----

|   |   |
|--------|--------|

**As      filed with the Securities and Exchange Commission on December 19,      2007**

|   |
|--------|

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      20-F**

| o     | REGISTRATION                STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE                ACT                OF 1934 or                                                                                                                |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **x** | ANNUAL                REPORT PURSUANT TO SECTION 13 OR 15(d)OF                THE SECURITIES EXCHANGE ACT OF 1934**For                the Fiscal Year Ended: August 31, 2007**OR                                                                              |
| o     | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d)OF                THE SECURITIES EXCHANGE ACT OF 1934For                the Transition Period                from            toOR |
| o     | SHELL                COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES                EXCHANGE                ACT OF 1934Date                of event requiring this shell company                report                                       |

**333-13878**

**CanWest      MediaWorks Inc.**

**Manitoba,      Canada**

**31st      Floor, CanWest      Global Place**

**201      Portage Avenue**

**Winnipeg,      Manitoba, Canada R3B 3L7**

**None**

**22,786      Ordinary Shares**

**Yes      ____                      No __X_**

----

**Yes      _X_                      No ____**

**Yes __X__                                No      _____**

**Large      accelerated filer      _____                                                      Accelerated      filer      _____                                           Non-accelerated      filer __X__**

**Item      17 **
**X**
**   Item      18 **
** **

**Yes      __­­___                                No __X__**

|   |
|--------|

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**TABLE              OF              CONTENTS**

**Page**

| PRESENTATION                  OF FINANCIAL AND OTHER                  INFORMATION                                                  | 1       |
|------------------------------------------------------------------------------------------------------------------------------------|---------|
| FORWARD                  LOOKING STATEMENTS                                                                                        | 3       |
| PART                  I                                                                                                            | 3  |
| ITEM                  1.  IDENTITY OF DIRECTORS, SENIOR MANAGEMENT                  AND ADVISERS                         | 3       |
| ITEM                  2.  OFFER STATISTICS AND EXPECTED                  TIMETABLE                                       | 3       |
| ITEM                  3.  KEY INFORMATION                                                                                | 3       |
| SELECTED                  FINANCIAL DATA                                                                                           | 3       |
| EXCHANGE                  RATE INFORMATION                                                                                         | 6       |
| RISK                  FACTORS                                                                                                      | 7       |
| ITEM                  4.  INFORMATION ON THE                  COMPANY                                                    | 14      |
| BUSINESS                  OVERVIEW                                                                                                 | 14      |
| General                                                                                                                            | 14      |
| Business                  Strategy                                                                                                 | 14      |
| History                  and Development of the                  Company                                                           | 15      |
| LINES                  OF BUSINESS                                                                                                 | 16      |
| Canadian                  Media Operations                                                                                         | 16      |
| Australian                  Operations                                                                                             | 27      |
| Turkish                  Operations                                                                                                | 30      |
| U.K.                  Operations                                                                                                   | 32      |
| SEASONALITY                                                                                                                        | 33      |
| REGULATION                                                                                                                         | 33      |
| ORGANIZATIONAL                  STRUCTURE                                                                                          | 40      |
| PROPERTY,                  PLANTS AND EQUIPMENT                                                                                    | 41      |
| ITEM                  4A. UNRESOLVED STAFF COMMENTS                                                                                | 41      |
| ITEM                  5.  OPERATING AND FINANCIAL                  REVIEW AND PROSPECTS                                  | 42      |
| ITEM                  6.  DIRECTORS, SENIOR MANAGEMENT AND                  EMPLOYEES                                    | 62      |
| DIRECTORS                  AND SENIOR                  MANAGEMENT                                                                  | 62      |
| STATEMENT                  OF CORPORATE GOVERNANCE                  PRACTICES                                                      | 81      |
| EMPLOYEES                                                                                                                          | 85      |
| ITEM                  7.  MAJOR SHAREHOLDERS AND RELATED PARTY                  TRANSACTIONS                             | 86      |
| MAJOR                  SHAREHOLDERS                                                                                                | 86      |
| RELATED                  PARTY                  TRANSACTIONS                                                                       | 86      |
| ITEM                  8.  FINANCIAL INFORMATION                                                                          | 87      |
| CONSOLIDATED                  STATEMENTS AND OTHER FINANCIAL                  INFORMATION                                          | 87      |
| LEGAL                  PROCEEDINGS                                                                                                 | 87      |
| DIVIDEND                  POLICY                                                                                                   | 88      |
| ITEM                  9.  THE OFFER AND LISTING                                                                          | 88      |
| MARKETS                                                                                                                            | 88      |
| ITEM                  10.  ADDITIONAL                  INFORMATION                                                       | 88      |
| MEMORANDUM                  AND ARTICLES OF                  ASSOCIATION                                                           | 88      |
| MATERIAL                  CONTRACTS                                                                                                | 89      |
| EXCHANGE                  CONTROLS                                                                                                 | 89      |
| DOCUMENTS                  ON DISPLAY                                                                                              | 89      |
| ITEM                  11.  QUANTITATIVE AND QUALITATIVE                  DISCLOSURES ABOUT MARKET RISK                   | 90      |
| ITEM                  12.  DESCRIPTION OF SECURITIES OTHER THAN                  EQUITY SECURITIES                       | 90      |
| PART                  II                                                                                                           | 91      |
| ITEM                  13.  DEFAULT, DIVIDEND ARRERAGES AND                  DELINQUENCIES                                | 91      |
| ITEM                  14.  MATERIAL MODIFICATIONS TO THE RIGHTS OF                  SECURITY HOLDERS AND USE OF PROCEEDS | 91      |
| ITEM                  15.  CONTROLS AND                  PROCEDURES                                                      | 91      |
| ITEM                  16. [RESERVED]                                                                                               |    |
| ITEM                  16A.  AUDIT COMMITTEE FINANCIAL                  EXPERT                                            | 91      |
| ITEM                  16B.  CODE OF ETHICS                                                                               | 91      |
| ITEM                  16C.  PRINCIPAL ACCOUNTANT FEES AND                  SERVICES                                      | 93      |
| ITEM                  16D. EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT                  COMMITTEES                                 | 92      |
| ITEM                  16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND                  AFFILIATES                            | 92      |
| ITEM                  17.  FINANCIAL                  STATEMENTS                                                         | 92      |
| ITEM                  18.  FINANCIAL                  STATEMENTS                                                         | 92      |
| ITEM                  19.  EXHIBITS                                                                                      | 93      |
| SIGNATURES                                                                                                                         | 96      |

----

**Table            of            Contents**

**PRESENTATION      OF FINANCIAL AND OTHER      INFORMATION**

**Canadian      GAAP**

**Non-GAAP      Financial Measures**

**Industry      Data**

|   | · | Individual                newspaper circulation figures are from the Audit Bureau of Circulations,                an independent research organization that audits the circulation                of print                media vehicles, including newspapers. Industry-wide newspaper industry                advertising revenue, circulation revenue, circulation and median                newspaper                price data are from the Canadian Newspaper Association, a not-for-profit                industry association representing Canadian newspaper                publishers. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Broadcasting                viewership data for Canada is from BBM Nielsen Media Research Inc.,                a                company that provides television audience measurement and related                services, and BBM Bureau of Measurement, a not-for-profit broadcast                research company that provides ratings information for the television,                radio and interactive media                industries. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Television                advertising market share data for Australia is sourced from Free                TV                Australia, an industry organization which represents all of Australia’s                commercial free-to-air television                operations. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

|   | · | Radio                listenership data for Turkey is provided by HTP-RIAK Turkish Radio                Audience Measurement System. RIAK, a joint radio industry association,                supported the development of this system in 2003 to create a reliable                source of information related to radio audience                measurement. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Other      Information**

|   | · | References                to “we,” “us,” “our,” “the Company” or “CanWest MediaWorks” refer, unless                we otherwise indicate or the context otherwise requires, to CanWest                MediaWorks Inc. and its consolidated subsidiaries.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to “CanWest” are to CanWest Global Communications                Corp. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | References                to the “Fund” and to the “Income Fund” are to the CanWest MediaWorks                Income Fund. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to the “Limited Partnership” are to the CanWest MediaWorks Limited                Partnership. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to “CanWest MediaWorks (NZ)” are to CanWest MediaWorks (NZ)                Limited. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to CW Investments are to CW Investments                Co. |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | References                to CW Media are to CW Media Holdings                Inc. |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | References                to “CanWest Publications” refer to the newspapers and Internet assets                acquired by us from Hollinger International Inc., Southam Inc., Hollinger                Canadian Newspapers Limited Partnership and HCN Publications Company                on                November 16, 2000, including a 100% interest in the National Post and                excluding those publications that have since been                sold. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to the “Publications Group” are to our Canadian publications and                interactive operations, excluding the National Post, and to certain                shared                service operations which were transferred to the Limited Partnership                on                October 13, 2005.  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to “CDN$” or “$” are to Canadian                dollars. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | References                to “A$” are to Australian dollars. |
|--------|--------|--------------------------------------------------------------------------|

|   | · | References                to “€” are to the euro. |
|--------|--------|---------------------------------------------------------------------|

|   | · | References                to “NTL” are to New Turkish Lira. |
|--------|--------|-------------------------------------------------------------------------|

|   | · | References                to “GBP” are to the U.K. Pound                Sterling. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | References                to “US$” are to U.S. dollars. |
|--------|--------|---------------------------------------------------------------------|

|   | · | References                to TEN Holdings are to Australia’s TEN Network Holdings                Limited. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

|   | · | References                to “Network TEN” are to Australia’s TEN Television Network, which is owned                and operated by the TEN Group. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | References                to “TEN Group” are to The TEN Group Pty                Limited. |
|--------|--------|-------------------------------------------------------------------------------------------------------|

**FORWARD      LOOKING STATEMENTS**

|   | · | our                outstanding indebtedness and our                leverage; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | our                ability to incur substantially more                indebtedness; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | restrictions                imposed by the terms of our                indebtedness; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | our                ability to effectively manage our                growth; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | the                highly competitive nature of the industries in which we operate;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | our                ability to successfully implement our business and operating                strategies. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

**PART      I**

**ITEM      1.  IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND      ADVISERS**

**ITEM      2.  OFFER STATISTICS AND EXPECTED      TIMETABLE**

**ITEM      3.  KEY INFORMATION**

**SELECTED      FINANCIAL DATA**

----

**Table            of            Contents**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **For                  the fiscal year ended August 31,** |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **2007**                                                  |      |   | **2006** |   |   | **2005** |   |   | **2004** |   |   | **2003** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   | **Revised                (1)** |   |   | **Revised                (1)** |   |   | **Revised                (1)** |   |   | **Revised                (1)** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | **(in                thousands of Canadian dollars)**     |      |
| **Income                Statement Data:(2)**                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $                                                         | 2,865,282 |   |   | $ | 2,685,813 |   |   | $ | 2,816,062 |   |   | $ | 2,678,804 |   |   | $ | 2,588,842 |   |
| Operating                expenses, selling, general and administrative expenses and restructuring                expenses                                                                                                                                                                                                                                                                                                                                             |   |                                                      | 2,378,315 |   |   |   | 2,226,393 |   |   |   | 2,162,876 |   |   |   | 2,020,865 |   |   |   | 1,976,502 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      | 486,967   |   |   |   | 459,420 |   |   |   | 653,186 |   |   |   | 657,939 |   |   |   | 612,340 |   |
| Amortization                of intangibles and goodwill                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                      | 6,395     |   |   |   | 10,947 |   |   |   | 18,418 |   |   |   | 18,175 |   |   |   | 17,784 |   |
| Amortization                of property, plant and equipment and other amortization                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                      | 94,101    |   |   |   | 93,629 |   |   |   | 87,992 |   |   |   | 85,825 |   |   |   | 85,241 |   |
| Operating                Income                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                      | 386,471   |   |   |   | 354,844 |   |   |   | 546,776 |   |   |   | 553,939 |   |   |   | 509,315 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                financing expenses (3)                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                      | (196,352  | ) |   |   | (187,334 | ) |   |   | (248,406 | ) |   |   | (340,494 | ) |   |   | (383,524 | ) |
| Accretion                of long term liabilities                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                      | (3,603    | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Foreign                exchange gains (losses)                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                      | 9,685     |   |   |   | (7,941 | ) |   |   | (1,008 | ) |   |   | 8,118 |   |   |   | 3,928 |   |
| Interest                rate and foreign currency swap losses                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 15,955    |   |   |   | (138,639 | ) |   |   | (121,064 | ) |   |   | (73,909 | ) |   |   | (23,015 | ) |
| Investment                gains, losses and dividend income                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                      | 8,448     |   |   |   | 102,490 |   |   |   | 1,527 |   |   |   | 124,040 |   |   |   | 12,772 |   |
| Loss                on debt extinguishment                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                      | -         |   |   |   | (117,401 | ) |   |   | (43,992 | ) |   |   | - |   |   |   | - |   |
| Goodwill                impairment                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                      | -         |   |   |   | - |   |   |   | (41,406 | ) |   |   | - |   |   |   | - |   |
| Asset                impairment                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                      | -         |   |   |   | - |   |   |   | (9,629 | ) |   |   | - |   |   |   | - |   |
| Loan                impairment recovery (charge) (4)                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      | -         |   |   |   | 8,888 |   |   |   | (11,390 | ) |   |   | (418,746 | ) |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      | 220,604   |   |   |   | 14,907 |   |   |   | 71,408 |   |   |   | (147,052 | ) |   |   | 119,476 |   |
| Provision                for (recovery of) income taxes                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                      | (93,604   | ) |   |   | (88,423 | ) |   |   | 9,880 |   |   |   | 35,513 |   |   |   | (47,015 | ) |
| Earnings                (losses) before the following                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                      | 127,000   |   |   |   | 103,330 |   |   |   | 61,528 |   |   |   | (182,565 | ) |   |   | 166,491 |   |
| Minority                interests                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                      | (105,490  | ) |   |   | (95,998 | ) |   |   | (89,365 | ) |   |   | (79,871 | ) |   |   | (80,637 | ) |
| Interest                in earnings (losses) of other equity accounted affiliates                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                      | 2,422     |   |   |   | 2,612 |   |   |   | 2,043 |   |   |   | 2,731 |   |   |   | (1,332 | ) |
| Realized                currency translation adjustments                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                      | (5,351    | ) |   |   | (6,883 | ) |   |   | 622 |   |   |   | (7,023 | ) |   |   | 922 |   |
| Net                earnings (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                      | 18,581    |   |   |   | 3,061 |   |   |   | (25,172 | ) |   |   | (266,728 | ) |   |   | 85,444 |   |
| Gain                on sale of discontinued                operations                                                                 |   |                                                      | 251,998   |   |   |   | 163,547 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Earnings                from discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      | 10,532    |   |   |   | 23,588 |   |   |   | 29,962 |   |   |   | 47,336 |   |   |   | 29,963 |   |
| Net                earnings (loss) for the year                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $                                                         | 281,111   |   |   | $ | 190,196 |   |   | $ | 4,790 |   |   | $ | (219,392 | ) |   | $ | 115,407 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Balance                Sheet Data (at period end):**                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                      | 5,628,150 |   |   |   | 5,628,150 |   |   |   | 5,306,319 |   |   |   | 5,509,528 |   |   |   | 5,971,781 |   |
| Share                capital                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                      | 438,838   |   |   |   | 438,838 |   |   |   | 438,838 |   |   |   | 438,838 |   |   |   | 438,838 |   |
| Shareholder’s                equity                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                      | 1,439,625 |   |   |   | 1,439,625 |   |   |   | 1,253,863 |   |   |   | 1,252,838 |   |   |   | 1,452,906 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **U.S.                GAAP Data:**                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                earnings (loss) from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                                         | 4,557     |   |   | $ | (17,888 | ) |   | $ | (42,962 | ) |   | $ | (229,953 | ) |   | $ | 38,242 |   |
| Earnings                from discontinued                operations                                                                   |   |                                                      | 263,237   |   |   |   | 187,135 |   |   |   | 29,962 |   |   |   | 46,977 |   |   |   | 29,930 |   |
| Net                earnings (loss) for the year                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                      | 267,794   |   |   |   | 169,247 |   |   |   | (13,000 | ) |   |   | (182,976 | ) |   |   | 68,172 |   |
| Total                assets                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                      | 7,138,111 |   |   |   | 5,783,535 |   |   |   | 5,486,009 |   |   |   | 5,616,209 |   |   |   | 6,158,635 |   |
| Shareholder’s                equity                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                      | 1,740,332 |   |   |   | 1,510,258 |   |   |   | 1,337,573 |   |   |   | 1,396,729 |   |   |   | 1,581,431 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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**Table            of            Contents**

| (2) | Income                statement data and results in the periods presented were impacted                by the                following business acquisitions and                divestitures: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                February 2003, we disposed of certain community                newspapers; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | § | In                September 2004, we acquired the remaining 50% of Eye                Shop. |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | § | In                October 2005 we sold a 25.8% interest in our Canadian Newspaper and                interactive operations excluding the National Post to an income fund.                Following this transaction, we continued to consolidate the results                of                these operations with a charge to minority interest to reflect the                minority share of the earnings.  As described below, the Income                Fund’s 25.8% interest was repurchased in July                2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                April 2006 we invested in our radio operations in                Turkey. |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | § | In                August 2006 we sold our 45% interest in TV3 Ireland. As a result                the                consolidated financial statements were revised to classify the net                earnings of TV3 Ireland as earnings from discontinued operations,                the cash                flows of TV3 as investing, financing and operating cash flows from                discontinued operations and the assets and liabilities of TV3 as                assets                and liabilities of discontinued operations.  The consolidated                financial statements of prior periods were reclassified accordingly.                See                note 15 to our audited consolidated financial statements for the                three                years ended August 31, 2007. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                September 2006 we sold our Canadian radio stations. As a result,                the                consolidated financial statements were revised to reclassify the                net                earnings of the sold stations as earnings from discontinued operations,                the cash flows as investing financing and operating cash flows from                discontinued operations and the assets and liabilities as assets                and                liabilities of discontinued operations.  The consolidated                financial statements of prior periods were reclassified accordingly.                See                note 15 to our audited consolidated financial statements for the                three                years ended August 31, 2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | During                2007, Eye Corp completed the 100% purchases of Ultimate Media Group                in                Australia and Foxmark Media Group in the United                States. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | During                2007, we completed the purchase of The New Republic, a bi-weekly                subscription magazine in the United                States. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                June 2007, we completed the sale of our New Zealand television and                radio                segments. As a                result the consolidated financial statements were revised to reclassify                the net earnings of the sold stations as earnings from discontinued                operations, the cash flows as investing financing and operating cash                flows                from discontinued operations and the assets and liabilities as assets                and                liabilities of discontinued operations.  The consolidated                financial statements of prior periods were reclassified accordingly.                See                note 15 to our audited consolidated financial statements for the                three                years ended August 31, 2007. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | § | In                July 2007, the Limited Partnership redeemed its Class A partnership                units                thereby completing the purchase of the 25.8% interest that was owned                by                the CanWest MediaWorks Income Fund. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                August 2007, we, along with Goldman Sachs Capital Partners (“Goldman                Sachs”), completed our acquisition of Alliance Atlantis Communications                Inc.  Concurrently, with the completion of the acquisition, the                Alliance Atlantis broadcasting, entertainment and movie distribution                businesses were reorganized and split into separate groups.  We                do not have any continuing interest in the entertainment and movie                distribution businesses but will hold two thirds of the voting shares                and                approximately 35% equity interest in CW Investments, the parent company                of                CW Media, which indirectly holds the broadcast operations.  The                principal business of Alliance Atlantis broadcast operations is the                operation of 18 specialty television channels in Canada.  These                operations are held in trust subject to Canadian Radio-television                and                Telecommunications Commission (“CRTC”) approval of our application for                change of control.  We have consolidated this investment,                however, the operations in trust are equity accounted.  See note                2 to our audited consolidated financial statements for the three                years                ended August 31, 2007. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Loan                impairments related to loans to Fireworks Entertainment and CanWest                Entertainment, affiliated companies controlled by CanWest. Provisions                for                impairment of these loans of $419 million and $11 million were established                in 2004 and 2005, respectively.  In 2006, we recorded a $9                million recovery as a result of the collection of amounts due under                the                loans. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Table            of            Contents**

**EXCHANGE      RATE INFORMATION**

|                                  |   |                      |   |   |                      |   |   |                      |   |   |                      |   |
|---------------------------------------|--------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------------|--------|
|  **Year                  Ended** |   | **Average (1)**      |   |   | **High**                  |   |   | **Low**                   |   |   | **Period End**       |   |
| August                31, 2003        |   | US$                0.6790 |   |   | US$                0.7495 |   |   | US$                0.6273 |   |   | US$                0.7220 |   |
| August                31, 2004        |   |                      | 0.7522 |   |                      |   | 0.7879 |                      |   |   | 0.7159                    |   |   |   | 0.7595 |   |
| August                31, 2005        |   |                      | 0.8163 |   |                      |   | 0.8493 |                      |   |   | 0.7652                    |   |   |   | 0.8411 |   |
| August                31, 2006        |   |                      | 0.8674 |   |                      |   | 0.9134 |                      |   |   | 0.8349                    |   |   |   | 0.9047 |   |
| August                31, 2007        |   |                      | 0.8924 |   |                      |   | 0.9641 |                      |   |   | 0.8437                    |   |   |   | 0.9466 |   |

| **Month**                                                |   | **High**                  |   |   | **Low**                   |   |   | **Period End** |   |
|----------------------------------------------------------|--------|---------------------------|--------|--------|---------------------------|--------|--------|---------------------|--------|
| June                2007                                 |   | US$                0.9452 |   |   | US$                0.9320 |   |   | US$0.9404           |   |
| July                2007                                 |   |                      | 0.9641 |   |                      |   | 0.9358 |                |   |   | 0.9384 |   |
| August                2007                               |   |                      | 0.9525 |   |                      |   | 0.9298 |                |   |   | 0.9466 |   |
| September                2007                            |   |                      | 1.0069 |   |                      |   | 0.9482 |                |   |   | 1.0037 |   |
| October                2007                              |   |                      | 1.0527 |   |                      |   | 0.9960 |                |   |   | 1.0527 |   |
| November                2007                             |   |                      | 1.0905 |   |                      |   | 1.0000 |                |   |   | 1.0000 |   |
| December                2007 (through December 18, 2007) |   |                      | 0.9995 |   |                      |   | 0.9788 |                |   |   | 0.9896 |   |

|  (1) | The                average of the noon buying rates on the last business day of each                month                during the period. |
|-----------|---------------------------------------------------------------------------------------------------------------------------------------------|

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**Table          of Contents**

**RISK      FACTORS**

*An      investment in our securities involves a number of risks. The risks and      uncertainties described below are not the only ones we face. Additional risks      that we currently don't know about or deem to be immaterial may also impair      our      business or results of operations.  When reviewing forward-looking      statements contained herein, investors and others should carefully consider      these factors, as well as other uncertainties, potential events and industry      and      company-specific factors that may adversely affect our future results. We assume      no obligation to update or revise forward-looking statements to reflect new      events or circumstances*

**Risks      Relating to Our Business**

***Control      of CanWest by Holders of Multiple Voting Shares***

|   | · | difficulties                in integrating the operations of the target company and realizing                the                anticipated synergies of the combined                businesses; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | diversion                of our financial and management resources from existing                operations; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | potential                loss of key employees, customers and strategic alliances from either                our                current business or the target company's                business; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | assumption                of unanticipated problems or latent liabilities, such as problems                with the                quality of the target company's                services; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | inability                to generate sufficient net income to justify the acquisition costs;                and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | the                recording of goodwill and other intangible assets which may be subject                to                potential impairment that could harm future financial                results. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***We      operate in highly competitive industries.***

***Our      television, newspaper and other content may fail to attract large audiences,      which may limit our ability to generate advertising and circulation      revenue.***

***We      are largely dependent on particular advertising customer segments, and      variations in customer demand in these segments could adversely affect our      ability to generate revenue.***

***We      compete with alternative technologies and may be required to invest a      significant amount of capital to address continued technological      development.***

***Our      operations rely upon information systems and technology and other manufacturing      systems.***

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**Table            of            Contents**

***Our      editorial content can be controversial and may result in      litigation.***

***Our      revenue is subject to cyclical and seasonal variations and is generated      primarily from advertisers.***

***Acts      of terrorism and other political and economic developments could adversely      affect revenue.***

***We      may be adversely affected by variations in television programming acquisition      costs.***

***We      may be adversely affected by strikes and other labor      protests.***

** **

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**Table            of            Contents**

***We      may be adversely affected by variations in the cost of newsprint.***

***We      rely upon key personnel for our success.***

***We      maintain many well known consumer brands.***

***We      may be adversely affected by foreign exchange      fluctuations.***

***Changes      in government regulation could adversely affect our business, financial      condition or results of operations.***

*Broadcasting      Act (Canada)*
*Broadcasting Act (Canada)*
*Broadcasting Act (Canada)*

***A      denial by the CRTC of our application to acquire control of the broadcasting      operations of CW Media could result in a loss on the sale of these      operations.***

***The      CRTC and other applicable broadcasting regulatory authorities may not renew      our      existing broadcasting licences or grant us new licences on acceptable terms,      or      at all.***

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**Table            of            Contents**

***We      may not be successful in defending a lawsuit that has been commenced against      CanWest and certain of its subsidiaries.***

***We      do not control and are not permitted to control some of our broadcasting      assets.***

----

**Table            of            Contents**

***Inability      to finance the Goldman Sachs put rights could result in a forced sale or Initial      Public Offering of our Canadian television operations including CW      Investments.***

***We      may be adversely affected by changes in government incentive programs for      Canadian program production.***

***We      may be adversely affected by changes to our insurance      coverage.***

***We      are subject to extensive environmental regulations***

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**Table            of            Contents**

***Changes      in effective tax rates or adverse outcomes resulting from examination of our      income tax returns could adversely affect our      results.***

***We      may be adversely affected by a prolonged writers strike in the United      States.***

***The      integration and combination of the Alliance Atlantis television operations      with      our Canadian television operations may not be as financially or operationally      successful as originally contemplated, and we may experience difficulties,      higher costs and unanticipated financial liabilities or losses in connection      with the integration and combination.***

----

**Table            of            Contents**

**Risks      Relating to Our Debt**

***Our      substantial debt could adversely affect our financial condition and prevent      us      from fulfilling our obligations.***

|   | • | require                us to dedicate a substantial portion of our cash flow from operations                to                payments on debt, which will reduce amounts available for working                capital,                capital expenditures, marketing, product and program development                and other                general corporate purposes; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | limit                our flexibility in planning for, or reacting to, changes in our business                and the industries in which we                operate; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***To      service our debt, we will require a significant amount of cash, and our ability      to generate cash in the future depends on many factors beyond our      control.***

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**Table            of            Contents**

***Our      outstanding indebtedness imposes operational and financial restrictions on      us.      Our credit facility and the indentures that govern our senior subordinated      notes      impose operational and financial restrictions on us.***

**ITEM      4.  INFORMATION ON THE      COMPANY**

**BUSINESS      OVERVIEW**

**General**

|   | • | provide                advertisers with multi-platform media advertising solutions designed                to                reach a mass audience or to target specific demographic or                special-interest groups; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | leverage                the news and information production resources of our broadcasting,                publications and internet operations to provide our audiences with                superior depth and scope in local, regional and national coverage;                and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | cross-promote                our brands, programs and other content across our various media                platforms. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------|

**Business      Strategy**

|   | • | *Offer                comprehensive advertising solutions*. Our broad range of media                platforms allows us to deliver multi-platform solutions to our advertising                clients. We are able to sell flexible packages of advertising across                various media in local, regional and national markets. Our Canadian                television, publishing and internet platforms provide advertisers                with an                effective means to reach a mass market or to target specific demographic                and special interest groups. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Table            of            Contents**

|   | • | *Leverage                content.* By creating our own news and sports content and purchasing                or commissioning entertainment content from our affiliates and others,                we                are able to supply our own platforms and syndicate our content to                non-competing media outlets, reducing our effective costs. The combination                of our television, publishing and internet platforms makes us a leading                owner and provider of content in Canada. Our news and information                organization provides extensive resources to develop content for                delivery                across our multiple distribution platforms and enables us to provide                complete and in-depth coverage of local, regional and national news                and                information to our audiences. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | *Cross-promote                and co-brand our properties.* The geographic overlap of our                television, publishing, and internet platforms enables us to cross-promote                our properties in order to grow audiences, strengthen brand recognition                and increase advertising revenue. For example, in Canada we use our                newspapers to promote our television programs and websites. Our variety                of                platforms also enables us to pursue co-branding and brand extension                opportunities. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | § | *Expand                operations in other markets including emerging markets.* We intend to                develop and acquire additional media assets in our existing markets                and                expand into other markets where we believe there to be opportunities                to                utilize our expertise. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | *Improve                efficiency and reduce operating costs.* We continually pursue                opportunities within our operations to improve efficiency and reduce                operating costs through the use of technology and by consolidating                common                functions to reduce duplication of                effort. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**History      and Development of the      Company**

***Overview***

***Significant      Developments in Fiscal Year 2007***

***Acquisition      of Alliance Atlantis***

***Control      of Ten Network Holdings Limited***

** **

***Completion      of Sale of Canadian Radio Stations***

***Privatization      of the CanWest MediaWorks Income Fund***

***Sale      of CanWest MediaWorks (NZ)***

----

**Table            of            Contents**

***Eye      Corp Expansion***

***Sale      of TV3 Ireland***

***Turkish      Radio Acquisition***

*Super FM, Metro FM, Joy FM and Joy Turk FM*
*Super FM*
*Metro*
*FM, Joy FM*
*Joy Turk FM*

**LINES      OF BUSINESS**

**Canadian      Media Operations**

***Canadian      Television***

----

**Table            of            Contents**

| **Channel**                                                                                                                                                                                                                                                                                                           | **Analog/****Digital** |   | **Equity                  Interest** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|--------|--------------------------------------|--------|
| Channels                operated:                                                                                                                                                                                                                                                                                     |                   |   |                                 |   |
| *Showcase                                           *                                          | Analog                 |   |                                 | 100.0  | % |
| *Slice                (formerly Life Network)*                                                                                                                                                                                                                                                                        | Analog                 |   |                                 | 100.0  | % |
| *History                Television                                           *                 | Analog                 |   |                                 | 100.0  | % |
| *HGTV                Canada                                           *                        | Analog                 |   |                                 | 67.0   | % |
| *Food                Network                Canada                                           * | Analog                 |   |                                 | 51.0   | % |
| *Showcase                Action                                           *                    | Digital                |   |                                 | 100.0  | % |
| *Showcase                Diva                                           *                      | Digital                |   |                                 | 100.0  | % |
| *National                Geographic Channel*                                                                                                                                                                                                                                                                          | Digital                |   |                                 | 50.0   | % |
| *BBC                Canada                                           *                         | Digital                |   |                                 | 50.0   | % |
| *BBC                Kids                                           *                           | Digital                |   |                                 | 50.0   | % |
| *Discovery                Health Channel*                                                                                                                                                                                                                                                                             | Digital                |   |                                 | 65.0   | % |
| *IFC                Canada                                           *                         | Digital                |   |                                 | 100.0  | % |
| *Fine                Living                                           *                        | Digital                |   |                                 | 67.0   | % |
|                                                                                                                                                                                                                                                                                                                  |                   |   |                                 |   |   |
| Channels                not operated:                                                                                                                                                                                                                                                                                 |                   |   |                                 |   |   |
| *The                Score                                           *                          | Analog                 |   |                                 | 22.3   | % |
| *Historia                                           *                                          | Analog                 |   |                                 | 50.0   | % |
| *Series+                                           *                                           | Analog                 |   |                                 | 50.0   | % |
| *ONE:  The                Body, Mind and Spirit Channel*                                                                                                                                                                                                                                                    |  Digital          |   |                                 | 29.9   | % |
| *Scream                                           *                                            | Digital                |   |                                 | 49.0   | % |

*CSI, Weeds*
*Rachel Ray’s 30 Minute      Meals*
*Diva*

----

**Table            of            Contents**

|                                                 | **Call                  Sign**   |   | **Stations in****DMA/EMA** |   |   | **Rank                  in****DMA/EMA ****(1)** |   |   | **Audience****Share ****(1)** |   |
|------------------------------------------------------|--------------------------------------------|--------|---------------------------------|--------|--------|------------------------------------------------------|--------|--------|------------------------------------|--------|
| **Global                  Television Network:**      |                                       |   |                            |   |   |                                                 |   |   |                               |   |
| Global                  Ontario                      | CIII                                       |   |                            | 13     |   |                                                 |   | 2      |                               |   |   | 9.7 | % |
| Global                  Quebec (2)                   | CKMI                                       |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 6.3 |   |
| Global                  Vancouver                    | CHAN                                       |   |                            | 13     |   |                                                 |   | 2      |                               |   |   | 10.9 |   |
| Global                  Calgary(7)                   | CICT                                       |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 7.5 |   |
| Global                  Edmonton                     | CITV                                       |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 10.0 |   |
| Global                  Winnipeg                     | CKND                                       |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 10.9 |   |
| Global                  Halifax                      | CIHFNS                                     |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 8.6 |   |
| Global                  Saskatoon                    | CFSK                                       |   |                            | 7      |   |                                                 |   | 2      |                               |   |   | 7.7 |   |
| Global                  Regina                       | CFRE                                       |   |                            | 7      |   |                                                 |   | 2      |                               |   |   | 7.0 |   |
| Global                  Saint John                   | CIHF-NB                                    |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 7.3 |   |
| Global                  Lethbridge (3)(4)            | CISA                                       |   |                            | 8      |   |                                                 |   | 2      |                               |   |   | 9.1 |   |
| **E!:**                                              |                                       |   |                            |   |   |                                                 |   |   |                               |   |   |   |   |
| Montreal,                  Quebec (2)                | CJNT                                       |   |                            | 8      |   |                                                 |   | 8      |                               |   |   | 1.8 |   |
| Hamilton,                  Ontario (5)               | CHCH                                       |   |                            | 13     |   |                                                 |   | 5      |                               |   |   | 3.9 |   |
| Victoria,                  British Columbia (6)      | CHEK                                       |   |                            | 13     |   |                                                 |   | 4      |                               |   |   | 4.5 |   |
| Okanagan-Kamloops,                  British Columbia | CHBC                                       |   |                            | 8      |   |                                                 |   | 6      |                               |   |   | 4.8 |   |
| Red                  Deer, Alberta (8)               | CHCA                                       |   |                            | 8      |   |                                                 |   | 4      |                               |   |   | 3.6 |   |

| (1) | Monday                to Sunday, Central Prime                Time (8:00 p.m. to 11:00 p.m. in all markets except Saskatchewan                and                Manitoba where, due to time zone differences with U.S. border stations,                Central Prime Time is 7:00 p.m. to 10:00 p.m.). For Toronto/Hamilton,                Calgary and Vancouver/Victoria, September 11, 2006 – Dec 17, 2006 and                January 8, 2007 – May 27, 2007. BBM Meter Research adults ages 18 to 49.                All other markets: Fall 2006 / Spring 2007 average BBM Sweeps, adults                ages                18 to 49.   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Based                on English language stations only.  |
|-----|---------------------------------------------------------------|

| (3) | BBM                Area 9705 — Lethbridge area.   |
|-----|--------------------------------------------------------------|

| (4) | CISA                is a repeater of CICT Calgary.  |
|-----|----------------------------------------------------------|

| (5) | Rank                and Share in the Toronto/Hamilton                DMA. |
|-----|---------------------------------------------------------------------------|

| (6) | Rank                and Share in Vancouver/Victoria                DMA. |
|-----|-------------------------------------------------------------------------|

----

**Table          of Contents**

***Industry      Overview***

----

**Table          of Contents**

|                                                                               |         |                                                                |   |   |                                                             |   |
|------------------------------------------------------------------------------------|--------------|---------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|
| **Network                or Station Group**                              |    | **Share                of****Canadian television**   |   |   | **Share                of****Total television**   |   |
| **Global                Television Network and our “E!” stations (1)** |    | **17.7**                                                            | **%**  |   | **11.9**                                                         | **%**  |
| CTV                                                                                |    | 23.2                                                                |   |   | 15.6                                                             |   |
| CBC                                                                                |    | 8.0                                                                 |   |   | 5.4                                                              |   |
| CHUM                (2)                                                            |    | 10.0                                                                |   |   | 6.7                                                              |   |
| Other                Canadian broadcast stations                                   |    | 4.5                                                                 |   |   | 3.0                                                              |   |
| Pay                and Specialty Canadian cable channels                           |    | 36.7                                                                |   |   | 24.7                                                             |   |
|                                                                               |    |                                                           |   |   |                                                        |   |
| Total                English-language broadcasting                                 |    | 100.0                                                               | %      |   | 67.3                                                             | %      |
|                                                                               |    |                                                           |   |   |                                                        |   |

|   | (1) | Does                not include our specialty cable                channels. |
|--------|-----|------------------------------------------------------------------------------|

|   | (2) | In                2007, Chum was acquired by CTV Globemedia and certain of the CHUM                stations                were subsequently sold to Rogers Communications                Inc. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Programming*

*House, Survivor, Heroes, Prison Break, The Simpsons, Family Guy,      King of the Hill, The Office, NCIS, Brothers and Sisters, 24, Bionic Woman,      Las      Vegas, Bones, Numbers,Deal or*
*** ***
*no Deal,      Extreme Makeover Home Edition, The Power of 10, Are You Smarter than a      5*
*th*

*      Grader,  My Name is Earl and How I      Met*
*** ***
*Your Mother.*
*Steelback Grand      Prix*
*Masters Golf Tournament*
*Wimbledon Tennis      Championships*

