NON-GAAP FINANCIAL MEASURES

YPG

Our acquisition of the directories businesses from affiliates of Bell Canada on November 29, 2002, was accounted for using the purchase method of accounting which resulted in the elimination of deferred revenues and deferred publication costs related to those directories published prior to the acquisition. These deferred revenues would have been recognized in 2003 while the deferred publication costs would have been recognized in 2003 and 2004, had the acquisition not occurred. As a result, reported revenues in 2003 and expenses in 2003 and 2004 are not representative of revenues and expenses that would have otherwise been reported and are not representative of revenues and expenses that will be reported in subsequent periods.

Below are reconciliations of the reported results under Canadian generally accepted accounting principles (“GAAP”) to the adjusted results had the Acquisition not occurred. The adjusted results are derived by excluding from the reported amounts the impact of purchase accounting, transition expenses relating to the Acquisition which are non-recurring, such as costs incurred to become a stand-alone entity, restructuring and special charges and other non-recurring items when applicable.

In order to provide a better understanding of our results, we use the term EBITDA (earnings before interest, taxes, depreciation and amortization). We define EBITDA as revenues less operating costs which represents income (loss) from operations before depreciation, amortization, restructuring and special charges. YPG also uses the terms Adjusted Revenues and Adjusted EBITDA (revenues and EBITDA adjusted for certain items indicated below which management believes are reflective of ongoing operations). These terms do not have any standardized meaning prescribed by Canadian GAAP and may not be comparable to similar measures presented by other issuers. We believe EBITDA, Adjusted Revenues and Adjusted EBITDA to be important measures as they allow us to assess the operating performance of the ongoing business.

The adjusted results for the year ended December 31, 2002, were derived by i) adding the predecessor business' eleven-month results ended November 29, 2002, and YPG's one-month results ended December 31, 2002, ii) modifying the method under which we accounted for our 12.86% equity interest in Aliant ActiMedia from consolidation to proportionate consolidation in order to be consistent with the method used in 2003 and 2004, iii) excluding from the one-month reported amounts the impact of purchase accounting and transition expenses as they relate to the Acquisition and are therefore non-recurring, and iv) normalizing 2002 results to enhance comparability with 2003 and allow for a meaningful discussion taking into account adjustments that give effect to contractual arrangements negotiated in conjunction with the Acquisition and others that are reflective of ongoing operations following the Acquisition.