1991      1990       1991       1990
    REVENUES
    Quebecor Group Inc.       $ 97.4    $114.3   $  375.8   $  414.8
    Quebecor Printing Inc.     442.3     441.7    1,589.2    1,467.3
    Mircor Inc.                110.0     155.2      469.9      610.9
    Inter-segment              (17.6)    (15.1)     (64.0)     (59.3)
      Total                   $632.1    $696.1   $2,370.9   $2,433.7
    OPERATING INCOME
    Quebecor Group Inc.       $  7.1    $  7.1   $   27.8   $   32.4
    Quebecor Printing Inc.      41.0      42.2      138.3      128.4
    Mircor Inc.                (16.5)     22.4       (5.4)      86.3
       Subtotal                 31.6      71.7      160.7      247.1
    General corporate expenses  (1.0)     (1.3)      (4.7)      (6.0)
    Financial expenses         (20.6)    (23.2)     (79.4)     (88.0)
         Total                $ 10.0    $ 47.2   $   76.6   $  153.1
    NET INCOME                $  1.3    $ 11.7   $   18.5   $   35.8(A)
    EARNINGS PER SHARE        $ 0.03    $ 0.25   $   0.39   $   0.76
    CONTRIBUTION TO NET INCOME BY SEGMENT(A)
    Quebecor Group Inc. and
     Quebecor Printing Inc.(B) $ 12.6    $ 10.3   $   37.4   $   31.1
     Mircor Inc.                (11.3)      1.4      (18.9)       4.7
    CONTRIBUTION TO EARNINGS PER SHARE BY SEGMENT(A)
    Quebecor Group Inc. and
     Quebecor Printing Inc.(B) $ 0.26    $ 0.22   $   0.78   $   0.66
     Mircor Inc.                (0.23)     0.03      (0.39)      0.10
    (A) Excluding an exceptional one-time gain of $42.1 million
    (B) Including the Head Office of Quebecor Inc.
    The above data demonstrate clearly the negative impact that the results of Mircor Inc., the subsidiary which controls Donohue Inc., had on Quebecor Inc.'s consolidated results. Excluding Mircor Inc., the contribution of Quebecor Inc.'s other sectors of activities increased by $6.3 million, or $0.12 per share, an increase of 20 percent.
    Publishing and distribution segment
    The 9.4 percent decrease in revenues shown by Quebecor Group Inc. during 1991, when compared to 1990, is attributable to the continuation of the economic slowdown as well as to the effect that the new provincial and federal taxes, introduced at the beginning of the year, had on this industry. These had an impact on circulation of our publications as well as on advertising revenues. However, Quebecor Group Inc. succeeded in minimizing the impact of these difficult circumstances on its operating income before interest and taxes. Furthermore, at the end of 1991, this wholly-owned subsidiary of Quebecor Inc. announced it was withdrawing from the manufacturing sector.
    Printing segment
    The performance of this segment continues to be remarkable. For 1991, revenues reached $1,589.2 million, an increase of 8.3 percent, when compared to the previous year. This increase is mainly attributable to the 14 printing plants acquired in the United States at the beginning of 1990 as the results generated by these operations were accounted for the entire fiscal year and not just for 10 months as it was the case in 1990.
    For the same period, operating income before interest and taxes reached $138.3 million, compared to $128.4 million in 1990, an increase of 7.7 percent. The operating margin consequently went from 8.8 percent in 1990 to 8.7 percent in 1991. On comparable basis, however, if the acquisition of the 14 American printing plants had been realized at the beginning of 1990, the operating margin would have improved from 8.2 percent to 8.7 percent. This is explained by the fact that the months of January and February, which were accounted for in 1991 and not in 1990, are usually the less profitable months of the year.
    Forest products segment
    Donohue Inc. announced its 1991 financial results last Feb. 6. Quebecor Inc. controls Donohue Inc. through Mircor Inc., which it controls.
    In 1991, Mircor Inc.'s revenues amounted to $469.9 million, compared to $610.9 million in 1990. This 23.1 percent decrease is attributable to a general decrease in demand for pulp and newsprint as well as to a strong Canadian dollar when compared to the U.S. dollar. Quebecor Inc. is pleased by the recent drop of the value of the Canadian dollar to what it considers to be more realistic levels.
