----

|                                                                                                                             | Page      reference / incorporatedby reference from |
|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                             | Annual      InformationForm                         |   | 2007MD&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.      3-5                                       |   |   |
| Item      4 — General Development of the Business                                                                     |                                                |   |   |
|            4.1 — Three Year History                                                          | pgs.      6-9                                       |   |   |
|            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.      10-12 |
|           — Rogers      Cable                                            |                                                |   | pgs.      16-19 |
|           —      Rogers Media                                            |                                                |   | pgs.      25-26 |
|           —      Employees                                               |                                                |   | p.      9 |
|           —      Properties, Trademarks, Environmental and Other Matters | p.      10                                          |   |   |
|           5.2 — Risk Factors                                                                      | p.      11                                          |   |   |
| Item      6 — Dividends                                                                                               |                                                |   |   |
|      6.1 —      Dividends                                                                    | p.      11                                          |   |   |
| Item      7 — Description of Capital      Structure                                                              |                                                |   |   |
|      7.1 —      General Description of Capital Structure                                     | p.      11                                          |   |   |
|           7.2 — Constraints                                                                       | pgs.      12-13                                     |   |   |
|           7.3 — Ratings                                                                           | pgs.      13                                        |   |   |
| Item      8 — Market for Securities                                                                                   |                                                |   |   |
|            8.1 — Trading Price and Volume                                                    | pgs.      13-14                                     |   |   |
|           8.2 — Prior Sales                                                                       | p.      14                                          |   |   |
| Item      9 — Escrowed Securities                                                                                     | p.      14                                          |   |   |
| Item      10 — Directors and Officers                                                                                 | pgs.      14-18                                     |   |   |
| Item      11 — Promoters                                                                                              | p.      18                                          |   |   |
| Item      12 — Legal Proceedings and Regulatory Actions                                                               | pgs.      18                                        |   |   |
|            12.1 — Legal Proceedings                                                               | p.      18                                          |   |   |
|            12.2 — Regulatory Actions                                                         | p.      18                                          |   |   |
| Item      13 — Interest of Management and Others in Material      Transactions                                        | p.      19                                          |   |   |
| Item      14 — Transfer Agents and Registrars                                                                         | p.      19                                          |   |   |
| Item      15 — Material Contracts                                                                                     | p.      19                                          |   |   |
| Item      16 — Interests of Experts                                                                                   |                                                |   |   |
|            16.1 — Name of Experts                                                            | p.      19                                          |   |   |
|            16.2 — Interests of Experts                                                       | p.      19                                          |   |   |
| Item      17 — Audit Committee                                                                                        |                                                |   |   |
|            17.1 — Audit Committee Mandate                                                    | pgs.      19-23                                     |   |   |
|            17.2 — Composition of the Audit Committee                                         | p.      23                                          |   |   |
|            17.3 — Relevant Education and Experience                                          | p.      23                                          |   |   |
|            17.4 — Reliance on Certain Exemptions                                             | p.      24                                          |   |   |
|            17.5 — Reliance on the Exemption in Subsection 3.3(2) or Section      3.6         | p.      24                                          |   |   |
|            17.6 — Reliance on Section 3.8                                                         | p.      24                                          |   |   |
|            17.7 — Audit Committee Oversight                                                  | p.      24                                          |   |   |
|            17.8 — Pre-Approval Policies and Procedures                                       | pgs.      24                                        |   |   |
|            17.9 — External Auditor Service Fee                                               | p.      24                                          |   |   |
| Item      18 — Additional Information                                                                                 |                                                |   |   |
|            18.1 — Additional Information                                                     | p.      25                                          |   |   |