----

**Table            of            Contents**

*Ratings*

|                                           |   |                                                            |      |   |            |       |      |                                           |   |       |            |   |   |       |          |   |   |       |
|------------------------------------------------|--------|-----------------------------------------------------------------|-----------|--------|-----------------|------------|-----------|------------------------------------------------|--------|------------|-----------------|--------|--------|------------|---------------|--------|--------|------------|
|                                           |   | **Audience                Share in Selected Major Markets (1)** |      |
|                                           |   |                                                            |      |   |            |       |      |                                           |   |       |            |   |   |       |          |
|                                           |   | **Primetime 7PM -11PM ****(2)**                  |      |   | **Rank****(3)** |       |      | **6AM                – Midnight****(2)** |   |       | **Rank****(3)** |   |
|                                           |   |                                                            | 2006/2007 |   |            |       | 2005/2006 |                                           |   |       | 2006/2007       |   |   | ** ** | **2006/2007** |   |   | ** ** | **2005/2006** |   |   | ** ** | **2006/2007** |   |
| **Toronto/Hamilton                (4):**       |   |                                                            |      |   |            |       |      |                                           |   |       |            |   |   |       |          |   |   |       |   |   |   |
| CTV-CFTO                                       |   |                                                            | 11.6      | %      |            |       | 13.6      | %                                              |   |       | 1               |   |   |       | 8.9           | %      |   |       | 10.1 | % |   |   | 1 |   |
| **Global                Ontario – CIII** |   | ** **                                                      | **8.8**   |   |            | ** ** | **10.0**  |                                           |   | ** ** | **2**           |   |   | ** ** | **6.6**       |   |   | ** ** | **7.5** |   |   | ** ** | **2** |   |
| CBC                – Toronto (CBLT)      |   |                                                            | 4.6       |   |            |       | 5.4       |                                           |   |       | 3               |   |   |       | 3.1           |   |   |       | 4.2 |   |   |   | 3 |   |
| Citytv                - Ontario (CITY)         |   |                                                            | 4.3       |   |            |       | 4.2       |                                           |   |       | 4               |   |   |       | 4.5           |   |   |       | 4.8 |   |   |   | 4 |   |
| **E!                Ontario****(CHCH)**        |   | ** **                                                      | **3.4**   |   |            | ** ** | **3.9**   |                                           |   | ** ** | **5**           |   |   | ** ** | **2.8**       |   |   | ** ** | **3.2** |   |   | ** ** | **5** |   |
| WUTV                                           |   |                                                            | 1.9       |   |            |       | 2.1       |                                           |   |       | 6               |   |   |       | 2.4           |   |   |       | 3.0 |   |   |   | 6 |   |
| A-Channel                Barrie/Toronto (CKVR) |   |                                                            | 1.4       |   |            |       | 1.9       |                                           |   |       | 7               |   |   |       | 1.2           |   |   |       | 1.6 |   |   |   | 7 |   |
| Omni                1 Ontario (CFMT)           |   |                                                            | 1.1       |   |            |       | 1.3       |                                           |   |       | 8               |   |   |       | 1.4           |   |   |       | 1.5 |   |   |   | 8 |   |
| Omni                2 Ontario (CJMT)           |   |                                                            | 1.0       |   |            |       | 0.9       |                                           |   |       | 9               |   |   |       | 0.9           |   |   |       | 0.8 |   |   |   | 9 |   |

|                                             |   | **Audience                Share in Selected Major Markets (1)** |      |
|--------------------------------------------------|--------|-----------------------------------------------------------------|-----------|
|                                             |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                             |   | **Primetime                7PM – 11PM (2)**               |      |   | **Rank(3)** |   |   | **6AM                – Midnight (2)** |   |   | **Rank(3)** |   |
|                                             |   |                                                            | 2006/2007 |   |   |   | 2005/2006 |   |   |   | 2006/2007 |   |   |   | 2006/2007 |   |   |   | 2005/2006 |   |   |   |   |
| **Vancouver/Victoria                (5):**       |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CTV                – CIVT                  |   |                                                            | 11.0      |   |   |   | 12.6 |   |   |   | 1 |   |   |   | 7.8 |   |   |   | 8.6 |   |   |   | 2 |   |
| **Global                Vancouver – CHAN** |   | ** **                                                      | **10.4**  |   |   | ** ** | **10.8** |   |   | ** ** | **2** |   |   | ** ** | **11.9** |   |   | ** ** | **11.7** |   |   | ** ** | **1** |   |
| CBC                – CBUT                  |   |                                                            | 7.1       |   |   |   | 6.1 |   |   |   | 3 |   |   |   | 6.1 |   |   |   | 5.7 |   |   |   | 3 |   |
| **E!                Vancouver (CHEK)**           |   | ** **                                                      | **4.0**   |   |   | ** ** | **4.5** |   |   | ** ** | **4** |   |   | ** ** | **3.4** |   |   | ** ** | **4.0** |   |   | ** ** | **4** |   |
|                                             |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Citytv                Vancouver – (CKVU)   |   |                                                            | 3.9       |   |   |   | 4.1 |   |   |   | 5 |   |   |   | 3.0 |   |   |   | 3.6 |   |   |   | 6 |   |
| A-Channel                Victoria/Van (CIVI)     |   |                                                            | 3.8       |   |   |   | 3.5 |   |   |   | 6 |   |   |   | 3.3 |   |   |   | 2.9 |   |   |   | 5 |   |
| Independent                – (KVOS)        |   |                                                            | 1.1       |   |   |   | 1.1 |   |   |   | 7 |   |   |   | 1.1 |   |   |   | 1.1 |   |   |   | 7 |   |
|                                             |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Calgary                (6):**                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CTV                Calgary (CFCN)                |   |                                                            | 10.1      |   |   |   | 14.9 |   |   |   | 1 |   |   |   | 9.0 |   |   |   | 12.1 |   |   |   | 1 |   |
| **Global                Calgary (CICT)**         |   | ** **                                                      | **7.2**   |   |   | ** ** | **8.7** |   |   | ** ** | **2** |   |   | ** ** | **8.2** |   |   | ** ** | **8.9** |   |   | ** ** | **2** |   |
| CBC                – Calgary (CBRT)        |   |                                                            | 5.4       |   |   |   | 7.2 |   |   |   | 3 |   |   |   | 4.7 |   |   |   | 6.4 |   |   |   | 3 |   |
| Citytv                Calgary (CKAL)             |   |                                                            | 3.5       |   |   |   | 3.7 |   |   |   | 4 |   |   |   | 3.6 |   |   |   | 4.0 |   |   |   | 4 |   |
| **E!                Alberta (CHCA)**             |   | ** **                                                      | **0.5**   |   |   | ** ** | **0.6** |   |   | ** ** | **5** |   |   | ** ** | **0.4** |   |   | ** ** | **0.5** |   |   | ** ** | **5** |   |

| (1) | Audience                share among adults 18 to 49. |
|-----|------------------------------------------------------|

| (2) | September                11 2006 to May 27, 2007 and September 12, 2005 to May 28,                2006. |
|-----|---------------------------------------------------------------------------------------------------------|

| (4) | BBM                Toronto Meter Data, September 11, 2006 to May 27, 2007 and September                12,                2005 to May 28, 2006. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | BBM                Vancouver Meter Data, September 11, 2006 to May 27, 2007 and September                12,                2005, to May 28, 2006. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | BBM                Calgary Meter Data, September 11, 2006 to May 27, 2007 and September                12,                2005, to May 28, 2006. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

*Advertising      Sales and Revenue*

***Canadian      Publishing***

*Industry      Overview*

----

**Table          of Contents**

*Daily      Newspapers*

|                                |                        |   |            |   |   | **Total                Daily**         |       |          | **Weekly**        |   |       | **Market**      |    |   | **Local                Newspaper**    |   |
|-------------------------------------|-----------------------------|--------|-----------------|--------|--------|----------------------------------------|------------|---------------|-------------------|--------|------------|-----------------|---------|--------|---------------------------------------|--------|
| **Publication**                     | **Market**                  |   | **Established** |   |   | **Paid                Circulation(1)** |       |          | **Readership(2)** |   |       | **Position(3)** |    |   | **Market                Share(1)(6)** |   |
| The                Vancouver Sun    | Vancouver                   |   | 1912            |   |   |                                   | 169,730    |          |              |   | 848,300    |            |    |   | 2                                     | (4)    |   |   | 100 | %(7) |
| The                Province         | Vancouver                   |   |            | 1898   |   |                                   |       | 143,544       |              |   |       | 865,000         |    |   |                                  | 1      |   |   |   | 100 | %(7) |
| The                Gazette          | Montreal                    |   |            | 1778   |   |                                   |       | 130,275       |              |   |       | 544,400         |    |   |                                  | 1      | (5) |   |   | 100 | % |
| Ottawa                Citizen       | Ottawa                      |   |            | 1845   |   |                                   |       | 124,534       |              |   |       | 461,500         |    |   |                                  | 1      |   |   |   | 73 | % |
| Edmonton                Journal     | Edmonton                    |   | 1903            |   |   |                                   | 120,711    |          |              |   | 471,400    |            |    |   | 1                                     |   |   |   | 64 | % |
| Calgary                Herald       | Calgary                     |   |            | 1883   |   |                                   |       | 115,187       |              |   |       | 501,200         |    |   |                                  | 1      |   |   |   | 66 | % |
| The                Windsor Star     | Windsor                     |   | 1918            |   |   |                                   | 68,854     |          |              |   | 207,600    |            |    |   | 1                                     |   |   |   | 100 | % |
| Times                Colonist       | Victoria                    |   |            | 1858   |   |                                   |       | 70,970        |              |   |       | 203,200         |    |   |                                  | 1      |   |   |   | 100 | % |
| The                StarPhoenix      | Saskatoon                   |   | 1902            |   |   |                                   | 56,087     |          |              |   | 135,400    |            |    |   | 1                                     |   |   |   | 100 | % |
| Leader-Post                         | Regina                      |   |            | 1885   |   |                                   |       | 51,634        |              |   |       | 120,600         |    |   |                                  | 1      |   |   |   | 100 | % |
| Nanaimo                Daily News   | Nanaimo                     |   |            | 1874   |   |                                   |       | 7,006         |              |   |       | n.a.            |    |   |                                  | 1      |   |   |   | 100 | % |
| Alberni                Valley Times | Port                Alberni |   | 1919            |   |   |                                   | 4,802      |          |              |   | n.a.       |            |    |   | 1                                     |   |   |   | 100 | % |
| **Total**                           |                        |   |            |   |   |                                   | ** ** | **1,063,334** |              |   | ** ** | **3,858,000**   | **(8)** |   |                                  |   |   |   |   |   |   |

| **Notes:** |                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |
|------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| (1)        | Source:                ABC September 2007 FAS-FAX for the 6 month period ending September                30                released November 5, 2007 and ABC FAS-FAX supplement released November                12,                2007.                                                                                                                            |
| (2)        | Source:                NADbank Weekly Readership of daily paid circulation newspapers by                Resident                Market, NADbank 2006 and NADbank '05/'06 studies (based upon 6/7                day cume,                adults 18+).  Cume readership for Vancouver Sun and Province,                Ottawa Citizen and Montreal Gazette. |
| (3)        | As                measured by paid circulation and readership.                                                                                                                                                                                                                                                                                                       |
| (4)        | Second                to *The Province*, which is also owned by the Limited                Partnership.                                                                                                                                                                                                                                                              |
| (5)        | Number                one English-language newspaper; number three overall.                                                                                                                                                                                                                                                                                          |
| (6)        | Based                upon total weekly paid circulation of English-language local daily                newspapers.                                                                                                                                                                                                                                                   |
| (7)        | Includes                *The Vancouver Sun* and *The Province*.                                                                                                                                                                                                                                                                                                      |
| (8)        | Net                of unduplicated totals.                                                                                                                                                                                                                                                                                                                           |

*National Post*
*The      National Post*
*Toronto Star*
*The Toronto      Sun*

*National Post*

*Rush      Hour*

----

**Table          of Contents**

*Non-Daily      Newspapers*

*Nanaimo Daily      News*

*Telephone      Directories*

*Online      Newspaper Operations*

----

**Table            of            Contents**

*Classified      Advertising Websites*

*househunting.ca *
*working.com*
*driving.ca*
*remembering.ca*
*celebrating.com*
*connecting.com*
*working.com *
*working on      TVTropolis*

*Househunting.ca,      *

*Driving.ca*
*driving.ca*

*Canadian      Publishing Operations*

*Newsprint*

*Advertising      Sales and Revenue*

*Canadian      Interactive Operations*

----

**Table            of            Contents**

***canada.com***

*canada.com*
*canada.com is *
*canada.com*

*canada.com*
*canada.com*

*canada.com*

*, driving.ca,      househunting.com, remembering.ca, working.com, shopping.com*

*canada.com*
*canada.com*
*dose.ca*

*      canada.com*

***Business-to-Business:      FPinfomart.ca***

*FPinfomart.ca*

*FPinfomart.ca*
*FPinfomart.ca*
*FP Advisor*

*FPinfomart Mobile*
*FPinfomart.ca*
*FPinfomart Mobile*
*FPinfomart.ca*

*LexisNexis*
*Factiva*

----

**Table          of Contents**

***FP      DataGroup***

*FP DataGroup*

*FP      DataGroup*
*FP DataGroup*
*FP DataGroup*

***Canadian      Operations Sales and Marketing***

*Television      Sales*

*Newspaper      sales*

----

**Table          of Contents**

**Australian      Operations**

***Australian      Television***

*Industry      Overview*

*Programming*

*Life, Back To You, Medium, NCIS, House, The Simpsons*
*Law & Order*

*Sports Tonight*
*RPM*
*Meet the Press*
*Ready, Steady, Cook,*
*Totally Wild.*
*Australian Idol, Big Brother, The      Biggest Loser, So You Think You Can Dance, Are You Smarter Than A Fifth Grader,      Neighbours, *
*Rove*

----

**Table            of            Contents**

*Formula One*
*World Motorcycle Championships*
*World *
*Australian Rally Championships*

*Market      Share and Ratings*

**Television      Advertising Market Shares**

|                           |   |                                            |   |   |     |       |   |     |   |       |     |   |   |       |   |
|--------------------------------|--------|-------------------------------------------------|--------|--------|----------|------------|--------|----------|--------|------------|----------|--------|--------|------------|--------|
|                           |   | **Twelve                months ended June 30,** |   |
| **Network**          |   | **2003**                                        |   |   | **2004** |       |   | **2005** |   |       | **2006** |   |   | **2007**   |   |
| **Network                TEN** |   | ** **                                      | **29** | **%**  |     | ** ** | **30** | **%**    |   | ** ** | **31**   | **%**  |   | ** ** | **27** | **%** |   | ** ** | **29** | **%** |
| Nine                           |   |                                            | 39     |   |     |       | 39     |     |   |       | 38       |   |   |       | 37     |   |   |   | 33 |   |
| Seven                          |   |                                            | 32     |   |     |       | 31     |     |   |       | 31       |   |   |       | 36     |   |   |   | 38 |   |

**Audience      Share**

|                           |   |                                                |   |   |     |       |   |     |   |       |     |   |   |       |   |
|--------------------------------|--------|-----------------------------------------------------|--------|--------|----------|------------|--------|----------|--------|------------|----------|--------|--------|------------|--------|
|                           |   | **Twelve                months ended December 31,** |   |
| **Network**          |   | **2002**                                            |   |   | **2003** |       |   | **2004** |   |       | **2005** |   |   | **2006**   |   |
| **Network                TEN** |   | ** **                                          | **37** | **%**  |     | ** ** | **37** | **%**    |   | ** ** | **37**   | **%**  |   | ** ** | **37** | **%** |   | ** ** | **38** | **%** |
| Nine                           |   |                                                | 34     |   |     |       | 35     |     |   |       | 35       |   |   |       | 32     |   |   |   | 31 |   |
| Seven                          |   |                                                | 28     |   |     |       | 28     |     |   |       | 28       |   |   |       | 31     |   |   |   | 31 |   |

*Sales      and Marketing*

----

**Table            of            Contents**

***Eye      Corp**.*

|   | • | Eye                Drive, which encompasses large format billboards on over 2,100 sites                on                major arterial traffic corridors throughout Australia and                Indonesia;  |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Eye                Fly, which reaches more than 200 million passengers of more than                100                international airlines each year with over 1,200 displays in a total                of 20                airports in Australia, New Zealand, Singapore, Indonesia, and the                United                Kingdom; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Eye                Shop, which reaches more than 228 million shoppers per month, has                more                than 8,000 displays in over 400 shopping centres in Australia, New                Zealand                and the United States; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | Eye                In-Store (Adval), Eye Corp’s wholly owned premium merchandising                point-of-sale and printing company, which specializes in creating                innovative point-of-purchase and virtual merchandising design solutions;                and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | Eye                Plus, which encompasses *Inlink*, a central business district                network of digital media displays in elevators in 30 landmark buildings                in                Sydney, Melbourne, Adelaide and Brisbane,                Australia. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | Eye                Study, which operates advertising concessions at over 100 campuses                in                tertiary education institutes across Australia and New                Zealand. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Sales      and Marketing*

----

**Table          of Contents**

**Turkish      operations**

*Super FM, Metro FM, Joy FM and Joy Turk FM. *
*Super FM*
*Metro*
*FM, Joy FM *
*Joy Turk      FM*

*Industry      Overview*

| **Station                group** |   | **Reach%(1)** |    |
|----------------------------------|--------|---------------|---------|
| TMSF                Radios       |   |          | 16      | % |
| **CanWest                Group** |   | ** **    | **12**  | **%** |
| Power                Group       |   |          | 8       | % |
| Doğan                Group  |   |          | 6       | % |
| Show                Group        |   |          | 6       | % |
| Best                Group        |   |          | 3       | % |
| Saran                Group       |   |          | 4       | % |
| Akşam                Group  |   |          | 4       | % |
| Numberone                Group   |   |          | 1       | % |
| NTV                Group         |   |          | 1       | % |
| Other                            |   |          | 39      | % |
| **Total**                        |   | ** **    | **100** | **%** |

----

**Table          of Contents**

*Our      operations*

|   | · | Super                FM is a national Turkish pop music                station; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | Metro                FM is a national foreign music                station; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | Joy                Turk FM is a local Istanbul radio station which features Turkish                love                songs; and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Joy                FM is a local Istanbul radio stations featuring an easy listening                format. |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

** **

*Sales      and Marketing*

----

**Table          of Contents**

**U.K.      Operations**

*Industry      Overview*

*Our      operations*

----

**Table            of            Contents**

**SEASONALITY**

**REGULATION**

**Canadian      Television Regulation**

*Ownership      and Control*

----

**Table            of            Contents**

|   | § | a                change in effective control of the broadcasting undertaking of a                licencee; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | § | a                person or a person and its associates acquiring control of 30% or                more of                the voting interests of a licencee or of a person that has, directly                or                indirectly, effective control of a licencee;                or |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | a                person or a person and its associates acquiring 50% or more of the                issued                common shares of the licencee or of a person who has direct or indirect                effective control of a licencee. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Canadian      Programming Content*

*Advertising*

----

**Table            of            Contents**

*Licensing*

| **Station**                                     | **Call                Sign** | **Due                for Renewal** |
|-------------------------------------------------|------------------------------|------------------------------------|
| Global                Television Network:       |                         |                               |
| Global                Vancouver                 | CHAN                         | August 31, 2009          |
| Global                Halifax                   | CIHF                         | August                31, 2009     |
| Global                Saint John                | CIHF-2                       | August                31, 2009     |
| Global                Quebec                    | CKMI                         | August                31, 2009     |
| Global                Calgary                   | CICT                         | August                31, 2009     |
| Global                Edmonton                  | CITV                         | August                31, 2009     |
| Global                Winnipeg                  | CKND                         | August                31, 2009     |
| Global                Saskatoon                 | CFSK                         | August                31, 2009     |
| Global                Regina                    | CFRE                         | August                31, 2009     |
| Global                Lethbridge                | CISA                         | August                31, 2009     |
| Global                Ontario                   | CIII                         | August                31, 2009     |
| E!                television stations:          |                         |                               |
| CJNT                Montreal, Quebec            | CJNT                         | August                31, 2009     |
| CHCH                Hamilton, Ontario           | CHCH                         | August                31, 2009     |
| CHEK,                Victoria, British Columbia | CHEK                         | August                31, 2009     |
| CHBC                Kelowna, British Columbia   | CHBC                         | August                31, 2009     |
| CKRD                Red Deer, Alberta           | CKRD                         | August                31, 2009     |
| Specialty                sevices:               |                         |                               |
| Analog:                                         |                         |                               |
| TVtropolis                                      | Analog                       | August                31, 2010     |
| Digital:                                        |                         |                               |
| Mentv                (49% interest)             | Category 1              | August                31, 2009     |
| Mystery                (50% interest)           | Category                1    | August                31, 2009     |
| Lonestar                                        | Category                2    | August                31, 2009     |
| DejaView                                        | Category                2    | August                31, 2009     |
| Fox                Sports World Canada          | Category                2    | August                31, 2009     |
| Xtreme                Sports                    | Category                2    | August                31, 2009     |
| CoolTV                                          | Category                2    | August                31, 2009     |

|   | All                licences and related CRTC decisions are available for public                review. |
|--------|--------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

*Cross-Ownership      Issues*

**Canadian      Publishing Regulation**

**Australian      Television Regulation**

----

**Table            of            Contents**

*Ownership      and Control*

*Content      and Advertising*

*Digital      Television*

*General      Regulatory Obligations*

----

**Table            of            Contents**

| **City**  | **Call Sign** | **Due for Renewal** |
|-----------|--------------------|-------------------------------|
| Sydney    | TEN                | 2012                          |
| Melbourne | ATV                | 2012                          |
| Brisbane  | TVO                | 2012                          |
| Perth     | NEW                | 2012                          |
| Adelaide  | ADS                | 2009                          |

**Turkey      – Radio Regulation**

*Licencing*

*Ownership      and Control*

**United      Kingdom – Radio Regulation**

*Licencing*

*Ownership      and Control*

----

**Table            of            Contents**

**Environmental      Protection**

----

**Table          of Contents**

**ORGANIZATIONAL      STRUCTURE**

----

**Table          of Contents**

**PROPERTY,      PLANT AND EQUIPMENT**

*The Edmonton      Journal*
*National Post*

**CAPITAL      EXPENDITURES**

**Item      4A. UNRESOLVED STAFF COMMENTS**

|   |      Not                applicable. |
|--------|--------------------------------------------------------------|

----

**Table          of Contents**

**ITEM      5.  OPERATING AND FINANCIAL REVIEW AND      PROSPECTS**

**OVERVIEW**

*Television      Broadcast*

*Publishing*

*National Post*
*The New Republic*
*canada.com*

----

**Table          of Contents**

*Radio*

*Outdoor      advertising*

*Foreign      currency effects*

*Seasonality*

----

**Table          of Contents**

**ACQUISITIONS      AND DIVESTITURES**

| • | In                August 2007, we, along with Goldman Sachs Capital Partners (“Goldman                Sachs”), completed our acquisition of Alliance Atlantis Communications                Inc. (“Alliance Atlantis”)  Concurrently with the completion of                the acquisition, the Alliance Atlantis broadcasting, entertainment                and                movie distribution businesses were reorganized and split into separate                groups.  We do not have any continuing interest in the                entertainment and movie distribution businesses but hold two thirds                of the                voting shares and approximately 35% equity interest in CW Investments                Co.                (CW Investments), the parent company of CW Media Holdings Inc. (CW                Media),                which indirectly holds the broadcast operations.  The principal                business of Alliance Atlantis broadcast operations is the operation                of 18                specialty television channels in Canada.  These operations are                held in trust subject to Canadian Radio-television and Telecommunications                Commission (“CRTC”) approval of our application for change of                control.  We have consolidated this investment, however, the                operations in trust are equity accounted.  See note 2 of the                Audited Consolidated Financial Statements for the years ended August                31,                2007 and 2006 which sets out the assets and liabilities                acquired. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                July 2007, CanWest MediaWorks Limited Partnership (“Limited Partnership”)                redeemed its Class A partnership units thereby completing the purchase                of                the 25.8% interest that was owned by the CanWest MediaWorks Income                Fund.   Because these operations were already consolidated                in our audited consolidated financial statements, this transaction                does                not have a significant impact on our consolidated results of                operations.  The financing for the transaction has increased our                consolidated long term debt. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                June 2007, we completed the sale our New Zealand television and radio                segments. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | • | During                2007, we completed the purchase of The New Republic, a bi-weekly                subscription magazine in the United                States. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | During                2007, Eye Corp completed the 100% purchases of Ultimate Media Group                in                Australia and Foxmark Media Group in the United                States. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                August 2006, we completed the sale of TV3                Ireland. |
|--------|---------|-------------------------------------------------------------------------------------|

|   |  In                June and July 2006, Eye Corp acquired the remaining 50% of Eye Outdoor                Pty                Limited, 100% of Outdoor Plus Pty Limited and 100% of Eye Corp (USA)                Inc.                (formerly Media Choice). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                April 2006, we acquired economic control of the assets and operations                of                four radio stations in Turkey. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                September 2005, we acquired a radio licence to operate a station                in the                Solent region of the United Kingdom. This radio station, Original                106 FM,                commenced operations in October, 2006. In September 2006, we were                awarded                a second radio broadcast licence in the United Kingdom in Bristol                which                began operations in fiscal 2007.  In January 2007, we were                awarded a third radio broadcast licence in the United Kingdom in                Aberdeen,                which launched in October 2007. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | In                October 2005, we completed the initial public offering of the CanWest                MediaWorks Income Fund, which reduced our ownership of our publishing                operations and certain shared services from 100% to                74.2%. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | § | In                September 2004, Eye Corp acquired the remaining 50% of Eye Shop Pty                Limited (formerly Eye Village Joint Venture).  In addition, in                July 2005, Eye Corp acquired 100% of Eye Drive Melbourne Pty Limited                (formerly Southcoast Pty Limited). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

**CRITICAL      ACCOUNTING ESTIMATES**

*Goodwill      and Intangible Assets*

*Income      Taxes*

*Accounting for Pension and Other      Benefit Plans*

*Broadcast      Rights*

*Puttable      Interest in Subsidiary*

----

**Table            of            Contents**

**CHANGES      IN ACCOUNTING POLICIES**

*Stock-Based Compensation      for Employees Eligible to Retire Before Vesting Date,*

**FORTHCOMING      CHANGES IN ACCOUNTING POLICIES**

*Financial      Instruments, Hedges and Comprehensive Income*

----

**Table            of            Contents**

**OPERATING      RESULTS**

**Introductory      Note**

| • | *Segment                operating profit.*In the discussion that follows, we provide                information concerning our segment operating profit.   See                note 24 to our audited consolidated financial                statements.  Management utilizes segment operating profit as a                measure of segment profitability in making strategic resource                allocations. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | *Operating                income before amortization.  *We also discuss our                consolidated operating income before amortization.  We provide                this measure because we and our lenders and investors use operating                income                before amortization to measure performance against our various leverage                covenants.  Operating income before amortization is not a                recognized measure of financial performance under Canadian generally                accepted accounting principles (“GAAP”).  Investors are                cautioned that operating income before amortization should not be                construed as an alternative to net earnings determined in accordance                with                GAAP as an indicator of our performance.  Our method of                calculating operating income before amortization may not be comparable                to                similarly titled measures used by other companies.  A                reconciliation of operating income before amortization to net earnings,                which is the most closely comparable GAAP measure, is set forth below                under “Reconciliation of Non-GAAP Financial Measures” section of this                report. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

|   | **Fiscal                2007 Compared to Fiscal                2006** |
|--------|-----------------------------------------------------------------------|

|                                                                          |   | **Revenue** |      |   | **Segment                Operating Profit** |   |
|-------------------------------------------------------------------------------|--------|-------------|-----------|--------|---------------------------------------------|--------|
|                                                                          |   | **2007**    |      |   | **2006(1)**                                 |   |   | **2007** |   |   | **2006(1)** |   |
|                                                                          |   | **$**       | **000**   |   |                                        | **$**  | **000** |   |   | **$** | **000** |   |   | **$** | **000** |   |
| **Operating                Segments**                                         |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                                    |   |        | 1,285,298 |   |                                        |   | 1,261,753 |   |   |   | 269,096 |   |   |   | 248,429 |   |
| Television                                                                    |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Canada                                                                        |   |        | 683,035   |   |                                        |   | 657,876 |   |   |   | 61,266 |   |   |   | 31,487 |   |
| Australia                                                                     |   |        | 738,475   |   |                                        |   | 656,306 |   |   |   | 205,251 |   |   |   | 197,229 |   |
|                                                                          |   |        | 1,421,510 |   |                                        |   | 1,314,182 |   |   |   | 266,517 |   |   |   | 228,716 |   |
| Radio                                                                         |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|         Turkey                        |   |        | 14,920    |   |                                        |   | 5,726 |   |   |   | 5,832 |   |   |   | 2,610 |   |
|         United                Kingdom |   |        | 1,125     |   |                                        |   | - |   |   |   | (5,026 | ) |   |   | - |   |
|                                                                          |   |        | 16,045    |   |                                        |   | 5,726 |   |   |   | 806 |   |   |   | 2,610 |   |
|                                                                          |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Outdoor                                                                       |   |        | 146,226   |   |                                        |   | 109,051 |   |   |   | 416 |   |   |   | 19,593 |   |
| Inter-segment                revenue elimination                              |   |        | (3,797    | )      |                                        |   | (4,899 | ) |   |   | - |   |   |   | - |   |
| Corporate                and other                                            |   |        | -         |   |                                        |   | - |   |   |   | (32,958 | ) |   |   | (33,205 | ) |
| Corporate                development                                          |   |        | -         |   |                                        |   | - |   |   |   | (16,910 | ) |   |   | (6,723 | ) |
| Total                revenue                                                  |   |        | 2,865,282 |   |                                        |   | 2,685,813 |   |   |   |   |   |   |   |   |   |
| Operating                income before amortization                           |   |        |      |   |                                        |   |   |   |   |   | 486,967 | (2) |   |   | 459,420 | (2) |

**Consolidated      Results**

*Revenues*

*Operating      expenses*

*Operating      income before amortization*

*Amortization*

*Interest      expense*

----

**Table            of            Contents**

*Amortization      of deferred financing cost. *

*Interest      rate and foreign currency swap losses*

*Accretion      of long term liabilities.*

*Foreign      exchange losses*

*Investment      gains*

*Loss      on debt extinguishment*

*Income      taxes*

*Minority      interest*

*Net      earnings from continuing operations*

----

**Table            of            Contents**

*Discontinued      operations*

*Net      earnings*

**Segmented      Results**

*Revenue*
*canada.com*

*Operating      expenses*

*Segment      operating profit*

*Revenues*

*Prison Break*
*24, House*
*Survivor *
*Deal or No Deal      Canada*
*Heroes*

----

**Table            of            Contents**

*Operating      expenses*

*Segment      operating profit*

*Revenues*

*Operating      expenses*

*Segment      operating profit*

----

**Table            of            Contents**

*Jerusalem Post*

|   | **Fiscal                2006 Compared to Fiscal                2005** |
|--------|-----------------------------------------------------------------------|

|                                                     |   | **Revenue** |      |   | **Segment                Operating Profit** |   |
|----------------------------------------------------------|--------|-------------|-----------|--------|---------------------------------------------|--------|
|                                                     |   | **2006(1)** |      |   | **2005(1)**                                 |   |   | **2006(1)** |   |   | **2005(1)** |   |
|                                                     |   | **$**       | **000**   |   |                                        | **$**  | **000** |   |   | **$** | **000** |   |   | **$** | **000** |   |
| **Operating                Segments**                    |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                     |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                               |   |        | 1,261,753 |   |                                        |   | 1,229,467 |   |   |   | 248,429 |   |   |   | 254,875 |   |
| Television                                               |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Canada                                                   |   |        | 657,876   |   |                                        |   | 697,090 |   |   |   | 31,487 |   |   |   | 126,425 |   |
| Australia                                                |   |        | 656,306   |   |                                        |   | 783,315 |   |   |   | 197,229 |   |   |   | 293,528 |   |
|                                                     |   |        | 1,314,182 |   |                                        |   | 1,480,405 |   |   |   | 228,716 |   |   |   | 419,953 |   |
|                                                     |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Radio                -Turkey                             |   |        | 5,726     |   |                                        |   | - |   |   |   | 2,610 |   |   |   | - |   |
|                                                     |   |        |      |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Outdoor                                                  |   |        | 109,051   |   |                                        |   | 107,790 |   |   |   | 19,593 |   |   |   | 23,173 |   |
| Inter-segment                revenue elimination         |   |        | (4,899    | )      |                                        |   | (1,600 | ) |   |   | - |   |   |   | - |   |
| Corporate                and other                       |   |        | -         |   |                                        |   | - |   |   |   | (33,205 | ) |   |   | (32,065 | ) |
| Corporate                development                     |   |        | -         |   |                                        |   | - |   |   |   | (6,723 | ) |   |   | - |   |
| Total                                                    |   |        | 2,685,813 |   |                                        |   | 2,816,062 |   |   |   | 459,420 |   |   |   | 665,936 |   |
| Ravelston                management contract termination |   |        |      |   |                                        |   |   |   |   |   | - |   |   |   | (12,750 | ) |
| Operating                income before amortization      |   |        |      |   |                                        |   |   |   |   |   | 459,420 | (2) |   |   | 653,186 | (2) |

|   | (1) | Revised                to reflect the                classification of our New Zealand Television and Radio segments as                discontinued                operations. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Consolidated      Results**

*Revenues*

*Operating      expenses*

----

**Table            of            Contents**

*Ravelston      management contract termination.  *

*Operating      income before amortization*

*Amortization.*

*Interest      expense*

*Interest      rate and foreign currency swap losses*

*Foreign      exchange losses*

*Loan      impairment recovery/ (charge) *

*Investment      gains*

*Goodwill      impairment.*
*National      Post *

*Intangible      asset impairment*

----

**Table            of            Contents**

*Loss      on debt extinguishment*

*Income      taxes.  *

*Minority      interest*

*Net      earnings from continuing operations. *

*Discontinued      operations*

*Net      earnings. *

**Segmented      Results**

*Publishing*

*Revenue*

----

**Table            of            Contents**

*Operating      expenses*

*Segment      operating profit.*

*Canadian      Television*

*Revenues.*

*Operating      expenses*

*Segment      operating profit*

*Australian      Television*

*Revenues*

----

**Table            of            Contents**

*Operating      expenses*

*Segment      operating profit*

*Turkey      Radio*

*Outdoor      Advertising*

*Corporate      and Other*

|   | *Corporate                development* |
|--------|----------------------------------------|

----

**Table          of Contents**

**CONSOLIDATED      QUARTERLY FINANCIAL RESULTS**

**For      the three month periods ended (in thousands of dollars, except as      noted)**

**(unaudited)**

| **2007**                                                      |   | **31                – Aug** |    |   | **31                – May** |   |    | **28                – Feb** |   |   | **30                – Nov** |   |
|---------------------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|---------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Revenue                                                       |   |                              | 678,649 |   |                              |   | 738,093 |                              |   |   | 643,683                           |   |   |   | 804,857 |   |
| Operating                income before amortization           |   |                              | 76,943  |   |                              |   | 121,540 |                              |   |   | 79,984                            |   |   |   | 208,500 |   |
| Net                earnings (loss) from continuing operations |   |                              | (53,024 | )      |                              |   | 5,905   |                              |   |   | 6,463                             |   |   |   | 59,237 |   |
| Net                earnings (loss)                            |   |                              | 197,741 |   |                              |   | 8,877   |                              |   |   | 8,171                             |   |   |   | 66,322 |   |
| Cash                flow from continuing operating activities |   |                              | 122,280 |   |                              |   | 27,817  |                              |   |   | 107,398                           |   |   |   | (23,726 | ) |
| Cash                flow from operating activities            |   |                              | 131,615 |   |                              |   | 38,486  |                              |   |   | 115,007                           |   |   |   | (12,399 | ) |

| **2006(1)**                                                   |   | **31                – Aug** |    |   | **31                – May** |   |    | **28                – Feb** |   |   | **30                – Nov** |   |
|---------------------------------------------------------------|--------|-----------------------------------|---------|--------|-----------------------------------|--------|---------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Revenue                                                       |   |                              | 610,408 |   |                              |   | 687,064 |                              |   |   | 600,217                           |   |   |   | 788,124 |   |
| Operating                income before amortization           |   |                              | 65,131  |   |                              |   | 107,108 |                              |   |   | 73,174                            |   |   |   | 214,007 |   |
| Net                earnings (loss) from continuing operations |   |                              | (11,239 | )      |                              |   | 13,716  |                              |   |   | (17,193                           | )      |   |   | 17,777 |   |
| Net                earnings (loss)                            |   |                              | 156,480 |   |                              |   | 19,181  |                              |   |   | (14,602                           | )      |   |   | 29,137 |   |
| Cash                flow from continuing operating activities |   |                              | 115,543 |   |                              |   | 6,233   |                              |   |   | 12,721                            |   |   |   | (77,635 | ) |
| Cash                flow from operating activities            |   |                              | 126,572 |   |                              |   | 11,043  |                              |   |   | 23,176                            |   |   |   | (65,314 | ) |

**LIQUIDITY      AND CAPITAL RESOURCES**

***Overview***

----

**Table          of Contents**

***Sources      of Funds***

*Investment      activities*

***Uses      of Funds***

*Capital      Expenditures*

*Investment      activities*

----

**Table            of            Contents**

*Distributions*

*Swap      transactions*

***Our      Investment in Network TEN***

***Debt***

*General*

*Credit      Facility*

----

**Table            of            Contents**

**CONTRACTUAL      OBLIGATIONS AND COMMITMENTS**

|                                                                                                 |   | **Payments                due by period** |      |
|------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|-----------|
|                                                                                                 |   | **Total**                                 |      |   | **Less                than****1                year** |   |   | **1                – 3 years** |   |   | **3                – 5 years** |   |   | **Thereafter** |   |
|                                                                                                 |   | **$**                                     | **000**   |   |   | **$** | **000** |   |   | **$** | **000** |   |   | **$** | **000** |   |   | **$** | **000** |   |
|                                                                                                 |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long                term debt                                                                        |   |                                      | 3,598,457 |   |   |   | 8,510 |   |   |   | 250,281 |   |   |   | 1,257,530 |   |   |   | 2,082,136 |   |
| Cash                interest obligations on long term debt                (1)                        |   |                                      | 1,793,157 |   |   |   | 253,505 |   |   |   | 484,300 |   |   |   | 469,190 |   |   |   | 586,162 |   |
| Cash                payments on interest rateand foreign currency swapliabilities                (2) |   |                                      | 158,244   |   |   |   | - |   |   |   | 156,076 |   |   |   | 2,168 |   |   |   | - |   |
| Obligations                under capital leases                                                      |   |                                      | 16,419    |   |   |   | 3,529 |   |   |   | 7,522 |   |   |   | 3,808 |   |   |   | 1,560 |   |
| Operating                leases                                                                      |   |                                      | 619,445   |   |   |   | 100,264 |   |   |   | 177,564 |   |   |   | 139,622 |   |   |   | 201,995 |   |
| Purchase                obligations                (3)                                               |   |                                      | 1,739,826 |   |   |   | 486,463 |   |   |   | 505,945 |   |   |   | 263,454 |   |   |   | 483,964 |   |
| Estimated                pension fundingobligations                (4)                               |   |                                      | 98,648    |   |   |   | 23,292 |   |   |   | 50,725 |   |   |   | 24,631 |   |   |   | - |   |
| Other                long term liabilities(5)                                                        |   |                                      | 1,204,300 |   |   |   | 47,171 |   |   |   | 30,418 |   |   |   | 18,053 |   |   |   | 1,108,658 |   |
|                                                                                                 |   |                                      |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                |   |                                      | 9,228,496 |   |   |   | 922,734 |   |   |   | 1,662,831 |   |   |   | 2,178,456 |   |   |   | 4,464,475 |   |

----

**Table            of            Contents**

**OFF      BALANCE SHEET ARRANGEMENTS AND GUARANTEES**

**DIFFERENCES      BETWEEN CANADIAN GAAP AND U.S. GAAP**

**RECONCILIATION      OF NON-GAAP FINANCIAL MEASURES**

|                                                                        |   | **For                  the years ended August 31,** |     |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------|----------|
|                                                                        |   | **2007**                                            |     |   | **2006(1)****(Revised)** |   |   | **2005(1)****(Revised)** |   |
|                                                                        |   |                                                |     |   |   |   |   |   |   |
| Net                earnings                                                 |   |                                                | 281,111  |   |   |   | 190,196 |   |   |   | 4,790 |   |
| Amortization                                                                |   |                                                | 100,497  |   |   |   | 104,576 |   |   |   | 106,410 |   |
| Interest                and other financing expenses                        |   |                                                | 202,329  |   |   |   | 189,701 |   |   |   | 251,829 |   |
| Interest                rate and foreign currency swap losses               |   |                                                | (15,955  | ) |   |   | 138,639 |   |   |   | 121,064 |   |
| Accretion                of long term liabilities                           |   |                                                | 3,603    |   |   |   | - |   |   |   | - |   |
| Investment                gains, losses and interest income                 |   |                                                | (14,426  | ) |   |   | (104,857 | ) |   |   | (4,950 | ) |
| Foreign                exchange (gains)losses                               |   |                                                | (9,685   | ) |   |   | 7,941 |   |   |   | 1,008 |   |
| Loss                on debt extinguishment                                  |   |                                                | -        |   |   |   | 117,401 |   |   |   | 43,992 |   |
| Goodwill                impairment                                          |   |                                                | -        |   |   |   | - |   |   |   | 41,406 |   |
| Asset                impairment                                             |   |                                                | -        |   |   |   | - |   |   |   | 9,629 |   |
| Loan                impairment (recovery)provision                          |   |                                                | -        |   |   |   | (8,888 | ) |   |   | 11,390 |   |
| Loss                (income) from discontinued operations                   |   |                                                | (262,530 | ) |   |   | (187,135 | ) |   |   | (29,962 | ) |
| Provision                for income tax expense (recovery)                  |   |                                                | 93,604   |   |   |   | (88,423 | ) |   |   | 9,880 |   |
| Interest                in earnings (losses) of equity accounted affiliates |   |                                                | (2,422   | ) |   |   | (2,612 | ) |   |   | (2,043 | ) |
| Minority                interests                                           |   |                                                | 105,490  |   |   |   | 95,998 |   |   |   | 89,365 |   |
| Realized                currency translation adjustments                    |   |                                                | 5,351    |   |   |   | 6,883 |   |   |   | (622 | ) |
| Operating                income before amortization                         |   |                                                | 486,967  |   |   |   | 459,420 |   |   |   | 653,186 |   |

