----

|         |                                                                          | Page      reference / incorporated |
|--------------|-------------------------------------------------------------------------------|------------------------------------|
|         |                                                                          | by      reference from             |
|         |                                                                          | Annual                             |   |
|         |                                                                          | Information                        | 2008 |
|         |                                                                          | Form                               | MD&A |
| Item      1  |  -      Cover Page                                                       | p.      1                          |   |
| Item      2  |  -      Index                                                            | p.      2                          |   |
| Item      3  |  -      Corporate Structure                                              |                               |   |
| 3.1          |  -      Name and Incorporation                                           | p.      3                          |   |
| 3.2          |  -      Intercorporate Relationships                                     | pgs.      3-6                      |   |
| Item      4  |  -      General Development of the Business                              |                               |   |
| 4.1          |  -      Three Year History                                               | pgs.      6-10                     |   |
| 4.2          |  -      Significant Acquisitions                                         | p.      10                         |   |
| Item      5  |  -      Narrative Description of the Business                            |                               |   |
| 5.1          |  -      General - Business Overview                                      | p.      11                         | p.      2 |
|         |  -      Rogers Wireless                                                  |                               | pgs.      10-16 |
|         |  -      Rogers Cable                                                     |                               | pgs.      16-27 |
|         |  -      Rogers Media                                                     |                               | pgs.      27-29 |
|         |  -      Employees                                                        |                               | p.      9 |
|         |  -      Properties, Trademarks, Environmental and Other Matters          | pgs.      10-11                    |   |
| 5.2          |  -      Risk Factors                                                     | p.      12                         |   |
| Item      6  |  -      Dividends                                                        |                               |   |
| 6.1          |  -      Dividends                                                        | p.      12                         |   |
| Item      7  |  -      Description of Capital Structure                                 |                               |   |
| 7.1          |  -      General Description of Capital Structure                         | p.      12                         |   |
| 7.2          |  -      Constraints                                                      | pgs.      12-13                    |   |
| 7.3          |  -      Ratings                                                          | p.      13                         |   |
| Item      8  |  -      Market for Securities                                            |                               |   |
| 8.1          |  -      Trading Price and Volume                                         | p.      14                         |   |
| 8.2          |  -      Prior Sales                                                      | p.      14                         |   |
| Item      9  |  -      Escrowed Securities                                              | p.      14                         |   |
| Item      10 |  -      Directors and Officers                                           | pgs.      14-19                    |   |
| Item      11 |  -      Promoters                                                        | p.      21                         |   |
| Item      12 |  -      Legal Proceedings and Regulatory Actions                         | p.      21                         |   |
| 12.1         |  -      Legal Proceedings                                                | p.      21                         |   |
| 12.2         |  -      Regulatory Actions                                               | p.      21                         |   |
| Item      13 |  -      Interest of Management and Others in Material Transactions       | p.      21                         |   |
| Item      14 |  -      Transfer Agents and Registrars                                   | p.      21                         |   |
| Item      15 |  -      Material Contracts                                               | p.      21                         |   |
| Item      16 |  -      Interests of Experts                                             |                               |   |
| 16.1         |  -      Name of Experts                                                  | p.      21                         |   |
| 16.2         |  -      Interests of Experts                                             | p.      21                         |   |
| Item      17 |  -      Audit Committee                                                  |                               |   |
| 17.1         |  -      Audit Committee Mandate                                          | pgs.      21-25                    |   |
| 17.2         |  -      Composition of the Audit Committee                               | p.      26                         |   |
| 17.3         |  -      Relevant Education and Experience                                | p.      26                         |   |
| 17.4         |  -      Reliance on Certain Exemptions                                   | p.      26                         |   |
| 17.5         |  -      Reliance on the Exemption in Subsection 3.3(2) or Section    3.6 | p.      26                         |   |
| 17.6         |  -      Reliance on Section 3.8                                          | p.      26                         |   |
| 17.7         |  -      Audit Committee Oversight                                        | p.      26                         |   |
| 17.8         |  -      Pre-Approval Policies and Procedures                             | p.      27                         |   |
| 17.9         |  -      External Auditor Service Fee                                     | p.      27                         |   |
| Item      18 |  -      Additional Information                                           |                               |   |
| 18.1         |  -      Additional Information                                           | p.      28                         |   |

