FP Newspapers Inc. Announces Employee Ratification of New Five Year Winnipeg Collective Bargaining Agreement

WINNIPEG, MANITOBA–(Marketwired – Apr 15, 2013) –
FP Newspapers Inc. (TSX:FP) today announced that
at a meeting held yesterday, unionized employees and contracted
delivery carriers of the Winnipeg Free Press and unionized
employees of Canstar Community News voted in favour of accepting a
new five year collective bargaining agreement to take effect on the
expiration of the existing contract on June 30, 2013. The new
agreement includes wage increases of 0.5% on July 1st in each year
from 2014 through 2016, with a further 1.5% increase effective July
1, 2017 and increased employee contributions to the defined benefit
pension plan. Employees hired after June 30, 2013 will be at
reduced salary levels and eligible to join a multi-employer pension
plan with a fixed company contribution.

“We’re pleased we were able to reach an agreement in advance of
the expiration of the current contract,” said Bob Cox, Publisher of
the Winnipeg Free Press. “These new agreements help build a
stronger foundation for our newspapers as they continue to
transform. We would like to thank the bargaining committee of the
Communications, Energy and Paperworkers Union for working with
management to structure our collective agreements so that they
protect the interests of employees while recognizing that the
newspaper industry is changing rapidly,” said Mr. Cox.

“We appreciate the collaborative efforts demonstrated by both
the union bargaining committee and the senior management team in
reaching this agreement,” said FP Chairman Ronald Stern. “While the
business and industry will continue to face challenging times, the
ratification of this new contract shows the desire and ability of
everyone to work together to seek out ways to adapt and change to
best face these challenges,” said Mr. Stern.

The collective agreement covering the unionized employees at the
Brandon Sun expires on December 31, 2013. Negotiations for the
renewal of that contract will start over the next few months.

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 six community newspapers in the Winnipeg region, The
Carillon in Steinbach with its related commercial printing
operations, and the Carberry News Express weekly publication. 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 111,200 copies. On Sundays the Winnipeg Free Press
publishes a newspaper sold through single-copy retail outlets and
vending boxes. The Brandon Sun publishes six days a week, serving
the region with an average circulation of approximately 12,475
copies. Canstar Community News publishes weekly with an average
circulation of approximately 200,000 copies. The businesses employ
approximately 540 people in Winnipeg, Brandon, Steinbach and
Carberry Manitoba. Further information can be found at
www.fpnewspapers.com,
and in the disclosure documents filed by FP Newspapers Inc. with
the securities regulatory authorities, available at
www.sedar.com.

FP Newspapers Inc.

Daniel Koshowski

CFO

(204) 697-7425

(204) 632-0281

www.fpnewspapers.com

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