----

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

|   | • | “Cable”      (formerly Cable & Telecom), which refers to our wholly-owned cable      subsidiaries, including Rogers Cable Communications Inc. (“RCCI”). In      January 2007, we completed a previously announced internal reorganization      whereby the Cable and Internet and Rogers Home Phone segments were      combined into one segment known as Cable Operations. As a result,      beginning in 2007, Cable consists of the following segments: Cable      Operations, Rogers Business Solutions and Rogers Retail. Comparative      figures have been reclassified to conform to this new segment reporting;      and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | “Media”,      which refers to our wholly owned subsidiary Rogers Media Inc. and its      subsidiaries, including Rogers Broadcasting, which owns Rogers Sportsnet,      a group of AM & FM Radio stations, OMNI television, The Biography      Channel Canada, G4TechTV Canada and The Shopping Channel; Rogers      Publishing; and Rogers Sports Entertainment, which owns the Toronto Blue      Jays and the Rogers Centre. Media also holds ownership interests in      entities involved in specialty TV content, TV production and broadcast      sales. In addition, the operating results of Citytv are included in      Media’s results of operations from the date of acquisition on October 31,      2007. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (*) | Unless      otherwise noted ownership is 100% with the exception of (i) 1 partnership      unit of Rogers Wireless Partnership is held by Fido and 101,064,778 units      are held by RCI and (ii) 1 partnership unit of Rogers Cable Partnership is      held by RCI and 100,000,001 units are held by Rogers Cable Communications      Inc. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (1) | Directly      and indirectly Rogers Broadcasting Limited holds 100% of Rogers Sportsnet      Inc. through its subsidiary Rogers Sports Group  Inc. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | During      2007, Rogers Cable Inc., Rogers Wireless Inc. and Rogers Wireless      Communications Inc. amalgamated with Rogers Communications      Inc. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Effective      January 19, 2005, Microcell Solutions Inc. changed its name to Fido      Solutions Inc.  During 2007, Fido Inc. amalgamated with Fido      Solutions Inc. and the continuing entity changed its name to Fido      Solutions Inc. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Effective      January 1, 2005, Blue Jays Holdco Inc. became a subsidiary of Rogers Media      Inc. |
|-----|-----------------------------------------------------------------------------------------------------|

----

| • | Wireless      is Canada’s largest wireless voice and data communications service      provider serving approximately 7.3 million retail voice and data customers      as at December 31, 2007. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless      is Canada’s only national carrier operating on the world standard Global      System for Mobile Communications (“GSM”) technology platform. Wireless’      GSM network provided coverage to approximately 94% of Canada’s population      as at December 31, 2007. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Wireless’      products and services are marketed through a nationwide distribution      network of over 13,250 dealer and retail locations, which includes      approximately 3,250 locations selling subscriptions to service plans,      handsets and prepaid cards and approximately 10,000 additional locations      selling prepaid cards. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      is one of Canada’s largest providers of cable television and high-speed      Internet access, and is also a facilities-based telecommunication      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 as at December 31,2007. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provides      advanced digital cable service to approximately 1.5 million households as      at December 31, 2007. |
|---------|--------------------------------------------------------------------------------------------------------------------|