----

**Table          of Contents**

**ITEM        6.  DIRECTORS, SENIOR MANAGEMENT AND        EMPLOYEES**

**DIRECTORS      AND SENIOR      MANAGEMENT**

| **Name                and Municipality****of                Residence**                                   | **Office                or Position****with                Company**                                       |  **Principal                Occupation**                                                                                         |  **Position                Since** |
|-----------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|
| David                A. Asper(1)Winnipeg,                Manitoba                                         | Director,                Executive Vice President and Chairman of The National Post                Company | Executive                Vice President of the CompanyChairman                of The National Post Company                            | January                1997             |
| Gail                S. Asper, O.M.Winnipeg,                Manitoba                                       | Director,                Corporate Secretary                                                               | Secretary                of the Company                                                                                               | February                1992            |
| Leonard                J. Asper Toronto,                Ontario                                           | Director,                President and Chief Executive Officer                                             | President                and Chief Executive Officer of the Company                                                                   | January                1997             |
| Dr.                Lloyd I. Barber, C.C., S.O.M., LL.D.(1)(3)(4)Regina                Beach, Saskatchewan | Director                                                                                                   | President                Emeritus, University of Regina                                                                               | February                1992            |
| Derek                H. Burney, OC(2)                (3)Ottawa,                Ontario                    | Director,                Chair of the Board of Directors                                                   | Senior                Strategic Advisor, Ogilvy Renault LLP (Law Firm)                                                                | April                2005               |
| Ronald                J. Daniels(1)(3)Ardmore,                Pennsylvania                                | Director                                                                                                   | Provost                and Professor of Law, University of Pennsylvania                                                               | January                2004             |
| Kathleen                A. Dore                                                                           | President,                Canadian Television                                                              | President,                Canadian Television                                                                                         | October                2004             |
| David                J. Drybrough, F.C.A                (2)(4)East                St. Paul, Manitoba      | Director                                                                                                   | Business                Consultant and Corporate Director                                                                             | March                2003               |
| Paul                V. Godfrey, C.M.                (2)(3)Toronto,                Ontario                 | Director                                                                                                   | President                and Chief Executive Officer, The Toronto Blue Jays Baseball Club                (Professional baseball team) | January                2004             |
| David                W. Kerr, C.A.(2)(4)Toronto,                Ontario                                   | Director                                                                                                   | Managing                Partner of Edper Financial Group (Investment company)                                                         | March                2007               |
| Frank                W. King, OC, P.Eng(2)(3)Calgary,                Alberta                              | Director                                                                                                   | President,                Metropolitan Investment Corporation (Investment company)                                                    | November                2004            |
| Richard                M. LeipsicWinnipeg,                Manitoba                                        | Senior                Vice President and General Counsel                                                   | Senior                Vice President and General Counsel of the Company                                                               | January                1999             |
| David                A. Leslie, F.C.A.(1)(4)Toronto,                Ontario                          | Director                                                                                                   | Corporate                Director                                                                                                     | March                2007               |
| John                E. MaguireWinnipeg,                Manitoba                                           | Chief                Financial Officer                                                                     | Chief                Financial Officer of the Company                                                                                 | January                1996             |
| Grace                Palombo                                                                              | Senior                Vice President, Human Resources                                                      | Senior                Vice President, Human Resources                                                                                 | March                2004               |
| Lisa                M. Pankratz, CA, CFA(1)(4)Vancouver,                British Columbia                  | Director                                                                                              | President,                Mackenzie Cundill Investment Management Ltd. (Investment Management                company)                 | April                2005          |
| Dennis                Skulsky                                                                             | President                and Chief Executive Officer, CanWest MediaWorks Publications                Inc.  | President                and Chief Executive Officer ,CanWest MediaWorks Publications                Inc.                             | May                2006                 |

| Thomas                C. StrikeWinnipeg,                Manitoba                                         | President,                Corporate Development and Strategy Implementation | President,                Corporate Development and Strategy Implementation | July                2007  |
|----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------|
|                                                                                                     |                                                                        |                                                                        |                           |
| (1)      Member                of the Pension Committee.                   |
| (2)      Member                of the Governance and Nominating Committee. |
| (3)      Member                of the Human Resources Committee.           |
| (4)      Member                of the Audit Committee.                     |

----

**Table          of Contents**

|   |   |   |
|--------|--------|--------|

*David      A. Asper*

*Gail      S. Asper*

*Leonard      J. Asper*
** **

*Derek      H. Burney*

*Dr.      Lloyd I. Barber *

----

**Table          of Contents**

*Ronald      J. Daniels*

*Kathleen      A. Dore *
*My Big Fat Greek      Wedding*
*Boys Don’t Cry*
*Inside the Actors Studio*
*Queer Eye for the Straight Guy*

*David      J. Drybrough*

*Paul      V. Godfrey*

----

**Table            of            Contents**

*David      W. Kerr *
~~ ~~

*Frank      W. King*

*David      A. Leslie *

*Grace      M. Palombo *

*Lisa      M. Pankratz*

*Richard      M. Leipsic*

----

**Table            of            Contents**

*John      E. Maguire *

*Dennis      Skulsky*

*Thomas      C. Strike*

----

**Table          of Contents**

**Compensation      of Directors and Senior Management**

***Compensation      of Directors***

|           |   | **Annual                Retainer** |    |   | **Meeting                Fees** |   |
|----------------|--------|------------------------------------|---------|--------|---------------------------------|--------|
|           |   | **Cash**                           |    |   | **DSUs**                        |   |   | **In-Person** |   |   | **Teleconference** |   |
|           |   | **($                per year)**    |    |   | **($                per year)** |   |   | **($                per meeting)** |   |   | **($                per meeting)** |   |
| **Chair**      |   |                               |    |   |                            |   |   |   |   |   |   |   |
| Board          |   |                               | 200,000 |   |                            |   | 145,000 |   |   |   | -- |   |   |   | -- |   |
| Audit          |   |                               | 15,000  |   |                            |   | -- |   |   |   | 3,000 |   |   |   | 1,500 |   |
| Other          |   |                               | 7,500   |   |                            |   | -- |   |   |   | 1,500 |   |   |   | 750 |   |
|           |   |                               |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| **Membership** |   |                               |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Board          |   |                               | 40,000  |   |                            |   | 75,000 |   |   |   | 2,000 |   |   |   | 1,000 |   |
| Audit          |   |                               | 6,000   |   |                            |   | -- |   |   |   | 3,000 |   |   |   | 1,500 |   |
| Other          |   |                               | 3,000   |   |                            |   | -- |   |   |   | 1,500 |   |   |   | 750 |   |

----

**Table          of Contents**

|                               |   | **Board                Retainer Fees(1)****(inclusive                of Cash & DSUs)****($)** |    |   | **Committee                Member Retainer Fees****($)** |   |   | **Committee                Chair Retainer Fees****($)** |   |   | **Board                Attendance Fees****($)** |   |   | **Committee                Attendance Fees****($)** |   |   | **Total                Fees Paid(1)****($)** |   |   | **Percentage                of Fees Allocated to DSUs****(%)** |   |
|------------------------------------|--------|---------------------------------------------------------------------------------------------------|---------|--------|----------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|----------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
| David                A. Asper(2)   |   |                                                                                              | --      |   |                                                     |   | --     |                                                    |   |   | --                                              |   |   |                                                | --     |   |                                         |   | --     |                                                           |   |   | -- |   |   |   | -- |   |
| Gail                S. Asper(2)    |   |                                                                                              | --      |   |                                                     |   | --     |                                                    |   |   | --                                              |   |   |                                                | --     |   |                                         |   | --     |                                                           |   |   | -- |   |   |   | -- |   |
| Leonard                J. Asper(2) |   |                                                                                              | --      |   |                                                     |   | --     |                                                    |   |   | --                                              |   |   |                                                | --     |   |                                         |   | --     |                                                           |   |   | -- |   |   |   | -- |   |
| Dr.                Lloyd I. Barber |   |                                                                                              | 110,000 |   |                                                     |   | 5,500  |                                                    |   |   | 6,250                                           |   |   |                                                | 11,500 |   |                                         |   | 11,250 |                                                           |   |   | 144,500 |   |   |   | 76.8 |   |
| Derek                H. Burney(3)  |   |                                                                                              | 332,500 |   |                                                     |   | 2,000  |                                                    |   |   | --                                              |   |   |                                                | 9,000  |   |                                         |   | 4,500  |                                                           |   |   | 348,000 |   |   |   | 70.8 |   |
| Ronald                J. Daniels   |   |                                                                                              | 110,000 |   |                                                     |   | 1,125  |                                                    |   |   | 6,250                                           |   |   |                                                | 13,000 |   |                                         |   | 2,750  |                                                           |   |   | 133,125 |   |   |   | 70.2 |   |

| David                J. Drybrough |   |   | 110,000   |   |   |   | 2,000  |   |   |   | 10,000 |   |   |   | 13,000 |   |   |   | 10,750 |   |   |   | 145,750   |   |   |   | 51.5  |   |
|-----------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-------|--------|
| Paul                V. Godfrey    |   |   | 110,000   |   |   |   | 4,000  |   |   |   | --     |   |   |   | 10,500 |   |   |   | 5,500  |   |   |   | 130,000   |   |   |   | 100.0 |   |
| David                W. Kerr      |   |   | 43,125    |   |   |   | 3,375  |   |   |   | --     |   |   |   | 3,000  |   |   |   | 4,500  |   |   |   | 54,000    |   |   |   | 89.9  |   |
| Frank                W. King      |   |   | 110,000   |   |   |   | 2,000  |   |   |   | 6,250  |   |   |   | 13,000 |   |   |   | 5,500  |   |   |   | 136,750   |   |   |   | 100.0 |   |
| David                A. Leslie    |   |   | 43,125    |   |   |   | 3,375  |   |   |   | --     |   |   |   | 4,000  |   |   |   | 6,000  |   |   |   | 56,500    |   |   |   | 63.1  |   |
| Lisa                M. Pankratz   |   |   | 110,000   |   |   |   | 5,500  |   |   |   | --     |   |   |   | 13,000 |   |   |   | 10,750 |   |   |   | 139,250   |   |   |   | 100.0 |   |
| TOTAL                             |   |   | 1,078,750 |   |   |   | 28,875 |   |   |   | 28,750 |   |   |   | 90,000 |   |   |   | 61,500 |   |   |   | 1,287,875 |   |   |   | 78.8  |   |

----

**Table          of Contents**

|                               |   | **Equity                Ownership November 16, 2006** |   |   | **Equity                Ownership November 15, 2007** |   |   | **Net                Change in Equity Ownership** |   |   |            |   |   |              |   |
|------------------------------------|--------|-------------------------------------------------------|--------|--------|-------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------|--------|--------|-------------------|--------|
|                               |   | **Shares****(#)**                                     |   |   | **DSUs****(#)**                                       |   |   | **Shares****(#)**                                 |   |   | **DSUs****(#)** |   |   | **Shares****(#)** |   |   | **DSUs****(#)** |   |   | **Market                Value of Equities as at November 15, 2007(1)****($)** |   |   | **Guideline                Met or Investment Required****($)** |   |
| Dr.                Lloyd I. Barber |   |                                                  | 896    |   |                                                  |   | 20,488 |                                              |   |   | 896             |   |   |              | 33,991 |   |   |   | -- |   |   |   | 13,503 |   |   |   | 243,860 |   |   | ü |   |
| Derek                H. Burney(2)  |   |                                                  | 10,000 |   |                                                  |   | 12,546 |                                              |   |   | 10,000          |   |   |              | 41,898 |   |   |   | -- |   |   |   | 29,352 |   |   |   | 362,767 |   |   |   | 37,233 |   |
| Ronald                J. Daniels   |   |                                                  | --     |   |                                                  |   | 16,675 |                                              |   |   | --              |   |   |              | 28,380 |   |   |   | -- |   |   |   | 11,705 |   |   |   | 198,376 |   |   | ü |   |
| David                J. Drybrough  |   |                                                  | --     |   |                                                  |   | 28,531 |                                              |   |   | --              |   |   |              | 38,438 |   |   |   | -- |   |   |   | 9,907 |   |   |   | 268,682 |   |   | ü |   |
| Paul                V. Godfrey     |   |                                                  | --     |   |                                                  |   | 24,389 |                                              |   |   | --              |   |   |              | 40,235 |   |   |   | -- |   |   |   | 15,846 |   |   |   | 281,243 |   |   | ü |   |
| David                W. Kerr(3)    |   |                                                  | --     |   |                                                  |   | --     |                                              |   |   | 10,000          |   |   |              | 6,164  |   |   |   | 10,000 |   |   |   | 6,164 |   |   |   | 112,986 |   |   |   | 47,014 |   |
| Frank                W. King       |   |                                                  | --     |   |                                                  |   | 15,880 |                                              |   |   | 5,000           |   |   |              | 32,248 |   |   |   | 5,000 |   |   |   | 16,368 |   |   |   | 260,364 |   |   | ü |   |
| David                A. Leslie(3)  |   |                                                  | --     |   |                                                  |   | --     |                                              |   |   | 1,000           |   |   |              | 4,588  |   |   |   | 1,000 |   |   |   | 4,588 |   |   |   | 39,060 |   |   |   | 120,940 |   |
| Lisa                M. Pankratz    |   |                                                  | 506    |   |                                                  |   | 12,766 |                                              |   |   | 506             |   |   |              | 29,535 |   |   |   | -- |   |   |   | 16,769 |   |   |   | 209,987 |   |   | ü |   |

|   | (1)DSUs                have a value equivalent to the value of the Company’s Subordinate Voting                Shares at any time.  The market value of equities was calculated                based on $6.99, the closing price of the Company’s Subordinate Voting                Shares on the TSX on November 14,                2007. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)Derek                H. Burney was appointed Chairman of the Board on August 30, 2006                and has                until August 30, 2011 to meet the Chairman’s stock ownership                guidelines.  Mr. Burney is expected to reach his guidelines in                2008. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)David                W. Kerr and David A. Leslie were appointed to the Board on March                26, 2007                and have until March 2012 to meet the stock ownership                guidelines.  Mr. Kerr is expected to reach his guidelines in                2008 and Mr. Leslie is expected to reach his guidelines in                2009. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table          of Contents**

***Compensation      of Senior Management***

**Summary      Compensation Table**

|                                                                                                                                                                         |                                              |     **Annual                Compensation**  |                                                         |     **Long                Term                Compensation**  |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------|----------------------------------------------------------------------------------------|--------------|
|                                                                                                                                                                         |                                              |                                                            |                                                         |                                                                              |    | **Securities**  | **Units                Subject**  | **All**  |
| **Name                and**                                                                                                                                                  |                                              |                                                            |                                                         | **Annual**                                                                        |    | **Under**  | **to                Resale**  | **Other**  |
| **Principal**                                                                                                                                                                |                                              | **Salary**                                                      | **Bonus**                                                    | **Compensation**                                                                  |    | **Options/SARs**  | **Restrictions**  | **Compensation**  |
| **Position**                                                                                                                                                                 | **Year**                                          | **$**                                                           | **$**                                                        | **$(1)**                                                                          |    | **Granted                 #(2)**  | **$**  | **$**  |
|                                                                                                                                                                         |                                              |                                                            |                                                         |                                                                              |    |    |    |    |
| L.J.                Asper President&Chief                Executive Officer CanWest Global                Communications Corp.                                       | 2007 2006 2005      | 900,000 900,000 900,000           | 1,163,745 1,053,000 1,035,000            | - - -                                                         |    | 175,000 87,500 175,000    |   - -  |   - -    |
| J.E.                Maguire Chief                Financial Officer CanWest                Global Communications Corp.                                              | 2007 2006 2005                | 500,000 500,000 450,000           | 609,094 621,250 309,375                  | - - -                                               |    | 50,000 25,000 50,000    | - - -  |   - -    |
| K.                A. Dore  President,Canadian                Television, CanWest MediaWorks                Inc.                                               | 2007 2006 2005                          | 1,100,000 1,050,000 912,692                           | 1,973,425 1,632,750 886,988                        | - - -                                                                   |    | 100,000 50,000 50,000  | - - -  | 630,000(3) 560,000(3) 1,050,000(3)  |
| D.                Skulsky President&Chief                Executive Officer, CanWest MediaWorks                Publications Inc.                           | 2007 2006 2005                          | 616,346 504,237 333,862                               | 534,988 241,333 175,000                            | - - -                                                                   |    | - - 12,500    | 252,661(7) 168,496(7) -  | 38,938(8) 14,663(8) -  |
| T.C.                Strike (4) President,                Corporate Development&Strategy                Implementation, CanWest MediaWorks                Inc.  | 2007 2006 2005                | 900,000 900,000 900,000           | 1,298,193 948,000 891,000      | 2,704 11,967 10,212                                 |    | 120,000 60,000 150,000      | - - -  | - - -    |
| P.D.                Viner (5) President&Chief                Executive Officer, Canadian                Operations, CanWest                MediaWorks Inc.     | 2007 2006 2005(6)             | 1,125,000 1,200,000 340,969                           | 1,063,660 825,000 350,000                          | - - -                                                                   |    | 42,000 21,000 -  | 394,151(7) 525,722(7) -  | 85,529(8) 45,743(8) **-**    |

| (1) | The                value of perquisites and benefits for each named executive officer                is less                than the lesser of $50,000 and 10% of the total annual base compensation                and bonuses.  Amounts shown reflect imputed interest benefit on                loans pursuant to other                indebtedness. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Option                exercise price per share is the market price per share of the Subordinate                Voting Shares or Non-Voting Shares, as at the close of trading on                the                trading date immediately preceding the effective date of the option                grant. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (3) | Ms.                Dore was appointed to her present position on October 4,                2004.  Pursuant to her employment agreement, Ms. Dore received a                one-time payment of $700,000 upon commencement of                employment.  In addition, she received long term incentive                payments of $350,000 in fiscal 2005, $560,000 in fiscal 2006 and                $630,000                in fiscal 2007. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Mr.                Strike was appointed to his present position on July 11,                2007.  Previously he was President, CanWest MediaWorks                International, a division of CanWest Global Communications                Corp. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Mr.                Viner was President and Chief Executive Officer of the Company’s Canadian                operations from June 1, 2005 until his retirement in July,                2007.  He remains in a consulting role with the                Company. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Represents                actual compensation received during fiscal year ended August 31,                2005. |
|-----|-----------------------------------------------------------------------------------------------------------------|

| (7) | Amount                shown represents the value of performance units granted to the named                executive officer pursuant to the terms of CanWest MediaWorks Income                Fund’s Performance Unit Plan calculated by multiplying the number of                performance units granted to the named executive officer by the closing                price of the fund units on the Toronto Stock Exchange on the trading                date                prior to the effective date of the grant.  The number of fund                units issued to a named executive officer pursuant to the terms of                the                Performance Unit Plan upon the redemption of performance units will                depend                on the application of a performance modifier.  Participants will                receive one unit of CanWest MediaWorks Income Fund at the end of                a                three-year performance period for each grant for each performance                modifier                adjusted vested performance unit, subject to the discretion of the                trustees of the Fund to make an equivalent cash payment in certain                circumstances.  One-third of the performance units granted on an                award date vest each year.  The performance modifier varies from                25% to 125% based upon the cumulative total unitholder return which,                for                purposes of the Performance Unit Plan, is measured by reference to                the                cumulative distributions on a reinvested basis and the percentage                change                in trading price of the units of the Fund on the TSX over the performance                period.  Participants are entitled to receive distribution                equivalents in the form of additional performance units based upon                distributions paid by the Fund. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Amount                shown represents the value of distribution equivalents credited to                the                named executive officer in the form of additional performance units                pursuant to the terms of CanWest MediaWorks Income Fund’s Performance Unit                Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table            of            Contents**

**Options**

**Options      Granted During the Most Recently Completed Financial Year**

| **Name**                     |   | **Shares                Under Option****#** |   |   | **%                of Total****Options                Granted****to                Employees****in                respect of****fiscal                2007** |   |   | **Exercise****Price****$/Security** |   |   | **Market                Value of****Shares                Underlying****Options                on the Date of Grant****$/Security** |   | **Expiration****Date** |
|------------------------------|--------|---------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
| L.J.                Asper    |   |                                        | 87,500 |   |                                                                                                                                                         |   | 6.8    | %                                   |   |   | 10.11                                                                                                                               |   |                   |   | 10.11 |   | November                2016 |
|                         |   |                                        | 87,500 |   |                                                                                                                                                         |   | 6.8    | %                                   |   |   | 7.50                                                                                                                                |   |                   |   | 7.50 |   | November                2017 |
| K.                Dore       |   |                                        | 50,000 |   |                                                                                                                                                         |   | 3.9    | %                                   |   |   | 10.14                                                                                                                               |   |                   |   | 10.14 |   | November                2016 |
|                         |   |                                        | 50,000 |   |                                                                                                                                                         |   | 3.9    | %                                   |   |   | 7.44                                                                                                                                |   |                   |   | 7.44 |   | November                2017 |
| J.                E. Maguire |   |                                        | 25,000 |   |                                                                                                                                                         |   | 1.9    | %                                   |   |   | 10.11                                                                                                                               |   |                   |   | 10.11 |   | November                2016 |
|                         |   |                                        | 25,000 |   |                                                                                                                                                         |   | 1.9    | %                                   |   |   | 7.50                                                                                                                                |   |                   |   | 7.50 |   | November                2017 |
| T.C.                Strike   |   |                                        | 60,000 |   |                                                                                                                                                         |   | 4.7    | %                                   |   |   | 10.11                                                                                                                               |   |                   |   | 10.11 |   | November                2016 |
|                         |   |                                        | 60,000 |   |                                                                                                                                                         |   | 4.7    | %                                   |   |   | 7.50                                                                                                                                |   |                   |   | 7.50 |   | November                2017 |
| P.D.                Viner    |   |                                        | 21,000 |   |                                                                                                                                                         |   | 1.6    | %                                   |   |   | 10.11                                                                                                                               |   |                   |   | 10.11 |   | November                2016 |
|                         |   |                                        | 21,000 |   |                                                                                                                                                         |   | 1.6    | %                                   |   |   | 7.50                                                                                                                                |   |                   |   | 7.50 |   | November                2017 |

|   | (1)Subject                to the approval of CanWest shareholders, a new Stock Option and Restricted                Share Unit Plan has been proposed.  Effective November 2007, no                further grants of options will be made pursuant to the Executive                Stock                Option Plan. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Aggregated      Option Exercises During the Most Recently Completed Financial Year and Financial      Year End Option Values**

|                        |   | **Securities****Acquired                on** |   |   | **Aggregate****Value** |   |   | **Unexercised                Options****at                August 31, 2007** |   |   | **Value                of Unexercised****In-The-Money                Options****at                August 31, 2007** |   |
|-----------------------------|--------|----------------------------------------------|--------|--------|------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------------------|--------|
|                        |   | **Exercise**                                 |   |   | **Realized**           |   |   | **Exercisable**                                                             |   |   | **Unexercisable**                                                                                                   |   |   | **Exercisable** |   |   | **Unexercisable** |   |   |   |   |
| **Name**                    |   | ** **                                   | **#**  |   |                   |   |   |                                                                        | **$**  | **#**  |                                                                                                                |   | ** ** | **#** |   |   | **$** |  |   |   |   |   |   | $ |   |   |
| L.                J. Asper  |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 210,002                                                                                                             |   |   |   | 310,000 |   |   |   | 16,560 |   |   |   | 4,140 |   |
| J.E.                Maguire |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 95,858                                                                                                              |   |   |   | 92,500 |   |   |   | 6,900 |   |   |   | 1,725 |   |
| T.C.                Strike  |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 169,828                                                                                                             |   |   |   | 212,000 |   |   |   | 11,040 |   |   |   | 2,760 |   |
| P.D.                Viner   |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 110,189                                                                                                             |   |   |   | 41,800 |   |   |   | 11,040 |   |   |   | 2,760 |   |
| K.                Dore      |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 30,000                                                                                                              |   |   |   | 120,000 |   |   |   | - |   |   |   | - |   |
| D.                Skulsky   |   |                                         | -      |   |                   |   | -      |                                                                        |   |   | 13,750                                                                                                              |   |   |   | 11,250 |   |   |   | 3,450 |   |   |   | 863 |   |

----

**Table            of            Contents**

**Aggregated      Value Realized from Performance Unit Plan During the Most Recently Completed      Financial Year**

| **Name**                   |   | **Performance                Units****(#)** |    |   | **Aggregate                Value****Realized****($)** |   |
|----------------------------|--------|---------------------------------------------|---------|--------|-------------------------------------------------------|--------|
| D.                Skulsky  |   |                                        | 64,919  |   |                                                  |   | 584,265 |   |
| P.                D. Viner |   |                                        | 126,638 |   |                                                  |   | 1,139,745 |   |

**Defined      Benefit or Actuarial Plan Disclosure**

**Retirement      Compensation Arrangement**

**Pension      Plan Table**

|                                      |        |   | **Years                of Credited Service** |   |
|-------------------------------------------|-------------|--------|----------------------------------------------|--------|
| **Final                Average Earnings** |        |   | ** **                                   | **15** |   |   | ** ** | **20** |   |   | ** ** | **25** |   |   | ** ** | **30** |   |   | ** ** | **35** |   |
| **$**                                     | **125,000** |   |                                         |   | 42,187.50 |   |   |   | 56,250.00 |   |   |   | 70,312.50 |   |   |   | 84,375.00 |   |   |   | 98,437.50 |   |
| ** **                                | **150,000** |   |                                         |   | 50,625.00 |   |   |   | 67,500.00 |   |   |   | 84,375.00 |   |   |   | 101,250.00 |   |   |   | 118,125.00 |   |
| ** **                                | **175,000** |   |                                         |   | 59,062.50 |   |   |   | 78,750.00 |   |   |   | 98,437.50 |   |   |   | 118,125.00 |   |   |   | 137,812.50 |   |
| ** **                                | **200,000** |   |                                         |   | 67,500.00 |   |   |   | 90,000.00 |   |   |   | 112,500.00 |   |   |   | 135,000.00 |   |   |   | 157,500.00 |   |
| ** **                                | **225,000** |   |                                         |   | 75,937.50 |   |   |   | 101,250.00 |   |   |   | 126,562.50 |   |   |   | 151,875.00 |   |   |   | 177,187.50 |   |
| ** **                                | **250,000** |   |                                         |   | 84,375.00 |   |   |   | 112,500.00 |   |   |   | 140,625.00 |   |   |   | 168,750.00 |   |   |   | 196,875.00 |   |
| ** **                                | **300,000** |   |                                         |   | 101,250.00 |   |   |   | 135,000.00 |   |   |   | 168,750.00 |   |   |   | 202,500.00 |   |   |   | 236,250.00 |   |
| ** **                                | **400,000** |   |                                         |   | 135,000.00 |   |   |   | 180,000.00 |   |   |   | 225,000.00 |   |   |   | 270,000.00 |   |   |   | 315,000.00 |   |
| ** **                                | **500,000** |   |                                         |   | 168,750.00 |   |   |   | 225,000.00 |   |   |   | 281,250.00 |   |   |   | 337,500.00 |   |   |   | 393,750.00 |   |

----

**Table            of            Contents**

|   |                                          |  **Years                of Credited Service** |
|--------|-----------------------------------------------|----------------------------------------------------|
|   | **Final                Average Remuneration** | **20**                                             | **25** | **30** | **35** | **40** |
|   | **$500,00**                                   | 200,000                                            | 250,000 | 300,000 | 350,000 | 400,000 |
|   | **600,000**                                   | 240,000                                            | 300,000 | 360,000 | 420,000 | 480,000 |
|   | **700,000**                                   | 280,000                                            | 350,000 | 420,000 | 490,000 | 560,000 |
|   | **800,000**                                   | 320,000                                            | 400,000 | 480,000 | 560,000 | 640,000 |
|   | **900,000**                                   | 360,000                                            | 450,000 | 540,000 | 630,000 | 720,000 |
|   | **1,000,000**                                 | 400,000                                            | 500,000 | 600,000 | 700,000 | 800,000 |
|   | **1,100,000**                                 | 440,000                                            | 550,000 | 660,000 | 770,000 | 880,000 |
|   | **1,200,000**                                 | 480,000                                            | 600,000 | 720,000 | 840,000 | 960,000 |

**Adoption      of Stock Option and Restricted Share Unit Plan**

----

**Table          of          Contents**

----

**Table          of          Contents**

| (a) | no                amendment shall materially adversely impair any rights or obligations                arising from any award previously granted to a participant under                the Plan                without the employee or consultant participant’s                consent; |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | shareholder                approval shall be obtained in accordance with the requirements of                the                Toronto Stock Exchange for any amendment that results in (i) an increase                in the number of CanWest Shares reserved for issuance or purchase                pursuant                to the Plan; (ii) an extension of the term of an option granted under                the                Plan benefiting an insider (within the meaning of the TSX Company                Manual)                of CanWest; (iii) extends eligibility to be granted options to                non-employee directors of CanWest; (iv) permits options to be transferred                other than for normal estate settlement purposes; (v) an extension                of the                expiry date of an option beyond seven years from its grant date;                (vi)                permits awards, other than options and restricted share units, to                be made                under the Plan; or (vii) changes the amendment provisions of the                Plan                other than to add items requiring shareholder approval;                and |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | the                Toronto Stock Exchange requires shareholder approval for a reduction                of                the exercise price of an option benefiting an                insider. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Termination      of Employment, Change in Responsibilities and Employment      Contracts**

**Leonard      J. Asper**

----

**Table          of          Contents**

**Kathleen      A. Dore**

**John      E. Maguire**

**Dennis      Skulsky**

----

**Table          of          Contents**

**Thomas      C. Strike**

**Peter      D. Viner**

**Composition      of the Human Resources Committee**

**Report      on Executive Compensation**

***Compensation      Philosophy***

***Compensation      Objectives and Pay Mix***

*International Position Evaluation      System*

----

**Table          of          Contents**

*Financial      Goals:*

----

**Table          of          Contents**

*Personal      Goals:*

----

**Table          of          Contents**

| **Name                and Principal Position**                                                                                                                    | **Recommended                Stock Ownership** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|
| Leonard                J. Asper, President & Chief Executive OfficerCanWest                Global Communications Corp.                                        | 2.0                times annual salary         |
| Kathleen                A. Dore, President, Canadian TelevisionCanWest                MediaWorks Inc.                                                             | 1.5                times annual salary         |
| Dennis                Skulsky, President & Chief Executive OfficerCanWest                MediaWorks Publications Inc.                                         | 1.5                times annual salary         |
| Thomas                C. Strike, President, Corporate Development & Strategy                Implementation,CanWest                Global Communications Corp. | 1.5                times annual salary         |
| John                E. Maguire, Chief Financial OfficerCanWest                Global Communications Corp.                                                         | 1.5                times annual salary         |
| David                A. Asper, Executive Vice-PresidentCanWest                Global Communications Corp.                                                         | 1.0                times annual salary         |
| Richard                M. Leipsic, Senior Vice-President and General CounselCanWest                Global Communications Corp.                                    | 1.0                times annual salary         |
| Grace                Palombo, Senior Vice-President, Human ResourcesCanWest                Global Communications Corp.                                            | 1.0                times annual salary         |

|   | Submitted                by:Ronald J. DanielsLloyd I. Barber |
|--------|--------------------------------------------------------------|

|   | Derek                BurneyPaul Godfrey |
|--------|-----------------------------------------|

|   | Frank                King |
|--------|---------------------------|

**Compensation      of the CEO**

----

**Table          of Contents**

**STATEMENT      OF CORPORATE GOVERNANCE      PRACTICES**

**Ethical      Business Conduct**

**Board      Mandate**

|   | · | the                CBCA, the Broadcasting Act, other laws that apply to media                companies, as well as laws of general                application; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the                Company’s articles of incorporation and                by-laws; |
|--------|--------|------------------------------------------------------------------------------------------|

|   | · | written                charters of the Board and Board committees;                and |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | the                Code and other internal policies. |
|--------|--------|------------------------------------------------------|

| (a) | General                Strategic Direction and Significant                Initiatives |
|-----|---------------------------------------------------------------------------------------|

|   | · | Reviewing                and assessing the Company’s operations with a view to ensuring the best                performance is achieved; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the Company’s major development activities, including major                acquisitions, investments and divestitures outside the ordinary course                of                business; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Adopting                a strategic planning process and approving, on at least an annual                basis, a                strategic plan which takes into account, among other things, the                opportunities and risks of the                business; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Approving                operating and capital budgets; |
|--------|--------|---------------------------------------------------------|

|   | · | Reviewing                and approving the dividend policy and declaration of dividends;                and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving major financing and any offering of the Company’s                securities. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

----

**Table          of          Contents**

| (b) | Risk                Management  |
|-----|--------------------------------------|

|   | · | Identifying                the principal risks of the Company’s business (including financial,                accounting and legal risks) and ensuring the implementation of appropriate                systems to manage these risks; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and ensuring the integrity of the Company’s internal control and                management information systems; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Satisfying                itself from time to time that the Company’s operations are in material                compliance with applicable laws and                regulations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the external auditor to be nominated for the purpose                of                preparing or issuing an auditor’s report or performing other audit, review                or attest services for the Company, taking into account the                recommendations of the Audit Committee;                and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the compensation of the external auditor, taking into                account the recommendations of the Audit                Committee. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c) | Human                Resources and Compensation (including the President and                CEO) |
|-----|--------------------------------------------------------------------------------------------------|

|   | · | Appointing                the President and CEO; |
|--------|--------|--------------------------------------------------|

|   | · | Reviewing                and approving position descriptions for the Chair of the Board and                the                CEO, and, in the case of the CEO, taking into account the recommendations                of the Human Resources Committee; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and evaluating the performance of (i) the Chair of the Board, (ii)                each                executive officer who reports to the CEO, and (iii) any other employee                that the Human Resources Committee determines appropriate from time                to                time, taking into account evaluations provided by the Human Resources                Committee; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving compensation for (i) the Chair of the Board, (ii) each                executive officer who reports to the CEO, and (iii) any other employee                that the Human Resources Committee determines appropriate from time                to                time, including base salary, long-term incentive plans and perquisites,                taking into account the recommendations of the Human Resources                Committee; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the remuneration of each director, taking into account                the                recommendations of the Human Resources                Committee; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the Company’s Amended and Restated Combined Share                Compensation Plan, Deferred Share Unit Plan and, subject to shareholder                approval, the new Stock Option and Restricted Share Unit Plan                (collectively, the “Equity Plans”) and Executive Annual Incentive Plan;                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving grants under the Equity Plans, taking into account                the                recommendations of the Human Resources                Committee; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving any incentive or equity based compensation to be granted                outside the Equity Plans or the Executive Annual Incentive Plan,                taking                into account the recommendations of the Human Resources                Committee; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the Company’s compensation and benefits programs for its                executive officers generally, taking into account the recommendations                of                the Human Resources Committee; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Succession                planning (including appointing, training and monitoring of the Company’s                executive officers); |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Satisfying                itself as to the integrity of the CEO and other executive officers                and                that the CEO and other executive officers create a culture of integrity                throughout the organization; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Overseeing                and monitoring the Company’s pension plans and other retirement                arrangements, or, to the extent this function is delegated to the                Pension                Committee, requesting updates and other relevant information from                the                Pension Committee from time to                time. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table          of Contents**

| (d) | Communications                and Disclosure |
|-----|----------------------------------------------|

|   | · | Reviewing                with management from time to time the Company’s procedures for receiving                feedback from shareholders, including written and electronic feedback,                and                satisfying itself that appropriate procedures are in place or recommending                changes where desirable; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reviewing                and approving the Company’s (i) quarterly and annual financial statements                and accompanying management’s discussion and analysis, (ii) annual report,                (iii) annual information form, (iv) annual and quarterly news releases,                and (v) annual notice of meeting, management information circular                and                proxy form, taking into account the recommendations of the Audit                Committee, where applicable. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e) | Corporate                Governance |
|-----|-------------------------------------|

|   | · | Reviewing                and approving a set of corporate governance principles applicable                to the                Company, taking into account the recommendations of the Governance                and                Nominating Committee. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Orientation      and Continuing Education**

**Composition      of the Board**

----

**Table          of          Contents**

**Committees      of the Board**

***Audit      Committee***

***Human      Resources Committee***

***Pension      Committee***

***Governance      and Nominating Committee***

----

**Table          of          Contents**

**EMPLOYEES**

----

**Table          of          Contents**

**ITEM      7.  MAJOR SHAREHOLDERS AND RELATED PARTY      TRANSACTIONS**

**MAJOR      SHAREHOLDERS**

**RELATED      PARTY      TRANSACTIONS**

----

**Table          of          Contents**

**Aggregate      Indebtedness**

**ITEM      8.  FINANCIAL INFORMATION**

**CONSOLIDATED      STATEMENTS AND OTHER FINANCIAL      INFORMATION**

**LEGAL      PROCEEDINGS**

*CBL      Litigation*

----

**Table          of          Contents**

*Hollinger      Litigation*

*Other      Litigation*

**DIVIDEND      POLICY**

**ITEM      9.  THE OFFER AND LISTING**

**MARKETS**

**ITEM      10.  ADDITIONAL INFORMATION**

**MEMORANDUM      AND ARTICLES OF ASSOCIATION**

----

**Table          of          Contents**

**MATERIAL      CONTRACTS**

**EXCHANGE      CONTROLS**

**DOCUMENTS      ON DISPLAY**

----

**Table          of Contents**

ITEM      11.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT      MARKET RISK

**ITEM      12.  DESCRIPTION OF SECURITIES OTHER THAN EQUITY      SECURITIES**

----

**Table          of          Contents**

**PART      II**

**ITEM      13.  DEFAULT, DIVIDEND ARRERAGES AND      DELINQUENCIES**

**ITEM      14.  MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY      HOLDERS AND USE OF PROCEEDS**

**ITEM      15.  CONTROLS AND      PROCEDURES**

**Changes      in Internal Control over Financial Reporting**

**ITEM      16A.  AUDIT COMMITTEE FINANCIAL      EXPERT**

**ITEM      16B.  CODE OF ETHICS**

*www.canwestglobal.com*

----

**Table          of          Contents**

**ITEM      16C.  PRINCIPAL ACCOUNTANT FEES AND      SERVICES**

|                                 |   | **For                  the year ended August 31,**    |   |
|--------------------------------------|--------|-------------------------------------------------------|--------|
|                                 |   | **2007**                                              |   |   | **2006** |   |
|                                 |   | **(in                thousands of Canadian dollars)** |   |
| Audit                fees            |   | $                                                     | 3,999  |   |   | $ | 6,335 |   |
| Audit                related fees(1) |   |                                                  | 88     |   |   |   | 1,243 |   |
| Tax                fees(2)           |   |                                                  | 404    |   |   |   | 716 |   |
|                                 |   | $                                                     | 4,491  |   |   | $ | 8,294 |   |

|   | (1) | Audit                related fees include fees for employee benefit plan audits, special                audits                in connection with the sale of certain operations and consultations                concerning financial accounting and reporting                standards. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Tax                services relate to the review of foreign affiliate surplus calculations,                consultations with respect to indirect taxation matters and consultations                with respect to tax structuring for acquisitions, divestitures, and                financing arrangements, including assistance to internal and external                legal counsel. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Item      16D. EXEMPTIONS FROM LISTING STANDARDS FOR AUDIT      COMMITTEES**

