HLR Hollinger Intl CL A

NEW YORK, May 17 /PRNewswire-FirstCall/ -- Hollinger International Inc. ("the Company") (NYSE:HLR) today announced that it has entered into an agreement with Industry Ventures Fund IV, L.P. and Industry Ventures Acquisition Fund, L.P. providing for the sale by the Company of its interest in certain portfolio investments, and has consummated an initial closing of the sale transactions. The Company received $8.15 million for the sale of Hollinger Digital LLC, and anticipates receiving up to an additional $1.85 million under the agreement, subject to the receipt of third party approvals and other closing conditions. The Company may receive up to an additional $1.0 million in the future if certain conditions are satisfied. The investments being sold by the Company span a number of industries, with a concentration in the technology sector. Because of write-downs for accounting purposes in prior years, the transaction will have an immaterial impact on reported income before taxes. For income tax purposes, upon the consummation of the related transactions, the Company expects to realize a benefit of approximately $10 million. The Company also announced that it will be utilizing the proceeds from this transaction, in combination with approximately $10.0 million from recently exercised stock options, to repurchase shares of the Company's common stock, as market conditions warrant, in open market and private transactions. These purchases are in addition to purchases made pursuant to the Company's recently completed $50.0 million stock repurchase program. Hollinger International Inc. (http://www.hollingerinternational.com/) is a newspaper publisher whose assets include The Chicago Sun-Times and a large number of community newspapers in the Chicago area. Cautionary Statement on Forward-Looking Statements. Certain statements made in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward- looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result" or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by Hollinger International with the Securities and Exchange Commission, including in its Forms 10-K and 10-Q. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company ' s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward- looking statements as a prediction of actual results. Contacts: Molly Morse / Jeremy Fielding Kekst and Company 212-521-4826/4825 / DATASOURCE: Hollinger International Inc. CONTACT: Molly Morse, +1-212-521-4826, , or Jeremy Fielding, +1-212-521-4825, , both of Kekst and Company for Hollinger International Inc. Web site: http://www.hollingerinternational.com/

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