----

|   | • | “Wireless”,      which refers to our wireless communications operations, including Rogers      Wireless Partnership (“RWP”) and Fido Solutions Inc.    (“Fido”); |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | “Cable”,      which refers to our wholly-owned cable television subsidiaries, including      Rogers Cable Communications Inc. (“RCCI”) and its subsidiary, Rogers Cable      Partnership; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | “Media”,      which refers to our wholly-owned subsidiary Rogers Media Inc. and its      subsidiaries, including Rogers Broadcasting, which owns a group of 52      radio stations, the Citytv television network, the Rogers Sportsnet      television network, The Shopping Channel, the OMNI television stations,      and Canadian specialty channels including The Biography Channel Canada,      G4TechTV and Outdoor Life Network; Rogers Publishing, which publishes      approximately 70 magazines and trade journals; and Rogers Sports      Entertainment, which owns the Toronto Blue Jays Baseball Club (“Blue      Jays”) and Rogers Centre. Media also holds ownership interests in entities      involved in specialty television content, television production and      broadcast sales. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | Unless      otherwise noted ownership is 100% with the exception of (i) 1 partnership      unit of RWP is held by Fido, 70,745,778 units of RWP are held by RCI and      30,319,000 units of RWP are held by RCCI; (ii) Fido holds 2,657,000 First      Preferred shares of RCCI and 1,000,000 Series XXXIV Preferred shares of      RCI; and (iii) 1 partnership unit of Rogers Cable Partnership is held by      RCI and 100,000,001 units are held by RCCI. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Directly      and indirectly Rogers Broadcasting Limited holds 100% of Rogers Sportsnet      Inc. through its subsidiary Rogers Sports Group  Inc. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Wireless      is Canada’s largest wireless voice and data communications service      provider serving approximately 8.0 million retail voice and data      customers. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      is currently Canada’s only national carrier operating on the world      standard Global System for Mobile Communications (“GSM”) and the High      Speed Packet Access (“HSPA”) technology platforms. Wireless’ GSM and HSPA      networks provided coverage to approximately 94.8% and 75.6% respectively      of Canada’s population. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      markets its products and services under both the Rogers Wireless and Fido      brands through an extensive nationwide distribution network of over 3,500      dealer and retail locations across Canada (excluding Rogers Retail      locations, which is a segment of Cable), selling subscriptions to service      plans, handsets and prepaid cards and thousands of additional locations      selling prepaid cards. Wireless’ nationwide distribution network includes:      an independent dealer network; Rogers Wireless and Fido stores which,      effective January 2007, are managed by Rogers Retail; major retail chains;      and convenience stores. Wireless also offers many of its products and      services through telemarketing and through Rogers Retail, as well as on      the Rogers.com and Fido e-business websites. The information contained in      or connected to our websites is not a part of and not incorporated into      this AIF. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      is one of Canada’s largest providers of cable television, cable telephony      and high-speed Internet access, and is also a facilities-based      telecommunications alternative to the traditional telephone      companies. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      owns and operates cable systems in Ontario, New Brunswick and Newfoundland      and Labrador serving approximately 2.3 million basic      cable subscribers. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             • | Cable provides: advanced      digital cable service to approximately 1.6 million    households. |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------|

|             • | Cable provides:      residential High-speed Internet service to approximately 1.6 million      residential subscribers. |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|

|             • | Cable provides:      residential cable telephony services to approximately 840,000 subscribers      in Ontario, New Brunswick and      Newfoundland and      Labrador. |   |
|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|

|             • | Cable provides:      residential circuit-switched telephony services to approximately 215,000      subscribers across Canada. |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers      Retail segment operates a retail distribution chain which offers Rogers      branded home entertainment and wireless products and services through 456      stores. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      is an integrated communications solutions provider of local,      long-distance, toll free, enhanced voice, data and Internet Protocol      services to businesses and governments across  Canada. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers Publishing      publishes approximately 70 magazines and trade and professional      publications and directories. |
|---------|--------------------------------------------------------------------------------------------------------------------------------|

| • | Media’s      broadcasting group (“Broadcasting”) comprises 52 radio stations across      Canada; multicultural OMNI television stations; the five station Citytv      television network; specialty sports television services including      regional sports service Rogers Sportsnet and Setanta Sports Canada;      specialty services including Outdoor Life Network, The Biography Channel      Canada and G4TechTV Canada; and Canada’s only nationally televised      shopping service (“The Shopping Channel”). Media also holds 50% ownership      in Dome Productions, a mobile production and distribution joint venture      that is a leader in HDTV production inCanada. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      addition to Media’s traditional broadcast and print media platforms, it      also delivers content and conducts e-commerce over the Internet relating      to many of its properties. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers      Sports Entertainment owns the Toronto Blue Jays Baseball Club (“Blue      Jays”) and Rogers Centre. |
|---------|-----------------------------------------------------------------------------------------------------------------------------|

----

| • | In      addition to its organic growth, Media expanded its broadcasting business      in 2008 through the following initiatives: the acquisition of the      remaining two-thirds of Outdoor Life Network that it did not already own,      the acquisition of Vancouver multicultural television station channel m,      the pending purchase of CFDR-AM Halifax (which has received CRTC approval      to convert to FM) and the launch of two OMNI television stations in      Alberta. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      February 2009 RCI applied to the Toronto Stock Exchange (“TSX”) to renew      its prior Normal Course Issuer Bid (“NCIB”), which was accepted by the TSX      on February 18, 2009, for repurchases of its Class B Non-Voting shares      through the facilities of the TSX for a further one-year period. The      maximum number of Class B Non-Voting shares which may be purchased      pursuant to the NCIB is the lesser of 15 million, representing      approximately 2.9% of the number of Class B Non-Voting shares outstanding      at December 31, 2008, and that number of Class B Non-Voting shares      that can be purchased under the NCIB for an aggregate purchase price of      $300 million. The actual number of Class B Non-Voting shares purchased, if      any, and the timing of such purchases, will be determined by RCI      considering market conditions, stock prices, its cash position, and other      factors. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      February 2009 we announced an increase in the annual dividend from $1.00      to $1.16 per Class A Voting and Class B Non-Voting share. The      new annual dividend of $1.16 per share will be paid in quarterly amounts      of $0.29 per each outstanding Class A Voting and Class B Non-Voting share.      This reflects our Board of Directors’ continued confidence in the      strategies that we have employed to position ourselves as a growing and      increasingly profitable communications company, while concurrently      recognizing the importance of returning meaningful portions of the growing      cash flows being generated by the business to  shareholders. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      December 2008 Rogers’ founder, President and Chief Executive Officer, Ted      Rogers passed away. Under the estate arrangements of the late Ted Rogers,      the Rogers Control Trust holds voting control of RCI for the benefit of      successive generations of the Rogers family. The Control Trust Chair will      act as the representative of the controlling shareholder in dealing with      the Corporation on our long-term strategy and direction, and vote the      Class A shares held by the private Rogers family holding companies in      accordance with the estate arrangements. Alan Horn, Chairman of the Board      was appointed by the Board to serve as acting Chief Executive Officer as      the Board performs a search, considering internal and external candidates,      for a permanent Chief ExecutiveOfficer. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      closed US$1.75 billion investment grade debt offerings on August 6, 2008,      consisting of US$1.4 billion of 6.8% Senior Notes due 2018, and US$350      million 7.5% Senior Notes due 2038. Proceeds of the offerings were used in      part to fund the $1.0 billion purchase of 20 MHz of spectrum in the      recently concluded Advanced Wireless Services (“AWS”)    auction. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      purchased for cancellation 4,077,400 outstanding Class B Non-Voting shares      during the year for $136.7 million under Board approval to repurchase up      to $300 million of outstandingshares. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      January 2008, we announced an increase in the annual dividend from $0.50      to $1.00 per Class A Voting and Class B Non-Voting      share. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Network      revenue increased by 13% to $5,843 million in 2008 from      $5,154 million in 2007. |
|---------|--------------------------------------------------------------------------------------------------------|

