Ms. Isabelle Marcoux reports

TC TRANSCONTINENTAL COMPLETES SALE OF ITS PACKAGING BUSINESS TO PROAMPAC HOLDINGS INC.

Transcontinental Inc. has completed the previously announced sale of its packaging business to ProAmpac Holdings Inc. for cash proceeds of $2.1-billion (1).

"The closing of the sale of our packaging business represents a key milestone for TC Transcontinental," said Isabelle Marcoux, executive chair of the board. "I want to thank all our packaging employees for their dedication and engagement in building this business for over a decade. This transaction will allow us to focus our resources on our retail services and printing and educational publishing activities."

The corporation expects to distribute approximately $20 per share to shareholders, through: (i) a reduction of stated capital of approximately $7 per Class A share; and (ii) a cash dividend distribution for the balance of the expected distribution. Any capital reduction is subject to shareholder approval. More information regarding the distribution will be provided on March 10, 2026, following the release of the results for the first quarter of fiscal 2026 and the annual and special meeting of shareholders.

(1) Converted at an exchange rate of $1.37 (Canadian) to $1 (U.S.).

About TC Transcontinental Inc.

Founded 50 years ago and 4,000 employees strong, Transcontinental, known under the TC Transcontinental brand, is a Canadian retail marketing services company, Canada's largest printer and the Canadian leader in French-language educational publishing. Driven by the vision of a more informed, educated and prosperous society, TC Transcontinental propels its clients' success across the retail, education, book and information industries. With agility, creativity and boldness, the company designs and delivers innovative, high-value products and services.

The corporation's revenues from continuing operations were $1.1-billion for the fiscal year ended Oct. 26, 2025. Until the sale of its packaging sector to ProAmpac, which was completed on March 6, 2026, the corporation was also a North American leader in flexible packaging with approximately 3,600 employees and revenues from the corporation's discontinued operations were $1.6-billion for the fiscal year ended Oct. 26, 2025.

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