868512--4/14/2009--SUN-TIMES_MEDIA_GROUP_INC

related topics
{cost, operation, labor}
{product, market, service}
{stock, price, operating}
{control, financial, internal}
{condition, economic, financial}
{debt, indebtedness, cash}
{system, service, information}
{tax, income, asset}
{financial, litigation, operation}
Competition in the newspaper industry originates from many sources. The advent of new technologies and industry practices, such as the provision of newspaper content on free Internet sites, may continue to result in decreased advertising and circulation revenue. The Company s revenue is dependent upon economic conditions in the Company s target markets and is seasonal. The Company s publications have experienced declines in circulation in the past and may do so in the future. The Company has implemented cost saving strategies that have not and may not result in profitability. The Company may not be able to realize the value of certain investments at their carrying value. The Company s senior management team is required to devote significant attention to matters arising from the Filings and the sale process. The outsourcing of significant business processes may expose the Company to significant financial and customer service risk. Sun-Times Media Group, Inc. is a holding company and relies on its subsidiaries to meet its financial obligations. The Company s internal control over financial reporting is not effective as of December 31, 2008 and weaknesses in the Company s internal controls and procedures could have a material adverse effect on the Company. The Company may experience labor disputes, which could slow down or halt production or distribution of the Company s newspapers or other publications. Newsprint represents the Company s single largest raw material expense and changes in the price of newsprint could affect net income.

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