TVA Group Records Net Income of $5.7 Million for the Quarter Ended March 31, 2008

TVA Group Inc. (TSX:TVA.B) announces that the Company reported net income of
$5.7 million, or $0.21 per share, for the first quarter of 2008, compared with
net income of $0.9 million, or $0.03 per share, for the corresponding quarter of
2007.


Operating highlights for the first quarter:



- Significant improvement of $5.7 million in the Television sector's
  operating income over the same quarter of 2007, generated
  essentially by specialty channel and TVA Network activities,
  including:

    - Growth of 52% in operating income for specialty channels
      including operating costs related to the launch of the new
      channel, Les idees de ma maison, in mid-February; and

    - Growth of over 11% in TVA Network's operating revenues, while
      for the same quarter of 2007, there was a drop of 2.3% against
      the same quarter of 2006.

- Growth of more than 50% in the Publishing sector's operating
  income, compared with the corresponding quarter last year,
  increasing from $1.1 million in 2007 to $1.7 million in 2008.

- For the fourth consecutive quarter, the Distribution sector
  significantly improved its profitability, generating operating
  income of $17,000, against an operating loss of $2,207,000 for
  the corresponding quarter of 2007.



As a result, the Company's consolidated operating income was $11.4 million,
against operating income of $2.7 million for the same quarter of 2007.


"We are satisfied with the contribution our three business segments have made to
the Company's consolidated financial results for the first quarter of fiscal
2008. In the short term, our advertising revenues from the Television sector are
excellent because TVA Network has benefited from, among other things, an unusual
economic environment in Quebec's French-language television market while
optimizing its customer offering for advertisers, maintaining a market share of
27 and broadcasting 23 of the market's 30 best-watched programs. The growth of
our operating income from specialty channels also results from the growth of
their advertising revenues by more than 32% over the corresponding quarter of
2007. We are also pleased with the success that our new specialty channel, Les
idees de ma maison, has achieved among advertisers and viewers alike since its
launch on February 19, 2008," said Pierre Dion, President and Chief Executive
Officer of TVA Group Inc.


"In the Publishing sector, the various investments made in our content and
marketing strategies have helped increase our operating revenues by almost 8%.
Our profit margin also improves to 8.7%, compared with 6.2% for the same quarter
of 2007. Finally, in the Distribution sector, operating results improved due
mainly to the sale of rights in the television market for movies released in
2007, combined with a smaller number of releases in movie theatres during the
first quarter of 2008 compared with the same quarter of 2007," added Mr. Dion.


Cash flows from operating activities used during the quarter were $2.8 million,
against $13.8 million in cash flows generated for the corresponding year-ago
period. This reduction is the result of major disbursements since December 31,
2007, mainly for income tax and to accounts payable and accrued liabilities with
regard to rights and fixed assets.


TVA Group's Board of Directors today declared a dividend of $0.05 per share,
payable on June 3, 2008 to Class A and B shareholders of record as at May 19,
2008. This dividend is designated to be an eligible dividend, as provided under
subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart.


TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated
communications company involved in television, the production and distribution
of audiovisual products, and in magazine publishing. TVA Group is one of the
largest private sector producers and the largest private sector broadcaster of
French-language entertainment, information and public affairs programming, and
magazine publishing in North America. TVA also operates SUN TV, a conventional
station in Toronto. The Company's Class B shares are listed on the Toronto Stock
Exchange under the ticker symbol TVA.B.


The unaudited consolidated financial statements with notes and Management's
Discussion and Analysis can be consulted on TVA's Web site at: www.tva.canoe.ca.


Definition of operating income

In its analysis of operating results, the Company defines operating income or
operating loss as earnings (loss) before amortization, financial expenses,
restructuring costs of operations, impairment of intangible assets, gain on
acquisition and disposal of business, (recovery) income taxes, non-controlling
interest and equity in income of companies subject to significant influence.
Operating income or operating loss, as defined above, is not a measure of
results that is consistent with Canadian Generally Accepted Accounting
Principles ("GAAP"). Neither is it intended to be regarded as an alternative to
other financial performance measures or to the statement of cash flows as a
measure of liquidity. This measure is not intended to represent funds available
for debt service, dividend payment, reinvestment or other discretionary uses,
and should not be considered in isolation or as a substitute for other
performance measures prepared in accordance with Canadian GAAP. Operating income
is used by the Company because management believes it is a meaningful
measurement of performance.


