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Videotron starts 2009 with growth

Montréal, May 13, 2009 – Videotron began 2009 on a note of growth for its major products: cable television, Internet access, cable telephone and wireless telephone. The results for March 31, 2009, confirm Videotron as a leading supplier of new technologies and entertainment, and auger well for the company to make its 2009 targets.

“The continued growth at Videotron, even in these difficult economic times, demonstrates the confidence of our customers.  In the first quarter of 2009, the company earned an overall satisfaction rating of 97% from customers with three or more services,” said Robert Dépatie, President and CEO of Videotron.  “As of March 31, 2009, 66% of our customers subscribed to two or more products, compared with 60% for the corresponding period in 2008.  The results confirm Videotron’s strong presence in the marketplace thanks to business decisions made with a focus on offering the best possible experience and meeting the needs of connected families.”

CABLE TELEVISION
More households subscribe to illico™ digital TV
Videotron had 1,729,168 customers for its basic cable TV service as of March 31, 2009, with the addition of 13,552 households during the quarter and including 963,153 subscribers to ilico digital TV. The popularity of the service continues with 35,831 new customers, the largest growth among all the products, and stronger growth than the 34,573 in the corresponding period in 2008. The proportion of cable customers using Videotron’s digital service reached 56% at the end of the first quarter of 2009 compared with 49% at March 31, 2008.

The results also show that Québec households increasingly prefer digital television for flexibility, image quality and choice. Videotron is the only supplier in its market to offer video on demand with more than 2,500 titles, as well as the possibility to create a custom package of content.

INTERNET
More customers chose Videotron Internet access
Videotron continues to be the Nr. 1 high-speed Internet access in Québec with 1,089,251 cable modem subscribers. During the quarter ended March 31, 2009, 25,404 additional households and businesses chose Videotron’s cable access to the Internet.

During this period, Videotron continued to deploy its fastest 30 Mbit/s and 50 Mbit/s services – Ultimate Speed Internet 30™ and Ultimate Speed Internet 50™ – in more than 30 municipalities on Montréal’s South Shore. In April, the services were extended to more than 70 municipalities north of Montréal.  More than 100 municipalities and 915,000 households and businesses in Québec now have access to this advanced technology.

Videotron teaches Vigilance on the net to thousands of kids
During the quarter, Videotron continued its Vigilance on the net visits to many secondary schools in the Lower St. Lawrence, National Capital, central Québec and Laval areas. The program about safe practices on the Internet has reached more than 21,000 young Quebecers as well as their parents and teachers throughout the province. Videotron has a web site, vigilancesurlenet.com, dedicated to Internet safety for families.

CABLE TELEPHONE
More Quebecers using free long distance between subscribers
During the quarter, 38,931 new customers chose cable telephone services.  Since the end of the first quarter of 2008, almost 200,000 new lines were activated in homes and organizations in Québec. Today, the company has 890,918 customers who benefit from free long-distance calling between subscribers. Videotron has become the main supplier of residential telephone service in many Québec municipalities.

“With such strong growth and penetration rates unprecedented in Canada for unconventional residential telephone service, Videotron has established itself as the leading supplier of new technologies. With its reliable network, the company continues to offer new and converging services, adapted to the mobile needs of consumers, such as the Softphone and caller ID on illico,” said Mr. Dépatie.

Videotron wireless continues growth
As of March 31, 2009, Videotron had activated 68,015 wireless phones, including 4,613 additional during the quarter. Last October, Videotron and Quebecor Media confirmed plans to invest $800 million to $1 billion over the next four years to develop their own highly evolved wireless network. This major project will create hundreds of jobs during the next two years.

ECONOMIC ENGINE
Videotron will create 500 permanent jobs in 2009
The company estimates that in 2009 it will need to fill 500 new quality positions to support major projects. Many of the jobs in a variety of areas are currently posted on videotron.com/carrieres.

AGREEMENT WITH UNIONIZED EMPLOYEES
Collective agreements renewed to 2013, 2014 and 2015
Videotron management announced in March 2009 that its employees had voted 95% to ratify an agreement in principle between the employer and representatives of the CUPE union, affiliated with the QFL. The five-year agreement provided for pre-term renewal of collective agreements for unionized employees in Montréal (including Sherbrooke), Québec City, Saguenay-Lac-St-Jean and Gatineau.

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 telephone service. 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 March 31, 2009, Videotron was serving 1,729,168 cable television customers in Québec, including 963,153 illico Digital TV subscribers. Videotron is the Québec leader in high-speed Internet access, with 1,057,204 subscribers to its cable modem service, as of March 31, 2009. On that date, Videotron had activated 68,015 lines on its wireless telephone service and was providing cable telephone service to 890,918 Québec households and organizations. Videotron was also named the fourth consecutive year the most admired telecommunications enterprise by Commerce magazine, based on a survey by Léger Marketing. 


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