**Item      16E. PURCHASES OF EQUITY SECURITIES BY THE      ISSUER**

**PART      III**

**ITEM      17.  FINANCIAL STATEMENTS**

**ITEM      18.  FINANCIAL STATEMENTS**

----

**Table          of          Contents**

**ITEM      19.  EXHIBITS**

| **Exhibit                  No.**  | **Exhibit**                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 1.1                                    | Articles                of Amalgamation of CanWest MediaWorks Inc.(1)                                                                                                                                                                                                                                                                                                                                                                                                        |
| 1.2                                    | By-laws                of CanWest MediaWorks Inc. (1)                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.1                                    | Credit                Agreement dated as of 13 October 2005 among, *inter alia*, CanWest                MediaWorks Inc., as borrower, the guarantors from time to time party                thereto, The Bank of Nova Scotia, as administrative agent and the                lenders                from time to time party thereto. (1)                                                                                                                                     |
| 4.2                                    | First                Amendment Agreement to Credit Agreement dated October 13, 2005, dated                as                of February 15, 2006, among CanWest MediaWorks Inc., as borrower,                the                guarantors from time to time party to the Credit Agreement, The Bank                of                Nova Scotia as administrative agent and the lenders from time to                time                party to the Credit Agreement. (5) |
| 4.3                                    | Second                Amendment Agreement to the Credit Agreement dated October 13, 2005,                dated                as of April 30, 2007, among CanWest MediaWorks Inc., as borrower,                the                guarantors from time to time party to Credit Agreement, The Bank                of Nova                Scotia as administrative agent and the lenders from time to time                party to                the Credit Agreement.       |
| 4.4                                    | Third                Amendment Agreement to the Credit Agreement dated October 13, 2005,                dated                as of July 31, 2007, among CanWest MediaWorks Inc., as borrower,                the                guarantors from time to time party to Credit Agreement, The Bank                of Nova                Scotia as administrative agent and the lenders from time to time                party to                the Credit Agreement.         |
| 4.5                                    | Pension                and Employee Benefit Plans Agreement, dated as of November 15, 2000,                among                Hollinger International Inc., Southam Inc. (n/k/a XSTM Holdings (2000)                Inc.), Hollinger Canadian Newspapers, Limited Partnership, HCN                Publications Company, Hollinger Canadian Operating Company ULC and                CanWest                Global Communications Corporation. (2)                          |
| 4.                6                    | Guarantee,                dated as of November 18, 2004, executed by the Guarantors identified                therein. (4)                                                                                                                                                                                                                                                                                                                                                   |
| 4.7                                    | Indenture,                dated as of November 18, 2004, among 3815668 Canada Inc. (immediately                prior to its amalgamation with CanWest Media Inc.), the Guarantors                named                therein and The Bank of New York, as Trustee relating to 8% Senior                Subordinated Notes due 2012. (4)                                                                                                                                     |
| 4.8                                    | First                Supplemental Indenture to the Indenture dated November 18, 2004,                dated as                of November 18, 2004, among 3815668 Canada Inc. (immediately prior                to its                amalgamation with CanWest Media Inc.), the Guarantors named therein                and                The Bank of New York, as Trustee relating to 8% Senior Subordinated                Notes                due 2012. (4)             |

----

**Table          of          Contents**

| 4.9   | Second                Supplemental Indenture to the Indenture dated November 18, 2004,                dated as                of August 30, 2005, among CanWest Media Inc., 4309626 Canada Inc.,                National Post Holdings Ltd., GTNQ Holdings Inc. and The Bank of New                York,                as Trustee relating to 8% Senior Subordinated Notes due 2012.                (1) |
|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.10  | Third                Supplemental Indenture to the Indenture dated November 18, 2004,                dated as                of August 31, 2005, among CanWest Media Inc., CanWest MediaWorks                Publications Inc. and The Bank of New York, as Trustee relating to                8%                Senior Subordinated Notes due 2012. (1)                                                 |
| 4.11  | Fourth                Supplemental Indenture to the Indenture dated November 18, 2004,                dated as                of September 1, 2005, among CanWest MediaWorks Inc. and The Bank                of New                York, as Trustee relating to 8% Senior Subordinated Notes due 2012.                (1)                                                                               |
| 4.12  | Fifth                Supplemental Indenture to the Indenture dated November 18, 2004,                dated as                of May 31, 2006, among CanWest MediaWorks Inc., CanWest MediaWorks                (US)                Holdings Corp. and the Bank of New York, as trustee relating to 8%                Senior                Subordinated Notes due 2012. (5)                              |
| 4.13  | Amended                and Restated Retirement Compensation Arrangement Plan, dated April                21,                2004, approved on behalf of CanWest Global Communications Corp.                (4)                                                                                                                                                                                           |
| 4.14  | Retirement                Compensation Arrangement Trust Agreement, dated as of February 7,                2002,                between CanWest Global Communications Corp. and Royal Trust Corporation                of                Canada. (3)                                                                                                                                                     |
| 4.15  | Arrangement                Agreement dated January 10, 2007, between 6681859 Canada Inc. (a                wholly-owned subsidiary of CanWest MediaWorks Inc. as at January                10, 2007)                and Alliance Atlantis Communications Inc.                                                                                                                                            |
| 4.16  | First                Amendment Agreement to the Arrangement Agreement dated January 10,                2007,                dated as of February 26, 2007, between 6681859 Canada Inc. and Alliance                Atlantis Communications Inc.                                                                                                                                                          |
| 4.17  | Second                Amendment Agreement to the Arrangement Agreement dated January 10,                2007,                dated as of July 30, 2007, between 6681859 Canada Inc. and Alliance                Atlantis Communications Inc.                                                                                                                                                             |
| 4.18  | Voting                Agreement dated January 10, 2007 between 6681859 Canada Inc., Southhill                Strategy Inc., Michael MacMillan and Seaton McLean.                                                                                                                                                                                                                                         |
| 4.19  | Voting                Agreement dated January 10, 2007 between 6681859 Canada Inc., Sumac                Corporation Limited and Donald R. Sobey.                                                                                                                                                                                                                                                        |
| 4.20* | Voting                Trust Agreement dated August 15, 2007 between CW Media Inc. and James                B.                Macdonald.                                                                                                                                                                                                                                                                  |
| 4.21* | Shareholders                Agreement dated August 15, 2007 between CanWest MediaWorks Inc.,                4414616                Canada Inc., GS Capital Partners VI Fund, L.P., GSCP VI AA One Holding                S.àr.L, GSCP VI AA One Parallel Holding S.àr.L and                CW  Investments Co.                                                                       |
| 4.22  | Management                and Administrative Services Agreement dated August 15, 2007 between                CanWest MediaWorks Inc. and CW Media                Inc.                                                                                                                                                                                                                                    |

*****

----

**Table          of          Contents**

| 4.23 | Separation                and Distribution Agreement dated August 15, 2007 between Entertainment                Subco AB, Inc., Alliance Distribution Holdings S.à.r.l., 4414608 Canada                Inc., 3217920 Nova Scotia Company, 4437497 Canada Inc., 4437641 Canada                Inc., CW Media Holdings Inc., Alliance Atlantis Equicap Corporation,                4414641 Canada Inc., CW Media Inc. and certain additional related                parties                of the foregoing. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.24 | Privatization                Agreement dated May 25, 2007 between CanWest MediaWorks Inc., CW                MW Trust,                CanWest MediaWorks (Canada) Inc., CanWest MediaWorks Limited Partnership                and CanWest MediaWorks Income Fund.                                                                                                                                                                                                                                               |
| 4.25 | Lock-Up                Agreement dated May 8, 2007 between CanWest MediaWorks Ireland Holdings                and HT Media Limited.                                                                                                                                                                                                                                                                                                                                                                             |
| 8    | See                Item 4. Organizational Structure in Part I of this Annual                Report.                                                                                                                                                                                                                                                                                                                                                                                                             |
| 12.1 | Certifications                required by Rule 13a-14(a) or Rule 15d-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 12.2 | Certifications                required by Rule 13a-14(a) or Rule 15d-14(a).                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 13   | Certification                pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section                906 of                the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                             |

| (1) | Previously                filed as an Exhibit to the Annual Report on Form 20-F of the Company                filed                on February 14, 2006, SEC File Number 333-13878 and incorporated                by                reference herein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Previously                filed as an Exhibit to the Registration Statement on Form F-4 of                the                Company filed on September 4, 2001, SEC File Number 333-00000 and                incorporated by reference herein. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Previously                filed as an Exhibit to the Annual Report on Form 20-F of the Company                filed                on February 28, 2003, SEC File Number 333-13878 and incorporated                by                reference herein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Previously                filed as an Exhibit to the Annual Report on Form 20-F of the Company                filed                on February 28, 2005, SEC File Number 333-13878 and incorporated                by                reference herein. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Previously                filed as an Exhibit to the Annual Report on Form 20-F of the Company                filed                on December 6, 2006, SEC File Number 333-13878 and incorporated by                reference herein.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Table          of          Contents**

|   |   |
|--------|--------|

**SIGNATURES**

----

**Table          of          Contents**

----

**CANWEST      MEDIAWORKS INC.**

**CONSOLIDATED      FINANCIAL STATEMENTS**

**FOR      THE YEARS ENDED AUGUST 31, 2007, 2006 AND 2005**

----

----

|   | PricewaterhouseCoopers                  LLPChartered                  AccountantsOne                  Lombard Place, Suite 2300Winnipeg,                  ManitobaCanada                  R3B 0X6Telephone                  +1 (204) 926-2400Facsimile                  +1 (204) 944-1020  |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Auditors’      Report**

**To      the Directors of CanWest MediaWorks Inc.**

**CanWest MediaWorks Inc.**

**Chartered      Accountants**

**Winnipeg,      Canada**

----

**CANWEST      MEDIAWORKS INC.**

**CONSOLIDATED      STATEMENTS OF EARNINGS**

**FOR      THE YEARS ENDED AUGUST 31**

**(In      thousands of Canadian dollars)**

|                                                                           |   | **2007** |      |   | **2006**                                |   |      | **2005**                                |   |
|--------------------------------------------------------------------------------|--------|----------|-----------|--------|-----------------------------------------|--------|-----------|-----------------------------------------|--------|
|                                                                           |   |     |      |   | **(Revised****note                15)** |   |      | **(Revised****note                15)** |   |
| Revenue                                                                        |   |     | 2,865,282 |   |                                    |   | 2,685,813 |                                    |   |   | 2,816,062 |   |
| Operating                expenses                                              |   |     | 1,565,035 |   |                                    |   | 1,464,116 |                                    |   |   | 1,433,797 |   |
| Selling,                general and administrative expenses                    |   |     | 813,280   |   |                                    |   | 762,277   |                                    |   |   | 716,329 |   |
| Ravelston                management contract termination (note 20)             |   |     | -         |   |                                    |   | -         |                                    |   |   | 12,750 |   |
|                                                                           |   |     | 486,967   |   |                                    |   | 459,420   |                                    |   |   | 653,186 |   |
| Amortization                of intangibles (note 6)                            |   |     | 6,395     |   |                                    |   | 10,947    |                                    |   |   | 18,418 |   |
| Amortization                of property, plant and equipment (note 4)          |   |     | 92,504    |   |                                    |   | 86,246    |                                    |   |   | 82,797 |   |
| Other                amortization                                              |   |     | 1,597     |   |                                    |   | 7,383     |                                    |   |   | 5,197 |   |
| Operating                income                                                |   |     | 386,471   |   |                                    |   | 354,844   |                                    |   |   | 546,774 |   |
| Interest                expense                                                |   |     | (189,535  | )      |                                    |   | (183,207  | )                                       |   |   | (239,119 | ) |
| Interest                income                                                 |   |     | 5,977     |   |                                    |   | 2,367     |                                    |   |   | 3,423 |   |
| Amortization                of deferred financing costs                        |   |     | (12,794   | )      |                                    |   | (6,494    | )                                       |   |   | (12,708 | ) |
| Interest                rate and foreign currency swap gains (losses) (note 8) |   |     | 15,955    |   |                                    |   | (138,639  | )                                       |   |   | (121,064 | ) |
| Accretion                of long term liabilities (note 10)                    |   |     | (3,603    | )      |                                    |   | -         |                                    |   |   | - |   |
| Foreign                exchange gains (losses)                                 |   |     | 9,685     |   |                                    |   | (7,941    | )                                       |   |   | (1,008 | ) |
| Loan                impairment recovery (provision) (note 19)                  |   |     | -         |   |                                    |   | 8,888     |                                    |   |   | (11,390 | ) |
| Investment                gains, losses and write-downs (note 14)              |   |     | 8,448     |   |                                    |   | 102,490   |                                    |   |   | 1,527 |   |
| Goodwill                impairment (note 5)                                    |   |     | -         |   |                                    |   | -         |                                    |   |   | (41,406 | ) |
| Intangible                asset impairment (note 6)                            |   |     | -         |   |                                    |   |      |                                    |   |   | (9,629 | ) |
| Loss                on debt extinguishment (note 2 and 7)                      |   |     | -         |   |                                    |   | (117,401  | )                                       |   |   | (43,992 | ) |
|                                                                           |   |     | 220,604   |   |                                    |   | 14,907    |                                    |   |   | 71,408 |   |
| Provision                for (recovery of) income taxes (note 13)              |   |     | 93,604    |   |                                    |   | (88,423   | )                                       |   |   | 9,880 |   |
| Earnings                before the following                                   |   |     | 127,000   |   |                                    |   | 103,330   |                                    |   |   | 61,528 |   |
| Minority                interests                                              |   |     | (105,490  | )      |                                    |   | (95,998   | )                                       |   |   | (89,365 | ) |
| Interest                in earnings of equity accounted affiliates             |   |     | 2,422     |   |                                    |   | 2,612     |                                    |   |   | 2,043 |   |
| Realized                currency translation adjustments (note 12)             |   |     | (5,351    | )      |                                    |   | (6,883    | )                                       |   |   | 622 |   |
| **Net                earnings (loss) from continuing operations**              |   |     | 18,581    |   |                                    |   | 3,061     |                                    |   |   | (25,172 | ) |
| Gain                on sale of discontinued operations (note 15)               |   |     | 251,998   |   |                                    |   | 163,547   |                                    |   |   | - |   |
| Earnings                from discontinued operations (note 15)                 |   |     | 10,532    |   |                                    |   | 23,588    |                                    |   |   | 29,962 |   |
| **Net                earnings from discontinued operations**                   |   |     | 262,530   |   |                                    |   | 187,135   |                                    |   |   | 29,962 |   |
| **Net                earnings for the year**                                   |   |     | 281,111   |   |                                    |   | 190,196   |                                    |   |   | 4,790 |   |

----

**CANWEST      MEDIAWORKS INC.**

**CONSOLIDATED      BALANCE SHEETS**

**AS      AT AUGUST 31**

**(In      thousands of Canadian dollars)**

|                                                                                                |   | **2007** |      |   | **2006**                             |   |      |
|-----------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|--------------------------------------|--------|-----------|
| **ASSETS**                                                                                          |   |     |      |   | **(Revised                note 15)** |   |      |
| **Current                Assets**                                                                   |   |     |      |   |                                 |   |      |
| Cash                                                                                                |   |     | 136,614   |   |                                 |   | 283,374   |   |   |
| Accounts                receivable                                                                  |   |     | 492,597   |   |                                 |   | 426,199   |   |   |
| Income                tax recoverable                                                               |   |     | -         |   |                                 |   | 4,305     |   |   |
| Inventory                                                                                           |   |     | 8,907     |   |                                 |   | 13,362    |   |   |
| Investment                in broadcast rights                                                       |   |     | 169,614   |   |                                 |   | 161,070   |   |   |
| Future                income taxes (note 13)                                                        |   |     | 16,824    |   |                                 |   | 17,799    |   |   |
| Other                current assets                                                                 |   |     | 45,035    |   |                                 |   | 41,412    |   |   |
| Assets                of discontinued operations (note 15)                                          |   |     | -         |   |                                 |   | 58,623    |   |   |
|                                                                                                |   |     | 869,591   |   |                                 |   | 1,006,144 |   |   |
| Other                investments (note 3)                                                           |   |     | 1,534,920 |   |                                 |   | 17,890    |   |   |
| Investment                in broadcast rights                                                       |   |     | 39,001    |   |                                 |   | 30,493    |   |   |
| Due                from parent and affiliated companies (note 19)                                   |   |     | 55,947    |   |                                 |   | 55,170    |   |   |
| Property,                plant and equipment (note 4)                                               |   |     | 667,228   |   |                                 |   | 644,624   |   |   |
| Future                income taxes (note 13)                                                        |   |     | 186,803   |   |                                 |   | 177,159   |   |   |
| Other                assets (note 18)                                                               |   |     | 93,436    |   |                                 |   | 67,562    |   |   |
| Intangible                assets (note 6)                                                           |   |     | 1,287,962 |   |                                 |   | 1,160,171 |   |   |
| Goodwill                (note 5)                                                                    |   |     | 2,336,735 |   |                                 |   | 2,292,522 |   |   |
| Assets                of discontinued operations (note 15)                                          |   |     | -         |   |                                 |   | 176,753   |   |   |
|                                                                                                |   |     | 7,071,623 |   |                                 |   | 5,628,488 |   |   |
| **LIABILITIES**                                                                                     |   |     |      |   |                                 |   |      |   |   |
| **Current                Liabilities**                                                              |   |     |      |   |                                 |   |      |   |   |
| Accounts                payable                                                                     |   |     | 214,956   |   |                                 |   | 151,394   |   |   |
| Accrued                liabilities                                                                  |   |     | 331,228   |   |                                 |   | 273,639   |   |   |
| Income                taxes payable                                                                 |   |     | 59,658    |   |                                 |   | -         |   |   |
| Broadcast                rights accounts payable                                                    |   |     | 65,980    |   |                                 |   | 56,933    |   |   |
| Deferred                revenue                                                                     |   |     | 42,167    |   |                                 |   | 35,859    |   |   |
| Future                income taxes (note 13)                                                        |   |     | 38,153    |   |                                 |   | 43,409    |   |   |
| Current                portion of long term debt and obligations undercapital                leases |   |     | 11,045    |   |                                 |   | 3,640     |   |   |
| Liabilities                of discontinued operations (note 15)                                     |   |     | -         |   |                                 |   | 22,059    |   |   |
|                                                                                                |   |     | 763,187   |   |                                 |   | 586,933   |   |   |
| Long                term debt and related foreign currency swap liability (note                7)   |   |     | 3,589,947 |   |                                 |   | 2,632,958 |   |   |
| Interest                rate and foreign currency swap liability (note 8)                           |   |     | 151,936   |   |                                 |   | 142,172   |   |   |
| Obligations                under capital leases (note 9)                                            |   |     | 11,381    |   |                                 |   | 12,461    |   |   |
| Other                accrued liabilities (notes 17 and 18)                                          |   |     | 189,070   |   |                                 |   | 102,944   |   |   |
| Future                income taxes (note 13)                                                        |   |     | 105,530   |   |                                 |   | 90,740    |   |   |
| Puttable                interest in subsidiary (note 10)                                            |   |     | 483,568   |   |                                 |   | -         |   |   |
| Minority                interest                                                                    |   |     | 45,682    |   |                                 |   | 484,739   |   |   |
| Liabilities                of discontinued operations (note 15)                                     |   |     | -         |   |                                 |   | 135,916   |   |   |
|                                                                                                |   |     | 5,340,301 |   |                                 |   | 4,188,863 |   |   |
| Commitments,                contingencies and guarantees (note 23)                                  |   |     |      |   |                                 |   |      |   |   |
| **SHAREHOLDER’S                EQUITY**                                                       |   |     |      |   |                                 |   |      |   |   |
| Capital                stock (note 11)                                                              |   |     | 438,838   |   |                                 |   | 438,838   |   |   |
| Contributed                surplus                                                                  |   |     | 132,953   |   |                                 |   | 134,038   |   |   |
| Retained                earnings                                                                    |   |     | 1,165,316 |   |                                 |   | 884,205   |   |   |
| Cumulative                foreign currency translation adjustments (note 12)                        |   |     | (5,785    | )      |                                 |   | (17,456   | ) |   |
|                                                                                                |   |     | 1,731,322 |   |                                 |   | 1,439,625 |   |   |
|                                                                                                |   |     | 7,071,623 |   |                                 |   | 5,628,488 |   |   |

**                **

----

**Derek        H. Burney**

**Director**

----

**David        J. Drybrough**

**Director**

----

**CANWEST      MEDIAWORKS INC.**

**CONSOLIDATED      STATEMENTS OF RETAINED EARNINGS**

**FOR      THE YEARS ENDED AUGUST 31**

**(In      thousands of Canadian dollars)**

|                                                     |   | **2007** |      |   | **2006** |   |    | **2005** |   |
|----------------------------------------------------------|--------|----------|-----------|--------|----------|--------|---------|----------|--------|
|                                                     |   |     |      |   |     |   |    |     |   |
| **Retained                earnings - beginning of year** |   |     | 884,205   |   |     |   | 694,009 |     |   |   | 689,219 |   |
|                                                     |   |     |      |   |     |   |    |     |   |   |   |   |
| Net                earnings for the year                 |   |     | 281,111   |   |     |   | 190,196 |     |   |   | 4,790 |   |
|                                                     |   |     |      |   |     |   |    |     |   |   |   |   |
| **Retained                earnings – end of year** |   |     | 1,165,316 |   |     |   | 884,205 |     |   |   | 694,009 |   |

----

**CANWEST      MEDIAWORKS INC**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**FOR      THE YEARS ENDED AUGUST 31**

**(In      thousands of Canadian dollars)**

|                                                                                                    |   | **2007** |       |   | **2006**                             |   |       | **2005**                             |   |
|---------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|--------------------------------------|--------|------------|--------------------------------------|--------|
|                                                                                                    |   |     |       |   | **(revised                note 15)** |   |       | **(Revised                note 15)** |   |
| **CASH                GENERATED (UTILIZED) BY:**                                                        |   |     |       |   |                                 |   |       |                                 |   |
| **OPERATING                ACTIVITIES**                                                                 |   |     |       |   |                                 |   |       |                                 |   |
| Net                earnings for the year                                                                |   |     | 281,111    |   |                                 |   | 190,196    |                                 |   |   | 4,790 |   |
| Earnings                from discontinued operations                                                    |   |     | (262,530   | )      |                                 |   | (187,135   | )                                    |   |   | (29,962 | ) |
| Items                not affecting cash                                                                 |   |     |       |   |                                 |   |       |                                 |   |   |   |   |
| Amortization                                                                                            |   |     | 113,290    |   |                                 |   | 111,070    |                                 |   |   | 119,120 |   |
| Non-cash                interest                                                                        |   |     | (273       | )      |                                 |   | (1,503     | )                                    |   |   | 32,021 |   |
| Future                income                taxes                                                       |   |     | 16,723     |   |                                 |   | (119,366   | )                                    |   |   | (71,230 | ) |
| Realized                currency translation                adjustments                                 |   |     | 5,351      |   |                                 |   | 6,883      |                                 |   |   | (622 | ) |
| Loan                impairment                (recovery)                                                |   |     | -          |   |                                 |   | (8,888     | )                                    |   |   | 11,390 |   |
| Interest                rate and foreign                currency swap (gains) losses net of settlements |   |     | (14,835    | )      |                                 |   | 34,790     |                                 |   |   | 105,366 |   |
| Investment                gains, losses, and                write-downs                                 |   |     | (8,448     | )      |                                 |   | (102,490   | )                                    |   |   | (1,527 | ) |
| Loss                on debt                extinguishment                                               |   |     | -          |   |                                 |   | 117,401    |                                 |   |   | 43,992 |   |
| Goodwill                and intangible asset                impairment expense                          |   |     | -          |   |                                 |   | -          |                                 |   |   | 51,035 |   |
| Amortization                and write-down of                film and television programs               |   |     | -          |   |                                 |   | -          |                                 |   |   | 6,163 |   |
| Pension                expense                                                                          |   |     | 6,918      |   |                                 |   | 8,336      |                                 |   |   | 8,254 |   |
| Minority                interests                                                                       |   |     | 105,490    |   |                                 |   | 95,998     |                                 |   |   | 89,365 |   |
| Earnings                of equity accounted                affiliates                                   |   |     | (2,422     | )      |                                 |   | (2,612     | )                                    |   |   | (2,043 | ) |
| Foreign                exchange losses                (gains)                                           |   |     | (10,022    | )      |                                 |   | 6,650      |                                 |   |   | (5,571 | ) |
| Stock                compensation                expense                                                |   |     | 1,116      |   |                                 |   | 3,199      |                                 |   |   | 3,073 |   |
| Changes                in non-cash operating accounts (note 16)                                         |   |     | (100       | )      |                                 |   | (95,667    | )                                    |   |   | 89,261 |   |
| Cash                flows from operating activities of continuing operations                            |   |     | 231,369    |   |                                 |   | 56,862     |                                 |   |   | 452,875 |   |
| Cash                flows from operating activities of discontinued operations                          |   |     | 38,940     |   |                                 |   | 38,615     |                                 |   |   | 40,084 |   |
| Cash                flows from operating activities                                                     |   |     | 270,309    |   |                                 |   | 95,477     |                                 |   |   | 492,959 |   |
|                                                                                                    |   |     |       |   |                                 |   |       |                                 |   |   |   |   |
| **INVESTING                ACTIVITIES**                                                                 |   |     |       |   |                                 |   |       |                                 |   |   |   |   |
| Other                investments (note 3)                                                               |   |     | (13,849    | )      |                                 |   | (2,736     | )                                    |   |   | 426 |   |
| Investment                in broadcast licences                                                         |   |     | (618       | )      |                                 |   | (667       | )                                    |   |   | - |   |
| Acquisitions                (note 2)                                                                    |   |     | (1,443,554 | )      |                                 |   | (86,078    | )                                    |   |   | (19,487 | ) |
| Redemption                of Class A Limited Partnership Units (note 2)                                 |   |     | (496,923   | )      |                                 |   | -          |                                 |   |   | - |   |
| Proceeds                from sale of discontinued operations (notes 2 and 15)                           |   |     | 311,947    |   |                                 |   | 178,764    |                                 |   |   | - |   |
| Proceeds                from sales of other investments (note 3)                                        |   |     | 30,672     |   |                                 |   | 9,300      |                                 |   |   | 2,171 |   |
| Proceeds                from divestitures (note 3)                                                      |   |     | 1,200      |   |                                 |   | -          |                                 |   |   | - |   |
| Proceeds                from issuance of partnership units (note 2)                                     |   |     | -          |   |                                 |   | 514,856    |                                 |   |   | - |   |
| Proceeds                from sale of property, plant and equipment                                      |   |     | 4,349      |   |                                 |   | 1,963      |                                 |   |   | 5,035 |   |
| Purchase                of property, plant and equipment                                                |   |     | (104,219   | )      |                                 |   | (79,525    | )                                    |   |   | (87,689 | ) |
| Proceeds                from (advances to) parent and affiliated companies (note                19)     |   |     | (3,479     | )      |                                 |   | 37,806     |                                 |   |   | 34,182 |   |
| Investing                activities from discontinued operations                                        |   |     | (6,448     | )      |                                 |   | (13,089    | )                                    |   |   | (13,684 | ) |
|                                                                                                    |   |     | (1,720,922 | )      |                                 |   | 560,594    |                                 |   |   | (79,046 | ) |
| **FINANCING                ACTIVITIES**                                                                 |   |     |       |   |                                 |   |       |                                 |   |   |   |   |
| Issuance                of long term debt, net of financing costs                                       |   |     | 3,311,801  |   |                                 |   | 943,557    |                                 |   |   | 142,454 |   |
| Repayment                of long term debt                                                              |   |     | (2,126,542 | )      |                                 |   | (1,387,049 | )                                    |   |   | (491,806 | ) |
| Advances                (repayments) of revolving facilities, net of financing                costs     |   |     | (269,776   | )      |                                 |   | 588,917    |                                 |   |   | 4,640 |   |
| Settlement                of swap liabilities                                                           |   |     | 22,522     |   |                                 |   | (354,205   | )                                    |   |   | - |   |
| Swap                recouponing payments                                                                |   |     | -          |   |                                 |   | (48,726    | )                                    |   |   | (41,653 | ) |
| Payments                of capital leases                                                               |   |     | (3,639     | )      |                                 |   | (1,199     | )                                    |   |   | (1,100 | ) |
| Issuance                of share capital to minority interest                                           |   |     | -          |   |                                 |   | 498        |                                 |   |   | 5,369 |   |
| Issuance                of puttable interest in subsidiary                                              |   |     | 479,965    |   |                                 |   | -          |                                 |   |   | - |   |
| Payment                of distributions to minority interest                                            |   |     | (97,871    | )      |                                 |   | (114,744   | )                                    |   |   | (82,403 | ) |
| Financing                activities from discontinued operations                                        |   |     | (13,363    | )      |                                 |   | (13,691    | )                                    |   |   | (21,034 | ) |
|                                                                                                    |   |     | 1,303,097  |   |                                 |   | (386,642   | )                                    |   |   | (485,533 | ) |
| Foreign                exchange gain (loss) on cash denominated in foreign                currencies    |   |     | 756        |   |                                 |   | (1,331     | )                                    |   |   | 79 |   |
| **Net                change in cash**                                                                   |   |     | (146,760   | )      |                                 |   | 268,098    |                                 |   |   | (71,541 | ) |
| **Cash                – beginning of year**                                                       |   |     | 283,374    |   |                                 |   | 15,276     |                                 |   |   | 86,817 |   |
| **Cash                – end of year**                                                             |   |     | 136,614    |   |                                 |   | 283,374    |                                 |   |   | 15,276 |   |

----

**CANWEST      MEDIAWORKS INC.**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR      THE YEARS ENDED AUGUST 31, 2007 AND 2006**

**(In      thousands of Canadian dollars except as otherwise noted)**

|   | **1.** | **SIGNIFICANT                ACCOUNTING POLICIES** |
|--------|--------|----------------------------------------------------|

*National Post*
*The New Republic*
*Super FM*
*Metro FM*
*Joy FM*
*Joy Turk      FM*

|   | A                summary of significant accounting policies followed in the preparation                of                these consolidated financial statements is as                follows: |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Basis      of      presentation***

|   | The                consolidated financial statements are prepared in accordance with                accounting principles generally accepted in Canada. All amounts are                expressed in Canadian dollars unless otherwise noted.  A                reconciliation to accounting principles generally accepted in the                United                States is provided in note 25. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Principles      of      consolidation***

*Consolidation of Variable Interest      Entities*

*Super FM*
*Metro*
*FM, Joy FM *
*Joy Turk FM*

***Investments***

***Investment      in broadcast rights***

|   | The                Company has entered into various agreements for the rights to broadcast                certain feature films and television programs. The Company records                a                liability for broadcast rights and the corresponding asset when the                programs are available for telecast.  Broadcast rights are                charged to operations as programs are telecast over the anticipated                period                of use.  A loss is recognized when the carrying amount exceeds                net realizable value. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Foreign      currency translation***

|   | The                Company’s operations in Australia, United Kingdom, United States, and                Turkey represent self-sustaining foreign operations, and the respective                accounts have been translated into Canadian dollars in accordance                with the                current rate method.  Assets and liabilities are translated at                the exchange rates prevailing at the balance sheet dates, and revenue                and                expenses are translated on the basis of average exchange rates during                the                periods.  Any gains or losses arising from the translation of                these accounts are deferred and included as a component of shareholders'                equity as cumulative foreign currency translation                adjustments.  An applicable portion of these deferred gains and                losses is included in the determination of net earnings when there                is a                reduction of the net investment. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ***Property,                plant and equipment*** |
|--------|----------------------------------------------------|

|   | Property,                plant and equipment are recorded at cost.  Amortization is                provided over the assets' estimated useful lives on a straight-line                basis                at the following annual rates: |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                     Buildings |   |   | 21/2%-5 | % |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---|

|                     Machinery                and                equipment |   |   | 4%-50 | % |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------|---|

|                     Leasehold                and                land improvements |   |   | 21/2%-20 | % |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|---|

***Asset      retirement obligations***

***Impairment      of long-lived assets***

***Disposal      of long-lived assets and discontinued operations***

----

***Deferred      Charges***

|   | Certain                pre-operating costs incurred in new business undertakings are deferred                prior to the commencement of commercial operations, which is generally                the                time at which subscriber and advertising revenues                commence.  Pre-operating costs deferred in the current year                amounted to $0.8 million (2006 – $1.9 million, 2005 - $3.6 million).                Pre-operating costs are amortized over a period of five years and                included                in other amortization.  Costs related to debt financing are                deferred and amortized over the term of the                debt. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Intangible      assets***

|   | Circulation,                site licences and other finite life intangibles are amortized over                periods                from 5 to 40 years.  Finite life intangibles are tested for                impairment when events or changes in circumstances indicate that                the                carrying value may not be recoverable.  Intangibles with                indefinite lives are not subject to amortization and are tested for                impairment annually or when indicated by events or changes in                circumstances.  Impairment of an indefinite life intangible                asset is recognized in an amount equal to the difference between                the                carrying value and the fair value of the related indefinite life                intangible asset. The Company utilizes a direct valuation approach                in                determining the fair value of intangible                assets. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Goodwill***

|   | ***Revenue                recognition*** |
|--------|------------------------------------------|

|   | Revenue                derived from broadcasting activities consists primarily of the sale                of                airtime which is recognized at the time commercials are                broadcast.  Subscription and advertising revenues from                publishing activities is recognized when the newspaper is                delivered.  Revenues derived from out-of-home advertising are                recognized over the period the advertisement is being displayed.                Subscription revenues for news, business research and corporate financial                information services are recognized on a straight-line basis over                the term                of the subscription or relevant                contract. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Amounts                received that do not meet all of the above criteria are recorded                as                deferred revenue on the balance                sheet. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Income      taxes***

|   | The                asset and liability method is used to account for future income                taxes.  Under this method, future income tax assets and                liabilities are recognized for the estimated future tax consequences                attributable to differences between the financial statement carrying                amounts and the tax bases of assets and liabilities including equity                accounted investments.  Future income tax assets and liabilities                are measured using substantively enacted tax rates in effect for                the year                in which those temporary differences are expected to be recovered                or                settled.  The effect on future income tax assets and liabilities                of a change in tax rates is recognized in earnings in the period                that                includes the substantive enactment date.  Future income tax                assets are recognized to the extent that realization is considered                more                likely than not. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Income                taxes on undistributed earnings of foreign operations are not provided                as                such earnings are expected to be indefinitely                reinvested. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Inventory***

|   | Inventory,                consisting primarily of printing materials, is valued at the lower                of cost                and net realizable values. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ***Pension                plans and post retirement                benefits*** |
|--------|--------------------------------------------------------------------------------|

***Cash      and cash equivalents***

|   | For                the purpose of the statements of cash flows, cash includes cash and                short-term investments with maturities at the date of purchase of                up to                three months. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

***Share-based      compensation***

|   | ***Derivative                financial instruments*** |
|--------|-------------------------------------------------------|

----

***Changes      in accounting policies***

*Stock-Based Compensation      for Employees Eligible to Retire Before Vesting Date,*

**Proposed      accounting policies**

*Financial      instruments and comprehensive income*

*Financial Instruments - Recognition and Measurement*
*Hedges*
*Comprehensive Income*

----

*Capital      Disclosures*

*Capital Disclosures*

----

*Inventories*

*Inventories*

*Financial      Instrument Disclosures*

*Financial Instrument*
*Disclosures*

|   | **2.** | **ACQUISITIONS                AND DIVESTITURES** |
|--------|--------|--------------------------------------------------|

*Acquisitions*

|   | (a) | On                August 15, 2007, the Company and Goldman Sachs completed the acquisition                of Alliance Atlantis.  Concurrently with the completion of the                acquisition, Alliance Atlantis’ broadcast, entertainment and movie                distribution businesses were reorganized.  The Company does not                have any continuing interest in the entertainment or movie distribution                businesses.  The Company holds 67% of the voting shares and                approximately 35% equity interest in CW Investments which holds the                acquired broadcast business.  Goldman Sachs holds the remaining                65% equity interest. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Cash                                                          |   |   | 82,744    |   |
|---------------------------------------------------------------|--------|--------|-----------|--------|
| Current                assets                                 |   |   | 55,706    |   |
| Property,                plant and equipment                  |   |   | 20,098    |   |
| Investment                in regulated entities               |   |   | 1,470,881 |   |
| Portfolio                investments – at cost          |   |   | 42,922    |   |
| Future                tax asset                               |   |   | 29,677    |   |
| Non-current                assets                             |   |   | 1,219     |   |
| Goodwill                                                      |   |   | 19,866    |   |
| Current                liabilities                            |   |   | (165,434  | )      |
| Non-current                liabilities                        |   |   | (70,854   | )      |
|                                                          |   |   | 1,486,825 |   |
| Consideration:                                                |   |   |      |   |
| Cash                                                          |   |   | 262,300   |   |
| Puttable                interest in subsidiary                |   |   | 480,787   |   |
| Debt,                net of financing costs                   |   |   | 766,668   |   |
| Less                financing in excess of purchase price (1) |   |   | (22,930   | )      |
|                                                          |   | $      | 1,486,825 |   |

|   | (b) | On                July 10, 2007, the Limited Partnership redeemed its Class A partnership                units, representing the 25.8% minority interest, for cash consideration                of                $495 million plus acquisition costs of $2 million,. The acquisition                was                accounted for as a step purchase.  The fair value of acquired                assets exceeded the cost of the transaction and, accordingly, the                excess                was allocated on a pro-rata basis as a reduction in the amount of                non-monetary assets acquired.  As a result of the transaction,                the property plant and equipment was decreased by $7 million, circulation,                subscribers and other customer relationships were increased by $49                million, newspaper mastheads were increased by $77 million, pension                and                post retirement liabilities were increased by $22 million and future                tax                liabilities were increased by $18                million. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | During                2007, the Company acquired the following three enterprises for aggregate                cost of $44.5 million, which was paid primarily in                cash: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Ultimate                Media Group, an out-of-home advertising company in Australia, for                cash                consideration of $8.9 million (AUS $10.4 million) and deferred                consideration of $2.8 million (AUS $3.2                million). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Foxmark                Media Group, an out-of-home advertising company in the United States,                for                cash consideration of $24.7 million (US $20.9 million) and deferred                consideration of $2.2 million (US $1.9 million) payable in December                2007; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The                New Republic, a subscription based magazine in the United States,                for cash                consideration of $5.9 million (US $5.0 million) for the 70% not previously                acquired (note 3). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | On                April 14, 2006, the Company completed its acquisition of *Super FM,                Metro FM, Joy FM and Joy Turk FM* for cash consideration of $73.6                million.  The principal business activity of these companies is                the operation of radio stations and the operations are presented                in the                Turkey radio segment.  The Company has a 20% equity interest in                *Super FM* and no equity interest in *Metro**FM, Joy FM*and *Joy Turk FM*.  The Company provided financing                to a third party to indirectly acquire its equity interest in each station                and also holds an option to indirectly acquire 100% of the outstanding                equity of each station, subject to compliance with the Turkish foreign                ownership restrictions.  The Company has entered into agreements                to provide operational, sales, and advisory services to each station                on a                fee for service basis.  As a result of our equity interest,                financing of the purchase and operational agreements, the Company                has                determined that it is the primary beneficiary as defined by CICA                Accounting Guideline 15, *Consolidation of Variable Interest                Entities*, of these radio stations and accordingly, the Company has                consolidated the results of these acquisitions since the date the                agreements were entered into.  Broadcast licenses and goodwill                recognized in the transaction amounted to $60.7 million and $12.8                million,                respectively. The goodwill was assigned to the Radio – Turkey                segment. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | On                July 1, 2006, Eye Corp acquired the remaining 50% of Eye Outdoor                Pty                Limited. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | On                July 1, 2006, Eye Corp acquired 100% of Outdoor Plus Pty                Limited. |
|--------|-----|----------------------------------------------------------------------------------------------------|

|              iii. | On                June 14, 2006, Eye Corp acquired 100% of the operations of Eye Corp                (USA)                Inc. (formerly Media Choice). |
|------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Divestitures*

|   | (f) | On                June 14*,*2007*,*the Company completed the sale of its New                Zealand Television and Radio segments (note 15).  The Company                recorded disposition of goodwill, broadcast licences, other assets,                and                long term debt and other liabilities related to the New Zealand Television                and Radio segments of $136.5 million, $13.9 million, $88.1 million                $136.7                million and $53.0 million,                respectively. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | On                October 13, 2005, the Company                transferred its publishing operations (excluding the *National                Post*)and                certain shared customer                support and administrative services operations to the Limited Partnership                for net proceeds of $515.3 million and 74.2% of the Limited                Partnership.  The remaining 25.8% of the Limited Partnership was                held by the CanWest MediaWorks Income Fund.  The Company                recorded a dilution gain of $101.7 million on this                transaction.  As discussed in note 2(b), the Company reacquired                these interests in 2007. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | On                August 31, 2006, the Company completed the sale of its Ireland Television                segment (note 15).  The Company recorded a disposition of                goodwill, other assets and liabilities, related to the Ireland television                segment of $3.9 million, $15.4 million and $11.8 million,                respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **3.** | **OTHER                INVESTMENTS** |
|--------|--------|--------------------------------------|

|                                                      |   | **2007** |      |   | **2006** |   |
|-----------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| **Equity                accounted investments:**          |   |     |      |   |     |   |
| Investment                in regulated entities(1)        |   |     | 1,484,505 |   |     |   | - |   |
| Other                investments                          |   |     | 3,450     |   |     |   | 14,501 |   |
| **Portfolio                investments – at cost:** |   |     |      |   |     |   |   |   |
| Investment                in publicly traded companies    |   |     | 42,922    |   |     |   | - |   |
| Investment                in private companies            |   |     | 4,043     |   |     |   | 3,389 |   |
|                                                      |   |     | 1,534,920 |   |     |   | 17,890 |   |
|                                                      |   |     |      |   |     |   |   |   |

|   | (1)Certain                operations acquired as part of the purchase of CW Media’s specialty                television operations have been placed into trust, pending CRTC                approval.  While in trust, these entities will be accounted for                using the equity basis of accounting whereby the investment is initially                recorded at cost and the carrying value is adjusted for post acquisition                earnings, computed using the consolidation                method. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Current                assets                |   |   | 62,283    |   |
|----------------------------------------------|--------|--------|-----------|--------|
| Broadcast                rights              |   |   | 242,167   |   |
| Property,                plant and equipment |   |   | 20,712    |   |
| Investments                                  |   |   | 10,015    |   |
| Intangible                assets             |   |   | 868,900   |   |
| Goodwill                                     |   |   | 513,309   |   |
| Current                liabilities           |   |   | (29,522   | )      |
| Future                income tax liabilities |   |   | (139,056  | )      |
| Other                liabilities             |   |   | (40,756   | )      |
| Minority                interest             |   |   | (37,171   | )      |
|                                         |   |   | 1,470,881 |   |