| • | Strong      wireless subscriber growth continued in 2008, with net postpaid additions      of 537,000 and net prepaid additions of67,000. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      postpaid subscriber monthly churn was 1.10%, compared to 1.15% in      2007. |
|---------|--------------------------------------------------------------------------------------------|

----

| • | Wireless      postpaid monthly average revenue per user (“ARPU”) increased 4% from 2007      to $75.27, aided by strong increases in wireless data    revenue. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Revenues      from wireless data services grew approximately 39% year-over-year to $946      million in 2008 from $683 million in 2007, and represented approximately      16% of network revenue, compared to 13% in2007. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      launched the Apple iPhone 3G in Canada on July 11, 2008 and activated      approximately 385,000 of the devices during the second half of the year.      Approximately 35% of these activations were to subscribers new to Wireless      with the other 65% being to existing Rogers Wireless subscribers who      upgraded to the iPhone and committed to new three year term contracts. The      vast majority of iPhone subscribers have attached both voice and monthly      data packages and are generating monthly ARPU considerably above the      monthly ARPU generated from Wireless’ overall subscriber base. The initial      sales volumes of this device drove significantly higher acquisition and      retention costs at Wireless. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Canada’s      AWS spectrum auction ended on July 21, 2008 following 39 days and 331      rounds of bidding with bids totalling $4.25 billion. Wireless was the only      carrier to successfully acquire 20 MHz of AWS spectrum across all 13      provinces and territories with winning bids that totalled approximately      $1.0 billion, or approximately $1.67/MHz/POP, where POP refers to person      of population. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      announced the launch of its Fido UNO and Rogers Home Calling Zone plans      that allow customers to make unlimited calls within their home using their      wireless phone via a home WiFi broadband connection. This converged      service utilizes technology known as Unlicensed Mobile Access (“UMA”) and      provides our customers with the convenience of having one phone, one      number, one address book and one voicemail which they can use inside and      outside of their home. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Availability      of the Rogers Portable Internet service was expanded to now include more      than 150 urban and rural communities across Canada. With this most recent      expansion, the Inukshuk joint venture’s network has become the second      largest broadband fixed wireless network in the  world. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Through      organic growth and acquisitions, Cable subscriptions increased cable      telephony lines by 184,000, high-speed residential Internet subscribers by      117,000, digital cable households by 197,000 and basic cable subscribers      by 25,000 in the year. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | HDTV digital cable      subscribers were up 37% from December 31, 2007 to December 31, 2008, to      568,000, while the number of purchases of Rogers on Demand products      increased by approximately 15%year-over-year. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Independent      research firm comScore Inc. found Rogers Hi-Speed Internet to be the      fastest and most reliable Internet access service for residential      customers in the Greater Toronto Area. The results, which were based on      over 120,000 network speed tests conducted over a four month period in      2008, showed that the Rogers Hi-Speed Internet product delivers faster      speeds across all service tiers when compared to Cable’s primary DSL      competitor. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      June 12, 2008, we acquired 100% of the outstanding shares of Aurora Cable.      Aurora Cable passes approximately 26,000 homes and provides cable      television, Internet and telephony services in the Town of Aurora and the      community of Oak Ridges, in Richmond Hill,  Ontario. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      April 30, 2008, we acquired the assets of Vancouver multicultural      television station channel m, from Multivan Broadcast Corporation, for      cash consideration of $61 million. The acquisition was accounted for using      the purchase method with the results of operations consolidated with ours      effective April 30, 2008. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      July 31, 2008, we acquired the remaining two-thirds of the shares of      Outdoor Life Network (“OLN”) that we did not already own, for cash      consideration of $39 million. The acquisition was accounted for using      the purchase method with the results of operations consolidated with ours      effective July 31, 2008. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      expanded the availability of our residential telephony service to      approximately 95% of homes passed by our cable  networks. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      invested in switched digital video technology to allow for expansion of      our available channel lineup and HDTVchoices. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------|

----

| • | We      completed the amalgamation of RCI with its wholly owned Cable and Wireless      holding company subsidiaries, with RCI assuming all the rights and      obligations under the outstanding Cable and Wireless public debt      indentures and cross-currency interest rate exchange agreements. As part      of the amalgamation process, RCI entered into a new unsecured $2.4 billion      bank credit facility and the credit facilities of these holding companies      and Rogers Media Inc. were terminated. This amalgamation was effected      principally to simplify our corporate structure to enable the streamlining      of reporting and complianceobligations. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      achieved investment grade credit status following the upgrade of our      corporate debt ratings by credit rating agencies Fitch, Moody’s and      Standard & Poor’s. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      introduced a cash settlement feature for outstanding employee stock      options to tax efficiently deploy cash to mitigate dilution that would      otherwise occur upon the exercise of such options. The introduction of      this cash settlement feature in the second quarter resulted in a one-time      non-cash charge for accounting purposes of $452 million partially offset      by a related future income tax benefit of $160  million. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      redeemed Wireless’ US$550 million principal amount of Floating Rate Senior      Notes due 2010 at the stipulated redemption price of 102.00% and its      US$155 million principal amount of 9.75% Senior Debentures due 2016 at a      redemption price of 128.42%. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      repaid at maturity Cable’s $450 million aggregate principal amount of      7.60% Senior Secured Notes. |
|---------|----------------------------------------------------------------------------------------------------------------------|

