corporate structure pursuant to a plan of arrangement. Under the plan of arrangement, Unitholders of the Fund received, for each unit of the Fund held, one common share of the resulting public corporation, FPI.

The dividend policy of FPI is to issue dividends in approximately equal monthly amounts based on expected operating results for each fiscal year. Dividend levels are reviewed regularly by the Board of Directors and are subject to change based on a number of factors including the overall operating results and capital requirements of FPLP and the satisfaction of solvency tests imposed by corporate law for the declaration and payment of dividends, and other conditions existing from time to time.

FPI owns securities entitling it to 49% of the distributable cash of FP Canadian Newspapers Limited Partnership ("FPLP"). FPLP owns the Winnipeg Free Press, the Brandon Sun, and their related businesses, as well as the Canstar Community News division, the publisher of eight community and special interest newspapers in the Winnipeg region and The Carillon in Steinbach with its related commercial printing operations.

The Winnipeg Free Press publishes six days a week for delivery to subscribers and single copy sales, serving Winnipeg and Manitoba with an average Monday through Saturday circulation of approximately 123,300 copies. On Sundays the Winnipeg Free Press publishes a newspaper sold through single-copy retail outlets and vending boxes. The Brandon Sun publishes seven days a week, serving the region with an average circulation of approximately 15,000 copies. Canstar Community News publishes weekly with an average circulation of approximately 200,000 copies. Based in Winnipeg, the businesses employ approximately 570 people in Winnipeg and Brandon.