----

|   | **4.** | **PROPERTY,                PLANT AND EQUIPMENT** |
|--------|--------|--------------------------------------------------|

|                                           |   | **2007** |      |
|------------------------------------------------|--------|----------|-----------|
|                                           |   | **Cost** |      |   | **Accumulated                Amortization** |   |   | **Net** |   |
| Land                                           |   |     | 60,392    |   |   |   | - |   |   |   | 60,392 |   |
| Buildings                                      |   |     | 194,975   |   |   |   | 50,982 |   |   |   | 143,993 |   |
| Machinery                and equipment         |   |     | 853,600   |   |   |   | 418,445 |   |   |   | 435,155 |   |
| Leasehold                and land improvements |   |     | 44,274    |   |   |   | 16,586 |   |   |   | 27,688 |   |
|                                           |   |     | 1,153,241 |   |   |   | 486,013 |   |   |   | 667,228 |   |

|                                           |   | **2006** |      |
|------------------------------------------------|--------|----------|-----------|
|                                           |   | **Cost** |      |   | **Accumulated                Amortization** |   |   | **Net** |   |
| Land                                           |   |     | 62,536    |   |   |   | - |   |   |   | 62,536 |   |
| Buildings                                      |   |     | 191,625   |   |   |   | 45,244 |   |   |   | 146,381 |   |
| Machinery                and equipment         |   |     | 894,405   |   |   |   | 476,571 |   |   |   | 417,834 |   |
| Leasehold                and land improvements |   |     | 32,584    |   |   |   | 14,711 |   |   |   | 17,873 |   |
|                                           |   |     | 1,181,150 |   |   |   | 536,526 |   |   |   | 644,624 |   |

|   | The                net book value of property, plant and equipment located in Canada                was                $557.6 million (2006 - $568.4 million), in Australia $105.5 million                (2006                - $ 75.2 million) and in other foreign jurisdictions was $4.1 million                (2006 - $1.0 million). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **5.** | **GOODWILL** |
|--------|--------|--------------|

|                                        |   | **2006** |      |   | **Additions** |   |   | **Divestitures** |   |   | **Other** |   |   | **2007** |   |
|---------------------------------------------|--------|----------|-----------|--------|---------------|--------|--------|------------------|--------|--------|-----------|--------|--------|----------|--------|
|                                        |   |     |      |   |          |   |   |             |   |   |      |   |   |     |   |
| Publishing                                  |   |     | 1,694,792 |   |          |   | 5,463  | (1)              |   |   | -         |   |   |     | (918   | )(2) |   |   | 1,699,337 |   |
| Television                – Canada    |   |     | 481,341   |   |          |   |   |             |   |   | (5,445    | )(4)   |   |     | -      |   |   |   | 475,896 |   |
| Television                – CW Media  |   |     | -         |   |          |   | 19,866 | (3)              |   |   | -         |   |   |     | -      |   |   |   | 19,866 |   |
| Television                – Australia |   |     | 28,987    |   |          |   | -      |             |   |   | -         |   |   |     | 1,167  | (2) |   |   | 30,154 |   |
| Outdoor                – Australia    |   |     | 75,802    |   |          |   | 24,345 | (6)              |   |   | (757      | )(5)   |   |     | (238   | )(2) |   |   | 99,152 |   |
| Radio                - Turkey               |   |     | 11,600    |   |          |   | -      |             |   |   | -         |   |   |     | 730    | (2) |   |   | 12,330 |   |
| Total                                       |   |     | 2,292,522 |   |          |   | 49,674 |             |   |   | (6,202    | )      |   |     | 741    |   |   |   | 2,336,735 |   |
|                                        |   |     |      |   |          |   |   |             |   |   |      |   |   |     |   |   |   |   |   |   |

|                                        |   |     |      |   |          |   |   |             |   |   |      |   |   |     |   |
|---------------------------------------------|--------|----------|-----------|--------|---------------|--------|--------|------------------|--------|--------|-----------|--------|--------|----------|--------|
|                                        |   | **2005** |      |   | **Additions** |   |   | **Divestitures** |   |   | **Other** |   |   | **2006** |   |
|                                        |   |     |      |   |          |   |   |             |   |   |      |   |   |     |   |
| Publishing                                  |   |     | 1,694,792 |   |          |   | -      |             |   |   | -         |   |   |     | -      |   |   |   | 1,694,792 |   |
| Television                – Canada    |   |     | 481,341   |   |          |   | -      |             |   |   | -         |   |   |     | -      |   |   |   | 481,341 |   |
| Television                – Australia |   |     | 31,011    |   |          |   | -      |             |   |   | -         |   |   |     | (2,024 | )(2) |   |   | 28,987 |   |
| Radio                - Turkey               |   |     | -         |   |          |   | 12,785 | (7)              |   |   | -         |   |   |     | (1,185 | )(2) |   |   | 11,600 |   |
| Outdoor                – Australia    |   |     | 70,941    |   |          |   | 8,993  | (8)              |   |   | -         |   |   |     | (4,132 | )(2) |   |   | 75,802 |   |
| Total                                       |   |     | 2,278,085 |   |          |   | 21,778 |             |   |   | -         |   |   |     | (7,341 | ) |   |   | 2,292,522 |   |

|   | (1)Increase                in                goodwill, net of an impairment, related to the Company’s acquisition of                The New Republic, a subscription based magazine in the United States                (note                2). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2)                Decrease/increase in goodwill related to fluctuations                in                currency translation rates. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (3)Increase                in                goodwill is related to the acquisition of Alliance Atlantis (note                2).  The goodwill is not deductible for tax purposes and is                included in Corporate and Other |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4)  Decrease                in goodwill is related to the sale of the Company’s Canadian radio                stations (note 15). |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5)  Decrease                in goodwill is related to an Eye Corp                disposal. |
|--------|-------------------------------------------------------------------------------------------------------|

|   | (6)                Increase in                goodwill is related to Eye Corp’s acquisitions of Ultimate Media Group and                Foxmark Media Group (note 2). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  (7)  Increase                in goodwill related to the Company’s acquisition of *Super FM, Metro                FM, Joy FM and Joy Turk FM* radio stations in Turkey (note                2).  The goodwill related to this acquisition is deductible for                tax in Turkey and has a tax value of                $11,422. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8)                Increase in                goodwill is related to Eye Corp’s acquisitions of  the remaining                50% of Eye Outdoor Pty Limited and 100% of each of Outdoor Plus Pty                Limited and Eye Corp (USA) Inc. (formerly Media Choice) (note                2). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9)                In 2005,                the decrease of $41.4 million in the goodwill of the Publishing segment                related to an impairment in the National                Post. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | **6.** | **INTANGIBLE                ASSETS** |
|--------|--------|--------------------------------------|

|                                                                     |   | **2007** |    |
|--------------------------------------------------------------------------|--------|----------|---------|
|                                                                     |   | **Cost** |    |   | **Accumulated** |   |   | **Net** |   |
|                                                                     |   |     |    |   | **Amortization** |   |   |   |   |
|                                                                     |   |     |    |   |   |   |   |   |   |
| Finite                life:                                              |   |     |    |   |   |   |   |   |   |
| Circulation,                subscribers and other customer relationships |   |     | 95,477  |   |   |   | 11,410 |   |   |   | 84,067 |   |
| Site                licences                                             |   |     | 43,388  |   |   |   | 7,048 |   |   |   | 36,340 |   |
|                                                                     |   |     | 138,865 |   |   |   | 18,458 |   |   |   | 120,407 |   |
| Indefinite                life:                                          |   |     |    |   |   |   |   |   |   |   |   |   |
| Broadcast                licences                                        |   |     |    |   |   |   |   |   |   |   | 749,469 |   |
| Newspaper                mastheads                                       |   |     |    |   |   |   |   |   |   |   | 418,086 |   |
|                                                                     |   |     |    |   |   |   |   |   |   |   | 1,167,555 |   |
|                                                                     |   |     |    |   |   |   |   |   |   |   |   |   |
| **Total                intangible assets**                               |   |     |    |   |   |   |   |   |   |   | 1,287,962 |   |

|                                                                     |   | **2006** |    |
|--------------------------------------------------------------------------|--------|----------|---------|
|                                                                     |   | **Cost** |    |   | **Accumulated** |   |   | **Net** |   |
|                                                                     |   |     |    |   | **Amortization** |   |   |   |   |
|                                                                     |   |     |    |   |   |   |   |   |   |
|                                                                     |   |     |    |   |   |   |   |   |   |
| Finite                life:                                              |   |     |    |   |   |   |   |   |   |
| Circulation,                subscribers and other customer relationships |   |     | 126,766 |   |   |   | 88,195 |   |   |   | 38,571 |   |
| Site                licences                                             |   |     | 28,883  |   |   |   | 3,938 |   |   |   | 24,945 |   |
|                                                                     |   |     | 155,649 |   |   |   | 92,133 |   |   |   | 63,516 |   |
| Indefinite                life:                                          |   |     |    |   |   |   |   |   |   |   |   |   |
| Broadcast                licences                                        |   |     |    |   |   |   |   |   |   |   | 757,769 |   |
| Newspaper                mastheads                                       |   |     |    |   |   |   |   |   |   |   | 338,886 |   |
|                                                                     |   |     |    |   |   |   |   |   |   |   | 1,096,655 |   |
|                                                                     |   |     |    |   |   |   |   |   |   |   |   |   |
| **Total                intangible assets**                               |   |     |    |   |   |   |   |   |   |   | 1,160,171 |   |

----

**7.          LONG      TERM DEBT**

|                                                                                           |   | **Interest**                |   |   |     |   |      | **Interest**                |   |   |     |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|----------|--------|-----------|-----------------------------|--------|--------|----------|--------|
|                                                                                           |   | **Rate                (1)** |   |   | **2007** |   |      | **Rate                (1)** |   |   | **2006** |   |
|                                                                                           |   |                        |   |   |     |   |      |                        |   |   |     |   |
| Senior                secured credit facility (2)                                              |   |                        | -      |   |     |   | -         |                        |   |   | 7.3      | %      |   |   | 422,249 |   |
| Senior                unsecured notes (3) spot                rate (4)                    |   |                        | -      |   |     |   | -         |                        |   |   | 7.6      | %      |   |   | 277 |   |
| Senior                subordinated notes (4)                                                   |   |                        | 8.7    | %      |     |   | 829,800   |                        |   |   | 8.5      | %      |   |   | 872,031 |   |
| CanWest                MediaWorks Limited Partnership Secured Credit Facility (5)              |   |                        | -      |   |     |   | -         |                        |   |   | 5.3      | %      |   |   | 825,000 |   |
| CanWest                MediaWorks Limited Partnership Secured Credit Facilities (6)            |   |                        | 7.1    | %      |     |   | 841,170   |                        |   |   |     |   |   |   | - - |   |
| CanWest                MediaWorks Limited Partnership senior unsecured notes(7)                |   |                        | 9.1    | %      |     |   | 75,000    |                        |   |   | -        |   |   |   | - |   |
| CanWest                MediaWorks Limited Partnership senior subordinated notes(8)             |   |                        | 9.1    | %      |     |   | 422,480   |                        |   |   | -        |   |   |   | - |   |
| CW                Media Holdings Inc. senior credit facility(9)                                |   |                        | 8.7    | %      |     |   | 471,518   |                        |   |   | -        |   |   |   | - |   |
| CW                Media Holdings Inc. senior unsecured notes(10)                               |   |                        | 12.6   | %      |     |   | 315,429   |                        |   |   | -        |   |   |   | - |   |
| Bank                loan AUS$245,000 (2006 – AUS$170,000)                (11)            |   |                        | 7.2    | %      |     |   | 211,043   |                        |   |   | 6.6      | %      |   |   | 143,514 |   |
| Senior                unsecured notes US$125,000 (2006 – US$125,000)                (12) |   |                        | 7.7    | %      |     |   | 132,050   |                        |   |   | 7.2      | %      |   |   | 138,320 |   |
| Senior                notes AUS$150,000 (2006 – AUS$150,000)                (13)         |   |                        | 7.1    | %      |     |   | 129,210   |                        |   |   | 6.8      | %      |   |   | 126,630 |   |
|                                                                                           |   |                        |   |   |     |   | 3,427,700 |                        |   |   |     |   |   |   | 2,528,021 |   |
| Effect                of foreign currency swap                                                 |   |                        |   |   |     |   | 170,757   |                        |   |   |     |   |   |   | 104,937 |   |
| Long                term debt                                                                  |   |                        |   |   |     |   | 3,598,457 |                        |   |   |     |   |   |   | 2,632,958 |   |
| Less                portion due within one year                                                |   |                        |   |   |     |   | (8,510    | )                           |   |   |     |   |   |   | - |   |
| Long                term portion                                                               |   |                        |   |   |     |   | 3,589,947 |                        |   |   |     |   |   |   | 2,632,958 |   |
|                                                                                           |   |                        |   |   |     |   |      |                        |   |   |     |   |   |   |   |   |

----

|   | (a) | $250                million revolving term loan.  As at August 31, 2007, the Limited                Partnership had drawn $85 million on its revolver and had available                $164                million, net of letters of credit of $1 million.  This facility                matures on July 13, 2012 and is subject to certain                restrictions.  This facility bears interest at prime plus a                margin or banker’s acceptance rates plus a                margin. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | A                $265 million non-revolving term loan which is subject to minimum                principal                payment reductions of a minimum of 5% in year 3 and 10% in each of                years 4                and 5.  This facility which matures on July 13, 2012 is subject                to certain restrictions and bears interest at banker’s acceptance rates                plus a margin. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | A                US$466 million term loan which is subject to principal repayments                of $5                million (US$4.8 million) per year.  This facility matures on                July 13, 2014 and is subject to certain restrictions and bears interest                at                floating interest rates based on LIBOR rates plus a margin.  The                Limited Partnership has entered into a foreign currency interest                rate swap                to fix the interest and principal payment on a notional amount of                US$466                million, reduced accordingly as the principal portion of the debt                is                repaid, resulting in an effective interest rate of 7.50% and a fixed                currency exchange of US$1:$1.0725 until July                2014. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | $50                million revolving term loan.  As at August 31, 2007, there were                no amounts drawn under the revolver.  This facility matures on                August 15, 2013 and is subject to certain restrictions.  This                facility bears interest at banker’s acceptance rates plus a                margin. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | US$446                million term loan which is subject to principal repayments of US$4.4                million per year.  This facility matures on February 15, 2015                and is subject to certain restrictions and bears interest at floating                interest rates based on LIBOR  plus a margin.  CW                Media has entered into a foreign currency interest rate swap, which                expires on February 15, 2015, to fix the interest and principal payment                on                an initial notional amount of US$446 million, reduced accordingly                as the                principal portion of the debt is repaid, resulting in an effective                interest rate of 8.68% and a fixed currency exchange of US$1:$1.064                Canadian dollars until February                2015. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|             Year                ending August 31, | 2008 |   |   | 8,510     |   |
|---------------------------------------------------------------------------------------------------------------|------|--------|--------|-----------|--------|
|                                                                                                          | 2009 |   |   | 224,037   |   |
|                                                                                                          | 2010 |   |   | 26,244    |   |
|                                                                                                          | 2011 |   |   | 36,182    |   |
|                                                                                                          | 2012 |   |   | 1,221,349 |   |

**8.          INTEREST      RATE AND FOREIGN CURRENCY SWAP LIABILITIES**

|    **Type                of swap**                                               |    **Maturity**                            |  **Notional****amount                as at Aug. 31, 2007** |  **Fair                Value**** as                at****Aug.                31, 2007** |  **Notional****amount                as at Aug. 31, 2006** |  **Fair                Value**** as                at****Aug.                31, 2006** |
|-------------------------------------------------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|---------------------------------------------------------------------------------------------------|
|                                                                                            |                                                      |                                                            |                                                                                              |                                                            |                                                                                              |
|  Floating                to fixed interest rate swaps                                      |  November                2006                        |  -                                                         |  -                                                                                           |  50,000                                                    |  237                                                                                         |
|  Floating                to fixed interest rate swaps                                      |  Various                to August 2009               |  46,803                                                    |  1,484                                                                                       |  47,285                                                    |  2,933                                                                                       |
|  Floating                to fixed interest rate swaps                                      |  November                2009                        |  250,000                                                   |  11,104                                                                                      |  250,000                                                   |  19,714                                                                                      |
|  Floating                to fixed interest rate swaps                                      | Various                to December 2014                   | 219,657                (AUS$255,000)                            | (4,641)(AUS$5,375)                                                                                | 219,492                (AUS$260,000)                            | (2,656)(AUS$3,147)                                                                                |
|  Floating                to fixed foreign currency swap                                    |  Various                toAugust                2009 |  514,828                                                   |    139,348                                                                         |  520,135                                                   |    119,288                                                                         |
| Total                net fair value                                                             |                                                      |                                                            |   147,295                                                                               |                                                            |   139,516                                                                               |
|                                                                                            |                                                      |                                                            |                                                                                              |                                                            |                                                                                              |
| The                total fair value is recorded on the balance sheet as                follows: |
|                                                                                            |                                                      |                                                            |                                                                                              |                                                            |                                                                                              |
| Total                liabilities                                                                |                                                      |                                                            | 151,936                                                                                           |                                                            | 142,172                                                                                           |
| Total                assets                                                                     |                                                      |                                                            |   (4,641)                                                                               |                                                            |   (2,656)                                                                               |
|                                                                                            |                                                      |                                                            |                                                                                              |                                                            |                                                                                              |
| Total                fair value                                                                 |                                                      |                                                            |  147,295                                                                                     |                                                            |  139,516                                                                                     |

----

**9.          OBLIGATIONS      UNDER CAPITAL LEASES**

|                                                                    |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|
| 2008                                                                    |   |   | 3,529  |   |
| 2009                                                                    |   |   | 3,868  |   |
| 2010                                                                    |   |   | 3,654  |   |
| 2011                                                                    |   |   | 3,808  |   |
| 2012                                                                    |   |   | -      |   |
| Thereafter                                                              |   |   | 3,014  |   |
| Total                minimum lease payments                             |   |   | 17,873 |   |
| Amount                representing interest (at rates of 5.9% to 9.6%)  |   |   | (3,957 | ) |
| Present                value of minimum capital lease payments          |   |   | 13,916 |   |
| Less                current portion of obligations under capital leases |   |   | (2,535 | ) |
|                                                                    |   |   | 11,381 |   |

|   | **10.** | **PUTTABLE                INTEREST IN SUBSIDIARY** |
|--------|---------|----------------------------------------------------|

----

|   | **11.** | **CAPITAL                STOCK** |
|--------|---------|----------------------------------|

***Authorized***

***Issued***

|                                |   | **2007** |    |   | **2006** |   |
|-------------------------------------|--------|----------|---------|--------|----------|--------|
|                                |   |     |    |   |     |   |
| 22,786                common shares |   |     | 438,838 |   |     |   | 438,838 |   |

|   | **12.** | **CUMULATIVE                TRANSLATION ADJUSTMENTS** |
|--------|---------|-------------------------------------------------------|

|   | The                cumulative foreign currency translation adjustments account reflects                the                net changes in the respective book values of the Company’s investments in                self-sustaining foreign operations due to exchange rate fluctuations                since                the respective dates of their acquisition or                start-up. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                changes in this account arise from changes in the Australian                Dollar, New Turkish Lira, United Kingdom Pound Sterling and the                United States Dollar currencies relative to the Canadian currency,                and                changes in the Company’s net investment in the book values of                international operations. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Changes                in this account were as follows: |
|--------|---------------------------------------------------------|

|                                                                                                          |   | **2007** |   |   | **2006** |   |   | **2005** |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Deferred                loss, beginning of year                                                               |   |     | 17,456 |   |     |   | 11,937 |     |   |   | 8,172 |   |
| Deferred                foreign currency losses (gains) during the year                                       |   |     | (6,320 | )      |     |   | 12,402 |     |   |   | 3,143 |   |
| Realization                of translation (losses) gains due to distributions and                divestitures |   |     | (5,351 | )      |     |   | (6,883 | )        |   |   | 622 |   |
| Deferred                loss, end of year                                                                     |   |     | 5,785  |   |     |   | 17,456 |     |   |   | 11,937 |   |

----

|   | The                balance of cumulative translation adjustments at the end of the year                represents net unrealized losses as                follows: |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | **2007** |   |   | **2006** |   |
|----------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                         |   |     |   |   |     |   |
| Australian                Dollar             |   |     | 5,263  |   |     |   | 9,619 |   |
| New                Zealand Dollar            |   |     | -      |   |     |   | 7,587 |   |
| New                Turkish Lira              |   |     | (43    | )      |     |   | 239 |   |
| United                Kingdom Pound Sterling |   |     | (140   | )      |     |   | 11 |   |
| United                States Dollar          |   |     | 705    |   |     |   | - |   |
|                                         |   |     | 5,785  |   |     |   | 17,456 |   |
|                                         |   |     |   |   |     |   |   |   |

|   | **13.** | **INCOME                TAXES** |
|--------|---------|---------------------------------|

|   | The                Company’s provision for income taxes reflects an effective income tax rate                which differs from the combined Canadian statutory rate as                follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
| Income                taxes at combined Canadian statutory rate of 34.14% (2006 – 34.37%; 2005 –                34.92%) |   |     | 75,314  |   |     |   | 5,124   |     |   |   | 24,936 |   |
| Non-taxable                portion of capital (gains) and losses                                                                    |   |     | (4,619  | )      |     |   | (2,284  | )        |   |   | 1,467 |   |
| Effect                of valuation allowance on future tax assets                                                                   |   |     | 3,147   |   |     |   | (6,737  | )        |   |   | 4,842 |   |
| Effect                of foreign income tax rates differing from Canadian income tax                rates                           |   |     | (9,840  | )      |     |   | (8,242  | )        |   |   | (11,988 | ) |
| Incremental                taxes on debt extinguishment                                                                             |   |     | -       |   |     |   | -       |     |   |   | 5,652 |   |
| Large                corporation tax and withholding tax                                                                            |   |     | -       |   |     |   | 1,060   |     |   |   | 2,839 |   |
| Non-taxable                dilution gain on disposition of Limited Partnership                                                      |   |     | -       |   |     |   | (45,594 | )        |   |   | - |   |
| Limited                Partnership net earnings allocated to minority interest                                                      |   |     | (16,665 | )      |     |   | (15,822 | )        |   |   | - |   |
| Non-deductible                foreign exchange losses                                                                               |   |     | -       |   |     |   | 2,641   |     |   |   | - |   |
| Change                in expected future tax rates                                                                                  |   |     | 1,891   |   |     |   | (4,541  | )        |   |   | (2,896 | ) |
| Non-deductible                expenses                                                                                              |   |     | 7,211   |   |     |   | 5,584   |     |   |   | 3,839 |   |
| Goodwill                impairment                                                                                                  |   |     | -       |   |     |   | -       |     |   |   | 14,546 |   |
| Prior                period temporary differences not previously tax effected                                                       |   |     | -       |   |     |   | -       |     |   |   | (5,302 | ) |
| Non-deductible                accretion expense                                                                                     |   |     | 1,224   |   |     |   | -       |     |   |   | - |   |
| Effect                of uncertain tax positions                                                                                    |   |     | 30,768  |   |     |   | (15,331 | )        |   |   | (10,299 | ) |
| Taxable                dividends from related parties                                                                               |   |     | 5,704   |   |     |   | -       |     |   |   | - |   |
| Change                in Australian tax consolidation legislation                                                                   |   |     | -       |   |     |   | -       |     |   |   | (17,710 | ) |
| Other                                                                                                                               |   |     | (531    | )      |     |   | (4,281  | )        |   |   | (46 | ) |
| Provision                for (recovery of) income taxes                                                                             |   |     | 93,604  |   |     |   | (88,423 | )        |   |   | 9,880 |   |

----

|                                   |   | **2007** |    |   | **2006** |   |     | **2005** |   |
|----------------------------------------|--------|----------|---------|--------|----------|--------|----------|----------|--------|
| Canada                                 |   |     | 58,140  |   |     |   | (157,406 | )        |   |   | (192,295 | ) |
| Foreign                                |   |     | 162,464 |   |     |   | 172,313  |     |   |   | 263,703 |   |
| Net                earnings before tax |   |     | 220,604 |   |     |   | 14,907   |     |   |   | 71,408 |   |

|                                                    |   | **2007** |    |   | **2006** |   |     | **2005** |   |
|---------------------------------------------------------|--------|----------|---------|--------|----------|--------|----------|----------|--------|
| Current                income taxes                     |   |     | 17,915  |   |     |   | (14,880  | )        |   |   | (1,569 | ) |
| Canada                                                  |   |     | 58,966  |   |     |   | 45,823   |     |   |   | 82,679 |   |
| Foreign                                                 |   |     | 76,881  |   |     |   | 30,943   |     |   |   | 81,110 |   |
| Future                income taxes                      |   |     |    |   |     |   |     |     |   |   |   |   |
| Canada                                                  |   |     | 28,053  |   |     |   | (127,741 | )        |   |   | (55,623 | ) |
| Foreign                                                 |   |     | (11,330 | )      |     |   | 8,375    |     |   |   | (15,607 | ) |
|                                                    |   |     | 16,723  |   |     |   | (119,366 | )        |   |   | (71,230 | ) |
| Provision                for (recovery of) income taxes |   |     | 93,604  |   |     |   | (88,423  | )        |   |   | 9,880 |   |

|                                                                                                                 |   | **2007** |     |   | **2006** |   |
|----------------------------------------------------------------------------------------------------------------------|--------|----------|----------|--------|----------|--------|
| ***Future                tax assets***                                                                               |   |     |     |   |     |   |
| Non-capital                loss carryforwards                                                                        |   |     | 202,853  |   |     |   | 174,401 |   |
| Provision                for write down of investments                                                               |   |     | 817      |   |     |   | 5,111 |   |
| Provision                for related party loan impairment                                                           |   |     | 66,347   |   |     |   | 67,332 |   |
| Accounts                payable, other accruals and interest rate and foreign currency swap                liability |   |     | 94,815   |   |     |   | 72,718 |   |
| Pension                and post retirement benefits                                                                  |   |     | 23,490   |   |     |   | 14,160 |   |
| Other                liabilities                                                                                     |   |     | 12,944   |   |     |   | 3,199 |   |
| Less:                Valuation allowance                                                                             |   |     | (127,114 | )      |     |   | (73,906 | ) |
| Total                future tax assets                                                                               |   |     | 274,152  |   |     |   | 263,015 |   |
|                                                                                                                 |   |     |     |   |     |   |   |   |
| ***Future                tax liabilities***                                                                          |   |     |     |   |     |   |   |   |
| Capital                cost allowances in excess of book amortization                                                |   |     | 51,101   |   |     |   | 59,538 |   |
| Pension                assets - net                                                                                  |   |     | 5,040    |   |     |   | 3,534 |   |
| Broadcast                rights                                                                                      |   |     | 38,849   |   |     |   | 43,409 |   |
| Intangible                assets                                                                                     |   |     | 119,218  |   |     |   | 95,725 |   |
| Total                future tax liabilities                                                                          |   |     | 214,208  |   |     |   | 202,206 |   |
| Net                future tax asset                                                                                  |   |     | (59,944  | )      |     |   | (60,809 | ) |
|                                                                                                                 |   |     |     |   |     |   |   |   |
| Current                portion of future tax asset                                                                   |   |     | 16,824   |   |     |   | 17,799 |   |
| Long                term portion of future tax asset                                                                 |   |     | 186,803  |   |     |   | 177,159 |   |
| Current                portion of future tax liability                                                               |   |     | (38,153  | )      |     |   | (43,409 | ) |
| Long                term future tax liability                                                                        |   |     | (105,530 | )      |     |   | (90,740 | ) |
|                                                                                                                 |   |     | (59,944  | )      |     |   | (60,809 | ) |

----

|   | **14.** | **INVESTMENT                GAINS, LOSSES AND                WRITE-DOWNS** |
|--------|---------|----------------------------------------------------------------------------|

|   | The                Company has recorded the following investment gains, losses and                writedowns. |
|--------|---------------------------------------------------------------------------------------------------------------|

|                                                                               |   | **2007** |   |   | **2006** |   |    | **2005** |   |
|------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|---------|----------|--------|
| Dilution                gain – sale of 25.8% of Limited Partnership (note 2) |   |     | -      |   |     |   | 101,370 |     |   |   | - |   |
| Gain                on sale of investment (note 3)                                 |   |     | 7,480  |   |     |   | 138     |     |   |   | 2,171 |   |
| Gain                on sale of joint venture                                       |   |     | 1,318  |   |     |   | -       |     |   |   | - |   |
| Other                                                                              |   |     | (350   | )      |     |   | 982     |     |   |   | (644 | ) |
|                                                                               |   |     | 8,448  |   |     |   | 102,490 |     |   |   | 1,527 |   |

|   | **15.** | **DISCONTINUED                OPERATIONS** |
|--------|---------|--------------------------------------------|

----

|                                                                    |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|-------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
|                                                                    |   |     |    |   |     |   |    |     |   |
| Revenue                                                                 |   |     | 159,216 |   |     |   | 232,454 |     |   |   | 256,480 |   |
|                                                                    |   |     |    |   |     |   |    |     |   |   |   |   |
| Earnings                from discontinued operations before tax expense |   |     | 23,768  |   |     |   | 41,557  |     |   |   | 48,175 |   |
| Income                tax expense                                       |   |     | 8,244   |   |     |   | 11,900  |     |   |   | 10,981 |   |
| Minority                interest                                        |   |     | 4,992   |   |     |   | 6,069   |     |   |   | 7,232 |   |
|                                                                    |   |     |    |   |     |   |    |     |   |   |   |   |
| Earnings                from discontinued operations                    |   |     | 10,532  |   |     |   | 23,588  |     |   |   | 29,962 |   |
|                                                                    |   |     |    |   |     |   |    |     |   |   |   |   |

----

|                                       |   | **As                at August 31,****2007** |   |   | **As                at August 31, 2006** |   |
|--------------------------------------------|--------|---------------------------------------------|--------|--------|------------------------------------------|--------|
|                                       |   |                                        |   |   |                                     |   |
| Current                assets              |   |                                        | -      |   |                                     |   | 58,623 |   |
| Goodwill                                   |   |                                        | -      |   |                                     |   | 125,627 |   |
| Non-current                assets          |   |                                        | -      |   |                                     |   | 51,126 |   |
| Current                liabilities         |   |                                        | -      |   |                                     |   | (22,059 | ) |
| Long                term debt              |   |                                        | -      |   |                                     |   | (133,977 | ) |
| Other                Long term liabilities |   |                                        | -      |   |                                     |   | (1,939 | ) |
| Net                assets                  |   |                                        | -      |   |                                     |   | 77,401 |   |

|   | **16.** | **STATEMENTS                OF CASH FLOWS** |
|--------|---------|---------------------------------------------|

|   | The                following amounts comprise the net change in non-cash operating accounts                included in the statements of cash flows excluding non-cash operating                accounts related to discontinued                operations: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|-------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
| CASH                GENERATED (UTILIZED) BY:                |   |     |    |   |     |   |    |     |   |
| Accounts                receivable                          |   |     | (10,515 | )      |     |   | (2,764  | )        |   |   | 31,619 |   |
| Investment                in film and television programs   |   |     | (17,052 | )      |     |   | (20,401 | )        |   |   | 12,329 |   |
| Inventory                                                   |   |     | 4,455   |   |     |   | 171     |     |   |   | (84 | ) |
| Other                current assets                         |   |     | (5,965  | )      |     |   | (14,333 | )        |   |   | (4,946 | ) |
| Other                assets                                 |   |     | 137     |   |     |   | 4,337   |     |   |   | (7,379 | ) |
| Accounts                payable and accrued liabilities     |   |     | (3,525  | )      |     |   | (12,166 | )        |   |   | 31,015 |   |
| Income                taxes recoverable and payable         |   |     | 20,935  |   |     |   | (52,528 | )        |   |   | 20,039 |   |
| Deferred                revenue                             |   |     | 6,308   |   |     |   | (915    | )        |   |   | 2,556 |   |
| Film                and television program accounts payable |   |     | 5,122   |   |     |   | 2,932   |     |   |   | 4,112 |   |
|                                                        |   |     | (100    | )      |     |   | (95,667 | )        |   |   | 89,261 |   |

|   | The                following amounts were paid on account of interest and income                taxes: |
|--------|--------------------------------------------------------------------------------------------------------|

|                        |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|-----------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
| Interest                    |   |     | 171,016 |   |     |   | 196,909 |     |   |   | 219,185 |   |
| Income                taxes |   |     | 56,715  |   |     |   | 90,256  |     |   |   | 64,151 |   |
|                        |   |     |    |   |     |   |    |     |   |   |   |   |

** 17.           ASSET      RETIREMENT OBLIGATIONS**

----

**18.           PENSION      AND POST RETIREMENT BENEFITS**

|                                                                                                                                                                                                                                                                                                                                                                                                           |   | **Pension                benefits**(1) |     |   | **Post                retirement benefits (2)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                           |   | **2007**                               |     |   | **2006**                                        |   |   | **2007** |   |   | **2006** |   |
| **Plan                Assets**                                                                                                                                                                                                                                                                                                                                                                                 |   |                                   |     |   |                                            |   |   |   |   |   |   |   |
| Fair                value – beginning of year                                                                                                                                                                                                                                                                                                                                                            |   |                                   | 346,748  |   |                                            |   | 316,848 |   |   |   | - |   |   |   | - |   |
| Actual                return on plan assets                                                                                                                                                                                                                                                                                                                                                                    |   |                                   | 42,961   |   |                                            |   | 15,454 |   |   |   | - |   |   |   | - |   |
| Employer                contributions                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 26,903   |   |                                            |   | 21,727 |   |   |   | 1,009 |   |   |   | 865 |   |
| Employee                contributions                                                                                                                                                                                                                                                                                                                                                                          |   |                                   | 7,143    |   |                                            |   | 6,669 |   |   |   | - |   |   |   | - |   |
| Benefits                paid and administrative expenses                                                                                                                                                                                                                                                                                                                                                       |   |                                   | (16,716  | )      |                                            |   | (13,950 | ) |   |   | (1,009 | ) |   |   | (865 | ) |
| Fair                value – end of year                                                                                                                                                                                                                                                                                                                                                                  |   |                                   | 407,039  |   |                                            |   | 346,748 |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| **Plan                Obligations**                                                                                                                                                                                                                                                                                                                                                                            |   |                                   |     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| Accrued                benefit obligation – beginning ofyear                                                                                                                                                                                                                                                                                                                                             |   |                                   | 482,398  |   |                                            |   | 445,788 |   |   |   | 46,081 |   |   |   | 45,588 |   |
| Amendment                to plan                                                                                                                                                                                                                                                                                                                                                                               |   |                                   | 3,858    |   |                                            |   | - |   |   |   | - |   |   |   | - |   |
| Accrued                interest on benefits                                                                                                                                                                                                                                                                                                                                                                    |   |                                   | 28,274   |   |                                            |   | 24,238 |   |   |   | 2,717 |   |   |   | 2,523 |   |
| Current                service costs                                                                                                                                                                                                                                                                                                                                                                           |   |                                   | 26,382   |   |                                            |   | 24,610 |   |   |   | 1,678 |   |   |   | 1,806 |   |
| Benefits                paid                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | (16,716  | )      |                                            |   | (13,950 | ) |   |   | (1,009 | ) |   |   | (865 | ) |
| Actuarial                losses (gains)                                                                                                                                                                                                                                                                                                                                                                        |   |                                   | 16,771   |   |                                            |   | 1,712 |   |   |   | 1,191 |   |   |   | (2,971 | ) |
| Accrued                benefit obligation – end of year                                                                                                                                                                                                                                                                                                                                                  |   |                                   | 540,967  |   |                                            |   | 482,398 |   |   |   | 50,658 |   |   |   | 46,081 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                   |     |   |                                            |   |   |   |   |   |   |   |   |   |   |   |
| The                Company’s accrued benefit asset (liability) is determined as                follows:                                                                                                                                                                                                                                                                                                  |   |
| Accrued                benefit obligations                                                                                                                                                                                                                                                                                                                                                                     |   |                                   | 540,967  |   |                                            |   | 482,398 |   |   |   | 50,658 |   |   |   | 46,081 |   |
| Fair                value of plan assets                                                                                                                                                                                                                                                                                                                                                                       |   |                                   | 407,039  |   |                                            |   | 346,748 |   |   |   | - |   |   |   | - |   |
| Plan                deficits                                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | (133,928 | )      |                                            |   | (135,650 | ) |   |   | (50,658 | ) |   |   | (46,081 | ) |
| Unamortized                net actuarial losses (gains)(3)                                                                                                                                                                                                                                                                                                                                                     |   |                                   | 93,382   |   |                                            |   | 122,722 |   |   |   | (1,690 | ) |   |   | (3,425 | ) |
| Unamortized                transitional obligations                                                                                                                                                                                                                                                                                                                                                            |   |                                   | 4,486    |   |                                            |   | 4,920 |   |   |   | 2,117 |   |   |   | 2,420 |   |
| Unamortized                past service costs(3)                                                                                                                                                                                                                                                                                                                                                               |   |                                   | 14,904   |   |                                            |   | 12,523 |   |   |   | 566 |   |   |   | 702 |   |
| Accrued                plan asset (liability)                                                                                                                                                                                                                                                                                                                                                                  |   |                                   | (21,156  | )      |                                            |   | 4,515 |   |   |   | (49,665 | ) |   |   | (46,384 | ) |
| Valuation                allowance                                                                                                                                                                                                                                                                                                                                                                             |   |                                   | (435     | )      |                                            |   | (460 | ) |   |   | - |   |   |   | - |   |
| Accrued                net plan asset (liability), net ofvaluation allowance                                                                                                                                                                                                                                                                                                                                   |   |                                   | (21,591  | )      |                                            |   | 4,055 |   |   |   | (49,665 | ) |   |   | (46,384 | ) |
| The                accrued plan asset of $16.0 million (2006 - $27.0 million) is included                in                long term other assets, the accrued plan liability of $37.6 million                (2006                - $22.9 million) and the accrued post retirement plan liability is                included in other long term liabilities in the consolidated balance                sheet. |   |

| Plan                assets consist of: |   | **Actual** |   |   | **Target** |   |
|----------------------------------------|--------|------------|--------|--------|------------|--------|
| Equity                securities       |   |       | 66.7   | %      |       |   | 60.0 | % |
| Debt                securities         |   |       | 28.6   | %      |       |   | 40.0 | % |
| Other                                  |   |       | 4.7    | %      |       |   | 0.0 | % |
| Total                                  |   |       | 100.0  | %      |       |   | 100.0 | % |