| • | Provides      residential High-speed Internet service to approximately 1.5 million      residential subscribers as at December 31,2007. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provides      residential cable telephony services to approximately 656,000 subscribers      in Ontario, New Brunswick and Newfoundland and Labrador as at December 31,      2007. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Provides      residential circuit switched telephony services to approximately 334,000      subscribers across Canada as at December 31,  2007. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers      Retail segment operates a retail distribution chain which offers Rogers      branded home entertainment and wireless products and services through 465      stores as at December 31, 2007. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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      produces approximately 78 consumer magazines and trade and professional      publications and directories. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers Broadcasting      comprises 52 radio stations across Canada, multicultural OMNI television      stations, the five station Citytv television network, a specialty sports      television service which provides regional sports programming across      Canada (Rogers Sportsnet), Canada’s only nationally televised shopping      service (The Shopping Channel), The Biography Channel Canada, and G4TechTV      Canada |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers Broadcasting holds      a 50% interest in Dome Productions, a mobile production and distribution      joint venture. Broadcasting holds interests in several Canadian specialty      television services, including Viewer’s Choice Canada, Outdoor Life      Network (OLN), and certain other minority interest      investments. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      addition to more traditional delivery methods, the Media group also      delivers content and conducts e-commerce over the Internet for many of the      individual Rogers Broadcasting and Rogers Publishing      properties. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | Blue      Jays Holdco Inc. owns the Toronto Blue Jays Major League Baseball      franchise and the Rogers Centre, the Blue Jays’ multi-purpose home      stadium. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | We      announced an increase in the annual dividend from $0.50 to $1.00 per      Class A and Class B share. The new annual dividend of $1.00 per      share will be paid in quarterly amounts of $0.25 per each outstanding      Class A and Class B share. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      January 2008 RCI applied to the Toronto Stock Exchange (“TSX”) to make a      Normal Course Issuer Bid (“NCIB”), which was accepted by the TSX on      January 10, 2008, for purchases of its Class B shares through the      facilities of the TSX. The maximum number of Class B shares which may be      purchased pursuant to the NCIB is the lesser of 15 million, representing      approximately 3% of the number of Class B shares outstanding at      December 31, 2007, and that number of Class B shares that can be      purchased under the NCIB for an aggregate purchase price of $300 million.      The actual number of Class B 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 2008 we announced that we have entered into an agreement to      acquire Aurora Cable TV Limited (“Aurora Cable”). This transaction has not      yet closed and requires CRTC approval, which is expected in 2008. Aurora      Cable provides cable television, Internet and telephony services in the      Town of Aurora and the community of Oak Ridges, in Richmond Hill,      Ontario. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | 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 and Class B 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 and Class B 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 94% 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. The purchase price allocation is preliminary pending      finalization of valuations of the net identifiable assets      acquired. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | 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 totalled 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 and Class B shares. As a      result, Class A and Class B 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 and Class B 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 and Class B share      effective immediately, and modified Rogers’ dividend distribution policy      to make dividend distributions on a quarterly basis instead of      semi-annually. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      October 30, 2006, the Board of Directors unanimously approved an extension      of the employment contract of the Company’s President and Chief Executive      Officer, Edward S. (Ted) Rogers. Mr. Rogers’ employment contract has been      extended for an indefinite duration but can be terminated by Mr. Rogers or      by RCI with six months notice. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      September 2006, RCI entered into a multi-year agreement with Maple Leaf      Sports and Entertainment 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. The stations are      located in Edmonton, Fort McMurray and Grande Prairie,      Alberta. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      July 1, 2005, the Company acquired 100% of Rogers Telecom Holdings Inc.      (formerly Call-Net Enterprises Inc., or “Call-Net”) in a share-for-share      transaction announced May 11, 2005. Telecom is a Canadian integrated      telecommunications solutions provider of local, long distance and data      services to more than 600,000 households and businesses across Canada. As      of December 31, 2005, Telecom operated an extensive national fibre network      with approximately 160 co-locations in major urban areas across Canada and      also maintained network facilities in the U.S. and United      Kingdom. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | As      consideration for the Telecom acquisition, RCI issued approximately 16      million Class B shares and approximately 0.8 million fully-vested options      to acquire Class B shares with Call-Net shareholders receiving two Class B      shares for each 4.25 shares of Call-Net. Including estimated transaction      costs of $4 million, the purchase price of the acquisition was $328      million. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      June 30, 2005, the Company issued a notice of redemption for all of its      5.75% Convertible Debentures due November 26, 2005 at a redemption price      per US$1,000 face amount of US$992 for an aggregate redemption amount of      approximately US$223 million and a redemption date of August 2, 2005. An      aggregate of approximately 15.4 million Class B shares were issued to      debenture holders. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Rogers      and Bell Canada announced a joint venture that will build and manage a      Canada-wide wireless broadband network utilizing the two companies’      extensive fixed wireless spectrum holdings and existing networks of      cellular tower and backhaul assets. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      recognition of the Company’s improving financial performance and solid      strategic positioning the Board of Directors expressed confidence in      management’s execution of the Company’s strategy by approving a 50%      increase in the annual dividend to $0.075 per share, paid semi-annually.      RCI declared a semi-annual dividend of $0.0375 per share on each      outstanding Class B share and Class A share, which was paid on January 6,      2006 to shareholders of record on December 28,  2005. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      October 11, 2005, the Company issued a notice to Microsoft Corporation      (“Microsoft”) of its intention to redeem the $600 million aggregate      principal amount of 5 1/2% Convertible Preferred Securities due August      2009. On October 17, 2005, the Company received notice that Microsoft had      elected to convert these securities, and, pursuant to this notice of      conversion, the Company issued 34,285,714 Class B shares to Microsoft on      October 24, 2005 at the exercise price of $35 per  share. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      December 2005, Cable redeemed US$114 million aggregate principal amount of      its 11% Senior Subordinate Convertible Debentures due 2015 including a      redemption premium of 5.50% for a total of $141 million (US $120      million). |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      July 1, 2005, Cable introduced its Rogers Home Phone cable telephony      service offering in the Greater Toronto Area. Rogers Home Phone      voice-over-cable service was rolled out across the Company’s cable areas      in Southwest Ontario and Ottawa in the fourth quarter of    2005. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | In      June 2005, Cable amended its bank credit facility. The maximum amount of      the facility was reduced by $75 million to $1 billion comprised of $600      million Tranche A and $400 million Tranche B. The amendment served to      extend the maturity date of both Tranche A and Tranche B to “bullet”      repayments on July 2, 2010 and eliminate the amortization schedule for      Tranche B; reduce interest rates and standby fees; and relax certain      financial covenants. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | On      March 15, 2005, Cable repaid US$292 million aggregate principal amount of      its 10.0% Senior Secured Second Priority Notes due March 15, 2005. Cable      had a net cash outlay of $58 million on the settlement of the      cross-currency interest rate swap of US$283 million notional amount that      qualified as a hedge for accounting purposes of a portion of these 10.0%      Notes. On March 15, 2005, a cross-currency interest rate swap of US$50      million notional amount matured. Cable incurred a net cash outlay of $11      million upon settlement of thisswap. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Cable      acquired most of the Group Telecom and 360 Networks CLEC assets in New      Brunswick and Nova Scotia from Bell Canada for $13 million. Telecom also      acquired Group Telecom and 360 Networks’ multi-stranded regional fibre in      Ontario and Québec for $12 million. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | During      the third quarter of 2005, Rogers Telecom Holdings Inc. redeemed      approximately US$201 million of its 10.625% Senior Secured Notes due 2008      leaving approximately US$23 million in aggregate principal amount      outstanding. Telecom also terminated its $55 million accounts receivable      securitization program. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | The      integration of Fido was essentially completed with the two GSM networks      now fully integrated and all postpaid and prepaid retail Fido subscribers      migrated onto the Wireless billingplatforms. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Overview      - Our Business         | p.      2       |
|--------------------------------------|-----------------|
| Seasonality                          | pgs.      52-54 |
| 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.      36-37 |
| Recent      Wireless Industry Trends | pgs.      11-12 |
| Cable:                               |            |
| Cable      Business                  | p.      16      |
| Cable      Products and Services     | pgs.      16-17 |
| Cable      Distribution              | p.      17      |
| Cable      Networks                  | pgs.      17-18 |
| Cable      Strategy                  | p.      18      |
| Cable      Competition               | p.      37      |
| Recent      Cable Industry Trends    | pgs.      18-19 |
| Media:                               |            |
| Media      Business                  | pgs.      25-26 |
| Media      Strategy                  | p.      26      |
| Media      Competition               | p.      37      |
| Recent      Media Industry Trends    | p.      26      |
| Related      Party Transactions      | p.      50      |

