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                                                                    EXHIBIT 99.1


                                 HOLLINGER INC.
                             PROVIDES STATUS UPDATE

         Toronto, Canada, August 13, 2004 -- Hollinger Inc. ("Hollinger") (TSX:
HLG.C; HLG.PR.B) provides the following update in accordance with the guidelines
pursuant to which the June 1, 2004 management and insider cease trade order was
issued. These guidelines contemplate that Hollinger will normally provide
bi-weekly updates on its affairs until such time as it is current with its
filing obligations under applicable Canadian securities laws.

         As previously announced, Hollinger International Inc. ("Hollinger
International") has now indicated it is prepared in principle to co-operate with
and assist Hollinger and its auditors in the audit of Hollinger's 2003 annual
financial statements and to assist in obtaining the co-operation of Hollinger
International's auditors, and has set out a process for so doing. Hollinger and
Hollinger International continue to pursue, on a without prejudice basis, the
conclusion of mutually acceptable arrangements to permit the audit of
Hollinger's 2003 annual financial statements to begin as soon as possible.

         Hollinger's 2003 annual financial statements cannot be completed and
audited until Hollinger International's 2003 annual financial statements are
completed. Hollinger International has advised Hollinger that it believes that
it needs to review the final report of the Special Committee established by
Hollinger International before it can complete its 2003 annual financial
statements. Hollinger understands that the work of the Special Committee is
ongoing and its final report has not yet been issued.

         As a result of the delay in the completion and audit of its annual
financial statements for the year ended December 31, 2003, Hollinger will not be
in a position to file its second quarter interim financial statements (and
related interim Management's Discussion & Analysis) for the six month period
ended June 30, 2004 by the required filing date under applicable Canadian
securities laws.

         As previously announced, as a result of the delay in the filing of
Hollinger's 2003 Form 20-F (which would include its 2003 audited annual
financial statements) with the United States Securities and Exchange Commission
by June 30, 2004, Hollinger is not in compliance with its obligation to deliver
to relevant parties its filings under the indenture (the "Indenture") governing
its senior secured notes due 2011 (the "Notes"). US$78 million principal amount
of Notes are outstanding under the Indenture. On or about July 16, 2004,
Hollinger received a notice of default from the trustee under the Indenture
dated July 8, 2004 notifying Hollinger of its failure to file and deliver its
2003 Form 20-F in accordance with the terms of the Indenture and indicating that
if the default continued unremedied for a period 30 days after receipt of the
notice (being on or about August 15, 2004), an event of default would occur
under the Indenture.

         As a result of the delay in the completion and audit of its 2003 annual
financial statements, Hollinger will not be in a position to file and deliver
its 2003 Form 20-F by August 15, 2004. As a result, on that date, an event of
default will occur under the Indenture and the trustee under the Indenture or
the holders of at least 25 percent of the outstanding principal amount of the
Notes will then have the right to accelerate the maturity of the Notes.
Hollinger is

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actively exploring alternatives with a number of parties in connection with
modifying the terms of, or refinancing, the Notes in order that Hollinger's debt
obligations reflect the company's current circumstances and the improved
security available to noteholders since the original issue date in March 2003.

         Approximately US$5 million in interest on the Notes is due on September
1, 2004. Hollinger intends to make arrangements shortly to deposit the full
amount of such interest payment with the trustee under the Indenture in order
that noteholders receive their interest payment in a timely manner.

         As of the close of business on August 12, 2004, Hollinger had
approximately US$8.35 million of cash or cash equivalents on hand and owned,
directly or indirectly, 792,560 shares of Class A Common Stock and 14,990,000
shares of Class B Common Stock of Hollinger International. Based on the August
12, 2004 closing price of the shares of Class A Common Stock of Hollinger
International on the New York Stock Exchange of US$16.60, the market value of
Hollinger's direct and indirect holdings in Hollinger International was
US$261,990,496. All of Hollinger's direct and indirect interest in the shares of
Class A Common Stock of Hollinger International are being held in escrow with a
licensed trust company in support of future retractions of its Series II
Preference Shares and all of Hollinger's direct and indirect interest in the
shares of Class B Common Stock of Hollinger International are pledged as
security in connection with the Notes. In addition, Hollinger has previously
deposited with the trustee under the Indenture approximately US$10.5 million in
cash as collateral in support of the Notes. Consequently, there is currently in
excess of US$259 million aggregate collateral securing the US$78 million
principal amount of the Notes outstanding.