| • | We      announced an increase in the annual dividend from $0.16 to $0.50 per Class      A Voting and Class B Non-Voting share. In addition, subsequent to the      year-end, we announced a further increase in the annual dividend from      $0.50 to $1.00 per Class A Voting and Class B Non-Voting share.      This reflects our Board of Directors’ continued confidence in the      strategies that we have employed to position ourself as a growing and      increasingly profitable communications company, while concurrently      recognizing the importance of returning meaningful portions of the growing      cash flows being generated by the business to  shareholders. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      launched the Rogers Vision suite of services on Wireless’ new HSPA 3G      wireless network, the fastest wireless network in Canada, including the      first wireless video calling service in North America. This powerful 3G      technology significantly improves data download speeds on wireless      devices, providing a user experience similar to broadband high-speed      wireline services. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      decommissioned its TDMA and analog wireless networks effective May 31,      2007 and moved the remaining customers on these networks onto its more      advanced GSM network. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The      Fido wireless brand was recognized by J.D. Power and Associates as being      the number one rated Canadian wireless carrier for postpaid wireless      service customer satisfaction. This independently conducted research      determined that Fido outranked all six of the other Canadian wireless      brands in terms of customer perceptions of billing, call quality, cost of      service, customer service and service plan options.  Fido also      earned the top score in the wireless retailer  category. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      entered into a renegotiated agreement with Yahoo! Inc. (“Yahoo!”) that      will eliminate monthly per subscriber fees and see both companies work      jointly on advertising revenue opportunities leveraging Rogers’ high-speed      Internet access portal and subscriber base. In connection with this new      agreement, Cable made a one-time payment to Yahoo! in the fourth quarter      of 2007 of $52 million, and Cable’s cost of providing its Internet service      will be reduced by approximately $25 million per year over the four year      term of the new agreement. Rogers’ branding of its Internet service is      being transitioned to “Rogers Hi-Speed Internet”, while the on-line portal      will continue to be branded as “RogersYahoo!”. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      expanded the availability of its residential telephony service to      approximately 95% of homes passed by its cable  networks. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

| • | Media      acquired the Citytv network of five television stations in Canada from      CTVglobemedia Inc. for cash consideration of $405 million including      acquisition costs. The acquisition was accounted for using the purchase      method, with the results of operations consolidated with ours effective      October 31, 2007. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | In      late December 2006, Wireless transferred the Rogers Campus (land and      buildings) to RCI at fair market value. The Rogers Campus is comprised of      the properties at 333 Bloor Street East and One Mount Pleasant Road in      Toronto, Ontario. In early January 2007, Wireless, Cable and Media      transferred certain other land and buildings at fair market value to      RCI. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Effective      December 31, 2006, the management fee arrangements which had previously      been in place between RCI and each of Wireless, Cable and Media were      terminated. Management fees were no longer paid by Wireless, Cable, or      Media to RCI as of December 31, 2006. Such fees paid by the three segments      to RCI totaled approximately $93 million in  2006. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      December 15, 2006, at a special shareholder meeting the shareholders      approved a two-for-one split of the RCI Class A Voting and Class B      Non-Voting shares. As a result, Class A Voting and Class B Non-Voting      shareholders of record as of the close of business on December 29, 2006      received one additional share of the relevant class for each share held      effective December 29, 2006. All references to RCI Class A Voting and      Class B Non-Voting shares and associated dividends reflect the two-for-one      stock split approved by the shareholders in December  2006. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      December 15, 2006, the Board of Directors approved an increase in the      annual dividend from $0.075 to $0.16 per Class A Voting and Class B      Non-Voting share effective immediately, and modified Rogers’ dividend      distribution policy to make dividend distributions on a quarterly basis      instead of semi-annually. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      September 2006, RCI entered into a multi-year agreement with Maple Leaf      Sports and Entertainment for which had Rogers become a lead sponsor and      the preferred supplier of all communications services to the Toronto Maple      Leafs, Toronto Raptors and Air CanadaCentre. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers      was the lead Canadian broadcaster for the coverage of FIFA’s 2006 World      Cup Soccer - the world’s single largest sporting event, which took place      in Germany. Rogers provided unprecedented coverage across its various      broadcast and distribution platforms, including Rogers Sportsnet, Rogers      Wireless, Rogers Digital Cable, Rogers Yahoo! Hi-Speed Internet and Rogers      OMNI Television. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | During      2005, with the approval of its Board of Directors, RCI entered into an      arrangement to sell to its controlling shareholder, for $13 million in      cash, the shares in two of RCI’s wholly owned subsidiaries whose only      assets consisted of tax losses aggregating approximately $100 million.      These tax losses were transferred from Wireless to one of these wholly      owned subsidiaries of RCI in a series of transactions. The terms of the      transaction were reviewed and approved by a Special Committee of the Board      of Directors of RCI comprised of independent directors. Further to this      arrangement, on April 7, 2006, a company controlled by RCI’s controlling      shareholder purchased the shares in one of these wholly owned subsidiaries      for cash of $7 million. On July 24, 2006, the shares of the second wholly      owned subsidiary were purchased by a company controlled by the controlling      shareholder for cash of $6 million. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Upon      maturity on February 14, 2006, the Company redeemed its $75 million Senior      Notes. |
|---------|--------------------------------------------------------------------------------------------------|