----

----

----

| Date                                                                                                                    |   | High  |   | Low   |   | Close |   | Volume  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------|--------|-------|--------|-------|--------|---------|
| 2007/01                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 43.50 |   | 38.50 |   | 41.08 |   | 87,544  |
| 2007/02                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 45.00 |   | 40.00 |   | 43.09 |   | 109,776 |
| 2007/03                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 43.45 |   | 41.41 |   | 42.75 |   | 36,915  |
| 2007/04                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 47.74 |   | 41.75 |   | 47.67 |   | 163,160 |
| 2007/05                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 52.00 |   | 46.05 |   | 50.00 |   | 132,862 |
| 2007/06                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 53.75 |   | 49.01 |   | 52.00 |   | 320,411 |
| 2007/07                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 59.97 |   | 51.26 |   | 55.75 |   | 88,655  |
| 2007/08                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 55.96 |   | 48.00 |   | 54.00 |   | 87,844  |
| 2007/09                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 55.20 |   | 50.81 |   | 52.68 |   | 293,517 |
| 2007/10                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 55.00 |   | 52.50 |   | 54.10 |   | 39,775  |
| 2007/11                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 55.50 |   | 47.51 |   | 48.67 |   | 321,993 |
| 2007/12                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 52.50 |   | 47.50 |   | 52.50 |   | 44,679  |

| Date    |   | High  |   | Low   |   | Close |   | Volume     |
|---------|--------|-------|--------|-------|--------|-------|--------|------------|
| 2007/01 |   | 39.39 |   | 34.62 |   | 36.40 |   | 44,962,797 |
| 2007/02 |   | 40.65 |   | 35.62 |   | 38.18 |   | 38,875,127 |
| 2007/03 |   | 39.30 |   | 36.72 |   | 37.79 |   | 32,386,377 |
| 2007/04 |   | 44.13 |   | 37.53 |   | 42.55 |   | 28,945,268 |
| 2007/05 |   | 45.15 |   | 41.78 |   | 44.35 |   | 42,261,851 |
| 2007/06 |   | 47.64 |   | 42.96 |   | 45.42 |   | 40,868,072 |
| 2007/07 |   | 52.20 |   | 45.31 |   | 48.22 |   | 41,249,198 |
| 2007/08 |   | 49.23 |   | 43.05 |   | 47.98 |   | 40,275,884 |
| 2007/09 |   | 48.15 |   | 44.88 |   | 45.28 |   | 30,884,253 |
| 2007/10 |   | 49.57 |   | 45.62 |   | 48.14 |   | 36,601,004 |
| 2007/11 |   | 49.81 |   | 40.52 |   | 41.56 |   | 62,137,006 |
| 2007/12 |   | 45.46 |   | 41.54 |   | 44.99 |   | 32,707,776 |