----

* *

|                                                                                               |   |                           |    |   |                   |   |    |                             |   |   |                           |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|--------|------------------------|--------|---------|----------------------------------|--------|--------|--------------------------------|--------|--------|
|                                                                                               |   | 2007                           |    |   | 2006                   |   |
|                                                                                               |   | Incurredin                year |    |   | Matchingadjustments(4) |   |    | RecognizedIn                year |   |   | Incurredin                year |   |   | Matchingadjustments(4) |   |   | RecognizedIn                year |   |
| Current                service cost                                                                |   |                           | 26,382  |   |                   |   | -       |                             |   |   | 26,382                         |   |   |   | 24,610 |   |   |   | - |   |   |   | 24,610 |   |
| Employee                contributions                                                              |   |                           | (7,143  | )      |                   |   | -       |                             |   |   | (7,143                         | )      |   |   | (6,669 | ) |   |   | - |   |   |   | (6,669 | ) |
| Accrued                interest on benefits                                                        |   |                           | 28,274  |   |                   |   | -       |                             |   |   | 28,274                         |   |   |   | 24,238 |   |   |   | - |   |   |   | 24,238 |   |
| Return                on plan assets                                                               |   |                           | (42,961 | )      |                   |   | 17,678  |                             |   |   | (25,283                        | )      |   |   | (15,454 | ) |   |   | (7,766 | ) |   |   | (23,220 | ) |
| Transitional                obligation                                                             |   |                           | -       |   |                   |   | 434     |                             |   |   | 434                            |   |   |   | -- |   |   |   | 433 |   |   |   | 433 |   |
| Past                service costs                                                                  |   |                           | 3,858   |   |                   |   | (2,488  | )                                |   |   | 1,370                          |   |   |   | - |   |   |   | 1,207 |   |   |   | 1,207 |   |
| Net                actuarial loss                                                                  |   |                           | 16,771  |   |                   |   | (10,608 | )                                |   |   | 6,163                          |   |   |   | 1,712 |   |   |   | 3,902 |   |   |   | 5,614 |   |
| Changes                in valuation allowance                                                      |   |                           | 58      |   |                   |   | (83     | )                                |   |   | (25                            | )      |   |   | - |   |   |   | (112 | ) |   |   | (112 | ) |
| Benefit                expense                                                                     |   |                           | 25,239  |   |                   |   | 4,933   |                             |   |   | 30,172                         |   |   |   | 28,437 |   |   |   | (2,336 | ) |   |   | 26,101 |   |
| Employer                contribution to thedefined                contribution                plan |   |                           | 10,322  |   |                   |   | -       |                             |   |   | 10,322                         |   |   |   | 9,028 |   |   |   | - |   |   |   | 9,028 |   |
| Total                pension benefit expense                                                       |   |                           | 35,561  |   |                   |   | 4,933   |                             |   |   | 40,494                         |   |   |   | 37,465 |   |   |   | (2,336 | ) |   |   | 35,129 |   |

|                                                                                               |   |         Year                ended                August 31, 2005 |    |
|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|---------|
|                                                                                               |   | Incurredin                year                                                                           |    |   | Adjustments(3) |   |   | RecognizedIn                year |   |
| Current                service cost                                                                |   |                                                                                                     | 18,002  |   |   |   | - |   |   |   | 18,002 |   |
| Employee                contributions                                                              |   |                                                                                                     | (6,153  | ) |   |   | - |   |   |   | (6,153 | ) |
| Accrued                interest on benefits                                                        |   |                                                                                                     | 24,440  |   |   |   | - |   |   |   | 24,440 |   |
| Return                on plan assets                                                               |   |                                                                                                     | (32,184 | ) |   |   | 11,881 |   |   |   | (20,303 | ) |
| Administrative                expenses                                                             |   |                                                                                                     | 1,339   |   |   |   | (1,339 | ) |   |   | - |   |
| Transitional                obligation                                                             |   |                                                                                                     | --      |   |   |   | 433 |   |   |   | 433 |   |
| Past                service costs                                                                  |   |                                                                                                     | -       |   |   |   | 1,206 |   |   |   | 1,206 |   |
| Net                actuarial loss                                                                  |   |                                                                                                     | 49,967  |   |   |   | (46,782 | ) |   |   | 3,185 |   |
| Changes                in valuation allowance                                                      |   |                                                                                                     | -       |   |   |   | (150 | ) |   |   | (150 | ) |
| Benefit                expense                                                                     |   |                                                                                                     | 55,411  |   |   |   | (34,751 | ) |   |   | 20,660 |   |
| Employer                contribution to thedefined                contribution                plan |   |                                                                                                     | 8,973   |   |   | _ - |   |   |   | 8,973 |   |
| Total                pension benefit expense                                                       |   |                                                                                                     | 64,384  |   |   |   | (34,751 | ) |   |   | 29,633 |   |

|   | The                Company’s post retirement benefit expense is determined as                follows: |
|--------|-------------------------------------------------------------------------------------------------------------|

|                                                |   |                           |   |   |                   |   |   |                             |   |   |
|-----------------------------------------------------|--------|--------------------------------|--------|--------|------------------------|--------|--------|----------------------------------|--------|--------|
|                                                |   | 2007                           |   |   | 2006                   |   |
|                                                |   | Incurredin                year |   |   | Matchingadjustments(4) |   |   | RecognizedIn                year |   |   | Incurredin                year |   |   | Matchingadjustments(4) |   |   | RecognizedIn                year |   |
| Current                service cost                 |   |                           | 1,678  |   |                   |   | -      |                             |   |   | 1,678 |   |   |   | 1,806 |   |   |   | - |   |   |   | 1,806 |   |
| Accrued                interest on benefits         |   |                           | 2,717  |   |                   |   | -      |                             |   |   | 2,717 |   |   |   | 2,523 |   |   |   | - |   |   |   | 2,523 |   |
| Transitional                obligation              |   |                           | -      |   |                   |   | 303    |                             |   |   | 303 |   |   |   | - |   |   |   | 303 |   |   |   | 303 |   |
| Past                service costs                   |   |                           | -      |   |                   |   | 136    |                             |   |   | 136 |   |   |   | - |   |   |   | 136 |   |   |   | 136 |   |
| Net                actuarial loss (gain)            |   |                           | 1,191  |   |                   |   | (1,367 | )                                |   |   | (176 | ) |   |   | (2,971 | ) |   |   | 3,030 |   |   |   | 59 |   |
| Total                post retirement benefitexpense |   |                           | 5,586  |   |                   |   | (928   | )                                |   |   | 4,658 |   |   |   | 1,358 |   |   |   | 3,469 |   |   |   | 4,827 |   |

----

|                                        |   |                                                                                                     |   |   |
|---------------------------------------------|--------|----------------------------------------------------------------------------------------------------------|--------|--------|
|                                        |   |         Year                ended                August 31, 2005 |   |
|                                        |   | Incurredin                year                                                                           |   |   | Adjustments(3) |   |   | RecognizedIn                year |   |
| Current                service cost         |   |                                                                                                     | 1,329  |   |   |   | - |   |   |   | 1,329 |   |
| Accrued                interest on benefits |   |                                                                                                     | 2,346  |   |   |   | - |   |   |   | 2,346 |   |
| Transitional                obligation      |   |                                                                                                     | -      |   |   |   | 303 |   |   |   | 303 |   |
| Past                service costs           |   |                                                                                                     | -      |   |   |   | 135 |   |   |   | 135 |   |
| Net                actuarial loss (gain)    |   |                                                                                                     | 7,177  |   |   |   | (7,535 | ) |   |   | (358 | ) |
|                                        |   |                                                                                                     | 10,852 |   |   |   | (7,097 | ) |   |   | 3,755 |   |

|                                                                                                                                                       |   | **Pension                benefits** |   |   | **Post                retirement benefits** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                                                                                                       |   | **2007**                            |   |   | **2006**                                    |   |   | **2005** |   |   | **2007** |   |   | **2006** |   |   | **2005** |   |
| Significant                actuarial assumptions in measuring the Company’s accrued benefit                obligations as at June 30 are as follows: |   |
| Discount                rate                                                                                                                               |   |                                | 5.60   | %      |                                        |   | 5.75 | % |   |   | 5.35 | % |   |   | 5.60 | % |   |   | 5.75 | % |   |   | 5.35 | % |
| Rate                of compensation increase                                                                                                               |   |                                | 3.40   | %      |                                        |   | 3.70 | % |   |   | 3.00 | % |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                       |   |
| Significant                actuarial assumptions in measuring the Company’s benefit costs as at June                30 are as follows:               |   |
|                                                                                                                                                       |   |                                |   |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discount                rate                                                                                                                               |   |                                | 5.75   | %      |                                        |   | 5.35 | % |   |   | 6.50 | % |   |   | 5.75 | % |   |   | 5.35 | % |   |   | 6.50 | % |
| Expected                long-term rate ofreturn                on pension planassets                                                                       |   |                                | 7.25   | %      |                                        |   | 7.25% | % |   |   | 7.25 | % |   |   | - |   |   |   | - |   |   |   | - |   |
| Rate                of compensationincrease                                                                                                                |   |                                | 3.70   | %      |                                        |   | 3.00 | % |   |   | 3.50 | % |   |   | - |   |   |   | - |   |   |   | - |   |

| The                discount rate was estimated by applying Canadian corporate AA zero                coupon                bonds to the expected future benefit payments under the                plans.  For fiscal 2008, the expected long-term rate of return                on plan assets will continue to be 7.25%, based on the investment                mix,                current yields and experience.  In 2008, the Company expects to                contribute $23.3 million to its defined benefit pension plans and                $1.2                million to its other post retirement benefit                plans. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|             Year                ending August 31, | 2008      |   |   | 17,240  |   |
|---------------------------------------------------------------------------------------------------------------|-----------|--------|--------|---------|--------|
|                                                                                                          | 2009      |   |   | 20,037  |   |
|                                                                                                          | 2010      |   |   | 22,265  |   |
|                                                                                                          | 2011      |   |   | 24,499  |   |
|                                                                                                          | 2012      |   |   | 26,937  |   |
|                                                                                                          | 2013-2017 |   |   | 180,764 |   |

|   | (1) | As                at August 31, 2007 the Company has defined benefit pension plans                that are                not fully funded.  These plans have aggregate plan assets of                $302.1 million (2006 - $321.0 million) and aggregate benefit obligations                of $443.2 million (2006 - $460.7                million). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Post                retirement plans are non-contributory and include health, dental,                and life                insurance benefits.  The assumed health care cost trend rates                for the next year used to measure the expected cost of benefits covered                for the post retirement health and life plans were 10.0% for medical                and                7.0% for dental, decreasing to an ultimate rate of 5.0% for medical                and                6.0% for dental in 2009 and 2013, respectively.  A one                percentage point increase in assumed health care cost trend rates                would                have increased the service and interest costs and obligation by $0.8                million and $7.5 million, respectively.  A one percentage point                decrease in assumed health care cost trends would have lowered the                service                and interest costs and the obligation by $0.6 million and $5.9 million,                respectively. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (3) | The                Company has recorded a reduction of pension benefit unamortized net                actuarial losses of $22.4 million, an increase of past service costs                of                $0.1 million and an increase in the post retirement benefit unamortized                net actuarial gains of $0.4 million as result of the Limited Partnership                acquisition (note 2). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Accounting                adjustments to allocate costs to different periods so as to recognize                the                long-term nature of employee future                benefits. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**19.           RELATED      PARTY BALANCES AND TRANSACTIONS**

|                                                                                                                                          |   | **As                at**      |     |   | **As                at**      |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|----------|--------|-------------------------------|--------|
|                                                                                                                                          |   | **August                31,** |     |   | **August                31,** |   |
|                                                                                                                                          |   | **2007**                      |     |   | **2006**                      |   |
|                                                                                                                                          |   |                          |     |   |                          |   |
| Due                from parent, CanWest - non-interest bearing                                                                                |   |                          | 55,947   |   |                          |   | 55,170 |   |
| Due                from various affiliated companies:    CanWest                Entertainment Inc. - non-interest bearing |   |                          | 60,888   |   |                          |   | 60,888 |   |
|     Fireworks                Entertainment Inc. - non-interest bearing                                                    |   |                          | 360,360  |   |                          |   | 360,360 |   |
|     Provision                for                loan impairment                                                           |   |                          | (421,248 | )      |                          |   | (421,248 | ) |
|                                                                                                                                          |   |                          |     |   |                          |   |   |   |
| Due                from parent and affiliated companies                                                                                       |   |                          | 55,947   |   |                          |   | 55,170 |   |

----

**20.           CONTRACT      TERMINATION**

**21.           FINANCIAL      INSTRUMENTS**

|                                                                 |   | **2007**              |      |   | **2006**          |   |
|----------------------------------------------------------------------|--------|-----------------------|-----------|--------|-------------------|--------|
|                                                                 |   | **Carrying****Value** |      |   | **Fair****Value** |   |   | **Carrying****Value** |   |   | **Fair****Value** |   |
|                                                                 |   |                  |      |   |              |   |   |   |   |   |   |   |
| Short                term assets                                     |   |                  | 629,211   |   |              |   | 629,211 |   |   |   | 709,573 |   |   |   | 709,573 |   |
| Other                investments                                     |   |                  | 1,534,920 |   |              |   | 1,532,559 |   |   |   | 17,890 |   |   |   | 23,753 |   |
| Short                term liabilities                                |   |                  | 612,164   |   |              |   | 612,164 |   |   |   | 481,966 |   |   |   | 481,966 |   |
| Long                term debt                                        |   |                  | 3,427,700 |   |              |   | 3,367,949 |   |   |   | 2,528,021 |   |   |   | 2,466,558 |   |
| Obligations                under capital leases                      |   |                  | 13,916    |   |              |   | 13,916 |   |   |   | 16,101 |   |   |   | 16,101 |   |
| Other                long term accruedliabilities                    |   |                  | 91,802    |   |              |   | 91,802 |   |   |   | 24,805 |   |   |   | 24,805 |   |
| Puttable                interest in subsidiary                       |   |                  | 483,568   |   |              |   | 483,568 |   |   |   | - |   |   |   | - |   |
| Interest                rate and cross currency swap net liabilities |   |                  | 318,502   |   |              |   | 417,238 |   |   |   | 244,453 |   |   |   | 329,511 |   |

----

**Credit      risk**

**Interest      rate and foreign currency risk**

**22.           JOINTLY      CONTROLLED ENTERPRISES**

|                                                          |   | **2007** |   |   | **2006** |   |   |     |
|---------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|
|                                                          |   |     |   |   |     |   |   |     |
| **Balance                sheets**                             |   |     |   |   |     |   |   |     |
| Assets                                                        |   |     |   |   |     |   |   |     |
| Current                assets                                 |   |     | 2,134  |   |     |   | 2,148  |     |   |   |
| Long                term assets                               |   |     | 130    |   |     |   | 415    |     |   |   |
|                                                          |   |     | 2,264  |   |     |   | 2,563  |     |   |   |
|                                                          |   |     |   |   |     |   |   |     |   |   |
| Liabilities                                                   |   |     | 19     |   |     |   | 405    |     |   |   |
| Current                liabilities                            |   |     | -      |   |     |   | 3,772  |     |   |   |
| Long                term                liabilities           |   |     | 19     |   |     |   | 4,177  |     |   |   |
|                                                          |   |     |   |   |     |   |   |     |   |   |
|                                                          |   | **2007** |   |   | **2006** |   |   | **2005** |
| **Statements                of loss**                         |   |     |   |   |     |   |   |     |   |   |
| Revenue                                                       |   |     | 5,638  |   |     |   | 4,789  |     |   |   | 2,764 |   |
| Expenses                                                      |   |     | 6,016  |   |     |   | 6,457  |     |   |   | 4,022 |   |
| Net                loss                                       |   |     | (378   | )      |     |   | (1,668 | )        |   |   | (1,258 | ) |
|                                                          |   |     |   |   |     |   |   |     |   |   |
| **Statements                of cash flows**                   |   |     |   |   |     |   |   |     |   |   |
| Cash                generated (utilized) by:                  |   |     |   |   |     |   |   |     |   |   |
| Operating                activities                           |   |     | 4,397  |   |     |   | (3,139 | )        |   |   | (266 | ) |
| Investing                activities                           |   |     | 155    |   |     |   | (144   | )        |   |   | (144 | ) |
| Financing                activities                           |   |     | (4,540 | )      |     |   | 4,040  |     |   |   | - |   |
| Net                increase (decrease) in                cash |   |     | 12     |   |     |   | 757    |     |   |   | (410 | ) |
|                                                          |   |     |   |   |     |   |   |     |   |   |

----

**23.           COMMITMENTS,      CONTINGENCIES and GUARANTEES**

|   | (a) | The                Company has entered into various agreements for the right to broadcast                certain feature films and syndicated television programs in the                future.  These agreements, which range in term from one to five                years, generally commit the Company to acquire specific programs                or films                or certain levels of future productions.  The acquisition of                these additional broadcast rights is contingent on the actual production                and/or the airing of the programs or films.  Management                estimates that the commitments related to these agreements will result                in                annual broadcast rights payments as                follows: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 2008 |   |   | 479,224 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                 2009 |   |   | 270,673 |   |
|                                 2010 |   |   | 231,278 |   |
|                                 2011 |   |   | 155,160 |   |
|                                 2012 |   |   | 108,239 |   |

|   | (b) | For                the year ended August 31, 2007, the Company’s future minimum payments                under the terms of its operating leases are as                follows: |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 2008       |   |   | 100,264 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
|                                 2009       |   |   | 91,338  |   |
|                                 2010       |   |   | 86,225  |   |
|                                 2011       |   |   | 76,965  |   |
|                                 2012       |   |   | 62,657  |   |
|                                 Thereafter |   |   | 201,996 |   |

**Contingencies**

|   | (c) | The                Company has requested arbitration related to $84.1 million owed by                Hollinger International Inc., Hollinger Inc. and certain related                parties                (collectively “Hollinger”) related to certain unresolved adjustments and                claims related to its November 15, 2000 acquisition of certain newspaper                assets from Hollinger.  Hollinger disputes this claim and claims                that it and certain of its affiliates are owed $116.3 million by                the                Company.  The arbitration is scheduled to occur in four                hearings, the first of which was held in February 2007 and the remainder                of which are scheduled to occur prior to August 31, 2008.  The                final outcome and recoverability of these amounts is not currently                determinable. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | In                March 2001, a statement of claim was filed against the Company and                certain                of the Company’s subsidiaries by CanWest Broadcasting Ltd.’s (“CBL’s”)                former minority shareholders requesting, among other things, that                their                interests in CBL be purchased without minority discount.  In                addition, the claim alleges the Company wrongfully terminated certain                agreements and acted in an oppressive and prejudicial manner towards                the                plaintiffs.  The action was stayed on the basis that the Ontario                courts have no jurisdiction to try the claim.  In April 2004, a                statement of claim was filed in Manitoba by the same minority                shareholders, which was substantially the same as the previous claim,                seeking damages of $425 million.  In June 2005, the Company                filed a Statement of Defence and Counterclaim.  In its defense,                the Company denies any liability to the plaintiffs and in its                Counterclaim, the Company is seeking a declaration of the fair value                of                the former minority shareholders’ interest in CBL and repayment of the                difference between the fair value and the redemption amount paid                by the                Company to the former shareholders.  The Company believes the                allegations in the Statement of Claim are substantially without merit                and                not likely to have a material adverse effect on its business, financial                condition or results of operation.  The outcome of this claim is                not currently determinable and the Company intends to vigorously                defend                this lawsuit. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | The                Company is one of several defendants to a claim by a proposed class                of                freelance writers instituted in July 2003 in respect of works that                they                provided to newspapers and other print publications in Canada. The                total                amount claimed (by all plaintiffs against all defendants) is $500                million                in compensatory damages and $250 million in exemplary and punitive                damages.  The outcome of this claim is not currently                determinable. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | The                Company is involved in various legal matters arising in the ordinary                course of business.  The resolution of these matters is not                expected to have a material adverse effect on the Company’s financial                position, results of operations or cash                flows. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**GUARANTEES**

----

**24.           SEGMENTED      INFORMATION**

|   | Each                segment operates as a strategic business unit with separate                management.  Segment performance is measured primarily upon the                basis of segment operating profit.  The Company accounts for                intersegment revenues as if the revenues were to third                parties. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                     |   | **Revenue(1)** |      |   | **Segment                Operating                Profit** |   |      | **Total                Assets** |   |   | **Capital                Asset                Expenditures** |   |
|------------------------------------------|--------|----------------|-----------|--------|------------------------------------------------------------|--------|-----------|---------------------------------|--------|--------|--------------------------------------------------------------|--------|
| **Operating                Segments**    |   | **2007**       |      |   | **2006**                                                   |   |      | **2005**                        |   |   | **2007**                                                     |   |   | **2006** |   |   | **2005** |   |   | **2007** |   |   | **2006** |   |   | **2007** |   |   | **2006** |   |   | **2005** |   |
| Publishing                               |   |           | 1,285,298 |   |                                                       |   | 1,261,753 |                            |   |   | 1,229,468                                                    |   |   |   | 269,096 |   |   |   | 248,429 |   |   |   | 254,875 |   |   |   | 2,798,337 |   |   |   | 2,749,774 |   |   |   | 19,980 |   |   |   | 22,087 |   |   |   | 21,765 |   |
| **Television**                           |   |           |      |   |                                                       |   |      |                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Canada                                   |   |           | 683,035   |   |                                                       |   | 657,876   |                            |   |   | 697,090                                                      |   |   |   | 61,266 |   |   |   | 31,487 |   |   |   | 126,425 |   |   |   | 1,356,450 |   |   |   | 1,365,867 |   |   |   | 28,445 |   |   |   | 36,028 |   |   |   | 21,329 |   |
| Australia                                |   |           | 738,475   |   |                                                       |   | 656,306   |                            |   |   | 783,315                                                      |   |   |   | 205,251 |   |   |   | 197,229 |   |   |   | 293,528 |   |   |   | 634,161 |   |   |   | 581,977 |   |   |   | 26,484 |   |   |   | 12,806 |   |   |   | 9,065 |   |
|                                     |   |           | 1,421,510 |   |                                                       |   | 1,314,182 |                            |   |   | 1,480,405                                                    |   |   |   | 266,517 |   |   |   | 228,716 |   |   |   | 419,953 |   |   |   | 1,990,611 |   |   |   | 1,947,844 |   |   |   | 54,929 |   |   |   | 48,834 |   |   |   | 30,394 |   |
| **Radio**                                |   |           |      |   |                                                       |   |      |                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Turkey                                   |   |           | 14,920    |   |                                                       |   | 5,726     |                            |   |   | -                                                            |   |   |   | 5,832 |   |   |   | 2,610 |   |   |   | - |   |   |   | 81,469 |   |   |   | 72,672 |   |   |   | 2,334 |   |   |   | 335 |   |   |   | - |   |
| United                Kingdom            |   |           | 1,124     |   |                                                       |   | -         |                            |   |   | -                                                            |   |   |   | (5,026 | ) |   |   | - |   |   |   | - |   |   |   | 8,990 |   |   |   | - |   |   |   | 1,005 |   |   |   | - |   |   |   | - |   |
|                                     |   |           | 16,044    |   |                                                       |   | 5,726     |                            |   |   | -                                                            |   |   |   | 806 |   |   |   | 2,610 |   |   |   | - |   |   |   | 90,459 |   |   |   | 72,672 |   |   |   | 3,339 |   |   |   | 335 |   |   |   | - |   |
|                                     |   |           |      |   |                                                       |   |      |                            |   |   |                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Outdoor                – Australia |   |           | 146,226   |   |                                                       |   | 109,051   |                            |   |   | 107,790                                                      |   |   |   | 416 |   |   |   | 19,593 |   |   |   | 23,173 |   |   |   | 213,262 |   |   |   | 171,455 |   |   |   | 25,387 |   |   |   | 7,572 |   |   |   | 7,036 |   |
| Intersegment                revenues     |   |           | (3,796    | )      |                                                       |   | (4,899    | )                               |   |   | (1,601                                                       | )      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate                and other       |   |           | -         |   |                                                       |   | -         |                            |   |   | -                                                            |   |   |   | (32,958 | ) |   |   | (33,205 | ) |   |   | (29,892 | ) |   |   | 1,978,954 |   |   |   | 451,367 |   |   |   | 584 |   |   |   | 697 |   |   |   | 28,494 |   |
| Corporate                development     |   |           | -         |   |                                                       |   | -         |                            |   |   | -                                                            |   |   |   | (16,910 | ) |   |   | (6,723 | ) |   |   | (2,173 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Discontinued                operations   |   |           | -         |   |                                                       |   | -         |                            |   |   | -                                                            |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 235,376 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                     |   |           | 2,865,282 |   |                                                       |   | 2,685,813 |                            |   |   | 2,816,062                                                    |   |   |   | 486,967 |   |   |   | 459,420 |   |   |   | 665,936 |   |   |   | 7,071,623 |   |   |   | 5,628,488 |   |   |   | 104,219 |   |   |   | 79,525 |   |   |   | 87,689 |   |

| Ravelston                management contract termination      |   |   | -        |   |   |   | -        |   |   |   | (12,750  | )      |
|---------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|--------|----------|--------|
|                                                          |   |   | 486,967  |   |   |   | 459,420  |   |   |   | 653,186  |   |
| Amortization                of intangibles                    |   |   | 6,395    |   |   |   | 10,947   |   |   |   | 18,418   |   |
| Amortization                of property, plant and equipment  |   |   | 92,504   |   |   |   | 86,246   |   |   |   | 82,797   |   |
| Other                amortization                             |   |   | 1,597    |   |   |   | 7,383    |   |   |   | 5,197    |   |
| Operating                income                               |   |   | 386,471  |   |   |   | 354,844  |   |   |   | 546,774  |   |
| Interest                expense                               |   |   | (189,535 | )      |   |   | (183,207 | )      |   |   | (239,119 | )      |
| Interest                income                                |   |   | 5,977    |   |   |   | 2,367    |   |   |   | 3,423    |   |
| Amortization                of deferred financing costs       |   |   | (12,794  | )      |   |   | (6,494   | )      |   |   | (12,708  | )      |
| Interest                rate and foreign currency swap losses |   |   | 15,955   |   |   |   | (138,639 | )      |   |   | (121,064 | )      |
| Accretion                of long term liabilities             |   |   | (3,603   | )      |   |   | -        |   |   |   | -        |   |
| Foreign                exchange gains (losses)                |   |   | 9,685    |   |   |   | (7,941   | )      |   |   | (1,008   | )      |
| Loan                impairment recovery (provision)           |   |   | -        |   |   |   | 8,888    |   |   |   | (11,390  | )      |
| Investment                gains, losses and write-downs       |   |   | 8,448    |   |   |   | 102,490  |   |   |   | 1,527    |   |
| Goodwill                impairment                            |   |   | -        |   |   |   | -        |   |   |   | (41,406  | )      |
| Asset                impairment                               |   |   | -        |   |   |   | -        |   |   |   | (9,629   | )      |
| Loss                on debt extinguishment                    |   |   | -        |   |   |   | (117,401 | )      |   |   | (43,992  | )      |
| Earnings                (loss) before income taxes            |   |   | 220,604  |   |   |   | 14,907   |   |   |   | 71,408   |   |

|   | (1) | The                following segments recorded intersegment revenues for the year ended                August 31, 2007:  Canadian Television - $1.8 million (2006 -                $1.6 million, 2005 - $0.9 million) and Publishing – Canada $2.0 million                (2006 - $3.3 million, 2005 - $0.6                million). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**25.    UNITED      STATES      ACCOUNTING PRINCIPLES**

**Principal      differences affecting the Company**

**(a)   Comprehensive      earnings**

*Comprehensive      Income*

**(b)    Pre-operating      costs**

**(c) **
**Foreign      currency      translation**

----

**(d)    Programming      commitments**

|   | Under                Canadian GAAP, certain programming commitments imposed by regulatory                requirements related to an acquisition, completed prior to January                1,                2001, were accrued in the purchase equation resulting in additional                goodwill.  Under U.S. GAAP, these costs were expensed as                incurred. The U.S. GAAP reconciliation reflects the expensing of                these                programming costs as incurred of:  2007 - nil (2006 - $7,558,                2005 - $6,463), with related tax recoveries of 2007 - nil (2006 -                $2,500,                2005 - $2,321).  The balance sheet effect of these adjustments                was to reduce goodwill by: 2007 and 2006 - $18,639 and reduce                shareholders’ equity by: 2007 and 2006 -                $18,639. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(e)    Investment      in a broadcasting operation on an equity basis**

*The Equity Method of Accounting for Investments in Common Stock*

**(f)    Intangible      assets**

----

**(g) Investment      in marketable      securities**

**(h)    Pension      valuation allowances**

**(i)     Proportionate      consolidation**

**(j)     Accounting      for derivative instruments and hedging activities**

----

**(k)   Integration      costs related to the acquisition of the publications      properties**

|   | Under                Canadian GAAP certain integration costs related to the acquisition                of the                Company’s publication properties were accrued in the purchase                equation.  Under U.S. GAAP, these costs are expensed as                incurred.  The U.S. GAAP reconciliation had no effect on                earnings for the periods presented.  The balance sheet effect                was to decrease goodwill by: 2007 and 2006 - $1,663, decrease minority                interest by: 2007 and 2006 – $429, and reduce shareholders’ equity by:                2007 and 2006 - $1,234. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**(l)   Resolution      of      acquired tax contingencies**

|   | **(m)                  Future income taxes** |
|--------|--------------------------------------------------------|

|   | **(n)                   Additional minimum                liability** |
|--------|--------------------------------------------------------------------------------------|

*Employers’ Accounting for Pensions*

----

|   | **(o)                  Dilution gain on sale of Limited                Partnership** |
|--------|------------------------------------------------------------------------------------------------|

| Dilution                gain – sale of 25.8% sale of Limited Partnership in accordance with                Canadian GAAP |   |   | 101,370 |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| U.S.                GAAP adjustments:                                                                                          |   |   |    |   |
| Pre-operating                costs (b)                                                                                         |   |   | 431     |   |
| Goodwill                adjustment related to integration costs (k)                                                            |   |   | 429     |   |
| Goodwill                adjustment related to future income taxes (m)                                                          |   |   | (11,069 | )      |
| Total                U.S. GAAP adjustments                                                                                     |   |   | (10,209 | )      |
| Dilution                gain – sale of 25.8% sale of Limited Partnership in accordance with U.S.                GAAP     |   |   | 91,161  |   |

|   | **(p)                  Redemption of Limited Partnership                units** |
|--------|-------------------------------------------------------------------------------------------|

|   | **Adopted                accounting policies** |
|--------|------------------------------------------------|

|   | **(q) Employers’Accounting                for Defined Benefit Pension and Other Postretirement Plans – an amendment                to SFAS Statements No. 87, 88, 106, 132(R) (“SFAS                158”)** |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Proposed      accounting policies**

**Accounting      for Uncertainty in Income Taxes – an interpretation of SFAS Statement No. 109      (“FIN 48”) and Definition of Settlement in FIN 48(“FIN      48-1”)**

**Fair      Value Measurements (“SFAS 157”)**

----

|   | **Comparative                Reconciliation of Net Earnings                (Loss)** |
|--------|-------------------------------------------------------------------------------------|

|                                                                                                                                  |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
| Net                earnings (loss) in accordance with Canadian GAAP from continuing                operations                         |   |     | 18,581  |   |     |   | 3,061   |     |   |   | (25,172 | ) |
| Pre-operating                costs deferred (b)                                                                                       |   |     | (806    | )      |     |   | (1,883  | )        |   |   | (3,568 | ) |
| Pre-operating                costs written-off (b)                                                                                    |   |     | 199     |   |     |   | 2,025   |     |   |   | - |   |
| Amortization                of pre-operating costs (b)                                                                                |   |     | 1,585   |   |     |   | 2,416   |     |   |   | 2,297 |   |
| Realization                of currency translation adjustments (c)                                                                    |   |     | (2,981  | )      |     |   | 6,511   |     |   |   | (622 | ) |
| Programming                costs imposed by regulatory requirement (d)                                                                |   |     | -       |   |     |   | (7,558  | )        |   |   | (6,463 | ) |
| Costs                to develop intangible assets expensed (f)                                                                        |   |     | (1,278  | )      |     |   | (1,206  | )        |   |   | - |   |
| Pension                valuation allowances (h)                                                                                       |   |     | (25     | )      |     |   | (112    | )        |   |   | (150 | ) |
| Gain                (loss) on interest rate and cross currency swaps (j)                                                              |   |     | (14,622 | )      |     |   | (19,771 | )        |   |   | 3,315 |   |
| Adjustment                of dilution gain on Limited Partnership (o)                                                                 |   |     | -       |   |     |   | (10,209 | )        |   |   | - |   |
| Minority                interests effect of adjustments (1)                                                                           |   |     | 773     |   |     |   | (264    | )        |   |   | 809 |   |
| Tax                effect of adjustments and tax rate changes (n)                                                                     |   |     | 1,458   |   |     |   | 9,102   |     |   |   | (13,408 | ) |
| Net                earnings (loss) for the year from continuing operations in accordance                with                U.S. GAAP |   |     | 2,884   |   |     |   | (17,888 | )        |   |   | (42,962 | ) |
| Net                earnings from discontinued operations in accordance with Canadian                GAAP                              |   |     | 262,530 |   |     |   | 187,135 |     |   |   | 29,962 |   |
| Pre-operating                costs (b)                                                                                                |   |     | 698     |   |     |   | -       |     |   |   | - |   |
| Costs                to develop intangible assets (f)                                                                                 |   |     | 403     |   |     |   | -       |     |   |   | - |   |
| Tax                effect of adjustments and tax rate changes (n)                                                                     |   |     | (394    | )      |     |   | -       |     |   |   | - |   |
| Net                earnings from discontinued operations in accordance with U.S.                GAAP                                  |   |     | 263,237 |   |     |   | 187,135 |     |   |   | 29,962 |   |
| Net                earnings (loss) for the year in accordance with U.S. GAAP                                                          |   |     | 266,121 |   |     |   | 169,247 |     |   |   | (13,000 | ) |

----

**Consolidated      Statements of Comprehensive Income (Loss)**

|                                                                                                                                                                                 |   | **2007** |    |   | **2006** |   |    | **2005** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|
|                                                                                                                                                                                 |   |     |    |   |     |   |    |     |   |
| Net                earnings (loss) in accordance with U.S. GAAP                                                                                                                      |   |     | 266,121 |   |     |   | 169,247 |     |   |   | (13,000 | ) |
| Unrealized                foreign currency translation gain (loss) (note 12)                                                                                                         |   |     | 6,320   |   |     |   | (12,402 | )        |   |   | (3,143 | ) |
| Realized                foreign currency translation loss (c)                                                                                                                        |   |     | 8,332   |   |     |   | 372     |     |   |   | - |   |
| Foreign                currency translation gain (loss)                                                                                                                              |   |     | 14,652  |   |     |   | (12,030 | )        |   |   | (3,143 | ) |
| Unrealized                losses on securities available for sale net of tax of $384 (2006– nil,                2005 - nil) (g)                                                |   |     | (1,977  | )      |     |   | -       |     |   |   | - |   |
| Transition                adjustment on swaps net of tax of $172 (2006 - $172, 2005 - $176)                (j)                                                                       |   |     | 320     |   |     |   | 320     |     |   |   | 316 |   |
| Decrease                (Increase) in pension and post retirement liabilities, net of tax                of                $11,736 (2006 – $9,046, 2005 – ($10,323)) (n) |   |     | 21,131  |   |     |   | 14,063  |     |   |   | (18,351 | ) |
|                                                                                                                                                                                 |   |     | 34,126  |   |     |   | 2,353   |     |   |   | (21,178 | ) |
| Comprehensive                income (loss)                                                                                                                                           |   |     | 300,247 |   |     |   | 171,600 |     |   |   | (34,178 | ) |
|                                                                                                                                                                                 |   |     |    |   |     |   |    |     |   |   |   |   |

|                                                                                |   | **Foreign                currency translation** |    |   | **Unrealized                gains (losses) on securities** |   |   | **Transition                adjustment on swaps** |   |   | **Pension                and post-retirement liabilities** |   |   | **Total** |    |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|--------|------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------|---------|
| Accumulated                other comprehensive income (loss)– August 31, 2005 |   |                                            | (21,349 | )      |                                                       |   | -      |                                              |   |   | (1,601                                                     | )      |   |      | (43,329 | ) |   |   | (66,279 | ) |
| Change                during the year                                               |   |                                            | (12,030 | )      |                                                       |   | -      |                                              |   |   | 320                                                        |   |   |      | 14,063  |   |   |   | 2,353 |   |
| Accumulated                other comprehensive income (loss)– August 31, 2006 |   |                                            | (33,379 | )      |                                                       |   | -      |                                              |   |   | (1,281                                                     | )      |   |      | (29,266 | ) |   |   | (63,926 | ) |
| Change                during the year                                               |   |                                            | 14,652  |   |                                                       |   | (1,977 | )                                                 |   |   | 320                                                        |   |   |      | 21,131  |   |   |   | 34,126 |   |
| Adoption                of SFAS 158 (q)                                             |   |                                            | -       |   |                                                       |   | -      |                                              |   |   | -                                                          |   |   |      | (69,088 | ) |   |   | (69,088 | ) |
| Accumulated                other comprehensive income (loss)– August 31, 2007 |   |                                            | (18,727 | )      |                                                       |   | (1,977 | )                                                 |   |   | (961                                                       | )      |   |      | (77,223 | ) |   |   | (98,888 | ) |

----

**Comparative      Reconciliation of Shareholder’s Equity**

|   | A                reconciliation of shareholder’s equity reflecting the differences between                Canadian and U.S. GAAP is set out                below: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                    |   | **2007** |      |   | **2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-----------|--------|----------|--------|
| Shareholder’s                equity in accordance with Canadian GAAP                                                                                                              |   |     | 1,731,322 |   |     |   | 1,439,625 |   |
| Pre-operating                costs deferred (b)                                                                                                                                         |   |     | (3,535    | )      |     |   | (5,211 | ) |
| Goodwill                adjustment related to retroactive equity accountingof                WIC upon regulatory approval                (e)                                            |   |     | 38,503    |   |     |   | 38,503 |   |
| Goodwill                adjustment related to programming costs incurred (d)                                                                                                            |   |     | (32,700   | )      |     |   | (32,700 | ) |
| Goodwill                adjustment related to integration costs (k)                                                                                                                     |   |     | (1,663    | )      |     |   | (1,663 | ) |
| Historical                amortization of goodwill related to futureprogramming                costs imposed by                regulatory requirement on business combination  (d) |   |     | 938       |   |     |   | 938 |   |
| Costs                to develop intangible assets expensed (f)                                                                                                                          |   |     | (4,406    | )      |     |   | (3,531 | ) |
| Pension                valuation allowance (h)                                                                                                                                          |   |     | 435       |   |     |   | 460 |   |
| Goodwill                adjustment related to resolution of acquired taxcontingencies (l)                                                                                          |   |     | (7,000    | )      |     |   | (7,000 | ) |
| Goodwill                adjustment related to future income taxes (m)                                                                                                                   |   |     | 160,500   |   |     |   | 160,500 |   |
| Loss                on interest rate and cross-currency swaps (j)                                                                                                                       |   |     | (97,603   | )      |     |   | (82,981 | ) |
| Transition                adjustment on interest rate swaps (j)                                                                                                                    |   |     | (1,582    | )      |     |   | (2,074 | ) |
| Unrealized                gain (loss) on securities available for sale (h)                                                                                                              |   |     | (2,361    | )      |     |   | - |   |
| Pension                and post-retirement liabilities (n) and (q)                                                                                                                      |   |     | (113,765  | )      |     |   | (44,592 | ) |
| Minority                interests effect of adjustments **(1)**                                                                                                                         |   |     | (8,307    | )      |     |   | (9,080 | ) |
| Tax                effect of adjustments and tax rate changes (n)                                                                                                                       |   |     | 81,556    |   |     |   | 59,064 |   |
| Shareholder’s                equity in accordance with U.S. GAAP                                                                                                                  |   |     | 1,740,332 |   |     |   | 1,510,258 |   |

