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Videotron continues growth in Q2 2009

Montréal, August 6, 2009 – Videotron registered continued growth in the second quarter of 2009 for all its services, i.e., cable television, Internet access, cable telephone service and wireless telephone service. The results again confirm Videotron’s leadership position, founded on its wide selection of entertainment offerings and technologically innovative products.

“We are pleased to have achieved our targets for the period,” said Robert Dépatie, President and Chief Executive Officer of Videotron. “We have now recorded growth for all our products for 16 consecutive quarters. Our constant efforts to deliver the best possible customer experience continue to bear fruit. Although customer satisfaction with Videotron’s products and services is holding high at 96%, we plan to further enhance our customer service. For example, Videotron has announced the opening of a new $35-million-plus Customer Contact Centre in the Lanaudière region, representing 271 new permanent jobs.”

CABLE TELEVISION
The customer base for Videotron’s basic cable television service increased by 3,453 during the second quarter to 1,732,621 as of June 30, 2009, including 990,308 customers for illico Digital TV. The popularity of Videotron’s digital service, which grew its customer base by 27,155 during the period, is being driven by its many advantages, including flexibility, choice and the quality of the available entertainment content. The proportion of Videotron cable television customers who subscribe to the digital service stood at 57% at the end of the second quarter of 2009, compared with 50% at the same point last year.

Videotron’s signature offerings include a video on demand service with a catalogue of more than 3,500 titles, the largest selection of French-language HD channels, and a custom channel package option.

INTERNET
Videotron is the largest provider of high-speed Internet access service in Québec with 1,109,900 residential and business subscribers at the end of the second quarter of 2009, an increase of 20,649 during the quarter.

Videotron is continuing the roll-out of its Ultimate Speed Internet 30 and 50 services, which deliver better value for customers with speeds of 30 mbps and 50 mbps, the fastest in Québec. Since July, Ultimate Speed Internet 30 and 50 have been available to approximately 300,000 Montréal West Island households and businesses and 50,000 new potential customers in Laval, completing the Laval roll-out.

CABLE TELEPHONE SERVICE
The cable telephone service registered the strongest quarterly growth of all Videotron products with an increase of 43,919 residential and business lines, bringing the total to 934,837 as of June 30, 2009.

The addition of cable telephone service to Videotron’s product line has helped propel the growing popularity of Videotron’s attractive multiproduct packages, also supported by Videotron’s superior, robust network and high-quality customer service. As of June 30, 2009, 67% of Videotron customers were subscribed to two or more services, compared with 61% at the same time last year.

WIRELESS TELEPHONE SERVICE
The number of activated business and residential lines on Videotron’s wireless telephone service increased by 5,468 during the quarter, outpacing the growth recorded in the same quarter of 2008 and bringing total activated lines to 73,483.

WIRELESS NETWORK
The Company is continuing the build-out of its wireless network, which will be one of the most advanced in the world. Videotron plans to invest up to $1 billion in this major project over the next four years. Videotron has reached roaming agreements with wireless providers Rogers Communications Inc. (“Rogers”) and T-Mobile USA, Inc., enabling it to provide future customers with advanced wireless services throughout the two providers’ service areas in Canada and the U.S.

The Company has also reached tower-sharing agreements with Rogers and Bell Mobility for a number of sites in Québec and the Ottawa area, allowing Videotron to build out its network at anticipated cost.

“The Company welcomes these new partnerships, which will equip us to offer our future customers wireless services across Canada and the U.S.,” said Robert Dépatie. “The tower-sharing agreements will benefit both Videotron and the general public by limiting the proliferation of new sites.”

SPREADING CULTURE
Sponsor of Just for Laughs and FrancoFolies festivals
Videotron supports the Just for Laughs / Juste pour rire and FrancoFolies festivals and broadcasts their content on all its platforms, providing Francophone performers with greater visibility and giving customers who cannot go to the festival sites an opportunity to enjoy performances and concert excerpts.

As the main sponsor and presenter of Just for Laughs / Juste pour rire, Videotron is offering an impressive list of more than 50 comedy shows, events and programs on all its platforms.

Videotron is also supporting the FrancoFolies de Montréal and its performers for another two years, up to 2011. By continuing the partnership, Videotron is helping to bring the FrancoFolies to an ever wider audience and promoting cultural development.

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 June 30, 2009, Videotron was serving 1,732,621 cable television customers in Québec, including 990,308 illico Digital TV subscribers. Videotron is the Québec leader in high-speed Internet access, with 1,109,900 subscribers to its cable modem service as of June 30, 2009. As of the same date, Videotron had activated 73,483 lines on its wireless telephone service and was providing cable telephone service to 934,837 Québec households and organizations. For the fourth consecutive year, Videotron has been named Québec’s most respected telecommunications company by Commerce magazine, based on a Léger Marketing survey. 


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