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Videotron reports growth for sixth straight year

Montréal, January 4, 2010 – Despite the difficult economic environment, Videotron recorded growth for all its products in 2009. The year’s highlights included completion of the roll-out of the Ultimate Speed Internet 30TM and Ultimate Speed Internet 50TM services, making Videotron the first telecommunications provider in North America to offer DOCSIS® 3.0-based Internet access throughout its service area. Among notable successes, Videotron passed the million-customer milestones for both its illico Digital TV and cable telephone services, while maintaining an overall customer satisfaction rate of more than 96%1 . Meanwhile, Videotron continued making very significant investments in Quebec and created hundreds of jobs with, among other things, the opening of its new Customer Contact Centre in Joliette and the build-out of its new HSPA (High Speed Packet Access) advanced wireless services network, which will be operational in 2010.

Strong results
As of December 31, 2009, Videotron had 1,777,000 subscribers to its cable television service, including 1,084,100 subscribers to illico Digital TV; 1,170,600 subscribers to its cable Internet access service; 1,014, 000 cable telephone customers; and 82,800 activated handsets on its wireless telephone service.

“We have every reason to be pleased with our string of successes in 2009,” said Robert Dépatie, President and Chief Executive Officer of Videotron. “I am proud of our people, who have solidified Videotron’s leadership in Canada’s telecom industry.”

illico Digital TV: more than a million fans
Videotron’s cable television service continued registering healthy growth in 2009, increasing its customer base by 61,400 to 1,777,000. The number of subscribers to illico Digital TV increased by 156,800 during the year, pushing the total past the million mark in August and to 1,084,100 at December 31, 2009, compared with 927,300 at the same date in 2008. As of December 31, 2009, 61% of Videotron’s cable television customers had signed up for the digital service, compared with 54% at the end of 2008.

The freedom and range of choices offered by illico on Demand, which carried more than 6,000 titles in the course of the year, proved increasingly popular with Quebecers. The video on demand service has registered unprecedented growth in recent years, logging 45 million orders in 2008 and more than 60 million orders are expected in 2009, compared with 10 million in 2005, a 500% increase in five years.

Among the fastest Internet services in the land
As of December 31, 2009, there were 1,170,600 subscribers to Videotron’s cable Internet access service, compared with 1,063,800 at the end of 2008. The numbers confirm Videotron’s long lead in Québec’s Internet market. Consumers responded positively to the completion of the roll-out of the Ultimate Speed Internet 30TM and Ultimate Speed Internet 50TM services across Videotron’s service area. The competitively priced state-of-the-art technology is now available to more than 3 million Québec households and businesses.

One million cable telephone customers
As of December 31, 2009, there were 1,014,000 residential and business subscribers to Videotron’s cable telephone service, compared with 852,000 one year earlier.

Less than five years after its launch in January 2005, Videotron’s cable telephone service has reached the million-customer mark. The service has consistently posted record customer growth figures, achieving a five-year compound annual growth rate of close to 60%. Québec consumers are taking full advantage of the benefits of this alternative to a service that, for many years, had no true competition.

Wireless telephone service gaining in popularity
As Videotron prepared for the upcoming roll-out of its own Advanced Wireless Services network, as of December 31, 2009, there were 82,800 activated handsets on Videotron’s wireless service, compared with 63,400 at the same date in 2008.

“We believe the market is ready and eager to welcome new players such as Videotron that can deliver advantageous rates and advanced functionalities,” said Robert Dépatie. “With the build-out of our new network and the introduction of our wireless services, Videotron is helping to build Québec’s economic and technological future.”

More than 600 new jobs created in 2009
“The tough economic conditions of the recent past have not curbed Videotron’s growth,” commented Robert Dépatie. “In addition to the positive results we are reporting, we created hundreds of jobs in 2009 in connection with the build-out of our new wireless network and the opening of our new Customer Contact Centre in Joliette. In fact, Videotron was one of the largest private investors in Québec’s economy last year.”

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 December 31, 2009, Videotron was serving 1,777,000 cable television customers in Québec, including 1,084,100 subscribers to illico Digital TV. Videotron is also the Québec leader in high-speed Internet access, with 1,170,600 subscribers to its cable modem service as of December 31, 2009. As of the same date, Videotron had activated 82,800 handsets on its wireless telephone service and was providing cable telephone service to 1,014,000 Québec households and organizations. For the fourth consecutive year, Videotron was been named Québec’s most respected telecommunications company by Commerce magazine, based on a Léger Marketing survey.

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1 Source : Léger Marketing, September 2009

“Ultimate Speed Internet 30” and “Ultimate Speed Internet 50” are registered trademarks of Videotron Ltd.

DOCSIS® is a registered trademark of Cable Television Laboratories Inc.



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