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                                                                    EXHIBIT 99.1

                                 HOLLINGER INC.
                             PROVIDES STATUS UPDATE

         Toronto, Canada, October 1, 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.

         Hollinger and Hollinger International Inc. ("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 and its
auditors need time to review the final report of the investigation by the
Special Committee established by Hollinger International, which report was
released on August 30, 2004, and to assess its impact, if any, on the results of
operations of Hollinger International before it can complete and file its 2003
annual financial statements.

         As previously disclosed, on September 30, 2004, a majority in aggregate
principal amount of holders of Hollinger's outstanding 11.875% Senior Secured
Notes due 2011 (the "Senior Notes") waived any and all defaults or events of
default under, and non-compliance with certain covenants of, the indenture
governing the Senior Notes (the "Senior Indenture") relating to events occurring
on or prior to September 30, 2004. In addition, Hollinger received consents from
holders of a majority in aggregate principal amount of its Senior Notes
approving amendments to the Senior Indenture and the related security agreement
which, among other things, permit Hollinger to incur indebtedness in an
aggregate amount outstanding not to exceed US$15 million (and to grant a second
priority security interest in the collateral supporting the Senior Notes in
connection therewith) through the issuance of notes substantially similar to the
Senior Notes pursuant to an indenture substantially similar to the Senior
Indenture. As a result, on September 30, 2004, Hollinger completed a private
placement of US$15 million in aggregate principal amount of 11.875% Senior
Secured Notes due 2011 (the "Second Priority Notes").

         As of the close of business on September 30, 2004, Hollinger and its
subsidiaries (other than Hollinger International and its subsidiaries) had
approximately US$14.0 million of cash or cash equivalents on hand and Hollinger
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. The
increase in Hollinger's cash and cash equivalents on hand during the period
since its September 15, 2004 status update is substantially due to the receipt
by the company of the net proceeds of the private placement of the Second
Priority Notes. Based on the September 30, 2004 closing price of the shares of
Class A Common Stock of Hollinger International on the New York Stock Exchange
of US$17.29, the market value of Hollinger's direct and indirect holdings in
Hollinger International was US$272,880,462.40. 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
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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 Senior Notes and Second Priority Notes. In addition,
Hollinger has previously deposited with the trustee under the Senior Indenture
approximately US$10.5 million in cash as collateral in support of the Senior
Notes (which cash collateral is also now collateral in support of the Second
Priority Notes, subject to being applied to satisfy future interest payment
obligations on the outstanding Senior Notes as permitted by the recent
amendments to the Senior Indenture). Consequently, there is currently in excess
of US$269.6 million aggregate collateral securing the US$78 million principal
amount of the Senior Notes outstanding and the US$15 million principal amount of
the Second Priority Notes outstanding.

         As has been reported in the media, a loan made by Domgroup Ltd., a
wholly owned subsidiary of Hollinger, to The Ravelston Corporation Limited, in
the principal amount of Cdn$1.1 million has been repaid in full with interest.

         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