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                                 HOLLINGER INC.

         Toronto, Canada, October 27, 2004 -- Hollinger Inc. ("Hollinger") (TSX:
HLG.C; HLG.PR.B) announced today that, in response to a motion filed by
Hollinger International Inc. ("International") with the Delaware Chancery Court
requesting that the Court extend the expiration date of its June 28, 2004
injunction against Conrad (Lord) Black and Hollinger Inc. from October 31, 2004,
an agreement in principle has been reached by the parties to voluntarily extend
the injunction, which will now expire on the earlier of January 31, 2005 and the
date of the completion of any Distribution (as hereinafter defined).

         International has previously announced that it is considering
distributing to its stockholders a portion of the proceeds of the sale of the
Telegraph Group (the "Telegraph Group Proceeds"), through a dividend, a
self-tender offer or some other mechanism (a "Distribution"). The agreement
provides that, except as required by statute, regulation or court order (other
than an order sought or instigated by International), International will not
take any action to encumber, attach, set off, hold back or in any other way,
directly or indirectly, interfere with the amount of the Distribution payable to
any of Hollinger Inc., 504468 N.B. Inc., a subsidiary of Hollinger which holds
shares of International, or Lord Black, nor take any other action that would
prevent the amount of the Distribution otherwise payable to any of such parties
from being paid into bank accounts designated by such persons. In addition,
International has agreed that the decision regarding the use or distribution of
the Telegraph Group Proceeds will ultimately be determined by the full Board of
Directors of International, and not the Corporate Review Committee ("CRC") of
the International Board of Directors as originally proposed by International.

         International has also agreed to negotiate in good faith a co-operation
agreement with Hollinger which will facilitate the audit of Hollinger's 2003
annual financial statements.

         The agreement in principle is subject to the approval of the CRC of the
International Board of Directors.

         Hollinger further announced today that Mr. Justice Colin L. Campbell of
the Ontario Superior Court of Justice has appointed Ernst & Young Inc. ("E&Y")
as inspector pursuant to s. 229(1) of the Canada Business Corporations Act to
conduct an investigation of certain of the affairs of Hollinger, as requested by
Catalyst Fund General Partner I Inc., a shareholder of Hollinger, as a
consequence of Mr. Justice Campbell's reasons for decision released on September
15, 2004. Each of Hollinger and Catalyst consented to E&Y's appointment. A
preliminary report of E&Y is required to be delivered to the Court by November
25, 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