This measure is commonly used by senior management and the Board of Directors to
evaluate the consolidated results of the Company and its sector's results.
Measurements such as operating income are also commonly used by the investment
community to analyze and compare the performance of companies in the industries
in which we are engaged. The Company's definition of operating income may not be
identical to similarly titled measures reported by other companies.


Forward-looking Information Disclaimer

The statements in this news release that are not historical facts may be
forward-looking statements and are subject to important known and unknown risks,
uncertainties and assumptions which could cause the Company's actual results for
future periods to differ materially from those set forth in the forward-looking
statements. Forward-looking statements generally can be identified by the use of
the conditional, the use of forward-looking terminology such as "propose,"
"will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee,"
"believe" or the negative of these terms or variations of them or similar
terminology. Certain factors that may cause actual results to differ from
current expectations include seasonality, operational risks (including pricing
actions by competitors), capital investment risks, environmental risks, credit
risks, government regulation risks, governmental assistance risks and general
changes in the economic environment. Investors and others are cautioned that the
foregoing list of factors that may affect future results is not exhaustive and
that undue reliance should not be placed on any forward-looking statements. For
more information on the risks, uncertainties and assumptions that could cause
the Company's actual results to differ from current expectations, please refer
to the Company's public filings available at www.sedar.com and www.tva.canoe.ca
including, in particular, the "Risks and Uncertainties" section of the Company's
Management's Discussion and Analysis for the year ended December 31, 2007.


The forward-looking statements in this news release reflect the Company's
expectations as of May 2, 2008, and are subject to change after this date. The
Company expressly disclaims any obligation or intention to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by the applicable securities laws.




TVA GROUP INC.
Consolidated statements of income
(unaudited)
(in thousands of dollars, except per share amounts)

--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------
Operating revenues                         $106,460          $93,326
Operating, selling and
 administrative expenses                     95,068           90,602
Amortization of fixed assets, intangible
 assets and start-up costs                    3,315            3,188
Financial expenses (note 3)                     717            1,037
Restructuring costs of operations (note 4)        -              980
--------------------------------------------------------------------
--------------------------------------------------------------------

Income (loss) before income taxes,
 non-controlling interest and
 equity in income of companies subject
 to significant influence                    $7,360          $(2,481)
Income taxes (recovery) (note 5)              2,371           (2,219)
Non-controlling interest                       (536)            (778)
Equity in income of companies subject to
 significant influence                         (172)            (420)

--------------------------------------------------------------------
NET INCOME AND COMPREHENSIVE INCOME          $5,697             $936
--------------------------------------------------------------------
--------------------------------------------------------------------

EARNINGS PER SHARE BASIC AND DILUTED
 (note 8 c)                                   $0.21            $0.03
--------------------------------------------------------------------
--------------------------------------------------------------------

See accompanying notes to consolidated financial statements


Consolidated statements of retained earnings
(unaudited)
(in thousands of dollars)

--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------
Balance, at beginning of period             $95,610          $62,631
Net income                                    5,697              936
Dividends paid                               (1,351)          (1,351)
--------------------------------------------------------------------
Balance, at end of period                   $99,956          $62,216
--------------------------------------------------------------------
--------------------------------------------------------------------

See accompanying notes to consolidated financial statements


TVA GROUP INC.
Consolidated balance sheets
(in thousands of dollars)

--------------------------------------------------------------------
--------------------------------------------------------------------
                                     March 31, 2008    Dec. 31, 2007
                                         (unaudited)        (audited)
--------------------------------------------------------------------
ASSETS
Current assets
      Cash                                   $2,202           $3,225
      Accounts receivable                   102,568          107,854
      Current income tax assets               1,456              946
      Investments in televisual
       products and films                    33,992           45,906
      Inventories and prepaid expenses        6,087            5,969
      Future income tax assets                3,823            4,629
--------------------------------------------------------------------
                                            150,128          168,529
Investments in televisual
 products and films                          32,640           27,253
Investments (note 7)                         31,657           31,571
Fixed assets                                 76,511           77,275
Future income tax assets                          -            2,319
Other assets                                  9,416            9,102
Licences and others intangible assets        69,728           69,732
Goodwill                                     71,981           71,981
--------------------------------------------------------------------
                                           $442,061         $457,762
--------------------------------------------------------------------
--------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
      Bank overdraft                         $5,794           $2,435
      Accounts payable and
       accrued liabilities                   70,325           85,812
      Current income tax liabilities          1,719           11,037
      Broadcast and distribution
       rights payable                        24,477           23,054
      Deferred revenue                        6,524            6,613
       Deferred credit                          439              471
--------------------------------------------------------------------
                                            109,278          129,422

