Three years to the day after its launch, Videotron's cable telephone service
continues to register exponential growth, logging a record increase in 2007.
Meanwhile, all other Videotron products also recorded strong subscriber growth
(see p. 2).


At year end, there were more than 636,000 residential and business subscribers
to Videotron cable telephone service, a year-over-year increase of 238,500 or
60%. In 2006, there was a net increase of nearly 235,000 in the number of
consumers who opted for the advantageous alternative, deciding to say goodbye to
long-distance charges on calls between Videotron subscribers. Between October 1
and December 31, 2007, 62,500 Quebec households chose Videotron cable telephone
service, compared with 53,700 in the same period of 2006.


Real competition

"We are very proud of the resounding success of our cable telephone service over
the last three years," said Robert Depatie, President and Chief Executive
Officer of Videotron. "When we introduced this alternative at the beginning of
2005, we became the first company to create real competition in the both the
local and long-distance markets. The result was a decrease in prices that
significantly benefited consumers."


Videotron's cable telephone service was initially launched on Montreal's South
Shore and then gradually rolled out to Videotron's entire service area. In 2006,
Videotron Business Solutions introduced its cable telephone service for small
businesses with 1 or 2 lines. Last December, it enhanced the product by
introducing a 4-line service.


New applications

The year 2007 also saw the roll-out of new applications for the fast-changing
digital telephony market. In the fall, Videotron launched its soft phone, which
makes it easier for customers to manage their calls and all their
communications. Video phone functionality will be added in the near future.


A popular, leading-edge product

"Even after the deregulation of the local telephony market ordered by regulatory
authorities, the popularity of Videotron's cable telephone service did not wane
- on the contrary," said Mr. Depatie. "It is an indication that we have a
functional product and a highly reliable, robust network that delivers the
goods." According to a Leger Marketing survey conducted in September 2007, the
customer satisfaction rate with the service is 95%.


"The success of all our services in 2007 shows that Quebecers recognize our
commitment to deliver the best possible customer experience, day after day."


Success on all fronts

All of Videotron products - cable telephone service, digital television,
Internet access and wireless telephone service - recorded strong growth in 2007.


As of December 31, 2007, Videotron's cable television service had 1,638,000
customers, a year-over-year increase of 65,700 (including an increase of 21,800
in the fourth quarter). The customer base for illico Digital TV grew by 47,900
in the fourth quarter of 2007 alone, bringing the total to 768,000, for an
annual increase of 144,500 or 23%. In 2006, the number of illico subscribers
increased by 38,400 during the fourth quarter and 149,000 for the entire year.


At the end of 2007, Videotron's cable Internet access services had 933,000
customers, a net increase of 34,000 in the fourth quarter alone, compared with
37,500 in the same quarter of 2006. Over the year 2007, the subscriber base for
the fastest and most reliable Internet access service available grew by more
than 141,000, for an annual increase of 18%, compared with 154,000 in 2006.


Videotron had activated 45,700 phones on its wireless telephone service as of
the end of the fourth quarter, a quarter-over-quarter increase of 7,000 and a
year-over-year increase of 33,900.


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, 2007, Videotron was serving 1,638,000
cable television customers in Quebec, including 768,000 illico subscribers.
Videotron is the Quebec leader in high-speed Internet access, with 933,000
subscribers to its cable modem service. As of December 31, 2007, Videotron had
activated 45,700 phones on its wireless telephone service and was providing
cable telephone service to nearly 636,000 Quebec households and organizations.


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