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Strong third quarter growth promises robust future

Montréal, November 7, 2006 – Videotron announced its third quarter 2006 results today, reporting promising financial and customer growth numbers that demonstrate the Québec-based telecommunications company's market strength and confirm that Videotron has become a major player in the Canadian telecom market.

As of September 30, Videotron had a total customer base of 1,553,000 subscribers in its service area across Québec, with 585,000 subscribers to its illico Digital TV service, 769,000 subscribers to its Internet access services, and 344,000 subscribers to its residential cable telephone service.

Videotron wireless service
Third quarter highlights included the launch of Videotron's wireless telephone service in the Québec City area on August 10. The gradual roll-out of the service continued in the Gatineau, Sherbrooke and Chicoutimi areas, and more recently in Montréal. Wireless telephone service is now available across most of Videotron's service area as the fourth product in Videotron's one-stop shopping basket.

“Videotron is entering the wireless market with a strong positioning based on a simple, user-friendly offering and the advantages of bundling,” said Robert Dépatie, President and Chief Executive Officer of Videotron, speaking at the product launch. “Adding wireless telephony to our line of telecommunications services is a forward-looking move for Videotron as we work to strengthen our one-stop offering. One-stop shopping is part of the concrete vision that underlies both our strategic plan and the benefits we offer consumers, who want and appreciate being able to get a complete line of services from a single telecom provider.”

Videotron Internet access service still the fastest, period
The number of subscribers to Videotron's cable modem and dial-up Internet access services combined increased by 43,000 to 769,000 during the third quarter. Videotron phased in free service upgrades on a region-by-region basis during the quarter, increasing the speed of High-Speed Internet from 5.1 mbps to 7 mbps and of Extreme Plus Internet from 16 mbps to 20 mbps, making Extreme Plus the fastest and most reliable Internet access service in Québec. Also during the third quarter, the number of Videotron e-mail accounts passed the 1 million mark, confirming the popularity of the service with customers.

“We registered record growth in 2005 with 130,000 new subscribers to our Internet access services and I am very optimistic about the year-end results,” said Mr. Dépatie. “A Léger Marketing survey conducted in March 2006 showed a very high 96.7% rate of customer satisfaction, so we have every reason to be upbeat about the future.”

Increasing popularity of cable telephone service
Videotron remains the leader among Canadian telecommunications firms offering telephone service using the Internet Protocol. As of September 30, less than 20 months after the service was introduced, the number of subscribers stood at 344,000, a quarter-over-quarter increase of 61,000. Over the past year, customers have flocked to Videotron's alternative to conventional telephone service. As a result of capital expenditures made during the third quarter, Videotron cable telephone service is now available in 24 more districts in the Saguenay-Lac-St-Jean and Montérégie areas, as well as in the Maniwaki and Mont-Laurier areas.

“We are offering our telephone service to a steadily growing number of households across Québec,” said Mr. Dépatie. “Since it was launched at the beginning of 2005, Videotron cable telephone service has provided a highly advantageous alternative to conventional telephone service, one that more and more people are able to take advantage of. As we make our service available to more Québec households, we are stimulating competition. Videotron is pleased to be giving Quebecers a real choice when it comes to telephone service providers.”

Ongoing investment in network upgrades
Videotron spent $3 million to modernize 300 linear kilometres of its network in the Maniwaki and Mont-Laurier areas, increasing bandwidth from 480 MHz to 860 MHz. As of January 2007, residents of the Québec City area will also see enhanced offerings from Videotron: the injection of approximately $30 million in the local network will deliver impeccable quality and expanded service. Other network upgrades are planned for Sherbrooke, Granby, Cap-de-la-Madeleine and Victoriaville in the near future. That work is scheduled for completion in 2007.

illico Digital TV delivers freedom of choice
After increasing the number of subscribers to its illico Digital TV service by 42% in 2005 and doubling it in just two years (2004-2005), Videotron has added another 111,000 customers since the beginning of 2006, bringing the total number of subscribers to illico Digital TV to 585,000 as of September 30, 2006. The shift to digital continues to gain momentum, with nearly 40% of Videotron's cable television customers now subscribed to illico Digital TV.

The illico on Demand service offered exclusively by Videotron and Archambault Group to all illico Digital TV subscribers was a factor in illico's success. illico on Demand logged 10 million paid and free orders in 2005 and over 12 million orders in the first three quarters of 2006 alone. Videotron proudly remains the only Video on Demand (VoD) provider in its service area, with a VoD catalogue of over 1,000 films, television programs and documentaries.

Videotron enhanced its Spanish-language news and entertainment services during the quarter with the addition of Azteca 13 Internacional, TV Chile and TVE Internacional, bringing the number of channels in its Hispano package to 10, 8 of which are available exclusively from Videotron.

Attractive bundles
Videotron's multi-product bundles continued to prove attractive, with nearly 50% of Videotron customers now subscribed to two or more products. During the 2006 moving season, this longstanding trend became more pronounced and reached a new high: 48% of sales of Videotron residential telephone service were made to new customers and 70% of them subscribed to three products.

Expanded retail network
The momentum generated by the launch of Videotron wireless telephone service during the quarter lent added impact to the expansion of the Company's retail network, which is designed to reach consumers where they shop. Videotron increased its presence across its service area with new kiosks offering all Videotron products and services, located in the busiest shopping malls and in SuperClub Vidéotron outlets. The list of addresses is available at www.videotron.com > Customer Service > Authorized Dealers.

“With the addition of new points of sale in many regions of Québec, it is now even easier for customers to get all Videotron products and services and to enjoy the best possible customer experience while taking advantage of the benefits of bundling,” said Mr. Dépatie.

The opening of kiosks in shopping malls and SuperClub Vidéotron locations, combined with the Company's expansion, has necessitated the hiring of nearly 400 employees since the beginning of the year, largely for Videotron's Customer Service department.

Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of September 30, 2006, Videotron was serving 1,553,000 cable television customers in Québec, including 585,000 illico subscribers. Videotron is also the Québec leader in high-speed Internet access, with 769,000 subscribers to its cable modem and dial-up services. In addition, Videotron provides residential and commercial telephone service to more than 344,000 customers in Québec. Since August 2006, Videotron also offers wireless phone service.


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