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## 16. COMMITMENTS AND CONTINGENCIES 

The company is involved in various legal actions, primarily in the Newspaper Segment, which arise in the ordinary course of business. While the final outcome of these matters cannot be predicted with certainty, any liability that may arise from such contingencies is not expected to have a material adverse effect on the financial position or results of operations of the company The company has operating lease commitments of approximately $12 million for each of the next five years. 

## 17. COMPARATIVE FINANCIAL STATEMENTS 

The comparative financial statements have been reclassified from statements previously presented to conform to the presentation of the 2004 financial statements. 

## 18. SEGMENTED INFORMATION 

The company operates two business segments: Newspapers and Book Publishing, which are described below. Newspapers – Publishing of daily and community newspapers including the Toronto Star, The Hamilton Spectator, The Record (Kitchener, Cambridge and Waterloo) and Metroland’s publications. This segment also includes the related internet businesses of the newspapers; 

Book Publishing – Publishing and distribution of women ’s fiction through retail outlets, by direct mail and through the Internet. Segment profit or loss has been defined as operating profit which corresponds to operating profit as presented in the Consolidated Statements of Income. 

Summary of Business and Geographic Segments of the Company: 

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(a) Principally – United Kingdom, Japan, Germany Australia, Italy and France. 

