The Company is involved in a dynamic industry that continues to offer both opportunities and challenges. As the regulatory, technological and economic environments change, the Company has the opportunity to grow organically and to expand through the launching of new services and through acquisitions. At the same time, the Company is facing increased competition and economic pressures in all its businesses. Nevertheless, the fundamental factors underlying the Company's businesses remain positive.

The Television segment is looking forward to an increase in earnings in Fiscal 2007 principally generated by increasing advertising revenues and by the growth of its subscriber bases, both resulting from the popularity and favourable ratings of its networks. The pay-television networks will continue to offer exclusive top-rated programming such as HBO's famous series The Sopranos, Rome, Entourage and Curb your Enthusiasm to name a few. Also, Astral's ongoing commitment to audience research means that it will continue to deliver made-to-measure programming on its specialty networks in Fiscal 2007. At the same time, investments made in technologies such as subscription-video-on-demand ("SVOD") and high-definition television ("HDTV") will continue to provide added value to viewers and help attract and retain subscribers to its networks. Reinforcing its position as a leader in broadcast technology, in Fiscal 2007 the Company will offer consumers high-definition ("HD") content on TMN, MPix, Super Écran and a variety of its French-language specialty networks. The new HD offering, along with the integration of new media advertising opportunities into its television campaigns, and the additional advertising revenue stream from VRAK.TV, will contribute to Television's earnings growth in Fiscal 2007.

The Radio group expects to grow its earnings in Fiscal 2007 through advertising sales growth derived from strong ratings and popular programming, and through productivity gains. In Fiscal 2007, the Company will face increasing competition in the province of Québec and in the Atlantic provinces following the granting of new licences and a changing competitive landscape. The impact of these factors is expected to be mitigated by the benefits derived from the Radio group's high quality programming, as well as by maximizing advertising inventories and by improving production, on-air and administrative processes which will allow the Radio group to maintain its profit margin. The Radio group will also explore the development of multi-platform content in order to create new sources of revenue, particularly from the synergy between radio and the Internet.

Astral Media Outdoor will focus on activities that are expected to have a favourable impact on revenue and earnings in Fiscal 2007: strategic and disciplined inventory management, excellent client service and product innovation. In addition, Astral Media Outdoor is aiming to expand its airport electronic and TV networks to other Canadian airports. Astral's creativity and ownership of some of the industry's most innovative structures will remain its key differentiation points for the coming year.

The Corporate stock-based compensation expense is expected to increase by approximately $0.7 million to a total of approximately $6.0 million in Fiscal 2007.

Following the dividend increase and the renewal of its normal course issuer bid announced in December 2005, the Company intends to again review its cash usage strategies in Fiscal 2007.