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Gateway Newstands Deal With TTC Far Superior to International Bid

TORONTO, ONTARIO -- (Marketwire) -- 01/31/13 -- Gateway Newstands, the largest operator of newstands in North America, today reiterated the superiority of its agreement to harmonize and extend its lease agreements for newstands, lotteries, cafes and bakeries with the Toronto Transit Commission (TTC) over a late, unsolicited bid from International News.

"Our deal is better in every way - and provides greater revenue to the TTC," said Michael Aychental, CEO of Gateway Newstands.

Aychental pointed out that the Gateway agreement actually amounts to $48.1-million, when an additional $6.4-million in cleaning costs, arranged by Gateway and paid by its suppliers directly to the TTC, is factored into the comparison.

The International bid in fact amounts to $42.87-million, when lost rental revenue to the TTC - due to transitional and construction costs that International would have to incur - is taken into account.

"In every respect," said Aychental, "the Gateway bid is far superior."

Aychental referred to a chart, which categorizes the major elements of the agreement, and compares Gateway's proven credibility with International's promises.

"The proof is there," said Aychental, "in black and white."

Gateway Newstands is the largest operator of newstands in North America, with more than 500 stores in transit - including subways, bus stations, train stations, other transit venues, office towers, shopping centres, hospitals, and other institutional venues. Where we are located, we pride ourselves on being a trusted and reliable partner.

GATEWAY REFUTES TRUE VALUE OF INTERNATIONAL OFFER


----------------------------------------------------------------------------
CATEGORY         GATEWAY                       INTERNATIONAL                
----------------------------------------------------------------------------
Newstand Revenue $48.1 Million                 $46.2 Million                
                                                                            
                                                                            
                ------------------------------------------------------------
                                                                            
Breakdown        Rent: $39.2 Million           Unknown                      
                 Signing Bonus: $1.5 Million                                
                 Capital Improvements: $1.0                                 
                 Million                                                    
                 Contribution to Cleaning:                                  
                 $6.4 Million                                               
                                                                            
----------------------------------------------------------------------------
Lost Revenue     No Lost Revenue               $1.3 Million-Loss of         
                                               2013/2014 Rent Revenue       
                                               Increase                     
                                               $2.0 Million TTC Staff       
                                               Estimate for conversion      
                                              ------------------------------
                                               $3.3 Million Lost Revenue    
                                                                            
----------------------------------------------------------------------------
TOTAL REVENUE    $48.1 Million                 $42.9 Million                
                                                                            
----------------------------------------------------------------------------
For TTC          Continued service-No          Minimum two years for        
 Customers       inconvenience                 permitting, design, approval 
                                               and construction - plenty of 
                                               inconvenience                
----------------------------------------------------------------------------
Experience       30 year old company with more 4 newstands in Vancouver Sky 
                 than 100 stores in the TTC,   Train System; 2 in Chicago   
                 Go Transit, OC Transpo, VIA   Transit Authority            
                 Rail and Chicago Transit                                   
                 Authority--more than 500                                   
                 stores throughout North                                    
                 America                                                    
                                                                            
----------------------------------------------------------------------------
Continued        Guarantees that all 65        No such Program              
 Service         outlets in the TTC will                                    
                 remain open, supported                                     
                 through volume rebate program                              
                                                                            
----------------------------------------------------------------------------

Contacts:
Media Contact:
Noah Aychental
416-571-1253

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