May 10, 2007

Please note that effective July 13, 2007, Jean-Baptiste Morin will leave the position of President & CEO of HDS Retail North America and Chairman of Hachette Distribution Services (Canada) Inc. He will be returning to Europe to serve in a Senior Executive role with the HDS Group.

During his tenure in North America, Jean-Baptiste Morin has spearheaded numerous initiatives to make the company more competitive and the organization more efficient. Thanks to his leadership, HDS Retail is better than ever aligned to be the North American retailer of preference for people in motion, offering excellence in retailer services with proudly engaged teams.

We wish to thank Jean-Baptiste Morin for his leadership and considerable contribution to the company's success in the last three years.

As of July 14, 2007, Gerry Savaria will be taking over his responsibilities.

Currently Executive Vice President of Business Development, Gerry is an HDS veteran well into his seventeenth year with the Group. He joined HDS Retail in 1997 as Vice President for Press, and was then promoted to the position of EVP, Press & Books Merchandising in 2000 when HDS merged its two retail operations in the United States and Canada. His focus changed in 2004 when he took over the Business Development function and has since successfully landed the company new airport contracts and lease extensions. Prior to joining HDS Retail, Gerry worked as Sales Director for LMPI, a leading magazine importer and distributor based in Montreal and HDS Retail's sister company.

Gerry's experience, his knowledge of the industry as well as his leadership will enable the company's continued growth and the sustained development of successful relationships with our business partners.

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