MESSAGE FROM THE CHAIRMAN Good governance promotes strong viable and competitive corporations that people trust. Increased focus on governance regulation is welcome, but even the most rigorous rules have limited value unless they are developed and practiced by a Board comprised of outstanding directors. Torstar has such a Board with extraordinarily talented and committed directors, sought after for their broad experience and respected for their integrity. The excellent record of their attendance is just one measure of their degree of engagement with the corporation. Two directors retired from the Board in 2004: Catherine Atkinson Murray and Ruth Anne Winter. They both made many valued contributions to our work during extended terms of service – Ruth Anne for nine years and Betsy for 28 years. We sincerely appreciate their commitment to Torstar and wish them well. Four new directors were appointed to the Board during the past year: Don Babick, the dean of newspaper publishing in Canada, having served in leading capacities at several major media companies; Jack Fuller, recently retired President of Tribune P ublishing , a past Publisher of the Chicago Tribune and a Pulitzer Prize- winning journalist; Peter Mills, an experienced corporate director; and The Hon. Frank Iacobucci, recently retired Justice of the Supreme Court of Canada, currently serving as Interim President of the University of Toronto. It is a special privilege to report that The Hon. Frank Iacobucci will succeed me as Chairman of Torstar. He is a Canadian of great distinction. Throughout his academic, legal and judicial careers he has displayed values consistent with those of Torstar and with the Atkinson Principles which have guided its flagship newspaper since inception. He is also a nationally recognized expert on corporate finance and securities regulation. I am confident that The Hon. Frank Iacobucci will continue to elevate Torstar’s governance processes. As you read the CEO’s Letter to Shareholders you will see that Torstar faced some challenges in 2004. The strong response from each business reflects the dynamism and capability of the management teams and the great direction and oversight provided by the executive leadership. The results of their efforts would be modest, however, without the commitment of staff throughout the organization. On behalf of the Board, I express our deep appreciation for their efforts at all levels. It has been a real privilege for me to have the opportunity to serve as a director of such a fine corporation with a Board of such distinction and commitment. John R. Evans Chairman, Board of Directors JOHN EVANS, CHAIRMAN, TORSTAR (RIGHT) AND HIS SUCCESSOR THE HON. FRANK IACOBUCCI. 3 TORSTAR 2004