Broadcast rights payable                      4,254            3,965
Long-term debt                               59,497           56,333
Future income tax liabilities (note 5)       37,099           39,334
Others long term liabilities (note 7)           146              731
Non-controlling interest and redeemable
 preferred shares                            12,922           13,458
--------------------------------------------------------------------
                                            223,196          243,243
Shareholders' equity
      Capital stock (note 8)                115,137          115,137
      Contributed surplus                     3,772            3,772
      Retained earnings                      99,956           95,610
--------------------------------------------------------------------
                                            218,865          214,519
Contingency and Subsequent Event (note 13)
--------------------------------------------------------------------
                                           $442,061         $457,762
--------------------------------------------------------------------
--------------------------------------------------------------------

See accompanying notes to consolidated financial statements


TVA GROUP INC.
Consolidated statements of cash flows
(unaudited)
(in thousands of dollars)

--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------

CASH FLOWS FROM OPERATING ACTIVITIES
    Net income                               $5,697             $936
    Non-cash items
     Amortization                             3,338            3,209
     Equity in income of companies subject
      to significant influence                 (172)            (420)
     Non-controlling interest                  (536)            (778)
     Future income taxes                        848           (1,338)
     Others                                     (61)            (644)
--------------------------------------------------------------------
    Cash flows provided by
     current operations                       9,114              965
    Net change in non-cash items            (11,949)          12,827
--------------------------------------------------------------------
Cash flows from operating activities         (2,835)          13,792
--------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES
    Additions to fixed assets                (2,471)          (3,498)
    Business acquisition (note 6)                 -           (2,625)
    Deferred charges                           (400)               -
    Changes in investments (note 7)            (489)               -
--------------------------------------------------------------------
Cash flows from investing activities         (3,360)          (6,123)
--------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES
    Bank overdraft                            3,359            5,930
    Increase (decrease) in long-term debt     3,164          (13,278)
    Dividends paid                           (1,351)          (1,351)
--------------------------------------------------------------------
Cash flows from financing activities          5,172           (8,699)
--------------------------------------------------------------------
Net change in cash                           (1,023)          (1,030)
Cash, at beginning of period                  3,225            2,956
--------------------------------------------------------------------
Cash, at end of period                       $2,202           $1,926
--------------------------------------------------------------------
--------------------------------------------------------------------

SUPPLEMENTAL INFORMATION
    Interest paid                              $874            $670
    Income taxes paid (received)             11,359          (2,532)
    Additions to fixed assets financed by
     accounts payable and accrued
     liabilities at end of period            $1,405          $1,068
--------------------------------------------------------------------
--------------------------------------------------------------------

See accompanying notes to consolidated financial statements



TVA GROUP INC.

Notes to consolidated financial statements

Three-month periods ended March 31, 2008 and 2007 (unaudited)

(Amounts presented in the tables are expressed in thousands of dollars, except
per-share and per-option amounts)


1. FINANCIAL STATEMENT PRESENTATION

These consolidated financial statements have been prepared in conformity with
Canadian Generally Accepted Accounting Principles ("GAAP"). With the exception
of the accounting policies presented in Note 2 for the current quarter, the same
accounting policies described in the consolidated financial statements included
in the latest annual report of TVA Group Inc. ("the Company") have been used.
However, these consolidated financial statements do not include all disclosures
required under Canadian GAAP for an annual report and accordingly should be read
in conjunction with the Company's latest annual consolidated financial
statements and the notes thereto.


Some of the Company's businesses experience significant seasonality effects due
to, among other things, seasonal advertising patterns and their influence on
people's viewing, reading and listening habits. Because the Company depends on
the sale of advertising for a significant portion of its revenue, operating
results are also sensitive to prevailing economic conditions, including changes
in local, regional and national economic conditions, particularly as they may
affect advertising expenditures. Accordingly, the results of operations for
interim periods should not necessarily be considered indicative of full-year
results due to the seasonality of certain operations.