    Mircor Inc.'s operating loss before interest and taxes was $5.4 million in 1991 while a year earlier, an operating income of $86.3 million had been recorded, a $91.7 million difference.
    Donohue Inc. holds 50 percent of a BCTMP mill in Matane, Quebec. During the third quarter of 1991, this affiliated company, Donohue Matane Inc., announced the closing of its mill and its sawmills for an undetermined period of time. This decision had become necessary in view of the deterioration of the market for this product. The partners in this mill believe that the market conditions will not last indefinitely and, therefore, necessary measures have been taken to protect buildings and equipment. Furthermore, a preventive maintenance program has been set up in order to ensure that the facilities will start up without undue delay when the market conditions improve.
    Notwithstanding the foregoing, Donohue Inc.'s management elected to write off the entire value of its investment in this affiliated company at the end of 1991. This write-off amounts to $40.7 million before income taxes. The net negative contribution of this segment was $18.9 million in 1991, compared to a positive contribution of $4.7 million in 1990.
    Results for the fourth quarter of 1991
    For the three-month period ended Dec. 31, 1991, Quebecor Inc.'s consolidated revenues reached $632.1 million, compared to $696.1 million for the same period in 1990. This 9.2 percent decrease reflects a decrease in revenues at Quebecor Group Inc., but primarily, the $45.3 million drop in revenues at Mircor Inc.
    For the same period in 1991, net income was $1.3 million, or $0.03 per share, compared to $11.7 million, or $0.25 per share the previous year. Mircor Inc.'s performance explains this difference as, if one were to exclude Mircor Inc.'s contribution, net income would have been $12.6 million for the last quarter of 1991, compared to $10.3 million for the same period a year earlier.
    On Dec. 27, 1991, Quebecor Inc. acquired for a cash consideration of Cdn. $110 million the interest of a minority shareholder in Quebecor Printing Inc., bringing its participation in this subsidiary to 100 percent. On Feb. 3, 1992, Caisse de dpt et placement du Qubec exercised its right to acquire 7.2 percent of the outstanding shares of Quebecor Printing Inc., for a cash consideration of $30.6 million which will be paid to Quebecor Inc. on Feb. 25, 1992.
    On Dec. 31, 1991 Donohue Inc. acquired for a consideration of $120 million, $85 million of which was paid in cash, the 45 percent interest held by a minority shareholder in Donohue St-Flicien Inc., making it a wholly-owned subsidiary.
    After having given effect to these major transactions, Quebecor Inc. continues to have at its disposal a strong cash position which, on Dec. 31, 1991, amounted to $77.8 million. On Feb. 5, 1992, Quebecor Inc. concluded the transaction, announced Jan. 16, 1992, whereby it issued 4.2 million units, and received $52.7 million, bringing its cash position to $130.5 million. The transaction involving Caisse de dpt et placement du Qubec, mentioned above, will further increase the cash position to approximately $160.0 million.
    The company's debt: capitalization ratio was 49:51 at Dec. 31, 1991.
    The Class A Multiple Voting Shares of Quebecor Inc. are listed on the Montreal Exchange, the Toronto Stock Exchange and the American Stock Exchange. The Class B Subordinate Voting Shares are listed on the Montreal Exchange and the Toronto Stock Exchange.
    Quebecor Inc., a continent wide communications company, is active in the publishing sector with four dailies, 44 weeklies, six monthlies, 11 magazines and numerous specials as well as books. It is also involved in publications and records distribution as well as retail. With its 56 printing and specialized plants, the Company is the second largest commercial printer in North America. Through its subsidiary Mircor Inc., its activities also comprise forest products.
    -0-                       2/12/92
    /CONTACT:  Francois R. Roy, vice president-finance and treasurer of Quebecor, 514-877-9777/
    (PQB) CO:  Quebecor Inc. ST:  Quebec IN:  PUB SU:  ERN SH -- NY079 -- 9340 02/12/92 15:00 EST
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