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Quebecor Printing 20 Percent Increase in Net Income for 1996 Despite Difficult Industry Conditions.

MONTREAL--(BUSINESS WIRE)--Jan. 30, 1997--Quebecor Printing (ME, TSE: IQI; NYSE: PRW) -- Quebecor Printing Inc. reported today, for the year ended December 31, 1996, consolidated revenues of US $3,110.3 million, compared to US $3,004.0 million in 1995, an increase of 3.5 percent despite a difficult year in the industry marked by lower paper prices and soft demand in certain sectors.

Net income rose 19.8 percent to US $126.3 million from US $105.5 million last year. Earnings per share increased to US $1.09 from US $1.05 in 1995.

Operating income for the year reached US $260.5 million, up from US $251.9 million in 1995. Operating margin remained steady at 8.4 percent despite a significant decrease in income derived from the sale of scrap paper as well as the short term impact on operating margins of recent acquisitions.

Mr. Charles G. Cavell, President and Chief Operating Officer, said: "1996 was a very good year for us considering difficult conditions that adversely affected our industry. The fact that Quebecor Printing continued to grow its profit with an increase of almost 20 percent in net income while maintaining an operating margin of 8.4 percent in the present climate is a clear demonstration of the strength of the Company."

Quebecor Printing's performance in 1996 demonstrates the company's successful strategy of specific, well-targeted growth by acquisition and capital expenditure within growing market segments such as catalogs, direct marketing and specialty printing. In addition, the company's continued geographic diversification, exemplified by its attainment in only three years of the position of No.1 commercial printer in Europe, lessens its reliance on any one market place or market segment. 1997 will see the company further its global reach and consolidate its presence as a worldwide leader in selected markets.

Cash flow generated from operations rose to US $361.8 million for 1996, compared to US $321.7 million last year. Capital investments totaled US $236.9 million and US $56.4 million was invested in business acquisitions. The debt:equity ratio is now 43:57 compared to 47:53 at December 31, 1995.

Quebecor Printing's fourth quarter consolidated revenues totaled US $862.6 million, an increase of US $27.5 million compared to the corresponding period in 1995. Net income rose to US $43.6 million from US $34.9 million in 1995, an increase of 25.2 percent. Earnings per share, for the quarter, increased to US $0.37 from US $0.34 a year ago.

Operating income for the fourth quarter of 1996 reached US $84.9 million, up from US $77.0 million in 1995, an increase of 10.2 percent. Operating margin was 9.8 percent compared to 9.2 percent for the same period last year.

Quebecor Printing Inc., 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, catalogs, specialty printing, related services, chip cards and CD-ROM mastering and replicating as well as directories, check, bonds and banknotes. The Company has over 25,000 employees working in more than 100 printing and related facilities in the United States, Canada, France, the United Kingdom, Spain, Mexico and India. -0-

Periods ended December 31 3 Months 12 Months
 1996 1995 change 1996 1995 change
 (percent) (percent)
 _________________ __________________

(in millions of US dollars,
except per share data)


Geographic distribution of revenues

United States 497.7 514.5 1,769.9 1,819.5
Canada 172.4 163.3 629.7 623.6
Europe 192.5 157.3 683.7 560.9
 _____ _____ _____ _____
Total revenues 862.6 835.1 3.3 3,110.3 3,004.0 3.5


Revenues by product segment (Percent)

Magazines 26.0 28.8 29.2 30.5
Inserts and circulars 25.8 24.2 22.5 22.3
Books 15.9 17.3 17.3 18.0
Catalogs 14.4 13.4 13.1 13.1
Specialty printing 6.2 5.3 6.4 5.4
Related services and
 CD-ROM 4.2 4.3 4.3 4.2
Directories 4.8 4.2 4.4 3.7
Checks, bonds and
 banknotes 2.7 2.5 2.8 2.8


Income

Operating income before
 depreciation and
 amortization 144.0 120.3 19.7 454.7 421.6 7.8
 Operating income 84.9 77.0 10.2 260.5 251.9 3.4
Net income 43.6 34.9 25.2 126.3 105.5 19.8

Income as percent of revenues

Operating income before
 depreciation and
 amortization 16.7 14.4 14.6 14.0
Operating income 9.8 9.2 8.4 8.4

Per share data (US $)

Cash flow from
 operations $0.98 $0.96 $3.13 $3.20
Net income $0.37 $0.34 $1.09 $1.05

Per share data (in Cdn $)

Cash flow from
 operations $1.33 $1.30 $4.27 $4.39
Net income $0.51 $0.46 $1.49 $1.44





CONTACT: Quebecor Printing Inc.

Michel P. Salbaing, 514/954-0101

1-800/567-7070

or

Quebecor Printing Inc.

John Paul Macdonald, 514/954-0101

1-800/567-7070
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Date:Jan 30, 1997
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