2. CHANGES IN ACCOUNTING POLICIES

On January 1, 2008, the Company adopted the Canadian Institute of Chartered
Accountants (CICA) Handbook Section 3031, Inventories which requires that
additional details be provided regarding the determination and recognition of
inventories and the information to be presented. The adoption of this new
section does not have any significant effect on its consolidated financial
statements.


On January 1, 2008, the Company also adopted Sections 3862, Financial
Instruments - Disclosures, 3863, Financial Instruments - Presentation and
Section 1535, Capital Disclosures. The disclosures required by the new standards
are presented  in Note 12.



3. FINANCIAL EXPENSES



--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------
Interest on long-term debt                     $739           $1,176
Dividends on redeemable preferred shares        267              930
Interest revenue on convertible bonds
 issued by an affiliated company               (258)            (900)
Interest revenue                                (52)            (202)
Amortization of deferred financing charges       22               22
Foreign exchange (gain) loss                     (1)              11
--------------------------------------------------------------------

                                               $717           $1,037
--------------------------------------------------------------------
--------------------------------------------------------------------



4. RESTRUCTURING COSTS OF OPERATIONS

During the first quarter of 2007, the Company recorded a provision for
restructuring costs of $980,000. A provision of $219,000 was recorded following
the elimination of positions in the Publishing sector and a provision of
$761,000 was recorded for new litigations relating to the production activities
of its former subsidiary, TVA Acquisition.


5. INCOME TAXES (RECOVERY)

During the first quarter of 2007, in light of the evolution of tax auditing,
jurisprudence and tax legislation, the Company reduced its future tax
liabilities by $1,488,000.


6. BUSINESS ACQUISITION

On January 8, 2007, the Company made the final payment of the purchase price for
the conventional television station in Toronto, SUN TV, including a working
capital adjustment of $2,625,000.


7. INVESTMENT

During the quarter, the Company made an additional capital investment of $
490,000 in the pay-per-view service, Canal Indigo S.E.N.C. in which it already
has a participating interest  of 20 %. The interests of each of the partners
remained unchanged during the quarter. On February 15, the Company concluded an
agreement to acquire the totality of the remaining interests in Canal Indigo
S.E.N.C. for total consideration of $ 105,000. The ratification of this
transaction is conditional upon obtaining CRTC approval of  the licence
transfer.




8. CAPITAL STOCK

a) Number of shares outstanding

---------------------------------------------------------------------
---------------------------------------------------------------------
                               March 31, 2008           Dec. 31, 2007
---------------------------------------------------------------------
Class A common shares               4,320,000               4,320,000
Class B shares                     22,704,848              22,704,848
---------------------------------------------------------------------
                                   27,024,848              27,024,848
---------------------------------------------------------------------
---------------------------------------------------------------------



b) Shares redemption

Substantial issuer bid

On March 31, 2008, the Company filed a substantial issuer bid to redeem up to
2,000,000 of its participating non-voting Class B shares for cancellation at a
fixed price of $ 17.00 per share, represented approximately 8.8 % of all
currently issued and outstanding Class B shares. The offer expires on May 14,
2008, unless extended by the Company.


c) Earnings per share

The following table provides the calculation of basic and diluted earnings per
share:




--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------

Net income                                   $5,697             $936
Weighted average number
 of shares outstanding                   27,024,848       27,024,848
Effect of dilutive stock options              1,343            1,219
--------------------------------------------------------------------
Weighted average number of
 diluted shares outstanding              27,026,191       27,026,067
Basic and diluted earnings per share          $0.21            $0.03
--------------------------------------------------------------------
--------------------------------------------------------------------


9. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS

--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                ended March 31, 2008
--------------------------------------------------------------------
                                  Conventional        Quebecor Media
                                 Class B stock            Inc. stock
                                       options               options
--------------------------------------------------------------------
Balance at beginning                   983,693               328,159
--------------------------------------------------------------------
Exercised                                    -               (68,404)
--------------------------------------------------------------------
Balance as at March 31, 2008           983,693               259,755
--------------------------------------------------------------------
--------------------------------------------------------------------



During the quarter, the Company increased the number of Class B shares that
could be issued under the Class B stock option plan for managers from 1,400,000
to 2,200,000.


Of the options outstanding as at March 31, 2008, 133,761 conventional Class B
stock options at an average exercise price of $19.54 and 2,523 Quebecor Media
Inc. stock options at an average exercise price of $30.47 can be exercised.


