In August 2005 and subsequently, the Canadian Radio-television and Telecommunications Commission ("CRTC") granted Astral six French-language and three English-language Category 2 digital specialty network licences. Astral is aiming to launch these networks as market conditions permit.

The CRTC held hearings in October 2005, regarding five general-purpose digital pay-TV applications. On May 18, 2006, the CRTC issued its decision, licensing a new national, general interest pay-television service in the English market. Until this new competitive pay-television service is launched, the Company cannot estimate any potential impact on its financial results.

In May 2006, the CRTC held a public hearing to review its commercial radio policy in view of the major changes that have occurred in the sector since the current policy was adopted in 1998. Several stakeholders have filed submissions and appeared before the CRTC to propose policy changes in order to develop a revised commercial radio policy suitable for the current environment. Amongst other recommendations, the Company has proposed additional content flexibility for French-language radio stations in order to counter the migration of French-speaking listeners to English-language radio stations and to help face the growing competition for listeners and for revenues arising from new forms of unregulated audio services and consumer technologies such as Internet radio, satellite radio, cell phone radio, iPods and other forms of podcasting. It is expected that the CRTC will issue its revised policy towards the end of calendar year 2006. The Company cannot estimate the potential impact of any policy revisions on its financial results until they are published and their content reviewed.

On July 13, 2006, Astral and Corus entered into an agreement to acquire an additional 20% ownership interest in TELETOON for a total cash consideration of approximately $96.0 million. The acquisition, which increases their respective direct and indirect ownership interest in TELETOON to 50%, was approved by the CRTC on August 28, 2006 and was recorded using the purchase method upon its closing on October 23, 2006.

On August 18, 2006, the CRTC renewed VRAK.TV's broadcast licence. In its decision, the CRTC approved VRAK.TV's application to broadcast advertising, except during programming that targets preschool children (0 to 5 years of age). The CRTC also approved VRAK.TV's application to broaden its target audience and programming scope to include adolescents from 15 to 17 years of age. VRAK.TV's licence was renewed until August 2013.

DISCONTINUED OPERATIONS AND ASSETS HELD FOR DISPOSAL
The activities or transactions treated as discontinued operations and their related financial results are presented in note 4 of the audited consolidated financial statements.