| • | On      January 4, 2006, the Company completed the acquisition of certain real      estate assets in Brampton, Ontario, Canada for a total purchase price of      $99 million in cash, net of adjustments, and including taxes and title      insurance. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      concluded the final phase of a multi-staged transaction to acquire certain      of the Competitive Local Exchange Carrier (“CLEC”) assets of Group      Telecom/360Networks from Bell Canada, including approximately 3,400 route      kilometres of multi-stranded local and regional fibre; voice and data      switching infrastructure, and co-location, point-of-presence and hub sites      in Ontario, Quebec, Nova Scotia, New Brunswick and Newfoundland and      Labrador. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | During      2006, Cable expanded availability of high-speed Internet services across      Canada. Portable Internet from Rogers Yahoo!, a fixed wireless offering,      was made available in major cities across Canada, while ADSL2 high-speed      Internet service was launched in Vancouver and other Ontario centres      outside of our traditional cablefootprint. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Cable      announced Rogers Yahoo! High-Speed Extreme Plus Internet service, which      offers customers speed of up to 18 megabits per  second. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      also expanded the availability of our residential telephony service to      approximately 90% of homes passed by our cable  networks. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      January 2006, RCI completed a reorganization whereby Cable acquired      substantially all of the operating subsidiaries of Rogers Telecom Holdings      Inc., including Rogers Telecom Inc. (“Telecom”). As a result of this      reorganization, the businesses formerly conducted by Telecom are now      conducted by Cable. As a result of the changes to management’s reporting,      Cable’s reporting segments changed effective January 2006 to the      following: Cable and Internet; Rogers Business Solutions; Rogers Home      Phone; and Rogers Retail (formerly known as Rogers  Video). |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      January 3, 2006, the Company redeemed all of Telecom’s remaining 10.625%      Senior Secured Notes due 2008. The total redemption amount was US$23      million, including a redemption premium of US$1  million. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      successfully launched its HSPA network in the Golden Horseshoe markets of      Ontario. This next generation broadband wireless technology, which      Wireless continues to deploy across other major markets, is the fastest      mobile wireless data service available in  Canada. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      launched a broadband fixed wireless service in 20 cities across Canada as      the first offering enabled by our Inukshuk joint venture. This service      gives customers wireless portable access to Rogers Yahoo! Hi-Speed      Internet services at speeds up to 1.5Mbps. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      June 1, 2006, Wireless repaid at maturity the 10.5% Wireless Senior      Secured Notes in the aggregate principal amount outstanding of $160      million, and repaid a mortgage in the aggregate principal amount      outstanding of $22 million during theyear. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      addition to its organic growth, Media expanded its business in 2006      through the following initiatives: the launch of the Canadian edition of      Hello! and Chocolat magazines, the launch of OMNI.11      Television in Winnipeg, Manitoba, the acquisition of Canadian Parents      Online, and the increased ownership of The Biography Channel and G4TechTV      Canada, to 100% and 66.67%,respectively. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      January 1, 2007, Media completed the $40 million acquisition of five      Alberta Radio stations announced earlier in 2006 which brought the total      number of radio stations owned by Media to 52 in 2007. The stations are      located in Edmonton, Fort McMurray and Grande Prairie,      Alberta. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Overview      - Our Business         | p.      2       |
|--------------------------------------|-----------------|
| Seasonality                          | p.      54      |
| Operating      Unit Review:          |            |
| Wireless:                            |            |
| Wireless      Business               | p.      10      |
| Wireless      Products and Services  | p.      10      |
| Wireless      Distribution           | pgs.      10-11 |
| Wireless      Networks               | p.      11      |
| Wireless      Strategy               | p.      11      |
| Wireless      Competition            | pgs.      38-39 |
| Recent      Wireless Industry Trends | pgs.      11-12 |
| Cable:                               |            |
| Cable      Business                  | pgs.      16-17 |
| Cable      Products and Services     | p.      17      |
| Cable      Distribution              | p.      17      |
| Cable      Networks                  | pgs.      17-18 |
| Cable      Strategy                  | pgs.      18-19 |
| Cable      Competition               | p.      39      |
| Recent      Cable Industry Trends    | p.      19      |
| Media:                               |            |
| Media      Business                  | p.      27      |
| Media      Strategy                  | p.      27      |
| Media      Competition               | pgs.      39-40 |
| Recent      Media Industry Trends    | p.      27      |
| Related      Party Transactions      | p.      52      |

----

|   | • | Broadcasting Act      (Canada) |
|--------|---------|--------------------------------|

|   | • | Telecommunications Act      (Canada) |
|--------|---------|--------------------------------------|

|   | • | Radiocommunication Act      (Canada) |
|--------|---------|--------------------------------------|

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|   | • | qualified      to hold or obtain any cable television, broadcasting or telecommunications      licence or authorized to operate a similar entity under the Laws;      and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | not      in breach of the Laws or any licences issued to us or to any of our      Canadian subsidiaries, associates or affiliates under the      Laws. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date                                                                                                                    | High          | Low         | Close | Volume               |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------|-------|--------------------------------------------------------------------------------------------|
| 2008/01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 51.49                                                      | 41.90                                               | 42.17 | 241,858                                                                                    |
| 2008/02                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 45.14                                                      | 40.80                                               | 42.10 | 29,051                                                                                     |
| 2008/03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 43.40                                                      | 36.91                                               | 40.00 | 77,681                                                                                     |
| 2008/04                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 49.97                                                      | 41.95                                               | 48.80 | 53,049                                                                                     |
| 2008/05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 50.50                                                      | 46.00                                               | 49.50 | 99,393                                                                                     |
| 2008/06                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 49.94                                                      | 43.00                                               | 43.70 | 41,024                                                                                     |
| 2008/07                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 45.20                                                      | 39.00                                               | 39.00 | 35,633                                                                                     |
| 2008/08                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 43.25                                                      | 37.99                                               | 42.30 | 84,246                                                                                     |
| 2008/09                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 42.40                                                      | 35.75                                               | 39.60 | 57,963                                                                                     |
| 2008/10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 39.69                                                      | 32.00                                               | 35.88 | 377,170                                                                                    |
| 2008/11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 40.00                                                      | 34.00                                               | 36.50 | 364,782                                                                                    |
| 2008/12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 40.25                                                      | 34.41                                               | 40.25 | 25,637                                                                                     |