10. GUARANTEES

The maximum exposure in respect of the guaranteed portion of the residual values
of certain assets under operating leases to the benefit of the lessor is
approximately $976,000. As at March 31, 2008, the Company did not record any
liability related to these guarantees.


11. PENSION PLANS AND OTHER RETIREMENT BENEFITS

The Company maintains defined benefit and defined contribution pension plans for
its employees. In addition, under an old plan, the Company maintains for certain
retired employees other retirement benefits, such as health, life and dental
insurance plans. Total costs for these benefits are as follows:




--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------

Pension plans
    Defined benefit plans                      $682             $991
    Defined contribution plans                  572              611

Other retirement benefits                       $47              $46
--------------------------------------------------------------------
--------------------------------------------------------------------



12. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT

The Company's risk management policy is established to identify and analyze the
risks faced by the Company, to set appropriate risk limits and controls, and to
monitor risks and adherence to limits.  Risk management policy is reviewed, when
necessary, to reflect changes in market conditions and the Company's activities.


From its use of financial instruments, the Company is exposed to credit risk,
liquidity risk, market risks relating to foreign exchange fluctuations and to
interest rate fluctuations.


i) Fair value of financial instruments

The carrying amount of accounts receivable from external and related parties
(classified as receivables) and accounts payable and accrued charges to external
or related parties (classified as other liabilities) approximates their fair
value since these items will be realized or paid within one year. As at March
31, 2008, the fair value of the long-term debt was equivalent to the book value
because it bears interest at variable rates. The fair value of the convertible
bonds issued by an affiliated company could not be determined because financial
instruments with essentially the same economic characteristics are virtually
impossible to find on the market.


ii) Credit risk management

The Company is exposed to credit losses resulting from defaults by third
parties. In the normal course of business, the Company regularly evaluates the
financial position of its clients and reviews the credit history of each new
client. As at March 31, 2008, no clients had balances representing a significant
portion of the Company's consolidated trade receivables. The Company establishes
an allowance for doubtful accounts in response to the specific credit risk of
its clients. The Company's accounts receivable balance is divided among various
clients, primarily advertising agencies. The Company does not believe that it is
exposed to an unusual or significant level of customer credit risk. The
allowance for doubtful accounts amounted to $4,157,000 as of March 31, 2008 ($
3,578,000 as of December 31, 2007).


iii) Liquidity risk management

Liquidity risk is the risk that the Company will not be able to meet its
financial obligations as they fall due or at excessive cost. The Company ensures
that it has sufficient cash flows from continuing operations and available
sources of financing to meet planned cash requirements for capital investments,
working capital, interest payments, debt repayments, pension plan contributions,
dividends and shares redemption.


The Company has at its disposal a maximum amount of $160,000,000 under a credit
agreement consisting of a revolving-term bank loan bearing interest at floating
rates based on the banker's acceptance rate or Canadian bank prime rate, plus a
variable margin based on the ratio of total debt to operating income (or
earnings before interest, taxes and amortization). The credit agreement matures
on June 15, 2010 and is repayable in full on that date.


vi) Market risk

Market risk is the risk that changes in market prices due to foreign exchange
rates and interest rates will affect the Company's income or the value of its
financial instruments. The objective of market risk management is to mitigate
and control exposures within acceptable parameters.


Foreign currency risk

The Company is exposed to limited foreign currency risk on sales and expenses
that are denominated in a foreign currency other than Canadian dollars due to
the insubstantial volume of such transactions undertaken. The majority of these
transactions are denominated in U.S. dollars, mainly for the acquisition of
certain distribution rights, for capital expenditures and for certain foreign
denominated sales. The Company has determined in view of its limited
transactions denominated in a foreign currency, its limited exposure to foreign
currency risk does not necessitate the use of hedging. Accordingly, the
Company's sensitivity to the variation of foreign currency rates is not
significant.


An increase or a decrease of 1% in the exchange rate of a Canadian dollar into a
U.S. dollar would have an impact on earnings before taxes or capital
expenditures less than $ 100,000 on a yearly basis.


Interest rate risk

The Company is exposed to interest rate risk on its long-term debt because its
financing bears interest at variable rates.


An increase (decrease) of 100 basis points in Canadian banker's acceptances rate
at the reporting date would have increased (decreased) interest expenses by $
595,000 on an annual basis using debt level prevailing as of March 31, 2008.


Considering the low exposure to markets risk, the company does not use
derivative financial instruments. However, the Company regularly reviews its
situation to ensure that its exposure to these risks has not changed.


