CanWest MediaWorks Income Fund Releases Financial Information for F2005

CanWest MediaWorks Income Fund Releases Financial Information for F2005

TORONTO, Nov. 2 /PRNewswire-FirstCall/ -- CanWest MediaWorks Income Fund (the "Fund") released financial information for the fourth quarter and year ended August 31, 2005 for the Publications Group formerly owned by CanWest MediaWorks Inc. The Publications Group was acquired by CanWest MediaWorks Limited Partnership (the "Limited Partnership"), in which, effective October 13, 2005, the Fund acquired an approximate 26% interest.

The financial information released today pre-dates the actual formation of the Limited Partnership on September 7, 2005. These results do not represent the results that would have been achieved by the Limited Partnership had it been in existence throughout the 2005 fiscal period. The primary differences would have resulted from the reduction of charges for services provided to the Limited Partnership by CanWest MediaWorks Inc., as well as an increase in other administrative costs of the new public company.

On a pro forma basis, estimated based upon the historical results of the Publications Group, the Limited Partnership would have had distributable cash of $205.0 million for F2005, or $0.961 per unit, sufficient to fund the expected annual distributions of $0.925 per unit. Estimated distributable cash was 1% lower than the estimate in the Fund's final prospectus dated October 7, 2005, primarily due to an increase in actual interest rates relative to the rate assumptions used in the final prospectus.

Peter Viner, President and Chief Executive Officer of the Limited Partnership, expressed his satisfaction with the smooth transition of the newspaper and online assets into the new income trust structure. "Results reported today are in line with our expectations and we are confident the Fund will continue to generate more than sufficient cash to meet future distributions."

Revenues for the Publications Group for fiscal 2005 increased by 4% to $1,135.8 million from $1,096.5 million in fiscal 2004. Revenue growth was evenly distributed across classified, national advertising, advertising inserts and online advertising, offset by a small decline in retail advertising. Circulation revenue also increased slightly in fiscal 2005, mainly as a result of price increases.

Normalized EBITDA(1) for the year declined by 3% to $269.1 million from $278.3 million. The decline in normalized EBITDA was, in part, due to $8.0 million in losses associated with the start up of the Limited Partnership's Dose and Metro free commuter publications, one-time items totaling $2.8 million as well as a $1.4 million increase in costs allocated by CanWest MediaWorks Inc. Excluding start-up losses, one-time items and the increase in corporate cost allocations, normalized EBITDA would have grown by 1% or $2.9 million. Results were also affected by increased costs associated with a new executive team put in place October 4, 2004, as well as higher distribution and payroll expenses. Costs associated with the launch of new online initiatives also contributed to the increase.

For the three months ended August 31, 2005, the Publications Group reported revenues of $271.4 million, a 5% increase from revenues of $259.0 million for the same period in F2004. Normalized EBITDA for the fourth quarter of F2005 was $44.9 million compared to normalized EBITDA of $58.1 million for the same period in the prior year. Approximately $9.7 million of the decline in fourth quarter normalized EBITDA was related to the start-up losses, one-time items and increased corporate cost allocations referred to earlier. The remainder was primarily attributable to increased executive, distribution and payroll expenses and costs related to the launch of new online initiatives.

Commenting on the results, Doug Lamb, Executive Vice President and Chief Financial Officer of the Limited Partnership, said, "We are pleased that revenues continued to grow by over 4% for the year and 5% for the fourth quarter and intend to place increased focus on cost control going forward."

This press release contains certain comments or forward looking statements that are based largely upon the Company's current expectations and are subject to certain risks, trends and uncertainties. These factors could cause actual future performance to vary materially from current expectations.

CanWest MediaWorks Income Fund (TSX: CWM.UN; www.cwmincomefund.com) is an unincorporated, open-ended trust that holds an approximate 26% equity interest in CanWest MediaWorks Limited Partnership, which is the largest publisher of newspapers in Canada, as measured by paid circulation, readership and revenue.

The assets within the Limited Partnership comprise ten major metropolitan daily newspapers serving nine Canadian cities; Vancouver Sun, The Province (Vancouver), Ottawa Citizen, The Gazette (Montreal), The Edmonton Journal, Calgary Herald, The Windsor Star, Times-Colonist (Victoria), Leader Post (Regina), Star Phoenix (Saskatoon), Dose, a wholly owned free commuter daily, and a one-third interest in Metro Ottawa and Metro Vancouver, free commuter dailies, together with 23 smaller community daily, weekly and bi-weekly publications. The assets also include online properties canada.com, working.com and driving.ca and related websites.

PUBLICATIONS GROUP
Combined Consolidated Segmented Information
(in thousands of Canadian dollars)

For the three months For the year ended
ended August 31, August 31,
------------------------------------------------
2005 2004 2005 2004
Revenue
Newspapers 264,762 253,544 1,112,874 1,075,776
Interactive 7,594 6,087 26,142 23,073
Intersegment revenue
elimination (988) (585) (3,204) (2,395)
------------ ----------- ----------- -----------
Total revenue 271,368 259,046 1,135,812 1,096,454

Segment Operating Expenses
Newspapers 214,607 194,538 838,849 795,905
Interactive 7,736 5,585 22,671 19,563
Intersegment revenue
elimination (988) (585) (3,204) (2,395)
------------ ----------- ----------- -----------
221,355 199,538 858,316 813,073
Segment Operating Profit
Newspapers 50,155 59,006 274,025 279,871
Interactive (142) 502 3,471 3,510
------------ ----------- ----------- -----------
50,013 59,508 277,496 283,381

Corporate costs
allocated(2) 5,138 2,932 12,431 11,049
Ravelston Management
contract termination - - 12,750 -
------------ ----------- ----------- -----------
EBITDA(3) 44,875 56,576 252,315 272,332
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------
EBITDA 44,875 56,576 252,315 272,332
Addback Ravelston
management expense - 1,500 16,750 6,000
------------ ----------- ----------- -----------
Normalized EBITDA(1) 44,875 58,076 269,065 278,332
------------ ----------- ----------- -----------
------------ ----------- ----------- -----------

(1) Normalized EBITDA is not an earnings measure recognized by GAAP and
does not have a standardized meaning prescribed by GAAP. Normalized
EBITDA may not be comparable to similar measures presented by other
issuers. Normalized EBITDA is equal to net earnings adjusted to
exclude amortization of property, plant and equipment, other
amortization, interest expense, foreign currency exchanges gains and
losses, investment income and income taxes, and the Ravelston
management contract expense. The Ravelston management contract
expense has been added back because this contract has been terminated
and will not form part of EBITDA of the Group on an ongoing basis.
(2) Corporate costs allocated represent the general corporate costs of
CanWest Global allocated to the Publications Group. This allocation
is not representative of the costs that will be charged to CanWest
MediaWorks Limited Partnership ("LP") subsequent to the transfer of
these assets to the LP.
(3) EBITDA is not an earnings measure recognized by GAAP and does not
have a standardized meaning prescribed by GAAP. EBITDA may not be
comparable to measures presented by other issuers. EBITDA is equal to
net earnings adjusted to exclude amortization of property, plant and
equipment, other amortization, interest expense, foreign currency
exchanges gains and losses, investment income and income taxes.

Source: CanWest Media Works Income Fund

CONTACT: Doug Lamb, Executive Vice President and Chief Financial
Officer, CanWest MediaWorks Limited Partnership, Tel: (416) 383-2479, Email:
dlamb@canwest.com

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