Yellow Media Limited Reports Second-Quarter 2013 Financial Results $Y $Y.CA $Y.cn

1 Yellow Media Limited Reports Second-Quarter 2013 Financial Results • Company reports Q2 2013 basic net earnings per share of $1.81 and free cash flow of $68.5 million • Continued progress on Yellow Media Limited’s digital transformation, with digital revenues growing 10% year-over-year and representing 40% of total revenues • Company expands its dedicated advertiser acquisition strategy to increase valuable advertiser leads and conversions • Company makes a $26 million debt repayment, reducing net debt to $664 million Montreal (Quebec), August 8, 2013 — Yellow Media Limited (TSX: Y) (the “Company”) released its operational and financial results today for the second quarter ended June 30, 2013. The Company continues to invest in its digital transformation, and remains focused on becoming the leading digital media and marketing solutions provider for small and medium sized businesses nationwide. Revenues for the second quarter ended June 30, 2013 were $243.2 million compared to $286.5 million for the second quarter in 2012. The 15.1% decline is due principally to lower print revenues and the discontinuation of duplicate directories published by Canpages. On a comparable basis, excluding Canpages, revenues decreased by 11.2% versus last year’s results. Digital revenues for the second quarter of 2013 grew to $98.4 million compared to $89.7 million the year prior, representing growth of 9.7%. On a comparable basis, excluding Canpages, digital revenues grew 12.8% versus the same period last year. Digital revenues represented approximately 40.5% of total revenues during the second quarter of 2013, compared to 31.3% for the same period in 2012. Digital revenue growth is currently unable to offset print revenue declines. This is principally due to a decline in the acquisition of valuable advertisers, and challenges associated with migrating print revenues from larger advertisers towards digital products. EBITDA declined to $107.2 million during the second quarter of 2013, as compared to $144.9 million last year. This decline is due to continued print revenue pressure and a lower EBITDA margin. The EBITDA margin declined from 50.6% in the second quarter of 2012 to 44.1% in 2013, and continues to be impacted by investments required to advance the Company’s digital transformation and product mix changes. Free cash flow for the second quarter of 2013 declined to $68.5 million compared to $96.2 million last year, mainly due to lower EBITDA. The Company continues to generate adequate free cash flow to service its financial obligations and invest in its digital transformation. For the quarter ending June 30, 2013, the Company recorded net earnings of $50.3 million compared to $65.7 million last year. The decrease is due primarily to lower EBITDA and a higher provision for income taxes, partly offset by lower financial charges and a lower depreciation and amortization expense. The provision for income taxes in 2012 was lower compared to 2013 due to the impact of the impairment of goodwill. 2 For the quarter ending June 30, 2013, the Company recorded basic net earnings per share of $1.81, which compares to basic net earnings per share of $2.15 the year prior. Delivering Value to Advertisers through the Yellow Pages 360° Solution The Yellow PagesTM 360° Solution is the most comprehensive full-serve digital and traditional media and marketing solution in Canada. Backed by a national team of marketing experts, the Yellow Pages 360° Solution helps advertisers generate valuable business leads through online, mobile and print media advertising, website services, customized search engine marketing and search engine optimization, and performance reporting tools. As at June 30, 2013, the penetration of our 360º Solution offering among our advertiser base, which we define as advertisers who purchase three product categories or more, grew to 21.1%. This compares to 11.2% at the end of the same period last year. Online priority placement is the Company’s highest penetrated digital offering. Online priority placement penetration increased to 40% as at June 30, 2013, compared to 28% last year. Mobile priority placement and digital services (which includes websites and search engine solutions) are the fastest growing components of the Yellow Pages 360º Solution. Advertiser penetration of mobile priority placement and digital services each grew from 5% last year to 10% and 8%, respectively, as at June 30, 2013. Increased advertiser penetration across online priority placement products, mobile priority placement products and digital services is due to the continued migration of print revenues towards digital products and services, the successful execution of the Yellow Pages 360o Solution sales approach across our sales channels, and the introduction of mobile and premium digital products throughout 2012. Growing the Acquisition of Valuable Advertisers The Company had 291,000 advertisers as at June 30, 2013. This compares to 326,000 advertisers, excluding Canpages, at the same period last year. Over the last twelve months, the advertiser renewal rate fell slightly from 87% last year to 85% for the period ending June 30, 2013. Advertiser acquisition declined from approximately 20,000 last year to 12,400 for the twelve month period ending June 30, 2013. “Our advertiser renewal rate remains among the strongest in the industry, however, we are working to address challenges in advertiser acquisition. We’ve implemented effective strategies to attract and retain valuable advertisers, as well as help small businesses better understand the importance of digital marketing in today’s multi-channel society,” said Marc P. Tellier, President and Chief Executive Officer of Yellow Media. The Company recently expanded its dedicated advertiser acquisition strategy to increase the number of valuable advertisers and protect its revenue base. The Company’s acquisition strategy is centered on increasing advertiser leads and conversions through the following key initiatives: 3 • Inbound: The Company is investing in traditional and digital advertising campaigns to raise advertiser awareness around YPG’s products and services and increase traffic towards its Yellow Pages 360º Solution business-to-business website. An inbound call center was also established to support all incoming leads. • Outbound: An outbound call center was created to target prospective, smallerspend advertisers. • Face-to-Face Network: A face-to-face network of over 100 media account consultants was established to service larger-spend advertisers. The Company also launched two new entry-level product packages designed exclusively to help new, prospective advertisers gain a media presence. These include Business Builder Bundle and Booster Packs, two fully-integrated media solutions which allow new advertisers to boost ROI through the development of content-rich virtual business profiles, priority placement across YPG’s network of digital properties and access to print media products. Differentiated Offering for Larger, High-Spend Advertisers In order to support retention efforts, increase loyalty and optimize revenue growth from larger advertisers, the Company established the PriorityPlus program in early 2012. PriorityPlus offers a more attentive and specialized service by providing high-spend advertisers with dedicated account teams, a thorough evaluation of account needs and opportunities, and effective execution of their digital and traditional marketing strategy. The Company also offers larger, high-spend advertisers a suite of premium products designed to optimize their digital and traditional media presence. PriorityPlus is now deployed across Canada and is made up of approximately 230 managers and media account consultants. Results to date remain positive as the number of advertisers receiving the PriorityPlus service and purchasing high-end products continues to increase. Enhancing the User Experience Improving the user experience and building valuable traffic towards our network of digital properties is key in promoting the success of our advertisers. Our online properties reached 8.7 million unduplicated unique visitors during the second quarter of 2013, representing 31% of Canada’s online population. Total mobile downloads exceeded 5.9 million by the end of the second quarter of 2013, as compared to 4.3 million downloads at the same period last year. During the quarter, the Yellow Pages application was also highlighted by the Apple Store as one of the top 25 most downloaded applications of all time. During the second quarter of 2013, the Company developed a new search algorithm designed to optimize user performance on YellowPages.ca (online and mobile) and promote merchant ROI. The new algorithm provides more user-relevant search results, as results are now dependant on features such as proximity of location, business content, popularity, quality of reviews, etc. YellowPages.ca is now also equipped with an enhanced auto-complete service, which allows for quicker results and reduced failed searches.

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