Capital management

The Company's primary objectives in managing capital are:

- to safeguard the entity's ability to continue as a going concern, so that it
can continue to provide returns for shareholders


- to maintain an optimal capital base in order to support the capital
requirements of is various activities sectors, including growth opportunities
and to maintain investor and creditor confidence.


The Company manages its capital structure in accordance with the characteristics
of the assets of its underlying sectors and according to its planned
requirements. The Company has the ability to manage its capital structure by
issuing new debts or by repaying existing debt with cash generated internally,
by controlling the amounts it returns to shareholders under the dividends or
shares redemption or by issuing capital stock and by making adjustment to its
capital expenditures program. Since the last financial year, the Company has not
changed significantly its strategy regarding the management of its capital
structure.


The capital structure of the Company is composed of shareholder equity, bank
overdraft, long-term debt, non-controlling interest, redeemable preferred shares
at the option of the holder, less cash.


Except for the maintenance of certain financial ratios required in the credit
agreement, the Company is not subject to any others externally imposed capital
requirements.


13. CONTINGENCY AND SUBSEQUENT EVENT

In 2003 and 2004, a number of companies, including TVA Group Inc., brought a
suit against the Crown before the Federal Court, alleging that the Part II
licence fees that broadcasters are required to pay annually constitute, in fact
and in law, taxes, not fees. On December 14, 2006, the Federal Court decreed
that these fees did indeed constitute taxes, that the Canadian Radio-television
and Telecommunications Commission ("CRTC") was to cease collection of such fees,
and ordered that the plaintiff companies would not be entitled to a
reimbursement of the amounts already paid. On October 1, 2007, the CRTC issued a
document, stating that it would adhere to the decision that was rendered and
that it would not collect, in 2007 or in any subsequent years, the Part II
licence fees payable on November 30 of each year unless a Superior Court
reversed the Federal Court decision. The plaintiffs and the defendant both filed
an appeal before the Federal Court of Appeal. The reduction of theses fees in
the operating expenses for the period from September 1, 2006 to March 31, 2008
represents $4,906,000, of which $ 767,000 is for the first quarter of 2008. On
April 29, 2008, the Federal Court of Appeal handed down its decision and
overturned the December 14, 2006 decision of the Federal Court. As a result, the
Company may be required to pay these rights for the year 2007 and in coming
years. However, the CRTC did not publicly state its position on the collection
of the Part II licence fees prior to the date of the Federal Court Appeal
decision. The management is currently examining the decision of the Court of
Appeal in detail and will determine in the coming weeks whether it will launch
an appeal with a higher court.


14.  SEGMENTED INFORMATION

The following table includes information on operating income, as well as
information on assets:




--------------------------------------------------------------------
--------------------------------------------------------------------
                                                 Three-month periods
                                                      ended March 31
--------------------------------------------------------------------
                                               2008             2007
--------------------------------------------------------------------
Operating revenues
Television                                  $83,280          $73,268
Publishing                                   19,261           17,836
Distribution                                  5,049            3,805
Intersegment items                           (1,130)          (1,583)
--------------------------------------------------------------------
                                            106,460           93,326
Operating, selling and
 administrative expenses
Television                                   73,705           69,438
Publishing                                   17,590           16,726
Distribution                                  5,032            6,012
Intersegment items                           (1,259)          (1,574)
--------------------------------------------------------------------
                                             95,068           90,602
Income before amortization, financial
 expenses, restructuring costs of
 operations, income taxes (recovery),
 non-controlling interest and equity in
 income of companies subject to
 significant influence
Television                                    9,575            3,830
Publishing                                    1,671            1,110
Distribution                                     17           (2,207)
Intersegment items                              129               (9)
--------------------------------------------------------------------
                                            $11,392           $2,724
--------------------------------------------------------------------
--------------------------------------------------------------------



The intersegment items mentioned above represent the elimination of normal
course business transactions made between the Company's business segments
regarding revenues, expenses and unrealized profit.




---------------------------------------------------------------------
                             March 31, 2008         December 31, 2007
---------------------------------------------------------------------

Total assets
Television                         $331,977                  $342,500
Publishing                           82,714                    84,237
Distribution                         16,108                    19,763
Unallocated items                    11,262                    11,262
---------------------------------------------------------------------
                                   $442,061                  $457,762
---------------------------------------------------------------------
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