| Date    | High  | Low   | Close | Volume     |
|---------|-------|-------|-------|------------|
| 2008/01 | 45.46 | 36.75 | 38.39 | 57,358,397 |
| 2008/02 | 40.39 | 36.38 | 38.85 | 39,575,579 |
| 2008/03 | 39.89 | 32.92 | 36.92 | 50,283,245 |
| 2008/04 | 45.90 | 37.41 | 44.81 | 39,397,049 |
| 2008/05 | 46.46 | 41.79 | 43.70 | 40,716,570 |
| 2008/06 | 43.69 | 38.50 | 39.56 | 39,018,485 |
| 2008/07 | 40.89 | 34.41 | 34.59 | 61,331,189 |
| 2008/08 | 39.61 | 32.99 | 38.48 | 41,462,012 |
| 2008/09 | 38.81 | 32.29 | 34.52 | 51,041,430 |
| 2008/10 | 37.12 | 29.00 | 34.99 | 63,957,274 |
| 2008/11 | 37.25 | 31.61 | 35.90 | 41,565,370 |
| 2008/12 | 36.99 | 31.32 | 36.59 | 31,218,634 |

| Name                         |   | Position                                                                                                                         |
|------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|
| Alan      D. Horn (6)(9)(11) |   | Director,      Chairman and acting Chief Executive Officer and member of the Advisory      Committee of the Rogers Control Trust |
| Philip      B. Lind (11)     |   | Director      and Vice Chairman and member of the Advisory Committee of the Rogers      Control Trust                            |
| Nadir      H. Mohamed        |   | Director      and President and Chief Operating Officer, Communications      Group                                               |
| William      W. Linton       |   | Senior      Vice President, Finance and Chief Financial Officer                                                                  |
| Robert      W. Bruce         |   | Senior      Vice President, Communications Group and President, Rogers      Wireless                                             |

----

| Name                                            |   | Position                                                                                                                                   |
|-------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
| Edward      S. Rogers (2)(3)(7)(8)(11)          |   | Director,      Senior Vice President, Communications Group,  President, Rogers      Cable; and Chair of the Rogers Control Trust |
| Anthony      P. Viner                           |   | Senior      Vice President, Media and President, Rogers Media                                                                              |
| Roland      Pauksens                            |   | Senior      Vice-President, National Customer Care                                                                                         |
| Robert      F. Berner                           |   | Executive      Vice President, Chief Technology Officer                                                                                    |
| Jerry      Brace                                |   | Senior      Vice-President, Information Technology                                                                                         |
| James      S. Lovie                             |   | Executive      Vice President, Sales Service and Distribution                                                                              |
| David      P. Miller                            |   | Senior      Vice President, General Counsel and Secretary                                                                                  |
| Kevin      P. Pennington                        |   | Senior      Vice President, Chief Human Resources Officer                                                                                  |
| Melinda      M. Rogers (3)(6)(7)(8)(11)         |   | Director,      Senior Vice President, Strategy and Development and Vice-Chair of the      Rogers Control Trust                             |
| Ronald      D. Besse (1)(5)(6)                  |   | Director                                                                                                                                   |
| C.      William D. Birchall (1)(3)(7)           |   | Director                                                                                                                                   |
| John      H. Clappison (1)(6)                   |   | Director                                                                                                                                   |
| Peter      C. Godsoe, O.C. (2)(3)(4)(5)(7)(11)  |   | Director      and member of the Advisory Committee of the Rogers Control      Trust                                                        |
| Thomas      I. Hull (2)(4)(5)(7)(11)            |   | Director      and member of the Advisory Committee of the Rogers Control      Trust                                                        |
| Isabelle      Marcoux (4)                       |   | Director                                                                                                                                   |
| The      Hon. David R. Peterson, P.C., Q.C. (6) |   | Director                                                                                                                                   |
| Loretta      A. Rogers (8)(11)                  |   | Director      and member of the Advisory Committee of the Rogers Control      Trust                                                        |
| Martha      L. Rogers (8)(11)                   |   | Director      and member of the Advisory Committee of the Rogers Control      Trust                                                        |
| William      T. Schleyer (5)                    |   | Director                                                                                                                                   |
| John      A. Tory, Q.C. (2)(3)(4)(5)(7)(11)     |   | Director      and member of the Advisory Committee of the Rogers Control      Trust                                                        |
| J.      Christopher C. Wansbrough (1)(2)(6)(7)  |   | Director                                                                                                                                   |
| Colin      D. Watson (1)(10)                    |   | Director                                                                                                                                   |

| (1) | Denotes      member of Audit Committee. |
|-----|-----------------------------------------|

| (2) | Denotes      member of Executive Committee. |
|-----|---------------------------------------------|

| (3) | Denotes      member of the Nominating Committee |
|-----|-------------------------------------------------|

| (4) | Denotes      member of the Corporate GovernanceCommittee. |
|-----|-----------------------------------------------------------|

| (5) | Denotes      member of the CompensationCommittee. |
|-----|---------------------------------------------------|

| (6) | Denotes      member of the Pension Committee. |
|-----|-----------------------------------------------|

| (7) | Denotes      member of the Finance Committee. |
|-----|-----------------------------------------------|

| (8) | Loretta      A. Rogers is the widow of the late Ted Rogers. Edward S. Rogers is the son      and Melinda Rogers and Martha L. Rogers are the daughters of the late Ted      Rogers and Loretta A. Rogers. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9) | Mr.      Horn was a director of AT&T Canada Inc., as a representative of the      Company, when it filed for bankruptcy protection on October 15,      2002. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10) | Mr.      Watson was a director of Cygnal Technologies Corporation. On November 14,      2007 Cygnal Technologies obtained an order from the Ontario Superior Court      of Justice granting it relief under the Companies’ Creditors Arrangement      Act. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Voting      control of RCI is held by the Rogers Control Trust. See the section      entitled “2009 Year-to-Date Developments” under Item 4.1 above. Each of      the individuals that are noted above as holding positions with the Rogers      Control Trust have held such positions since December  2008. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

