Sun-Times Media Group Inc – ‘8-K’ for 10/8/04 – EX-99

On:  Friday, 10/8/04, at 5:27pm ET   ·   For:  10/8/04   ·   Accession #:  950142-4-3496   ·   File #:  1-14164

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                         5     16K 
 2: EX-99       Exhibit 99.1                                           2     12K 

EX-99   —   Exhibit 99.1

EX-99
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                                                                    EXHIBIT 99.1
                                                                    ------------

P R E S S   R E L E A S E                                                       

 HOLLINGER INTERNATIONAL MAKES STATEMENT
ON TODAY'S RULING IN U.S. DISTRICT COURT IN ILLINOIS

 -- DOES NOT DETER PLANS OF SPECIAL COMMITTEE TO AGGRESSIVELY PURSUE
ITS CLAIMS; RULING TODAY IS TECHNICAL AND UNRELATED TO MERIT OF CLAIMS -- 

--------------------------------------------------------------------------------

CHICAGO, IL, OCTOBER 8, 2004 - Hollinger International Inc. (HLR: NYSE) (the    
"Company") announced today that a federal judge has dismissed, on technical     
grounds, its federal racketeering and state law breach of fiduciary duty claims 
against Hollinger Inc., Conrad Black, David Radler and others ("the Defendants")
in the U.S. District Court for the Northern District of Illinois ("the Court"). 
Judge Blanche Manning ruled that the RICO claims are barred by section 1964(c)  
of the statute, which provides that "no person may rely upon any conduct that   
would have been actionable as fraud in the purchase of securities to establish" 
a RICO claim. In rendering her opinion, Judge Manning ruled: "In holding that   
section 1964(c) precludes International's RICO claims, this Court is not making 
any determination as to validity of the fraudulent actions underlying these     
claims. This decision simply holds that the claims are "actionable" as          
securities fraud." Judge Manning ruled, however, that the Company has the right 
to pursue its state law breach of fiduciary duty claims, dismissing them        
"without prejudice."                                                            

The Company said that its claims against the Defendants for their clear and     
repeated breaches of fiduciary duty to the Company will be pursued vigorously by
the Special Committee of the Board of Directors ("the Special Committee"). The  
Special Committee will review its various alternatives for pursuing these       
claims, including a possible appeal of the Court's dismissal of the Company's   
claims under the Racketeering Influenced and Corrupt Organizations Act, 18      
U.S.C. 1962 and 1964 ("RICO"). Judge Manning has set a conference for October   
14, 2004 for the Company to advise the Court as to how the Special Committee    
proposes to proceed in pursuing it claims.                                      

Gordon A. Paris, Interim Chairman, President and Chief Executive Officer of the 
Company, and Chairman of the Special Committee, said: "The Court's dismissal of 
the Special Committee's claims on technical grounds does not in any way diminish
the strength or merits of the breach of fiduciary duty claims that have been    
asserted against these Defendants. In the interest of the Company and its       
shareholders, the Special Committee will pursue these claims aggressively and   
seek restitution for funds diverted by the Defendants from the Company."        

The Special Committee was created to investigate allegations raised by certain  
of the Company's shareholders and any other matters uncovered in the course of  
its work. Consistent with the terms of the Consent Judgment entered into by the 
Company and the U.S. Securities and Exchange Commission earlier this year, the  
Special Committee filed with the Court on August 30, 2004 its Report of the     
findings of its investigation. The 513-page Report chronicles the methods by    
which certain directors and former directors                                    

EX-99
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and officers as well as the Company's controlling shareholder and its affiliated
companies transferred more than $400 million to themselves over the past seven  
years.                                                                          

Hollinger International Inc. is a newspaper publisher with English-language     
newspapers in North America, Israel and Canada. Its assets include THE CHICAGO  
SUN-TIMES and a large number of community newspapers in the Chicago area, THE   
JERUSALEM POST and THE INTERNATIONAL JERUSALEM POST in Israel, several local    
newspapers in Canada, a portfolio of new media investments, and a variety of    
other assets.                                                                   

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," "IS SUBJECT TO," 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.                   

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CONTACTS:                                                                       

US/CANADA MEDIA                                                                 
Molly Morse                                                                     
Kekst and Company                                                               
212-521-4826                                                                    
molly-morse@kekst.com                                                           

UK MEDIA                                                                        
Jeremy Fielding                                                                 
Kekst and Company                                                               
jeremy-fielding@kekst.com                                                       
1-212-521-4825                                                                  

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘8-K’ Filing		Date		First		Last			Other Filings
		10/14/04		1
Filed on / For Period End:		10/8/04		1
		8/30/04		1					8-K,  8-K/A
									List all Filings