Mr. David Eckert reports

YELLOW PAGES LIMITED PURCHASES GROUP ANNUITY CONTRACTS DE-RISKING ITS DEFINED BENEFIT PENSION PLAN

Yellow Pages Ltd. has purchased group annuity contracts from BMO Life Assurance Company (BMO Insurance) that will facilitate the transfer of approximately $210-million of its defined benefit pension plan obligations, and related assets for certain retirees and beneficiaries.

Under the agreement, BMO Insurance will issue annuities covering the responsibility for pension benefits of approximately 860 pensioners and beneficiaries of the company, representing a significant portion of the company's pension plan members, and will begin administering all benefits to these members beginning October, 2025. There will be no change to the pension benefits for any plan participants as a result of the transaction. Following the transaction, benefits for transferred plan participants will be protected under Assuris, the life insurance compensation association designated under the Insurance Companies Act of Canada.

"We are pleased to have reached this agreement, as it strengthens our balance sheet and lowers the risk from pension obligations, while allowing the pensioners and beneficiaries to receive equivalent pension benefits from BMO Insurance, a highly rated Canadian insurer with strong expertise in long-term management of retirement benefits. The company intends to reallocate the benefits of the reduced risk towards activities that will continue to 'bend the revenue curve'" said David A. Eckert, chief executive officer of Yellow Pages.

This transaction is aligned with the plan to derisk the pension plan and protect the realized investment gains and wind-up ratio. Following the transaction, the company will have reduced its pension plan obligations by approximately 50 per cent. The purchase of the group annuity contracts will be financed directly by assets of the pension plan. The company also intends to voluntarily contribute an additional $4-million to the pension plan by the end of June, 2026, subject to review by its board of directors.

As a result of the transaction, the company expects to recognize a non-cash net settlement loss during the second quarter of 2025.

Telus Health acted as adviser to the company in this transaction.

About Yellow Pages Ltd.

Yellow Pages is a Canadian digital media and marketing company that creates opportunities for buyers and sellers to interact and transact in the local economy. Yellow Pages holds some of Canada's leading local on-line properties, including Canada411. The company also holds the YP, Canada411 and 411 mobile applications, and Yellow Pages print directories.

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