| Name                                                                               |   | Position                                              |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Alan      D. Horn (6)(9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Director      and Chairman                                                                                                                                                                                                                                                             |   |
| Philip      B. Lind                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Director      and Vice Chairman                                                                                                                                                                                                                                                        |   |
| Edward      S. Rogers, O.C. (2)(7)(8)(11)                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | Director      and President and Chief Executive Officer                                                                                                                                                                                                                                |   |
| Nadir      H. Mohamed(12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 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                                                                                                                                                                                                                                       |   |
| Edward      Rogers (2)(3)(7)(8)                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Director      and Senior Vice President, Communications Group                                                                                                                                                                                                                          |   |
| Anthony      P. Viner                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Senior      Vice President, Media                                                                                                                                                                                                                                                      |   |
| Ronan      D. McGrath                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Executive      Vice President and Chief Information Officer                                                                                                                                                                                                                       |   |
| Donald      E. Moffatt                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | Senior      Vice President, Service Strategy & Billing Systems                                                                                                                                                                                                                     |   |
| Robert      F. Berner                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Executive      Vice President, Chief Technology Officer                                                                                                                                                                                                                                |   |
| Stephen      Graham                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Executive      Vice President, Corporate Marketing and Convergence                                                                                                                                                                                                                     |   |
| James      S. Lovie                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Executive      Vice President, Consumer Sales and Service                                                                                                                                                                                                                              |   |
| 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)                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Director      and Senior Vice President, Strategy and Development                                                                                                                                                                                                                      |   |
| 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)                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Director                                                                                                                                                                                                                                                                               |
| Thomas      I. Hull (2)(4)(5)(7)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Director                                                                                                                                                                                                                                                                               |
| The      Hon. David R. Peterson, P.C., Q.C. (6)(10)                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Director                                                                                                                                                                                                                                                                               |
| Loretta      A. Rogers (8)                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Director                                                                                                                                                                                                                                                                               |
| William      T. Schleyer (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Director                                                                                                                                                                                                                                                                               |
| John      A. Tory, Q.C. (2)(3)(4)(5)(7)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Director                                                                                                                                                                                                                                                                               |
| J.      Christopher C. Wansbrough (1)(2)(6)(7)                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Director                                                                                                                                                                                                                                                                               |
| Colin      D. Watson (1)(13)                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 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 married to Edward S. Rogers. Edward Rogers is the son and      Melinda Rogers is the daughter of Edward S. 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.      Peterson was a director of YBM Magnex International Inc. when the Ontario      Securities Commission issued cease trade orders in May 1998 based on      allegations that YBM Magnex International Inc. failed to make full, true      and plain disclosure in a prospectus. YBM Magnex International Inc. was      delisted from the Toronto Stock Exchange on December 15,    1998. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) | Mr.      Edward S. Rogers, O.C. was a director of At Home Corporation when it filed      for Chapter 11 protection from creditors in September, 2001 and was cease      traded on October 1, 2001. At Home Corporation was delisted from Nasdaq      National Market on October 22,2001. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12) | Mr.      Mohamed resigned from the Pension Committee on May 25,    2007. |
|------|--------------------------------------------------------------------------|

| (13) | Mr.      Watson is 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|   | (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 independentjudgment. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (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 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 externalauditors; |
|--|-----|-----------------------------------------------------------------------|

|   | (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 |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (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. |
|--|-----|-------------------------------------------------------------------------------------------------------|

| 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, |       |
|----------------------------|--------|------------------------------|------------|
|                       |   | 2007                         |       |   | 2006 |   |
| Audit      Fees(1)         |   | $                            | 8,113,406  |   |   | $ | 8,829,138 |   |
| Audit-related      Fees(2) |   |                         | 978,738    |   |   |   | 1,070,834 |   |
| Tax      Fees(3)           |   |                         | 2,408,660  |   |   |   | 703,719 |   |
| All      Other Fees(4)     |   |                         | 183,306    |   |   |   | 0 |   |
| Total                      |   | $                            | 11,684,110 |   |   | $ | 10,603,691 |   |

| (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 French translation of certain filings with regulatory      authorities and operational advisory and risk management      services. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|