----

----

----

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|   | (a) | Independence. Each      member shall be independent in accordance with applicable securities laws      and based on the Company’s Director Material Relationship Standards and in      such regard shall have no direct or indirect material relationship with      the Company which could, in the view of the Board, reasonably interfere      with the exercise of a member’s independent  judgment. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Financially Literate.      Each member shall be financially literate or must become      financially literate within a reasonable period of time after his or her      appointment to the Audit Committee. For these purposes, an individual is      financially literate if he or she has the ability to read and understand a      set of financial statements that present a breadth and level of complexity      of accounting issues that are generally comparable to the breadth and      complexity of the issues that can reasonably be expected to be raised by      the Company’s financial statements. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Commitment. In addition      to being a member of the Audit Committee and of any audit committee of any      affiliate of the Company, if a member of the Audit Committee is also on      the audit committee of more than two additional public companies, the      Board, or the Nominating Committee, shall determine that such simultaneous      service does not impair the ability of such member to serve effectively on      the Company’s Audit Committee. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | in      consultation with the external auditors and the internal auditors, review      the integrity of the Company’s financial reporting process, both internal      and external, and any material issues as to the adequacy of the internal      controls and any special audit steps adopted in light of material control      deficiencies identified to it by the external or internal auditors or of      which the Audit Committee otherwise becomes  aware; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | review      all material transactions and material contracts entered into by the      Company (and any subsidiary) with any insider or related party of the      Company, other than officer or employee compensation arrangements approved      or recommended by the Compensation Committee or director remuneration      approved or recommended by the Corporate Governance    Committee; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | review      and discuss with management and the external auditors the Company’s annual      audited consolidated financial statements and its interim unaudited      consolidated financial statements, and discuss with the external auditors      the matters required to be disclosed by generally accepted auditing      standards in Canada and/or the United States, as applicable, as may be      modified or supplemented, and for such purpose, receive and review an      annual report by the external auditors describing: (i) all critical      accounting policies and practices used by the Company, (ii) all material      alternative accounting treatments of financial information within      generally accepted accounting principles that have been discussed with      management of the Company, including the ramifications of the use of such      alternative treatments and disclosures and the treatment preferred by the      external auditors, and (iii) other material written communications between      the external auditors and management, and discuss such annual report with      the external auditors; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | following      completion of the annual audit, review with each of management, the      external auditors and the internal auditors any significant issues,      concerns or difficulties encountered during the course of the      audit; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | resolve      disagreements between management and the external auditors regarding      financial reporting; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (f) | review      the interim quarterly and annual financial statements and annual and      interim press releases prior to the release of earnings      information; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | review      and be satisfied that adequate procedures are in place for the review and      timely disclosure of any public disclosure of financial information by the      Company extracted or derived from the Company’s financial statements,      other than the disclosure referred to in (f), and periodically assess the      adequacy of those procedures; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | meet      separately, periodically, with management, with the internal auditors and      with the external auditors. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (a) | require      the external auditors to report directly to the Audit      Committee; |
|--------|-----|------------------------------------------------------------------------------------|

|   | (b)    | be      directly responsible for the selection, nomination, retention, termination      and oversight of the work of the Company’s external auditors engaged for      the purpose of preparing or issuing an auditor’s report or performing      other audit, review or attest services for the Company, and in such regard      recommend to the Board the external auditors to be nominated for approval      by the shareholders; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   | (c)    | recommend to the Board the compensation of the      external auditors;                                                                                                                                                                                                                                                                                                                                                                           |

|   | (d) | pre-approve      all audit engagements and the provision by the external auditors of all      non-audit services, including fees and terms for all audit engagements and      non-audit engagements, and in such regard the Audit Committee may      establish the types of non-audit services the external auditors shall be      prohibited from providing and shall establish the types of audit, audit      related and non-audit services for which the Audit Committee will retain      the external auditors. The Audit Committee may delegate to one or more of      its members the authority to pre-approve non-audit services, provided that      any such delegated pre-approval shall be exercised in accordance with the      types of particular non-audit services authorized by the Audit Committee      to be provided by the external auditor and the exercise of such delegated      pre-approvals shall be presented to the full Audit Committee at its next      scheduled meeting following suchpre-approval; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | review      and approve the Company’s policies for the hiring of partners and      employees and former partners and employees of the external      auditors; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | consider,      assess and report to the Board with regard to the independence and      performance of the external auditors, including      an evaluation of the lead partner and consideration of rotation of such      lead partner and the audit firm itself;and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | request      and review a report by the external auditors, to be submitted at least      annually, regarding the auditing firm’s relationship with the Company,      internal quality-control procedures, any material issues raised by the      most recent internal quality-control review, or peer review, of the      auditing firm, or by any inquiry or investigation by governmental or      professional authorities, within the preceding five years, respecting one      or more independent audits carried out by the external auditors, and any      steps taken to deal with any suchissues. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | oversee      management’s design and implementation of and reporting on internal      controls, receive and review reports from management, the internal      auditors and the external auditors with regard to the reliability and      effective operation of the Company’s accounting system and internal      controls; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | review      the activities, organization and qualifications of the internal auditors      and discuss with the external auditors the responsibilities, budget and      staffing of the internal auditfunction; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | review      with senior management the controls and procedures that have been adopted      by the Company to confirm that material information about the Company and      its subsidiaries that is required to be disclosed under applicable law or      stock exchange rules is disclosed within the required time      periods; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (d) | review      with senior management the adequacy of the internal controls that have      been adopted by the Company to safeguard assets from loss and unauthorized      use, to prevent, deter and detect fraud, and to verify the accuracy of the      financial records and review any special audit steps adopted in light of      material weaknesses or significant deficiencies;  and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | review      disclosures made to it by the Chief Executive Officer and Chief Financial      Officer during their certification process for applicable securities law      filings about any significant      deficiencies and material weaknesses in the design or operation of the      Company’s internal control over financial reporting which are reasonably      likely to adversely affect the Company’s ability to record, process,      summarize and report financial information required to be disclosed by the      Company in the reports that it files or submits under U.S. federal      securities law or applicable Canadian federal and provincial legislation      and regulations within the required time periods, and any fraud, whether      or not material, involving management or other employees who have a      significant role in the Company’s internal control over financial      reporting. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | receive      and review timely analysis by management of significant issues relating to      public disclosure and reporting; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | review,      prior to finalization, periodic public disclosure documents containing      financial information, including the Management’s Discussion and Analysis      and Annual Information Form; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | prepare      the report of the Audit Committee required to be included in the Company’s      periodic filings; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|