----

**26.    CONSOLIDATING      FINANCIAL INFORMATION**

|   | The                Company has entered into financing arrangements which are guaranteed                by                certain of its wholly-owned subsidiaries (the "Guarantor Subsidiaries").                Such guarantees are full, unconditional and joint and                several. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                following supplemental financial information sets forth, on an                unconsolidated basis, balance sheets, statements of operations and                cash                flow information for the Company, CanWest MediaWorks Inc., Guarantor                Subsidiaries and the Company's other subsidiaries (the "Non-Guarantor                Subsidiaries"). The supplemental financial information reflects the                investments of the Company in the Guarantor and Non-Guarantor subsidiaries                using the equity method of accounting.  The Company’s basis of                accounting has been applied to the Guarantor and Non-Guarantor                subsidiaries. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The                non-guarantor’s supplemental consolidating financial information has been                retroactively revised to reflect the Company’s sale in June 2007 of the                New Zealand Television and Radio                segments. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Balance Sheet**

**August      31, 2007**

|                                                                                                 |   | **CanWest****MediaWorks                Inc.****parent                company** |      |   | **Guarantor****subsidiaries** |   |    | **Non-guarantor****subsidiaries** |   |   | **Elimination****entries** |   |   | **Consolidated** |       |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|-----------|--------|-------------------------------|--------|---------|-----------------------------------|--------|--------|----------------------------|--------|--------|------------------|------------|
|                                                                                                 |   |                                                                           |      |   |                          |   |    |                              |   |   |                       |   |   |             |       |
| **Assets****Current                Assets**Cash                                                      |   |                                                                           | 6,424     |   |                          |   | 7,471   |                              |   |   | 122,719                    |   |   |             | -          |   |   |   | 136,614 |   |
| Accounts                receivable                                                                   |   |                                                                           | 129,646   |   |                          |   | 2,862   |                              |   |   | 360,089                    |   |   |             | -          |   |   |   | 492,597 |   |
| Inventory                                                                                            |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 8,907                      |   |   |             | -          |   |   |   | 8,907 |   |
| Investment                in broadcast rights                                                        |   |                                                                           | 44,291    |   |                          |   | -       |                              |   |   | 125,323                    |   |   |             | -          |   |   |   | 169,614 |   |
| Future                income taxes                                                                   |   |                                                                           | 7,631     |   |                          |   | -       |                              |   |   | 9,193                      |   |   |             | -          |   |   |   | 16,824 |   |
| Other                current assets                                                                  |   |                                                                           | 19,584    |   |                          |   | 37      |                              |   |   | 25,414                     |   |   |             | -          |   |   |   | 45,035 |   |
|                                                                                                 |   |                                                                           | 207,576   |   |                          |   | 10,370  |                              |   |   | 651,645                    |   |   |             | -          |   |   |   | 869,591 |   |
| Investment                in equity accounted subsidiaries                                           |   |                                                                           | 1,087,463 |   |                          |   | 105,544 |                              |   |   | -                          |   |   |             | (1,193,007 | ) |   |   | - |   |
| Other                investments                                                                     |   |                                                                           | 4,213     |   |                          |   | -       |                              |   |   | 1,530,707                  |   |   |             | -          |   |   |   | 1,534,920 |   |
| Investment                in broadcast rights                                                        |   |                                                                           | 34,355    |   |                          |   | -       |                              |   |   | 4,646                      |   |   |             | -          |   |   |   | 39,001 |   |
| Due                from parent and affiliated companies                                              |   |                                                                           | 482,338   |   |                          |   | 662,006 |                              |   |   | (1,088,397                 | )      |   |             | -          |   |   |   | 55,947 |   |
| Property,                plant and equipment                                                         |   |                                                                           | 142,833   |   |                          |   | 1,090   |                              |   |   | 523,305                    |   |   |             | -          |   |   |   | 667,228 |   |
| Future                income taxes                                                                   |   |                                                                           | 96,909    |   |                          |   | -       |                              |   |   | 89,894                     |   |   |             | -          |   |   |   | 186,803 |   |
| Other                assets                                                                          |   |                                                                           | 23,912    |   |                          |   | 551     |                              |   |   | 68,973                     |   |   |             | -          |   |   |   | 93,436 |   |
| Intangible                assets                                                                     |   |                                                                           | 493,504   |   |                          |   | 980     |                              |   |   | 793,478                    |   |   |             | -          |   |   |   | 1,287,962 |   |
| Goodwill                                                                                             |   |                                                                           | 475,894   |   |                          |   | -       |                              |   |   | 1,860,841                  |   |   |             | -          |   |   |   | 2,336,735 |   |
|                                                                                                 |   |                                                                           | 3,048,997 |   |                          |   | 780,541 |                              |   |   | 4,435,092                  |   |   |             | (1,193,007 | ) |   |   | 7,071,623 |   |
| **Liabilities****Current                liabilities**                                                |   |                                                                           |      |   |                          |   |    |                              |   |   |                       |   |   |             |       |   |   |   |   |   |
| Accounts                payable                                                                      |   |                                                                           | 30,622    |   |                          |   | 5,168   |                              |   |   | 179,166                    |   |   |             | -          |   |   |   | 214,956 |   |
| Accrued                liabilities                                                                   |   |                                                                           | 104,018   |   |                          |   | 18,631  |                              |   |   | 208,579                    |   |   |             | -          |   |   |   | 331,228 |   |
| Income                taxes payable                                                                  |   |                                                                           | 16,609    |   |                          |   | 10,535  |                              |   |   | 32,514                     |   |   |             | -          |   |   |   | 59,658 |   |
| Broadcast                rights accounts payable                                                     |   |                                                                           | 35,274    |   |                          |   | (4,087  | )                                 |   |   | 34,793                     |   |   |             | -          |   |   |   | 65,980 |   |
| Deferred                revenue                                                                      |   |                                                                           | 3,039     |   |                          |   | -       |                              |   |   | 39,128                     |   |   |             | -          |   |   |   | 42,167 |   |
| Future                income taxes                                                                   |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 38,153                     |   |   |             | -          |   |   |   | 38,153 |   |
| Current                portion of long term debt and obligations under capital                leases |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 11,045                     |   |   |             | -          |   |   |   | 11,045 |   |
|                                                                                                 |   |                                                                           | 189,562   |   |                          |   | 30,247  |                              |   |   | 543,378                    |   |   |             |       |   |   |   | 763,187 |   |
| Long                term debt and related foreign currencyswap liability                             |   |                                                                           | 934,059   |   |                          |   | -       |                              |   |   | 2,721,395                  |   |   |             | (65,507    | ) |   |   | 3,589,947 |   |
| Interest                rate and foreign currency swapLiability                                      |   |                                                                           | 151,936   |   |                          |   | -       |                              |   |   | -                          |   |   |             | -          |   |   |   | 151,936 |   |
| Obligations                under capital leases                                                      |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 11,381                     |   |   |             | -          |   |   |   | 11,381 |   |
| Other                accrued liabilities                                                             |   |                                                                           | 16,374    |   |                          |   | 4,068   |                              |   |   | 168,628                    |   |   |             | -          |   |   |   | 189,070 |   |
| Future                income taxes                                                                   |   |                                                                           | 25,744    |   |                          |   | (4,005  | )                                 |   |   | 83,791                     |   |   |             | -          |   |   |   | 105,530 |   |
| Puttable                interest in subsidiary                                                       |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 483,568                    |   |   |             | -          |   |   |   | 483,568 |   |
| Minority                interest                                                                     |   |                                                                           | -         |   |                          |   | -       |                              |   |   | 45,682                     |   |   |             | -          |   |   |   | 45,682 |   |
|                                                                                                 |   |                                                                           | 1,317,675 |   |                          |   | 30,310  |                              |   |   | 4,057,823                  |   |   |             | (65,507    | ) |   |   | 5,340,301 |   |
| **Shareholder's                Equity**Capital                stock                                  |   |                                                                           | 438,838   |   |                          |   | 182,303 |                              |   |   | 370,501                    |   |   |             | (552,804   | ) |   |   | 438,838 |   |
| Contributed                surplus                                                                   |   |                                                                           | 132,953   |   |                          |   |    |                              |   |   | (797                       | )      |   |             | 797        |   |   |   | 132,953 |   |
| Retained                earnings                                                                     |   |                                                                           | 1,165,316 |   |                          |   | 568,641 |                              |   |   | 12,637                     |   |   |             | (581,278   | ) |   |   | 1,165,316 |   |
| Cumulative                foreign currency translation adjustments                                   |   |                                                                           | (5,785    | )      |                          |   | (713    | )                                 |   |   | (5,072                     | )      |   |             | 5,785      |   |   |   | (5,785 | ) |
|                                                                                                 |   |                                                                           | 1,731,322 |   |                          |   | 750,231 |                              |   |   | 377,269                    |   |   |             | (1,127,500 | ) |   |   | 1,731,322 |   |
|                                                                                                 |   |                                                                           | 3,048,997 |   |                          |   | 780,541 |                              |   |   | 4,435,092                  |   |   |             | (1,193,007 | ) |   |   | 7,071,623 |   |

----

| Shareholder's                equity in accordance with Canadian GAAP                                                                                                           |   |   | 1,731,322 |   |   |   | 750,231 |   |   |   | 377,269 |   |   |   | (1,127,500 | )      |   |   | 1,731,322 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|
| Pre-operating                costs deferred                                                                                                                                    |   |   | (640      | )      |   |   | -       |   |   |   | (2,895  | )      |   |   | -          |   |   |   | (3,535    | )      |
| Goodwill                adjustment related to retroactive equity accounting of WIC upon regulatory                approval                                                     |   |   | 38,503    |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 38,503    |   |
| Goodwill                adjustment related to programming costs incurred                                                                                                       |   |   | (32,700   | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (32,700   | )      |
| Goodwill                adjustment related to integration costs                                                                                                                |   |   | -         |   |   |   | -       |   |   |   | (1,663  | )      |   |   | -          |   |   |   | (1,663    | )      |
| Historical                amortization of goodwill related to future programming costs imposed                by                regulatory requirement on business combination |   |   | 938       |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 938       |   |
| Costs                to develop intangible assets expensed                                                                                                                     |   |   | -         |   |   |   | -       |   |   |   | (4,406  | )      |   |   | -          |   |   |   | (4,406    | )      |
| Pension                valuation allowance                                                                                                                                     |   |   | 435       |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 435       |   |
| Goodwill                adjustment related to resolution of acquired tax                contingencies                                                                          |   |   | (7,000    | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (7,000    | )      |
| Goodwill                adjustment related to future income taxes                                                                                                              |   |   | 117,597   |   |   |   | -       |   |   |   | 42,903  |   |   |   | -          |   |   |   | 160,500   |   |
| Loss                on interest rate and cross-currency swaps                                                                                                                  |   |   | (58,972   | )      |   |   | -       |   |   |   | (38,631 | )      |   |   | -          |   |   |   | (97,603   | )      |
| Transition                adjustment on interest rate swaps                                                                                                                    |   |   | (1,582    | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (1,582    | )      |
| Unrealized                gain (loss) on securities available for sale                                                                                                         |   |   | -         |   |   |   | -       |   |   |   | (2,361  | )      |   |   | -          |   |   |   | (2,361    | )      |
| Pension                and post-retirement liabilities                                                                                                                         |   |   | (53,695   | )      |   |   | -       |   |   |   | (60,070 | )      |   |   | -          |   |   |   | (113,765  | )      |
| Minority                interests effect of adjustments                                                                                                                        |   |   | -         |   |   |   | -       |   |   |   | (8,307  | )      |   |   | -          |   |   |   | (8,307    | )      |
| Tax                effect of adjustments and tax rate changes                                                                                                                  |   |   | 50,060    |   |   |   | -       |   |   |   | 31,496  |   |   |   |       |   |   |   | 81,556    |   |
| Interest                in earnings (losses) of equity accounted affiliates                                                                                                    |   |   | (43,934   | )      |   |   | (5,326  | )      |   |   | -       |   |   |   | 49,260     |   |   |   | -         |   |
| Shareholder’s                equity in accordance with U.S. GAAP                                                                                                         |   |   | 1,740,332 |   |   |   | 744,905 |   |   |   | 333,335 |   |   |   | (1,078,240 | )      |   |   | 1,740,332 |   |

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Earnings**

**For      the Year Ended August 31, 2007**

|                                                                                                          |   | **CanWest                MediaWorks Inc. parent company** |      |   | **Guarantor                subsidiaries** |   |     | **Non-guarantor****subsidiaries** |   |   | **Elimination****Entries** |   |   | **Consolidated** |     |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|-----------|--------|-------------------------------------------|--------|----------|-----------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
| Revenue                                                                                                       |   |                                                      | 609,332   |   |                                      |   | 20,071   |                              |   |   | 2,235,879                  |   |   |             | -        |   |   |   | 2,865,282 |   |
| Operating                expenses                                                                             |   |                                                      | 390,983   |   |                                      |   | 21,626   |                              |   |   | 1,152,426                  |   |   |             | -        |   |   |   | 1,565,035 |   |
| Selling,                general and administrative expenses                                                   |   |                                                      | 206,971   |   |                                      |   | 4,908    |                              |   |   | 601,401                    |   |   |             | -        |   |   |   | 813,280 |   |
|                                                                                                          |   |                                                      | 11,378    |   |                                      |   | (6,463   | )                                 |   |   | 482,052                    |   |   |             | -        |   |   |   | 486,967 |   |
| Amortization                of intangibles                                                                    |   |                                                      | -         |   |                                      |   | -        |                              |   |   | 6,395                      |   |   |             | -        |   |   |   | 6,395 |   |
| Amortization                of property, plant and equipment                                                  |   |                                                      | 21,512    |   |                                      |   | 459      |                              |   |   | 70,533                     |   |   |             | -        |   |   |   | 92,504 |   |
| Other                amortization                                                                             |   |                                                      | 590       |   |                                      |   | -        |                              |   |   | 1,007                      |   |   |             | -        |   |   |   | 1,597 |   |
| Operating                income                                                                               |   |                                                      | (10,724   | )      |                                      |   | (6,922   | )                                 |   |   | 404,117                    |   |   |             | -        |   |   |   | 386,471 |   |
| Interest                expense                                                                               |   |                                                      | (107,038  | )      |                                      |   | 12,873   |                              |   |   | (95,370                    | )      |   |             | -        |   |   |   | (189,535 | ) |
| Interest                income                                                                                |   |                                                      | 3,001     |   |                                      |   | 581      |                              |   |   | 2,395                      |   |   |             | -        |   |   |   | 5,977 |   |
| Amortization                of deferred financing costs                                                       |   |                                                      | (5,066    | )      |                                      |   | -        |                              |   |   | (7,728                     | )      |   |             | -        |   |   |   | (12,794 | ) |
| Interest                rate and foreign currency swap gains (losses)                                         |   |                                                      | (8,644    | )      |                                      |   | -        |                              |   |   | 24,599                     |   |   |             | -        |   |   |   | 15,955 |   |
| Accretion                of long term liabilities                                                             |   |                                                      | -         |   |                                      |   | -        |                              |   |   | (3,603                     | )      |   |             | -        |   |   |   | (3,603 | ) |
| Foreign                exchange gains (losses)                                                                |   |                                                      | (289      | )      |                                      |   | 4,568    |                              |   |   | 5,406                      |   |   |             | -        |   |   |   | 9,685 |   |
| Investment                gains, losses andwrite-downs                                                        |   |                                                      | 125       |   |                                      |   | 12       |                              |   |   | 8,311                      |   |   |             | -        |   |   |   | 8,448 |   |
|                                                                                                          |   |                                                      | (128,635  | )      |                                      |   | 11,112   |                              |   |   | 338,127                    |   |   |             | -        |   |   |   | 220,604 |   |
| Provision                for income taxes                                                                     |   |                                                      | 50,121    |   |                                      |   | 8,486    |                              |   |   | 34,997                     |   |   |             | -        |   |   |   | 93,604 |   |
| Earnings                (loss) before the following                                                           |   |                                                      | (178,756  | )      |                                      |   | 2,626    |                              |   |   | 303,130                    |   |   |             | -        |   |   |   | 127,000 |   |
| Minority                interests                                                                             |   |                                                      | -         |   |                                      |   | -        |                              |   |   | (105,490                   | )      |   |             | -        |   |   |   | (105,490 | ) |
| Interest                in earnings of equity accounted affiliates                                            |   |                                                      | 455,809   |   |                                      |   | 24,427   |                              |   |   | 2,799                      |   |   |             | (480,613 | ) |   |   | 2,422 |   |
| Realized                currency translation adjustments                                                      |   |                                                      | -         |   |                                      |   | (5,351   | )                                 |   |   | -                          |   |   |             | -        |   |   |   | (5,351 | ) |
| Net                earnings from continuing operations                                                        |   |                                                      | 277,053   |   |                                      |   | 21,702   |                              |   |   | 200,439                    |   |   |             | (480,613 | ) |   |   | 18,581 |   |
| Gain                on sale of discontinued operations                                                        |   |                                                      | 5,170     |   |                                      |   | 296,646  |                              |   |   | (49,818                    | )      |   |             | -        |   |   |   | 251,998 |   |
| Earnings                (losses) from discontinued operations                                                 |   |                                                      | (1,112    | )      |                                      |   | -        |                              |   |   | 11,644                     |   |   |             | -        |   |   |   | 10,532 |   |
| Net                earnings  from discontinued operations                                           |   |                                                      | 4,058     |   |                                      |   | 296,646  |                              |   |   | (38,174                    | )      |   |             |     |   |   |   | 262,530 |   |
| Net                earnings for the year                                                                      |   |                                                      | 281,111   |   |                                      |   | 318,348  |                              |   |   | 162,265                    |   |   |             | (480,613 | ) |   |   | 281,111 |   |
| Retained                earnings – beginning of year                                                    |   |                                                      | 884,205   |   |                                      |   | 479,904  |                              |   |   | (59,339                    | )      |   |             | (420,565 | ) |   |   | 884,205 |   |
| Dividends                                                                                                     |   |                                                      | -         |   |                                      |   | (229,611 | )                                 |   |   | (90,289                    | )      |   |             | 319,900  |   |   | ___- |   |
| Retained                earnings – end of year                                                          |   |                                                      | 1,165,316 |   |                                      |   | 568,641  |                              |   |   | 12,637                     |   |   |             | (581,278 | ) |   |   | 1,165,316 |   |
|                                                                                                          |   |                                                      |      |   |                                      |   |     |                              |   |   |                       |   |   |             |     |   |   |   |   |   |
| Net                earnings (loss) in accordance with Canadian GAAP from continuing                operations |   |                                                      | 277,053   |   |                                      |   | 21,702   |                              |   |   | 200,439                    |   |   |             | (480,613 | ) |   |   | 18,581 |   |
| Pre-operating                costs deferred                                                                   |   |                                                      | -         |   |                                      |   | -        |                              |   |   | (806                       | )      |   |             | -        |   |   |   | (806 | ) |
| Pre-operating                costs written off                                                                |   |                                                      | -         |   |                                      |   | -        |                              |   |   | 199                        |   |   |             | -        |   |   |   | 199 |   |
| Amortization                of pre-operating costs                                                            |   |                                                      | 426       |   |                                      |   | -        |                              |   |   | 1,159                      |   |   |             | -        |   |   |   | 1,585 |   |
| Realization                of currency translation adjustments                                                |   |                                                      | -         |   |                                      |   | (2,981   | )                                 |   |   | -                          |   |   |             | -        |   |   |   | (2,981 | ) |
| Costs                to develop intangible assets expensed                                                    |   |                                                      | -         |   |                                      |   | -        |                              |   |   | (1,278                     | )      |   |             | -        |   |   |   | (1,278 | ) |
| Pension                valuation allowances                                                                   |   |                                                      | (25       | )      |                                      |   | -        |                              |   |   | -                          |   |   |             | -        |   |   |   | (25 | ) |
| Gain                (loss) on interest rate and cross currency swaps                                          |   |                                                      | 19,949    |   |                                      |   | -        |                              |   |   | (34,571                    | )      |   |             | -        |   |   |   | (14,622 | ) |
| Minority                interests effect of adjustments                                                       |   |                                                      | -         |   |                                      |   | -        |                              |   |   | 773                        |   |   |             | -        |   |   |   | 773 |   |
| Tax                effect of adjustments and tax rate changes                                                 |   |                                                      | (6,923    | )      |                                      |   | -        |                              |   |   | 8,381                      |   |   |             | -        |   |   |   | 1,458 |   |
| Interest                in earnings (losses) of equity accounted affiliates                                   |   |                                                      | (29,124   | )      |                                      |   | (465     | )                                 |   |   | -                          |   |   |             | 29,589   |   |   |   | - |   |
| Net                earnings (loss) from continuing operations in accordance with U.S.                GAAP     |   |                                                      | 261,356   |   |                                      |   | 18,256   |                              |   |   | 174,296                    |   |   |             | (451,024 | ) |   |   | 2,884 |   |
| Net                earnings (loss) from discontinued operations                                               |   |                                                      | 4,058     |   |                                      |   | 296,646  |                              |   |   | (38,174                    | )      |   |             | -        |   |   |   | 262,530 |   |
| Pre-operating                costs written-off                                                                |   |                                                      | -         |   |                                      |   | -        |                              |   |   | 698                        |   |   |             | -        |   |   |   | 698 |   |
| Costs                to develop intangible assets expensedf                                                   |   |                                                      | -         |   |                                      |   | -        |                              |   |   | 403                        |   |   |             | -        |   |   |   | 403 |   |
| Tax                effect of adjustments and tax rate changes                                                 |   |                                                      | -         |   |                                      |   | -        |                              |   |   | (394                       | )      |   |             | -        |   |   |   | (394 | ) |
| Interest                in earnings of equity accounted affiliates                                            |   |                                                      | 707       |   |                                      |   | -        |                              |   |   | -                          |   |   |             | (707     | ) |   |   | - |   |
| Net                earnings (loss) from discontinued operations in accordance with U.S.                GAAP   |   |                                                      | 4,765     |   |                                      |   | 296,646  |                              |   |   | (37,467                    | )      |   |             | (707     | ) |   |   | 263,237 |   |
| Net                earnings (loss) in accordance with U.S. GAAP                                               |   |                                                      | 266,121   |   |                                      |   | 314,902  |                              |   |   | 136,829                    |   |   |             | (451,731 | ) |   |   | 266,121 |   |

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Cash Flows**

**For      the Year Ended August 31, 2007**

|                                                                                                              |   | **CanWest                MediaWorks Inc.****parent                company** |     |   | **Guarantor                subsidiaries** |   |     | **Non-guarantor****subsidiaries** |   |   | **Elimination****entries** |   |   | **Consolidated** |     |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|----------|--------|-------------------------------------------|--------|----------|-----------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
| **CASH                GENERATED (UTILIZED) BY:**                                                                  |   |                                                                        |     |   |                                      |   |     |                              |   |   |                       |   |   |             |     |
| **Operating                activities**Net                earnings (loss) for the year                            |   |                                                                        | 281,111  |   |                                      |   | 318,348  |                              |   |   | 162,265                    |   |   |             | (480,613 | ) |   |   | 281,111 |   |
| Net                earnings from discontinued operations                                                          |   |                                                                        | (4,058   | )      |                                      |   | (296,646 | )                                 |   |   | 38,174                     |   |   |             | -        |   |   |   | (262,530 | ) |
| Items                not affecting cashAmortization                                                               |   |                                                                        | 27,168   |   |                                      |   | 459      |                              |   |   | 85,663                     |   |   |             | -        |   |   |   | 113,290 |   |
| Non-cash                interest                                                                                  |   |                                                                        | (3,876   | )      |                                      |   | -        |                              |   |   | 3,603                      |   |   |             | -        |   |   |   | (273 | ) |
| Future                income                taxes                                                                 |   |                                                                        | 30,443   |   |                                      |   | 2,192    |                              |   |   | (15,912                    | )      |   |             | -        |   |   |   | 16,723 |   |
| Realized                currency                translationadjustments                                            |   |                                                                        | -        |   |                                      |   | 5,351    |                              |   |   | -                          |   |   |             | -        |   |   |   | 5,351 |   |
| Interest                rate and foreign                currency swap (gains) losses net of settlements           |   |                                                                        | 9,764    |   |                                      |   | -        |                              |   |   | (24,599                    | )      |   |             | -        |   |   |   | (14,835 | ) |
| Investment                gains, losses                andwrite-downs                                             |   |                                                                        | (125     | )      |                                      |   | (12      | )                                 |   |   | (8,311                     | )      |   |             | -        |   |   |   | (8,448 | ) |
| Pension                expense                                                                                    |   |                                                                        | 2,704    |   |                                      |   | -        |                              |   |   | 4,214                      |   |   |             | -        |   |   |   | 6,918 |   |
| Minority                interests                                                                                 |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 105,490                    |   |   |             | -        |   |   |   | 105,490 |   |
| Earnings                of equity accounted                affiliates                                             |   |                                                                        | (455,809 | )      |                                      |   | (24,427  | )                                 |   |   | (2,799                     | )      |   |             | 480,613  |   |   |   | (2,422 | ) |
| Foreign                exchange losses                (gains)                                                     |   |                                                                        | 15       |   |                                      |   | (4,542   | )                                 |   |   | (5,495                     | )      |   |             | -        |   |   |   | (10,022 | ) |
| Stock                compensation                expense                                                          |   |                                                                        | 2,702    |   |                                      |   | -        |                              |   |   | (1,586                     | )      |   |             | -        |   |   |   | 1,116 |   |
| Distributions                equity affiliates                                                                    |   |                                                                        | 279,856  |   |                                      |   | 60,998   |                              |   |   | -                          |   |   |             | (340,854 | ) |   |   | - |   |
| Changes                in non-cash operatingaccounts                                                              |   |                                                                        | (93,239  | )      |                                      |   | 33,153   |                              |   |   | 59,986                     |   |   |             | -        |   |   |   | (100 | ) |
| Cash                flows from operating activities of continuing operations                                      |   |                                                                        | 76,656   |   |                                      |   | 94,874   |                              |   |   | 400,693                    |   |   |             | (340,854 | ) |   |   | 231,369 |   |
| Cash                flows from operating activities of discontinued operations                                    |   |                                                                        | (1,781   | )      |                                      |   | -        |                              |   |   | 40,721                     |   |   |             | -        |   |   |   | 38,940 |   |
| Cash                flows from operating activities                                                               |   |                                                                        | 74,875   |   |                                      |   | 94,874   |                              |   |   | 441,414                    |   |   |             | (340,854 | ) |   |   | 270,309 |   |
| **Investing                Activities**                                                                           |   |                                                                        |     |   |                                      |   |     |                              |   |   |                       |   |   |             |     |   |   |   |   |   |
| Other                investments                                                                                  |   |                                                                        | (1,808   | )      |                                      |   | (248     | )                                 |   |   | (11,793                    | )      |   |             | -        |   |   |   | (13,849 | ) |
| Investment                in broadcast licences                                                                   |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (618                       | )      |   |             | -        |   |   |   | (618 | ) |
| Acquisitions                                                                                                      |   |                                                                        | -        |   |                                      |   | (5,873   | )                                 |   |   | (1,437,681                 | )      |   |             | -        |   |   |   | (1,443,554 | ) |
| Redemption                of Class A Limited Partnership Units                                                    |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (496,923                   | )      |   |             | -        |   |   |   | (496,923 | ) |
| Proceeds                from sales of discontinued operations                                                     |   |                                                                        | 15,047   |   |                                      |   | -        |                              |   |   | 296,900                    |   |   |             | -        |   |   |   | 311,947 |   |
| Proceeds                from sales of other investments                                                           |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 30,672                     |   |   |             | -        |   |   |   | 30,672 |   |
| Proceeds                from divestitures                                                                         |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 1,200                      |   |   |             | -        |   |   |   | 1,200 |   |
| Proceeds                from sale of property, plantand                equipment                                  |   |                                                                        | 1,977    |   |                                      |   | -        |                              |   |   | 2,372                      |   |   |             | -        |   |   |   | 4,349 |   |
| Purchase                of property, plant andequipment                                                           |   |                                                                        | (29,030  | )      |                                      |   | -        |                              |   |   | (75,189                    | )      |   |             | -        |   |   |   | (104,219 | ) |
| Proceeds                from (advances to) parent andaffiliated companies                                         |   |                                                                        | 304,420  |   |                                      |   | (202,899 | )                                 |   |   | (105,000                   | )      |   |             | -        |   |   |   | (3,479 | ) |
| Investing                activities from discontinued operations                                                  |   |                                                                        | (14      | )      |                                      |   | (537     | )                                 |   |   | (5,897                     | )      |   |             | -        |   |   |   | (6,448 | ) |
|                                                                                                              |   |                                                                        | 290,592  |   |                                      |   | (209,557 | )                                 |   |   | (1,801,957                 | )      |   |             | -        |   |   |   | (1,720,922 | ) |
| **Financing                Activities**                                                                           |   |                                                                        |     |   |                                      |   |     |                              |   |   |                       |   |   |             |     |   |   |   |   |   |
| Issuance                of long term debt, net of financing costs                                                 |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 3,311,801                  |   |   |             | -        |   |   |   | 3,311,801 |   |
| Repayment                of long term debt                                                                        |   |                                                                        | (292     | )      |                                      |   | -        |                              |   |   | (2,126,250                 | )      |   |             | -        |   |   |   | (2,126,542 | ) |
| Advances                (repayments) of revolvingFacilities,                net of financing                costs |   |                                                                        | (423,458 | )      |                                      |   | -        |                              |   |   | 153,682                    |   |   |             | -        |   |   |   | (269,776 | ) |
| Settlement                of swap liabilities                                                                     |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 22,522                     |   |   |             | -        |   |   |   | 22,522 |   |
| Payments                of capital leases                                                                         |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (3,639                     | )      |   |             | -        |   |   |   | (3,639 | ) |
| Issuance                of puttable interest in subsidiary                                                        |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 479,965                    |   |   |             | -        |   |   |   | 479,965 |   |
| Distributions                paid                                                                                 |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (340,854                   | )      |   |             | 340,854  |   |   |   | - |   |
| Payment                of distributions to minorityinterest                                                       |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (97,871                    | )      |   |             | -        |   |   |   | (97,871 | ) |
| Financing                activities from discontinued operations                                                  |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | (13,363                    | )      |   |             | -        |   |   |   | (13,363 | ) |
|                                                                                                              |   |                                                                        | (423,750 | )      |                                      |   | -        |                              |   |   | 1,385,993                  |   |   |             | 340,854  |   |   |   | 1,303,097 |   |
| Foreign                exchange loss on cashdenominated                in foreign                currencies       |   |                                                                        | -        |   |                                      |   | -        |                              |   |   | 756                        |   |   |             | -        |   |   |   | 756 |   |
| **Net                change in cash**                                                                             |   |                                                                        | (58,283  | )      |                                      |   | (114,683 | )                                 |   |   | 26,206                     |   |   |             | -        |   |   |   | (146,760 | ) |
| **Cash                — beginning of year**                                                                 |   |                                                                        | 64,707   |   |                                      |   | 122,154  |                              |   |   | 96,513                     |   |   |             | -        |   |   | ___            283,374 |   |
| **Cash                — end of year**                                                                       |   |                                                                        | 6,424    |   |                                      |   | 7,471    |                              |   |   | 122,719                    |   |   |             | -        |   |   |   | 136,614 |   |

----

|   |   |
|--------|--------|

**Supplemental      Consolidating Balance Sheet**

**August      31, 2006**

|                                                                                                 |   | **CanWest****MediaWorks                Inc.****parent                company** |      |   | **Guarantor****subsidiaries** |   |    | **Non-guarantor****subsidiaries****(Revised                note 15)** |   |   | **Elimination****entries** |   |   | **Consolidated** |       |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|-----------|--------|-------------------------------|--------|---------|-----------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|------------------|------------|
|                                                                                                 |   |                                                                           |      |   |                          |   |    |                                                                  |   |   |                       |   |   |             |       |
| **Assets****Current                Assets**Cash                                                      |   |                                                                           | 64,707    |   |                          |   | 122,154 |                                                                  |   |   | 96,513                     |   |   |             | -          |   |   |   | 283,374 |   |
| Accounts                receivable                                                                   |   |                                                                           | 136,061   |   |                          |   | 9,543   |                                                                  |   |   | 280,595                    |   |   |             | -          |   |   |   | 426,199 |   |
| Income                taxes recoverable                                                              |   |                                                                           | 7,636     |   |                          |   | (6,009  | )                                                                     |   |   | 2,678                      |   |   |             | -          |   |   |   | 4,305 |   |
| Inventory                                                                                            |   |                                                                           | -         |   |                          |   | -       |                                                                  |   |   | 13,362                     |   |   |             | -          |   |   |   | 13,362 |   |
| Investment                in broadcast rights                                                        |   |                                                                           | 30,609    |   |                          |   | 274     |                                                                  |   |   | 130,187                    |   |   |             | -          |   |   |   | 161,070 |   |
| Future                income taxes                                                                   |   |                                                                           | 13,276    |   |                          |   | -       |                                                                  |   |   | 4,523                      |   |   |             | -          |   |   |   | 17,799 |   |
| Other                current assets                                                                  |   |                                                                           | 3,361     |   |                          |   | 11,678  |                                                                  |   |   | 26,373                     |   |   |             | -          |   |   |   | 41,412 |   |
| Assets                of discontinued operations                                                     |   |                                                                           | 621       |   |                          |   | -       |                                                                  |   |   | 58,002                     |   |   |             | -          |   |   |   | 58,623 |   |
|                                                                                                 |   |                                                                           | 256,271   |   |                          |   | 137,640 |                                                                  |   |   | 612,233                    |   |   |             | -          |   |   |   | 1,006,144 |   |
| Investment                in equity accounted subsidiaries                                           |   |                                                                           | 1,511,348 |   |                          |   | 144,632 |                                                                  |   |   | -                          |   |   |             | (1,655,980 | ) |   |   | - |   |
| Other                investments                                                                     |   |                                                                           | 4,236     |   |                          |   | -       |                                                                  |   |   | 13,654                     |   |   |             | -          |   |   |   | 17,890 |   |
| Investment                in broadcast rights                                                        |   |                                                                           | 27,023    |   |                          |   | 640     |                                                                  |   |   | 2,830                      |   |   |             | -          |   |   |   | 30,493 |   |
| Due                from parent and affiliated companies                                              |   |                                                                           | 25,448    |   |                          |   | 616,302 |                                                                  |   |   | (586,580                   | )      |   |             | -          |   |   |   | 55,170 |   |
| Property,                plant and equipment                                                         |   |                                                                           | 134,857   |   |                          |   | 1,358   |                                                                  |   |   | 508,409                    |   |   |             | -          |   |   |   | 644,624 |   |
| Future                income taxes                                                                   |   |                                                                           | 122,425   |   |                          |   | -       |                                                                  |   |   | 54,734                     |   |   |             | -          |   |   |   | 177,159 |   |
| Other                assets                                                                          |   |                                                                           | 39,538    |   |                          |   | 710     |                                                                  |   |   | 27,314                     |   |   |             | -          |   |   |   | 67,562 |   |
| Intangible                assets                                                                     |   |                                                                           | 493,724   |   |                          |   | 980     |                                                                  |   |   | 665,467                    |   |   |             | -          |   |   |   | 1,160,171 |   |
| Goodwill                                                                                             |   |                                                                           | 481,341   |   |                          |   | -       |                                                                  |   |   | 1,811,181                  |   |   |             | -          |   |   |   | 2,292,522 |   |
| Assets                of discontinued operations                                                     |   |                                                                           | 1,847     |   |                          |   | -       |                                                                  |   |   | 174,906                    |   |   |             | -          |   |   |   | 176,753 |   |
|                                                                                                 |   |                                                                           | 3,098,058 |   |                          |   | 902,262 |                                                                  |   |   | 3,284,148                  |   |   |             | (1,655,980 | ) |   |   | 5,628,488 |   |
| **Liabilities****Current                liabilities**                                                |   |                                                                           |      |   |                          |   |    |                                                                  |   |   |                       |   |   |             |       |   |   |   |   |   |
| Accounts                payable                                                                      |   |                                                                           | 16,675    |   |                          |   | 21,916  |                                                                  |   |   | 112,803                    |   |   |             | -          |   |   |   | 151,394 |   |
| Accrued                liabilities                                                                   |   |                                                                           | 89,578    |   |                          |   | 48,175  |                                                                  |   |   | 135,886                    |   |   |             | -          |   |   |   | 273,639 |   |
| Broadcast                rights accountsPayable                                                      |   |                                                                           | -         |   |                          |   | 22,172  |                                                                  |   |   | 34,761                     |   |   |             | -          |   |   |   | 56,933 |   |
| Deferred                revenue                                                                      |   |                                                                           | 27        |   |                          |   | -       |                                                                  |   |   | 35,832                     |   |   |             | -          |   |   |   | 35,859 |   |
| Future                income taxes                                                                   |   |                                                                           | -         |   |                          |   | -       |                                                                  |   |   | 43,409                     |   |   |             | -          |   |   |   | 43,409 |   |
| Current                portion of long term debt and obligations under capital                leases |   |                                                                           | -         |   |                          |   | -       |                                                                  |   |   | 3,640                      |   |   |             | -          |   |   |   | 3,640 |   |
| Liabilities                of discontinued operations                                                |   |                                                                           | 514       |   |                          |   | -       |                                                                  |   |   | 21,545                     |   |   |             | -          |   |   |   | 22,059 |   |
|                                                                                                 |   |                                                                           | 106,794   |   |                          |   | 92,263  |                                                                  |   |   | 387,876                    |   |   |             | -          |   |   |   | 586,933 |   |
| Long                term debt and related foreign currencyswap liability                             |   |                                                                           | 1,360,462 |   |                          |   | -       |                                                                  |   |   | 1,373,629                  |   |   |             | (101,133   | ) |   |   | 2,632,958 |   |
| Interest                rate and foreign currency swapLiability                                      |   |                                                                           | 142,172   |   |                          |   | -       |                                                                  |   |   | -                          |   |   |             | -          |   |   |   | 142,172 |   |
| Obligations                under capital leases                                                      |   |                                                                           | -         |   |                          |   | -       |                                                                  |   |   | 12,461                     |   |   |             | -          |   |   |   | 12,461 |   |
| Other                accrued liabilities                                                             |   |                                                                           | 21,368    |   |                          |   | 11,699  |                                                                  |   |   | 69,877                     |   |   |             | -          |   |   |   | 102,944 |   |
| Future                income taxes                                                                   |   |                                                                           | 27,475    |   |                          |   | (5,909  | )                                                                     |   |   | 69,174                     |   |   |             | -          |   |   |   | 90,740 |   |
| Minority                interest                                                                     |   |                                                                           |      |   |                          |   |    |                                                                  |   |   | 484,739                    |   |   |             |       |   |   |   | 484,739 |   |
| Liabilities                of discontinued operations                                                |   |                                                                           | 162       |   |                          |   | -       |                                                                  |   |   | 135,754                    |   |   |             | -          |   |   |   | 135,916 |   |
|                                                                                                 |   |                                                                           | 1,658,433 |   |                          |   | 98,053  |                                                                  |   |   | 2,533,510                  |   |   |             | (101,133   | ) |   |   | 4,188,863 |   |
| **Shareholder's                Equity**Capital                stock                                  |   |                                                                           | 438,838   |   |                          |   | 329,557 |                                                                  |   |   | 820,655                    |   |   |             | (1,150,212 | ) |   |   | 438,838 |   |
| Contributed                surplus                                                                   |   |                                                                           | 134,038   |   |                          |   | -       |                                                                  |   |   | 1,526                      |   |   |             | (1,526     | ) |   |   | 134,038 |   |
| Retained                earnings                                                                     |   |                                                                           | 884,205   |   |                          |   | 479,904 |                                                                  |   |   | (59,339                    | )      |   |             | (420,565   | ) |   |   | 884,205 |   |
| Cumulative                foreign currency translation adjustments                                   |   |                                                                           | (17,456   | )      |                          |   | (5,252  | )                                                                     |   |   | (12,204                    | )      |   |             | 17,456     |   |   |   | (17,456 | ) |
|                                                                                                 |   |                                                                           | 1,439,625 |   |                          |   | 804,209 |                                                                  |   |   | 750,638                    |   |   |             | (1,554,847 | ) |   |   | 1,439,625 |   |
|                                                                                                 |   |                                                                           | 3,098,058 |   |                          |   | 902,262 |                                                                  |   |   | 3,284,148                  |   |   |             | (1,655,980 | ) |   |   | 5,628,488 |   |