         As previously disclosed, on July 16, 2004, Hollinger and Conrad Black,
without prejudice to their respective appeals, paid an aggregate of
approximately US$30.0 million to Hollinger International in full satisfaction of
the monetary awards under the order and final judgment (the "Judgment") of the
Delaware Chancery Court requiring Hollinger and Conrad Black to repay certain
non-compete payments to Hollinger International. The Judgment ordered Hollinger
and Conrad Black to repay approximately US$21.3 million to Hollinger
International, inclusive of interest, in respect of certain non-compete payments
received by Hollinger (the "Hollinger Amount"). The Judgment also ordered Conrad
Black separately to repay approximately US$8.7 million to Hollinger
International, inclusive of interest, in respect of certain non-compete payments
received by Conrad Black. Hollinger directly paid approximately US$6 million of
the Hollinger Amount, while the remainder of approximately US$15.3 million was
advanced by Conrad Black on behalf of Hollinger. The structure and terms of such
advance, as between Conrad Black and Hollinger, are currently being reviewed and
negotiated between Conrad Black and the independent directors of Hollinger.

         Status of Selected Civil Proceedings

         The following is a brief update on certain civil proceedings currently
involving Hollinger:

         In connection with the amended complaint filed by Hollinger
International against Hollinger and others in Illinois (the "International
Action") claiming damages, including treble

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damages under applicable provisions of the Racketeer Influenced and Corrupt
Organizations Act ("RICO"), of US$1.25 billion, plus attorney fees, the
defendants have moved to dismiss those counts in the complaint which assert RICO
claims on the basis that such claims are a misuse of the RICO statute. A date
for the hearing of the motion has yet to be fixed.

         Separately, on August 11, 2004, the Ontario Superior Court denied the
request of The Ravelston Corporation Limited and Ravelston Management Inc. that
the jurisdiction of the International Action be moved from Illinois to Ontario.
In addition, the Court temporarily stayed the counterclaims of Hollinger,
Ravelston Corporation Limited and Ravelston Management Inc. against Hollinger
International for outstanding management fees and damages for oppression of
Hollinger and intentional interference with Hollinger's economic relations
pending resolution of the International Action.

         In December 2003, CanWest Global Communication Corp. and The National
Post Company brought an action in Ontario against Hollinger International,
Hollinger and others seeking approximately C$25.7 million in damages, plus
interest and costs, on account of agreements entered into in connection with the
sale of Hollinger International's interests in the National Post newspaper. On
August 4 and 5, 2004, the plaintiffs moved for partial summary judgment on their
claims. On August 13, 2004, Justice Dambrot issued his decision dismissing the
summary judgment motion as against Hollinger and granting partial summary
judgment as against Hollinger International.

         On June 8, 2004, an application to the Ontario Superior Court of
Justice was commenced by Catalyst Fund General Partner I Inc., a Hollinger
shareholder, seeking an order directing an investigation of related party
transactions involving Hollinger under the Canada Business Corporations Act.
Hollinger considers the application to be without merit and is vigorously
opposing it. The application will be heard on August 23 and 24, 2004.

         Hollinger's principal asset is its approximately 68.0% voting and 18.2%
equity interest in Hollinger International. Hollinger International is an
international newspaper publisher with English-language newspapers in the United
States and Israel. Its assets include the Chicago Sun-Times and a large number
of community newspapers in the Chicago area, The Jerusalem Post and The
International Jerusalem Post in Israel, a portfolio of new media investments and
a variety of other assets.


Media contact:
Jim Badenhausen
646-805-2006

                              www.hollingerinc.com


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