|   | (d)    | review      with the Company’s General Counsel legal compliance matters, significant      litigation and other legal matters that could have a significant impact on      the Company’s financial statements; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                          |
|   | (e)    | assist      the Board in the oversight of compliance with legal and regulatory      requirements.                                                                                                                             |

|   | (a) | discuss      policies with respect to risk assessment and risk    management; |
|--------|-----|-------------------------------------------------------------------------------|

|   | (b) | establish      procedures and policies for thefollowing: |
|--------|-----|----------------------------------------------------------|

|   | (i) | the      receipt, retention and treatment of complaints received by the Company      regarding accounting, internal accounting controls or auditing matters,      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      confidential, anonymous submission by employees of the Company of concerns      regarding questionable accounting or auditing  matters; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | prepare      and review with the Board an annual performance evaluation of the Audit      Committee; |
|--------|-----|------------------------------------------------------------------------------------------------------|

|   | (d) | review      earnings guidance provided to analysts and rating  agencies; |
|--------|-----|--------------------------------------------------------------------------|

|   | (e) | report      regularly to the Board, including with regard to matters such as the      quality or integrity of the Company’s financial statements, compliance      with legal or regulatory requirements, the performance of the internal      audit function, and the performance and independence of the external      auditors; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | review      and reassess the adequacy of the Audit Committee’s Mandate on an annual      basis. |
|--------|-----|-------------------------------------------------------------------------------------------------------|

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| Mr.      Besse (Chair) |  - | former      Chairman, President & Chief Executive Officer, Gage Learning      Corporation                                                                                          |
|------------------------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   |    |                                                                                                                                                                                   |
| Mr.      Birchall      |  - | Chartered      Accountant; Director & Vice Chairman of Barrick Gold Corporation;      Chairman of Barrick International Banking Corporation                                        |
|                   |    |                                                                                                                                                                                   |
| Mr.      Clappison     |  - | Chartered      Accountant; former Greater Toronto Area Managing Partner of      PricewaterhouseCoopers                                                                                 |
|                   |    |                                                                                                                                                                                   |
| Mr.      Wansbrough    |  - | Chartered      Financial Analyst; former President of National Trust    Company                                                                                                        |
|                   |    |                                                                                                                                                                                   |
| Mr.      Watson        |  - | former      President & Chief Executive Officer of Vector Aerospace Corporation;      former Vice Chairman, President & Chief Executive Officer of Spar      Aerospace Limited |

----

|   | 1. | Annually      management provides the Audit Committee with a list of the audit-related      and non-audit services that are anticipated to be provided during the year      for pre-approval. The Audit Committee reviews the services with the      auditor and management and considers whether the provision of the service      is compatible with maintaining the auditor’s  independence. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Management      may engage the auditor for specific engagements that are included in the      list of pre-approved services referred to above for engagements if the      fees do not exceed (i) $100,000 per engagement or (ii) $500,000 per      quarter. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | The      Audit Committee delegates authority to the Chairman of the Audit Committee      to approve requests for services not included in the pre-approved list of      services or for services not previously pre-approved by the Audit      Committee. Any services approved by the Chairman will be reported to the      full Audit Committee at the nextmeeting. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | A      review of all audit and non-audit services and fees rendered to the      Company and its subsidiaries by KPMG LLP is reviewed each quarter by the      Audit Committee. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Year      ended December 31, |       |
|----------------------------|--------|------------------------------|------------|
|                       |   | 2008                         |       |   | 2007 |   |
| Audit      Fees(1)         |   | $                            | 6,783,318  |   |   | $ | 8,113,406 |   |
| Audit-related      Fees(2) |   |                         | 373,872    |   |   |   | 978,738 |   |
| Tax      Fees(3)           |   |                         | 3,078,698  |   |   |   | 2,408,660 |   |
| All      Other Fees(4)     |   |                         | 1,482,189  |   |   |   | 183,306 |   |
| Total                      |   | $                            | 11,718,077 |   |   | $ | 11,684,110 |   |

| (1) | Consist      of fees related to statutory audits, related audit work in connection with      registration statements and other filings with various regulatory      authorities, quarterly reviews of interim financial statements and      accounting consultations related to the audited financial      statements. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Consist      mainly of advice relating to compliance with Canadian and U.S. rules on      internal controls, pension plan audits and other specified procedures      engagements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Consist      of fees for tax consultation and compliance services, including indirect      taxes. |
|-----|---------------------------------------------------------------------------------------------------|

| (4) | Consist      mainly of fees for operational advisory and risk management services, and      French translation of certain filings with regulatory      authorities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----