MONTREAL, QUEBEC -- (MARKET WIRE) -- 05/31/11 -- Yellow Media Inc. (TSX: YLO) is issuing this press release regarding certain market speculation at the request of the Investment Industry Regulatory Organization of Canada, on behalf of the Toronto Stock Exchange.

Yellow Media Inc. is today providing an update on the status of its definitive agreement to sell Trader Corporation to funds advised by Apax Partners announced on March 25, 2011. While it is Yellow Media Inc.'s policy not to comment on market rumours or speculation, the company is today confirming that the transaction is proceeding as planned and in accordance with the terms of the definitive agreement entered into between Yellow Media Inc. and Apax Partners. The transaction is subject to regulatory approvals and other customary conditions.

Under the terms of the definitive agreement, Yellow Media Inc. has agreed to sell Trader Corporation to funds advised by Apax Partners for a purchase price consideration of $745 million in cash, subject to working capital and other adjustments. The proceeds from the sale will be largely used to reduce indebtedness and for general corporate purposes. For more information about this transaction, refer to the press release issued on March 25, 2011 at: http://www.ypg.com/en/newsroom/488-yellow-media-inc-announces-the-divestiture-of-trader-corporation.

The company reaffirms its cash dividend of $0.65 annually per common share. The company has a stated dividend payout policy representing between 60% and 70% of Adjusted Earnings per share. The dividend policy is reviewed periodically by the Board of Directors of Yellow Media Inc. taking into account a number of factors including, among others, the current and prospective performance of the business.

Yellow Media Inc. also announced on May 11, 2011 the implementation of a normal course issuer bid for for its common shares, first preferred shares, series 3 and first preferred shares, series 5 for the period from May 13, 2011 to no later than May 12, 2012, and its intention to renew its normal course issuer bid for its first preferred shares, series 1 and first preferred shares, series 2 for the period from June 13, 2011, to no later than May 12, 2012, through the facilities of the Toronto Stock Exchange, in accordance with applicable rules and regulations of the Toronto Stock Exchange. The Company plans to purchase for cancellation up to but not more than 10% of the public float of the common shares and of each such series of first preferred shares outstanding.

The Company believes that the current trading price of its shares does not adequately reflect business fundamentals and future prospects of the business. Yellow Media Inc.'s directors have authorized these normal course issuer bids and, in their opinion, such purchases are in the best interest of Yellow Media Inc. and its securityholders and constitute an appropriate use of Yellow Media Inc.'s funds.

About Yellow Media Inc.

Yellow Media Inc. (TSX: YLO) is Canada's #1 Internet company through its network of companies that include Yellow Pages Group and Canpages. Yellow Media Inc. owns and operates some of Canada's leading properties and publications including Yellow Pages� directories, YellowPages.ca�, Canada411.ca�, RedFlagDeals.com, and LesPAC.com. Its online destinations reach approximately 9.5M unique visitors monthly and its mobile applications for finding local businesses and deals have been downloaded over 2M times. Yellow Media Inc. is also a leader in national digital advertising through Mediative, a digital advertising and marketing solutions provider to national agencies and advertisers. For more information, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the objectives, strategies, financial condition, results of operations and business and affairs of Yellow Media Inc. These statements are forward-looking as they are based on our current expectations, as at May 31, 2011, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed under "Risks and Uncertainties" in our May 5, 2011 and February 10, 2011 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.