Quebecor World Suspends Dividend Payment

Quebecor World Inc., North America's second largest printer announced today that it is suspending dividends on two series of preferred shares. In its press release, Quebecor World stated that while it "has the funds available to pay such dividends, it has been advised by counsel that as a result of recent developments, the Company may be prevented from paying dividends to holders of its preferred shares because it may not satisfy the applicable capital adequacy test contained in the Canada Business Corporations Act («CBCA»)."

Quebecor World's actions has led to speculation as to the value of the company's shares and the possibility that it may be purchased and taken private. Analysts have suggested valuations that range from zero to $6 per share. The current share price is is $2.44 Canadian.

Queborcor World is a significant producer of mail in both the United States and Canada printing advertising inserts and circulars, catalogs, direct mail products, magazines, books, and directories. In addition it provides services important to the production of mail including digital premedia, logistics, and mail list technologies. None of the financing and or ownership issues at Quebecor World should affect the service that the company provides its customers.