----

| Shareholder's                equity in accordance with Canadian GAAP                                                                                                           |   |   | 1,439,625 |   |   |   | 804,209 |   |   |   | 750,638 |   |   |   | (1,554,847 | )      |   |   | 1,439,625 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|-----------|--------|
| Pre-operating                costs deferred                                                                                                                                    |   |   | (1,066    | )      |   |   | -       |   |   |   | (4,145  | )      |   |   | -          |   |   |   | (5,211    | )      |
| Goodwill                adjustment related to retroactive equity accounting of WIC upon regulatory                approval                                                     |   |   | 38,503    |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 38,503    |   |
| Goodwill                adjustment related to programming costs incurred                                                                                                       |   |   | (32,700   | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (32,700   | )      |
| Goodwill                adjustment related to integration costs                                                                                                                |   |   | -         |   |   |   | -       |   |   |   | (1,663  | )      |   |   | -          |   |   |   | (1,663    | )      |
| Historical                amortization of goodwill related to future programming costs imposed                by                regulatory requirement on business combination |   |   | 938       |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 938       |   |
| Costs                to develop intangible assets expensed                                                                                                                     |   |   | -         |   |   |   | -       |   |   |   | (3,531  | )      |   |   | -          |   |   |   | (3,531    | )      |
| Pension                valuation allowance                                                                                                                                     |   |   | 460       |   |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | 460       |   |
| Goodwill                adjustment related to resolution of acquired tax                contingencies                                                                          |   |   | (7,000    | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (7,000    | )      |
| Goodwill                adjustment related to future income taxes                                                                                                              |   |   | 117,597   |   |   |   | -       |   |   |   | 42,903  |   |   |   | -          |   |   |   | 160,500   |   |
| Loss                on interest rate and cross-currency swaps                                                                                                                  |   |   | (78,921   | )      |   |   | -       |   |   |   | (4,060  | )      |   |   | -          |   |   |   | (82,981   | )      |
| Transition                adjustment on interest rate swaps                                                                                                                    |   |   | (2,074    | )      |   |   | -       |   |   |   | -       |   |   |   | -          |   |   |   | (2,074    | )      |
| Pension                and post-retirement liabilities                                                                                                                         |   |   | (7,829    | )      |   |   | -       |   |   |   | (36,763 | )      |   |   | -          |   |   |   | (44,592   | )      |
| Minority                interests effect of adjustments                                                                                                                        |   |   | -         |   |   |   | -       |   |   |   | (9,080  | )      |   |   | -          |   |   |   | (9,080    | )      |
| Tax                effect of adjustments and tax rate changes                                                                                                                  |   |   | 42,932    |   |   |   | -       |   |   |   | 16,132  |   |   |   | -          |   |   |   | 59,064    |   |
| Interest                in earnings (losses) of equity accounted affiliates                                                                                                    |   |   | (207      | )      |   |   | (4,861  | )      |   |   | -       |   |   |   | 5,068      |   |   |   | -         |   |
| Shareholder’s                equity in accordance with U.S. GAAP                                                                                                         |   |   | 1,510,258 |   |   |   | 799,348 |   |   |   | 750,431 |   |   |   | (1,549,779 | )      |   |   | 1,510,258 |   |

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Earnings**

**For      the Year Ended August 31, 2006**

|                                                                                                          |   | **CanWest                MediaWorks Inc. parent company** |     |   | **Guarantor                subsidiaries** |   |    | **Non-guarantor****subsidiaries****(Revised                note 15)** |   |   | **Elimination****Entries** |   |   | **Consolidated** |     |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------|----------|--------|-------------------------------------------|--------|---------|-----------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
| Revenue                                                                                                       |   |                                                      | 587,959  |   |                                      |   | 26,960  |                                                                  |   |   | 2,070,894                  |   |   |             | -        |   |   |   | 2,685,813 |   |
| Operating                expenses                                                                             |   |                                                      | 383,216  |   |                                      |   | 36,437  |                                                                  |   |   | 1,044,463                  |   |   |             | -        |   |   |   | 1,464,116 |   |
| Selling,                general and administrative expenses                                                   |   |                                                      | 209,537  |   |                                      |   | 967     |                                                                  |   |   | 551,773                    |   |   |             |     |   |   |   | 762,277 |   |
|                                                                                                          |   |                                                      | (4,794   | )      |                                      |   | (10,444 | )                                                                     |   |   | 474,658                    |   |   |             | -        |   |   |   | 459,420 |   |
| Amortization                of intangibles                                                                    |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | 10,947                     |   |   |             | -        |   |   |   | 10,947 |   |
| Amortization                of property, plant and equipment                                                  |   |                                                      | 22,192   |   |                                      |   | 572     |                                                                  |   |   | 63,482                     |   |   |             | -        |   |   |   | 86,246 |   |
| Other                amortization                                                                             |   |                                                      | 3,524    |   |                                      |   | -       |                                                                  |   |   | 3,859                      |   |   |             | -        |   |   |   | 7,383 |   |
| Operating                income                                                                               |   |                                                      | (30,510  | )      |                                      |   | (11,016 | )                                                                     |   |   | 396,370                    |   |   |             | -        |   |   |   | 354,844 |   |
| Interest                expense                                                                               |   |                                                      | (114,245 | )      |                                      |   | 23      |                                                                  |   |   | (107,937                   | )      |   |             | 38,952   |   |   |   | (183,207 | ) |
| Interest                income                                                                                |   |                                                      | 33,107   |   |                                      |   | 6,695   |                                                                  |   |   | 1,517                      |   |   |             | (38,952  | ) |   |   | 2,367 |   |
| Amortization                of deferred financing costs                                                       |   |                                                      | (4,738   | )      |                                      |   | -       |                                                                  |   |   | (1,756                     | )      |   |             | -        |   |   |   | (6,494 | ) |
| Interest                rate and foreign currency swap losses                                                 |   |                                                      | (143,528 | )      |                                      |   | -       |                                                                  |   |   | 4,889                      |   |   |             | -        |   |   |   | (138,639 | ) |
| Foreign                exchange gains                                                                         |   |                                                      | 164      |   |                                      |   | (8,101  | )                                                                     |   |   | (4                         | )      |   |             | -        |   |   |   | (7,941 | ) |
| Loan                recovery                                                                                  |   |                                                      | 8,888    |   |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 8,888 |   |
| Investment                gains, losses andwrite-downs                                                        |   |                                                      | 102,086  |   |                                      |   | 64      |                                                                  |   |   | 340                        |   |   |             | -        |   |   |   | 102,490 |   |
| Loss                on debt extinguishment                                                                    |   |                                                      | (117,401 | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (117,401 | ) |
|                                                                                                          |   |                                                      | (266,177 | )      |                                      |   | (12,335 | )                                                                     |   |   | 293,419                    |   |   |             | -        |   |   |   | 14,907 |   |
| Provision                for (recovery of) income taxes                                                       |   |                                                      | (115,011 | )      |                                      |   | 429     |                                                                  |   |   | 26,159                     |   |   |             | -        |   |   |   | (88,423 | ) |
| Earnings                (loss) before the following                                                           |   |                                                      | (151,166 | )      |                                      |   | (12,764 | )                                                                     |   |   | 267,260                    |   |   |             | -        |   |   |   | 103,330 |   |
| Minority                interests                                                                             |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | (95,998                    | )      |   |             | -        |   |   |   | (95,998 | ) |
| Interest                in earnings of equity accounted affiliates                                            |   |                                                      | 313,558  |   |                                      |   | 92,548  |                                                                  |   |   | 2,612                      |   |   |             | (406,106 | ) |   |   | 2,612 |   |
| Realized                currency translation adjustments                                                      |   |                                                      | -        |   |                                      |   | (6,883  | )                                                                     |   |   | -                          |   |   |             | -        |   |   |   | (6,883 | ) |
| Net                earnings from continuing operations                                                        |   |                                                      | 162,392  |   |                                      |   | 72,901  |                                                                  |   |   | 173,874                    |   |   |             | (406,106 | ) |   |   | 3,061 |   |
| Gain                on sale of discontinued operations                                                        |   |                                                      | 29,061   |   |                                      |   | 138,630 |                                                                  |   |   | (4,144                     | )      |   |             | -        |   |   |   | 163,547 |   |
| Earnings                (losses) from discontinued operations                                                 |   |                                                      | (1,257   | )      |                                      |   | -       |                                                                  |   |   | 24,845                     |   |   |             | -        |   |   |   | 23,588 |   |
| Net                earnings  from discontinued operations                                           |   |                                                      | 27,804   |   |                                      |   | 138,630 |                                                                  |   |   | 20,701                     |   |   |             | -        |   |   |   | 187,135 |   |
| Net                earnings (loss) for the year                                                               |   |                                                      | 190,196  |   |                                      |   | 211,531 |                                                                  |   |   | 194,575                    |   |   |             | (406,106 | ) |   |   | 190,196 |   |
| Retained                earnings – beginning of year                                                    |   |                                                      | 694,009  |   |                                      |   | 268,373 |                                                                  |   |   | (114,538                   | )      |   |             | (153,835 | ) |   |   | 694,009 |   |
| Transfer                of net asset to CanWest MediaWorks Inc.                                               |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | 7,555                      |   |   |             | (7,555   | ) |   |   | - |   |
| Dividends                                                                                                     |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | (146,931                   | )      |   |             | 146,931  |   |   | ___- |   |
| Retained                earnings – end of year                                                          |   |                                                      | 884,205  |   |                                      |   | 479,904 |                                                                  |   |   | (59,339                    | )      |   |             | (420,565 | ) |   |   | 884,205 |   |
|                                                                                                          |   |                                                      |     |   |                                      |   |    |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Net                earnings (loss) in accordance with Canadian GAAP from continuing                operations |   |                                                      | 162,392  |   |                                      |   | 72,901  |                                                                  |   |   | 173,874                    |   |   |             | (406,106 | ) |   |   | 3,061 |   |
| Pre-operating                costs deferred                                                                   |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | (1,883                     | )      |   |             | -        |   |   |   | (1,883 | ) |
| Pre-operating                costs written off                                                                |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | 2,025                      |   |   |             | -        |   |   |   | 2,025 |   |
| Amortization                of pre-operating costs                                                            |   |                                                      | 427      |   |                                      |   | -       |                                                                  |   |   | 1,989                      |   |   |             | -        |   |   |   | 2,416 |   |
| Realization                of currency translation adjustments                                                |   |                                                      | -        |   |                                      |   | 6,511   |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 6,511 |   |
| Programming                costs imposed by regulatory requirement                                            |   |                                                      | (7,558   | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (7,558 | ) |
| Costs                to develop intangible assets expensed                                                    |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | (1,206                     | )      |   |             |     |   |   |   | (1,206 | ) |
| Pension                valuation allowances                                                                   |   |                                                      | (112     | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (112 | ) |
| Gain                (loss) on interest rate and cross currency swaps                                          |   |                                                      | (20,370  | )      |                                      |   | -       |                                                                  |   |   | 599                        |   |   |             | -        |   |   |   | (19,771 | ) |
| Adjustment                of dilution gain on Limited Partnership                                             |   |                                                      | (10,209  | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (10,209 | ) |
| Minority                interests effect of adjustments                                                       |   |                                                      | -        |   |                                      |   | -       |                                                                  |   |   | (264                       | )      |   |             | -        |   |   |   | (264 | ) |
| Tax                effect of adjustments and tax rate changes                                                 |   |                                                      | 10,084   |   |                                      |   | -       |                                                                  |   |   | (982                       | )      |   |             | -        |   |   |   | 9,102 |   |
| Interest                in earnings (losses) of equity accounted affiliates                                   |   |                                                      | 6,789    |   |                                      |   | (2,993  | )                                                                     |   |   | -                          |   |   |             | (3,796   | ) |   |   | - |   |
| Net                earnings (loss) from continuing operations in accordance with U.S.                GAAP     |   |                                                      | 141,443  |   |                                      |   | 76,419  |                                                                  |   |   | 174,152                    |   |   |             | (409,902 | ) |   |   | (17,888 | ) |
| Net                earnings from discontinued operations                                                      |   |                                                      | 27,804   |   |                                      |   | 138,630 |                                                                  |   |   | 20,701                     |   |   |             | -        |   |   |   | 187,135 |   |
| Net                earnings (loss) in accordance with U.S. GAAP                                               |   |                                                      | 169,247  |   |                                      |   | 215,049 |                                                                  |   |   | 194,853                    |   |   |             | (409,902 | ) |   |   | 169,247 |   |

----

**ANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Cash Flows**

**For      the Year Ended August 31, 2006**

|                                                                                                              |   | **CanWest                MediaWorks Inc.****parent                company** |       |   | **Guarantor                subsidiaries** |   |     | **Non-guarantor****subsidiaries****(Revised                note 15)** |   |   | **Elimination****entries** |   |   | **Consolidated** |     |
|-------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|------------|--------|-------------------------------------------|--------|----------|-----------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
| **CASH                GENERATED (UTILIZED) BY:**                                                                  |   |                                                                        |       |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |
| **Operating                activities**Net                earnings (loss) for the year                            |   |                                                                        | 190,196    |   |                                      |   | 211,531  |                                                                  |   |   | 194,575                    |   |   |             | (406,106 | ) |   |   | 190,196 |   |
| Net                earnings from discontinued operations                                                          |   |                                                                        | (27,804    | )      |                                      |   | (138,630 | )                                                                     |   |   | (20,701                    | )      |   |             | -        |   |   |   | (187,135 | ) |
| Items                not affecting cashAmortization                                                               |   |                                                                        | 30,454     |   |                                      |   | 572      |                                                                  |   |   | 80,044                     |   |   |             | -        |   |   |   | 111,070 |   |
| Non-cash                interest                                                                                  |   |                                                                        | (1,503     | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (1,503 | ) |
| Future                income                taxes                                                                 |   |                                                                        | (100,204   | )      |                                      |   | (1,505   | )                                                                     |   |   | (17,657                    | )      |   |             | -        |   |   |   | (119,366 | ) |
| Realized                currency                translationadjustments                                            |   |                                                                        | -          |   |                                      |   | 6,883    |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 6,883 |   |
| Loan                impairment                recovery                                                            |   |                                                                        | (8,888     | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (8,888 | ) |
| Interest                rate and foreign                currency swap (gains) losses net of settlements           |   |                                                                        | 39,679     |   |                                      |   | -        |                                                                  |   |   | (4,889                     | )      |   |             | -        |   |   |   | 34,790 |   |
| Investment                gains, losses                andwrite-downs                                             |   |                                                                        | (102,086   | )      |                                      |   | (64      | )                                                                     |   |   | (340                       | )      |   |             | -        |   |   |   | (102,490 | ) |
| Loss                on debt                extinguishment                                                         |   |                                                                        | 117,401    |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 117,401 |   |
| Pension                expense                                                                                    |   |                                                                        | 2,169      |   |                                      |   | -        |                                                                  |   |   | 6,167                      |   |   |             | -        |   |   |   | 8,336 |   |
| Minority                interests                                                                                 |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | 95,998                     |   |   |             | -        |   |   |   | 95,998 |   |
| Earnings                of equity accounted                affiliates                                             |   |                                                                        | (313,558   | )      |                                      |   | (92,548  | )                                                                     |   |   | (2,612                     | )      |   |             | 406,106  |   |   |   | (2,612 | ) |
| Foreign                exchange losses                (gains)                                                     |   |                                                                        | (969       | )      |                                      |   | 7,619    |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 6,650 |   |
| Stock                compensation                expense                                                          |   |                                                                        | 2,240      |   |                                      |   | -        |                                                                  |   |   | 959                        |   |   |             | -        |   |   |   | 3,199 |   |
| Distributions                equity affiliates                                                                    |   |                                                                        | 168,009    |   |                                      |   | 92,784   |                                                                  |   |   | -                          |   |   |             | (260,793 | ) |   |   | - |   |
| Changes                in non-cash operatingaccounts                                                              |   |                                                                        | (207,447   | )      |                                      |   | 58,191   |                                                                  |   |   | 53,589                     |   |   |             | -        |   |   | ___(95,667) |   |
| Cash                flows from operating activities of continuing operations                                      |   |                                                                        | (212,311   | )      |                                      |   | 144,833  |                                                                  |   |   | 385,133                    |   |   |             | (260,793 | ) |   |   | 56,862 |   |
| Cash                flows from operating activities of discontinued operations                                    |   |                                                                        | (794       | )      |                                      |   | -        |                                                                  |   |   | 39,409                     |   |   |             | -        |   |   |   | 38,615 |   |
| Cash                flows from operating activities                                                               |   |                                                                        | (213,105   | )      |                                      |   | 144,833  |                                                                  |   |   | 424,542                    |   |   |             | (260,793 | ) |   |   | 95,477 |   |
| **Investing                Activities**                                                                           |   |                                                                        |       |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Other                investments                                                                                  |   |                                                                        | (2,736     | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (2,736 | ) |
| Investment                in broadcast licences                                                                   |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (667                       | )      |   |             | -        |   |   |   | (667 | ) |
| Acquisitions                                                                                                      |   |                                                                        | -          |   |                                      |   | (73,591  | )                                                                     |   |   | (12,487                    | )      |   |             | -        |   |   |   | (86,078 | ) |
| Proceeds                from sales of discontinued operations                                                     |   |                                                                        | 35,322     |   |                                      |   | 143,442  |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 178,764 |   |
| Proceeds                from sales of other investments                                                           |   |                                                                        | 9,300      |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 9,300 |   |
| Proceeds                from issuance of partnership units                                                        |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | 514,856                    |   |   |             | -        |   |   |   | 514,856 |   |
| Proceeds                from sale of property, plantand                equipment                                  |   |                                                                        | 594        |   |                                      |   | -        |                                                                  |   |   | 1,369                      |   |   |             | -        |   |   |   | 1,963 |   |
| Purchase                of property, plant andequipment                                                           |   |                                                                        | (36,725    | )      |                                      |   | -        |                                                                  |   |   | (42,800                    | )      |   |             | -        |   |   |   | (79,525 | ) |
| Proceeds                from (advances to) parent andaffiliated companies                                         |   |                                                                        | 1,462,178  |   |                                      |   | (92,784  | )                                                                     |   |   | (1,331,588                 | )      |   |             | -        |   |   |   | 37,806 |   |
| Investing                activities from discontinued operations                                                  |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (13,089                    | )      |   |             | -        |   |   |   | (13,089 | ) |
|                                                                                                              |   |                                                                        | 1,467,933  |   |                                      |   | (22,933  | )                                                                     |   |   | (884,406                   | )      |   |             | -        |   |   |   | 560,594 |   |
| **Financing                Activities**                                                                           |   |                                                                        |       |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Issuance                of long term debt, net of financing costs                                                 |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | 943,557                    |   |   |             | -        |   |   |   | 943,557 |   |
| Repayment                of long term debt                                                                        |   |                                                                        | (1,387,049 | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (1,387,049 | ) |
| Advances                (repayments) of revolvingFacilities,                net of financing                costs |   |                                                                        | 600,125    |   |                                      |   | -        |                                                                  |   |   | (11,208                    | )      |   |             | -        |   |   |   | 588,917 |   |
| Settlement                of swap liabilities                                                                     |   |                                                                        | (354,205   | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (354,205 | ) |
| Swap                recouponing payments                                                                          |   |                                                                        | (48,726    | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (48,726 | ) |
| Payments                of capital leases                                                                         |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (1,199                     | )      |   |             | -        |   |   |   | (1,199 | ) |
| Issuance                of share capital to minority interests                                                    |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | 498                        |   |   |             | -        |   |   |   | 498 |   |
| Distributions                paid                                                                                 |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (260,793                   | )      |   |             | 260,793  |   |   |   | - |   |
| Payment                of distributions to minorityinterest                                                       |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (114,744                   | )      |   |             | -        |   |   |   | (114,744 | ) |
| Financing                activities from discontinued operations                                                  |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (13,691                    | )      |   |             | -        |   |   |   | (13,691 | ) |
|                                                                                                              |   |                                                                        | (1,189,855 | )      |                                      |   | -        |                                                                  |   |   | 542,420                    |   |   |             | 260,793  |   |   |   | (386,642 | ) |
| Foreign                exchange loss on cashdenominated                in foreign                currencies       |   |                                                                        | -          |   |                                      |   | -        |                                                                  |   |   | (1,331                     | )      |   |             | -        |   |   |   | (1,331 | ) |
| **Net                change in cash**                                                                             |   |                                                                        | 64,973     |   |                                      |   | 121,900  |                                                                  |   |   | 81,225                     |   |   |             | -        |   |   |   | 268,098 |   |
| **Cash                — beginning of year**                                                                 |   |                                                                        | (266       | )      |                                      |   | 254      |                                                                  |   |   | 15,288                     |   |   |             | -        |   |   | ___        15,276 |   |

| **Cash                  — end of year** |   |   | 64,707 |   |   |   | 122,154 |   |   |   | 96,513 |   |   |   | - |   |   |   | 283,374 |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---|--------|--------|--------|---------|--------|

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Earnings**

**For      the Year Ended August 31, 2005**

|                                                                                                          |   | **CanWest                MediaWorks Inc.****parent                company** |     |   | **Guarantor                subsidiaries** |   |    | **Non-guarantor****subsidiaries****(Revised                note 15)** |   |   | **Elimination****entries** |   |   | **Consolidated** |     |
|---------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|----------|--------|-------------------------------------------|--------|---------|-----------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
|                                                                                                          |   |                                                                        |     |   |                                      |   |    |                                                                  |   |   |                       |   |   |             |     |
|                                                                                                          |   |                                                                        |     |   |                                      |   |    |                                                                  |   |   |                       |   |   |             |     |
| Revenue                                                                                                       |   |                                                                        | 631,110  |   |                                      |   | 23,224  |                                                                  |   |   | 2,161,728                  |   |   |             | -        |   |   |   | 2,816,062 |   |
| Operating                expenses                                                                             |   |                                                                        | 355,826  |   |                                      |   | 18,735  |                                                                  |   |   | 1,059,236                  |   |   |             | -        |   |   |   | 1,433,797 |   |
| Selling,                general and administrative expenses                                                   |   |                                                                        | 193,851  |   |                                      |   | 787     |                                                                  |   |   | 521,691                    |   |   |             | -        |   |   |   | 716,329 |   |
| Ravelston                management contract termination fee                                                  |   |                                                                        | -        |   |                                      |   |    |                                                                  |   |   | 12,750                     |   |   |             | -        |   |   |   | 12,750 |   |
|                                                                                                          |   |                                                                        | 81,433   |   |                                      |   | 3,702   |                                                                  |   |   | 568,051                    |   |   |             | -        |   |   |   | 653,186 |   |
| Amortization                of intangibles                                                                    |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | 18,418                     |   |   |             | -        |   |   |   | 18,418 |   |
| Amortization                of property, plant and equipment                                                  |   |                                                                        | 27,311   |   |                                      |   | 790     |                                                                  |   |   | 54,696                     |   |   |             | -        |   |   |   | 82,797 |   |
| Other                amortization                                                                             |   |                                                                        | 3,661    |   |                                      |   | -       |                                                                  |   |   | 1,536                      |   |   |             | -        |   |   |   | 5,197 |   |
| Operating                income                                                                               |   |                                                                        | 50,461   |   |                                      |   | 2,912   |                                                                  |   |   | 493,401                    |   |   |             | -        |   |   |   | 546,776 |   |
| Interest                expense                                                                               |   |                                                                        | (211,293 | )      |                                      |   | (299    | )                                                                     |   |   | (197,436                   | )      |   |             | 169,909  |   |   |   | (239,119 | ) |
| Interest                income                                                                                |   |                                                                        | 169,309  |   |                                      |   | 2,485   |                                                                  |   |   | 1,538                      |   |   |             | (169,909 | ) |   |   | 3,423 |   |
| Amortization                of deferred financing costs                                                       |   |                                                                        | (12,387  | )      |                                      |   | -       |                                                                  |   |   | (321                       | )      |   |             | -        |   |   |   | (12,708 | ) |
| Interest                rate and foreign currency swap losses                                                 |   |                                                                        | (118,662 | )      |                                      |   | -       |                                                                  |   |   | (2,402                     | )      |   |             | -        |   |   |   | (121,064 | ) |
| Foreign                exchange gains                                                                         |   |                                                                        | 3,549    |   |                                      |   | (3,135  | )                                                                     |   |   | (1,422                     | )      |   |             | -        |   |   |   | (1,008 | ) |
| Loan                impairment                                                                                |   |                                                                        | (11,390  | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (11,390 | ) |
| Investment                gains, losses andwrite-downs                                                        |   |                                                                        | 200      |   |                                      |   | (45     | )                                                                     |   |   | 1,372                      |   |   |             | -        |   |   |   | 1,527 |   |
| Goodwill                impairment                                                                            |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | (41,406                    | )      |   |             | -        |   |   |   | (41,406 | ) |
| Intangible                asset impairment                                                                    |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | (9,629                     | )      |   |             | -        |   |   |   | (9,629 | ) |
| Loss                on debt extinguishment                                                                    |   |                                                                        | (43,992  | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (43,992 | ) |
|                                                                                                          |   |                                                                        | (174,205 | )      |                                      |   | 1,918   |                                                                  |   |   | 243,695                    |   |   |             | -        |   |   |   | 71,408 |   |
| Provision                for (recovery of) income taxes                                                       |   |                                                                        | (69,126  | )      |                                      |   | 1,949   |                                                                  |   |   | 77,057                     |   |   |             | -        |   |   |   | 9,880 |   |
| Earnings                (loss) before the following                                                           |   |                                                                        | (105,079 | )      |                                      |   | (31     | )                                                                     |   |   | 166,638                    |   |   |             | -        |   |   |   | 61,528 |   |
| Minority                interests                                                                             |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | (89,365                    | )      |   |             | -        |   |   |   | (89,365 | ) |
| Interest                in earnings of equity accounted affiliates                                            |   |                                                                        | 111,168  |   |                                      |   | 147,240 |                                                                  |   |   | 2,043                      |   |   |             | (258,408 | ) |   |   | 2,043 |   |
| Realized                currency translation adjustments                                                      |   |                                                                        | -        |   |                                      |   | 622     |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 622 |   |
| Net                earnings (loss)  from continuing operations                                      |   |                                                                        | 6,089    |   |                                      |   | 147,831 |                                                                  |   |   | 79,316                     |   |   |             | (258,408 | ) |   |   | (25,172 | ) |
| Net                earnings (loss) from discontinued operations                                               |   |                                                                        | (1,299   | )      |                                      |   | -       |                                                                  |   |   | 31,261                     |   |   |             | -        |   |   |   | 29,962 |   |
| Net                earnings for the year                                                                      |   |                                                                        | 4,790    |   |                                      |   | 147,831 |                                                                  |   |   | 110,577                    |   |   |             | (258,408 | ) |   |   | 4,790 |   |
| Retained                earnings – beginning of year                                                    |   |                                                                        | 689,219  |   |                                      |   | 120,542 |                                                                  |   |   | (110,922                   | )      |   |             | (9,620   | ) |   |   | 689,219 |   |
| Dividends                                                                                                     |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | (114,187                   | )      |   |             | 114,187  |   |   |   | - |   |
| Retained                earnings – end of year                                                          |   |                                                                        | 694,009  |   |                                      |   | 268,373 |                                                                  |   |   | (114,532                   | )      |   |             | (153,841 | ) |   |   | 694,009 |   |
|                                                                                                          |   |                                                                        |     |   |                                      |   |    |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Net                earnings (loss) in accordance with Canadian GAAP from continuing                operations |   |                                                                        | 6,089    |   |                                      |   | 147,831 |                                                                  |   |   | 79,316                     |   |   |             | (258,408 | ) |   |   | (25,172 | ) |
| Pre-operating                costs deferred                                                                   |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | (3,568                     | )      |   |             | -        |   |   |   | (3,568 | ) |
| Amortization                of pre-operating costs                                                            |   |                                                                        | 396      |   |                                      |   | -       |                                                                  |   |   | 1,901                      |   |   |             | -        |   |   |   | 2,297 |   |
| Realization                of currency translation adjustments                                                |   |                                                                        | -        |   |                                      |   | (622    | )                                                                     |   |   | -                          |   |   |             | -        |   |   |   | (622 | ) |
| Programming                costs imposed by regulatory requirement                                            |   |                                                                        | (6,463   | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (6,463 | ) |
| Pension                valuation allowances                                                                   |   |                                                                        | (150     | )      |                                      |   | -       |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (150 | ) |
| Gain                (loss) on interest rate and cross currency swaps                                          |   |                                                                        | 5,774    |   |                                      |   | -       |                                                                  |   |   | (2,459                     | )      |   |             | -        |   |   |   | 3,315 |   |
| Minority                interests effect of adjustments                                                       |   |                                                                        | -        |   |                                      |   | -       |                                                                  |   |   | 809                        |   |   |             | -        |   |   |   | 809 |   |
| Tax                effect of adjustments and tax rate changes                                                 |   |                                                                        | (14,608  | )      |                                      |   | -       |                                                                  |   |   | 1,200                      |   |   |             | -        |   |   |   | (13,408 | ) |
| Interest                in earnings (losses) of equity accounted affiliates                                   |   |                                                                        | (2,739   | )      |                                      |   | (1,044  | )                                                                     |   |   | -                          |   |   |             | 3,783    |   |   |   | - |   |
| Net                earnings (loss) from continuing operations in accordance with U.S.                GAAP     |   |                                                                        | (11,701  | )      |                                      |   | 146,165 |                                                                  |   |   | 77,199                     |   |   |             | (254,625 | ) |   |   | (42,962 | ) |
| Earnings                (loss) from discontinued operations                                                   |   |                                                                        | (1,299   | )      |                                      |   | -       |                                                                  |   |   | 31,261                     |   |   |             | -        |   |   |   | 29,962 |   |
| Net                earnings (loss) in accordance with U.S. GAAP                                               |   |                                                                        | (13,000  | )      |                                      |   | 146,165 |                                                                  |   |   | 108,460                    |   |   |             | (254,625 | ) |   |   | (13,000 | ) |

----

**CANWEST      MEDIAWORKS INC.**

**Supplemental      Consolidating Statement of Cash Flows**

**For      the Year Ended August 31, 2005**

|                                                                                                                         |   | **CanWest                MediaWorks Inc.****parent                company** |     |   | **Guarantor                subsidiaries** |   |     | **Non-guarantor****subsidiaries****(Revised                note 15)** |   |   | **Elimination****entries** |   |   | **Consolidated** |     |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|----------|--------|-------------------------------------------|--------|----------|-----------------------------------------------------------------------|--------|--------|----------------------------|--------|--------|------------------|----------|
| **CASH                GENERATED (UTILIZED) BY:**                                                                             |   |                                                                        |     |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |
| **Operating                activities**Net                earnings (loss) for the year                                       |   |                                                                        | 4,790    |   |                                      |   | 147,831  |                                                                  |   |   | 110,577                    |   |   |             | (258,408 | ) |   |   | 4,790 |   |
| Net                (earnings) loss from discontinued operations                                                              |   |                                                                        | 1,299    |   |                                      |   | -        |                                                                  |   |   | (31,261                    | )      |   |             | -        |   |   |   | (29,962 | ) |
| Items                not affecting cashAmortization                                                                          |   |                                                                        | 43,359   |   |                                      |   | 790      |                                                                  |   |   | 74,971                     |   |   |             | -        |   |   |   | 119,120 |   |
| Non-cash                interest                                                                                             |   |                                                                        | 32,021   |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 32,021 |   |
| Future                income                taxes                                                                            |   |                                                                        | (65,838  | )      |                                      |   | 570      |                                                                  |   |   | (5,962                     | )      |   |             | -        |   |   |   | (71,230 | ) |
| Realized                currency                translationadjustments                                                       |   |                                                                        | -        |   |                                      |   | (622     | )                                                                     |   |   | -                          |   |   |             | -        |   |   |   | (622 | ) |
| Loan                impairment                                                                                               |   |                                                                        | 11,390   |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 11,390 |   |
| Interest                rate and foreign                currencyswap                losses net of                settlements |   |                                                                        | 102,964  |   |                                      |   | -        |                                                                  |   |   | 2,402                      |   |   |             | -        |   |   |   | 105,366 |   |
| Investment                gains, losses                andwrite-downs                                                        |   |                                                                        | (200     | )      |                                      |   | 45       |                                                                  |   |   | (1,372                     | )      |   |             | -        |   |   |   | (1,527 | ) |
| Loss                on debt                extinguishment                                                                    |   |                                                                        | 43,992   |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 43,992 |   |
| Goodwill                and intangible asset                impairment                                                       |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 51,035                     |   |   |             | -        |   |   |   | 51,035 |   |
| Amortization                and write-down of film and television programs                                                   |   |                                                                        | -        |   |                                      |   | 6,163    |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 6,163 |   |
| Pension                expense                                                                                               |   |                                                                        | 2,839    |   |                                      |   | -        |                                                                  |   |   | 5,415                      |   |   |             | -        |   |   |   | 8,254 |   |
| Minority                interests                                                                                            |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 89,365                     |   |   |             | -        |   |   |   | 89,365 |   |
| Earnings                of equity accounted                affiliates                                                        |   |                                                                        | (111,168 | )      |                                      |   | (147,240 | )                                                                     |   |   | (2,043                     | )      |   |             | 258,408  |   |   |   | (2,043 | ) |
| Foreign                exchange losses                (gains)                                                                |   |                                                                        | (5,571   | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (5,571 | ) |
| Stock                compensation                expense                                                                     |   |                                                                        | 2,135    |   |                                      |   | -        |                                                                  |   |   | 938                        |   |   |             | -        |   |   |   | 3,073 |   |
| Distributions                equity affiliates                                                                               |   |                                                                        | 10,416   |   |                                      |   | 103,771  |                                                                  |   |   | -                          |   |   |             | (114,187 | ) |   |   | - |   |
| Changes                in non-cash operatingaccounts                                                                         |   |                                                                        | 200,919  |   |                                      |   | (8,470   | )                                                                     |   |   | (103,188                   | )      |   |             | -        |   |   | ___        89,261 |   |
| Cash                flows from operating activities of continuing operations                                                 |   |                                                                        | 273,347  |   |                                      |   | 102,838  |                                                                  |   |   | 190,877                    |   |   |             | (114,187 | ) |   |   | 452,875 |   |
| Cash                flows from operating activities of discontinued operations                                               |   |                                                                        | 102      |   |                                      |   | -        |                                                                  |   |   | 39,982                     |   |   |             | -        |   |   |   | 40,084 |   |
| Cash                flows from operating activities                                                                          |   |                                                                        | 273,449  |   |                                      |   | 102,838  |                                                                  |   |   | 230,859                    |   |   |             | (114,187 | ) |   |   | 492,959 |   |
|                                                                                                                         |   |                                                                        |     |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| **Investing                Activities**                                                                                      |   |                                                                        |     |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Other                investments                                                                                             |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 426                        |   |   |             | -        |   |   |   | 426 |   |
| Acquisitions                                                                                                                 |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | (19,487                    | )      |   |             | -        |   |   |   | (19,487 | ) |
| Proceeds                from sales of otherinvestments                                                                       |   |                                                                        | 2,171    |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 2,171 |   |
| Proceeds                from sale of property, plantand                equipment                                             |   |                                                                        | 3,383    |   |                                      |   | -        |                                                                  |   |   | 1,652                      |   |   |             | -        |   |   |   | 5,035 |   |
| Purchase                of property, plant andequipment                                                                      |   |                                                                        | (49,823  | )      |                                      |   | -        |                                                                  |   |   | (37,866                    | )      |   |             | -        |   |   |   | (87,689 | ) |
| Proceeds                from parent and affiliated companies                                                                 |   |                                                                        | 137,953  |   |                                      |   | (103,771 | )                                                                     |   |   | -                          |   |   |             | -        |   |   |   | 34,182 |   |
| Investing                activities from discontinued operations                                                             |   |                                                                        | (102     | )      |                                      |   | -        |                                                                  |   |   | (13,582                    | )      |   |             | -        |   |   |   | (13,684 | ) |
|                                                                                                                         |   |                                                                        | 93,582   |   |                                      |   | (103,771 | )                                                                     |   |   | (68,857                    | )      |   |             | -        |   |   |   | (79,046 | ) |
| **Financing                Activities**                                                                                 |   |                                                                        |     |   |                                      |   |     |                                                                  |   |   |                       |   |   |             |     |   |   |   |   |   |
| Issuance                of long term debt, net of financing costs                                                            |   |                                                                        | 142,454  |   |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | 142,454 |   |
| Repayment                of long term debt                                                                                   |   |                                                                        | (493,203 | )      |                                      |   | -        |                                                                  |   |   | 1,397                      |   |   |             | -        |   |   |   | (491,806 | ) |
| Advances                (repayments) of revolvingFacilities,                net of financing                costs            |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 4,640                      |   |   |             | -        |   |   |   | 4,640 |   |
| Swap                recouponing payments                                                                                     |   |                                                                        | (41,653  | )      |                                      |   | -        |                                                                  |   |   | -                          |   |   |             | -        |   |   |   | (41,653 | ) |
| Payments                of capital leases                                                                                    |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | (1,100                     | )      |   |             | -        |   |   |   | (1,100 | ) |
| Issuance                of share capital to minority interests                                                               |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 5,369                      |   |   |             | -        |   |   |   | 5,369 |   |
| Distributions                paid                                                                                            |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | (114,187                   | )      |   |             | 114,187  |   |   |   | - |   |
| Payment                of distributions to minorityinterests                                                                 |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | (82,403                    | )      |   |             | -        |   |   |   | (82,403 | ) |
| Financing                activities from discontinued operations                                                             |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | (21,034                    | )      |   |             | -        |   |   |   | (21,034 | ) |
|                                                                                                                         |   |                                                                        | (392,402 | )      |                                      |   | -        |                                                                  |   |   | (207,318                   | )      |   |             | 114,187  |   |   |   | (485,533 | ) |
| Foreign                exchange gain on cashdenominated                in foreign                currencies                  |   |                                                                        | -        |   |                                      |   | -        |                                                                  |   |   | 79                         |   |   |             | -        |   |   |   | 79 |   |
| **Net                change in cash**                                                                                        |   |                                                                        | (25,371  | )      |                                      |   | (933     | )                                                                     |   |   | (45,237                    | )      |   |             | -        |   |   |   | (71,541 | ) |
| **Cash                — beginning of year**                                                                            |   |                                                                        | 25,105   |   |                                      |   | 1,187    |                                                                  |   |   | 60,525                     |   |   |             | -        |   |   | __        86,817 |   |
| **Cash                — end of year**                                                                                  |   |                                                                        | (266     | )      |                                      |   | 254      |                                                                  |   |   | 15,288                     |   |   |             | -        |   |   |   | 15,276 |   |

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