Participating and voting shares

All holders of Class A Subordinate Voting Shares and Class B Shares are entitled to receive dividends. While allocated at the discretion of the Board of Directors, the Corporation typically declares cash dividends to be paid out on a quarterly basis.

For the purpose of the Income Tax Act (Canada) and any similar provincial and territorial legislation, Transcontinental Inc. designates all dividends (including deemed dividends) paid on the participating and voting shares in the 2007 calendar year and thereafter as "eligible dividends" unless Transcontinental Inc. indicates otherwise.

* Adjusted for stock split

Preferred Shares

Cumulative 5-Year Rate Reset First Preferred Shares, Series D entitle holders to fixed cumulative preferential cash dividends, as and when declared by the board of directors of the Corporation, payable quarterly on the 15th day of each January, April, July and October at an annual rate of $1.6875 per Series D Preferred Share for the initial five-year period ending on and including October 15, 2014.

The dividend rate will be reset on October 15, 2014 and every five years thereafter at a rate equal to the 5-year Government of Canada bond yield plus 4.16%. These shares will be redeemable by Transcontinental on October 15, 2014 and every five years thereafter in accordance with their terms.

Holders of these shares will have the right, at their option, to convert their shares into cumulative floating rate preferred shares series E subject to certain conditions, on October 15, 2014 and on October 15 every five years thereafter. Holders of the Series E Preferred Shares will be entitled to receive cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada Treasury Bill yield plus 4.16%.

For the purpose of the Income Tax Act (Canada) and any similar provincial and territorial legislation, Transcontinental Inc. designates all dividends (including deemed dividends) paid on the Series D Preferred Shares in the 2009 calendar year and thereafter as "eligible dividends" unless Transcontinental Inc. indicates otherwise.

*Note that the preferred dividend amounts in this table are calculated based on the number of days in the period in respect of which the dividends are paid. While TC Transcontinental pays CDS on the payment date highlighted in the above table, it may take up to three days for the transaction to settle in investors' accounts.