Look Communications reports record profit for the third quarter 2009

Key to the quarter was the sale of the Corporation's spectrum and
broadcast licence to Inukshuk Wireless Partnership ("Inukshuk") (through joint
partners Rogers Communications and Bell Canada ("Bell")) for $80 million cash,
announced on May 5, 2009 (the "Agreement"). The sale contributed to the
Corporation recording its largest quarterly profit in its history and has
resulted in Look beginning the orderly restructuring of its operations.
Under the terms of the Agreement Inukshuk made a non-refundable $30
million payment to Look on May 14, 2009 following Court approval of the
transaction. The remaining $50 million will be paid upon the earlier of
regulatory approval of the transfer of the spectrum and broadcast license or
in two instalments, the first being a non-refundable $20 million payment due
no later than December 31, 2009 and, the second, a final payment of $30
million due no later than May 14, 2012.
The Corporation has been told by Inukshuk that Inukshuk intends to
complete the Agreement as soon as possible, though the spectrum will not be
transferred unless and until full consideration is paid. If for any reason the
full $80 million is not paid, or not paid according to the agreed-upon
schedule, any payments made to the Corporation are non-refundable and the
spectrum would be retained by the Corporation.

Other highlights for the third quarter ended May 31, 2009 included the
following:

- Unrestricted cash and cash equivalents at May 31, 2009 totalled $18.0
million which represents an increase of $14.5 million from August 31,
2008 as a result of the first instalment of $30 million paid to the
Corporation by Inukshuk which was partially offset by a payment of
$16 million to Bell in settlement of its outstanding payables and
litigation, discussed below;

- The income and comprehensive income from continuing operations for the
quarter ended May 31, 2009 was $46.1 million or $0.36 per share on an
undiluted basis;

- During the nine months ended May 31, 2009, the Corporation recorded
income and comprehensive income from the discontinued operation of the
web hosting and domain name business of $4.5 million, or $0.04 per
share on an undiluted basis;

- Operating expenses for the quarter, excluding the $2.5 million non-
cash charge for the impairment of property and equipment, decreased by
$0.4 million or 9.6% (quarter ended May 31, 2008 - $4.2 million);

- Service and sales revenue from continuing operations for the quarter
ended May 31, 2009 was $3.1 million compared to $4.1 million for the
quarter ended May 31, 2008; and

- EBITDA, as defined below, for the quarter ended May 31, 2009 was
negative $2.3 million.

- A condition precedent to the Agreement was the resolution of all
litigation between the Corporation and Bell which was resolved in the
following manner:

(a) Bell and the Corporation providing each other with mutual full
and final releases from any and all current litigation;

(b) The Corporation paying Bell $16 million as full and final
settlement, to be paid contemporaneously with the initial
$30 million non-refundable payment from Inukshuk as part of the
Agreement. The amount includes approximately $10 million in trade
payables carried by the Corporation plus an additional $6 million
payment;

(c) As the Corporation restructures its operations, it will pay to
Inukshuk all revenues collected from its DSL Internet subscribers
on Bell's network for services provided during the restructuring
period net of all applicable taxes in lieu of any and all future
charges from Bell; and

(d) All contracts between Bell and the Corporation will end without
penalty.

The Corporation recorded a $78.2 million gain on the sale of the spectrum
and broadcast licence to Inukshuk along with a loss on the settlement of the
Bell litigation of $5.8 million and restructuring charges of $20.4 million.
Restructuring charges include, among other things, site restoration
charges, lease commitments, human resources restructuring and equity
cancellation payments relating to the cancellation of all outstanding options
and share appreciation rights as of May 31, 2009. All equity cancellation
payments, amounting to approximately $9 million, are contingent on the
Corporation receiving the second non-refundable instalment of $20 million from
Inukshuk as noted above. In the event of a change of control, the equity
cancellation payments become payable within three business days following the
effective date of the change of control.
Upon providing for the sale of the spectrum and broadcast licence, the
Corporation completed a review of the carrying amount of its property and
equipment. The Corporation determined that certain network-related property
and equipment was carried at an amount greater than its net recoverable amount
and accordingly recorded a non-cash write-down of $2.5 million.
The Corporation has disclosed all publicly-available documents related to
its Plan of Arrangement and disposition of assets on its website:

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