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Press Release

MDC Completes Sale of Additional Interest in Custom Direct Income Fund in an Underwritten Private Placement for Gross Proceeds

– Sale includes 2.964 million units at $10.00 for gross proceeds of $29.64 million. – Total Gross Proceeds to MDC from Initial Public Offering and Secondary Offering totals $208.1 million.

Date: July 31st, 2003

TORONTO, Ontario (July 31, 2003) -MDC Corporation Inc. (“MDC”) of Toronto announced today that it has completed the sale of an additional 2.964 million units of Custom Direct Income Fund (“Fund”) for gross proceeds of $29.64 million. The sale was completed by way of a private placement, which was fully underwritten by a syndicate led by CIBC World Markets Inc. and TD Securities Inc., which included Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc. and Griffiths McBurney & Partners.

The proceeds from the private placement, together with amounts received in connection with the initial public offering of the Fund, result in MDC having realized gross cash proceeds of approximately $208.1 million (before commissions and expenses) from the sale of its 80% interest in Custom Direct including the term loan portion of Custom Direct’s credit facility.

MDC continues to own a 20% subordinated interest in the business (which it has agreed not to sell until after December 31, 2003) exchangeable into approximately 3.9 million units of the Fund.

Proceeds received by MDC from this offering will be used for general corporate purposes.

About Custom Direct Income Fund

Custom Direct Income Fund indirectly holds an 80% interest in the Custom Direct business. Based in Maryland and Arkansas, Custom Direct has been selling cheques and cheque related accessories across the United States since 1992 and offers the industry’s widest selection of product designs. Custom Direct is the second largest participant in the direct-to-consumer segment of the U.S. cheque industry.

About MDC Corporation Inc. (“MDC”)

MDC is a publicly traded international business services organization with operating units in Canada, the United States, United Kingdom and Australia. MDC provides marketing communication services, through Maxxcom Inc., and offers security sensitive transaction products and services in four primary areas: personalized transaction products such as personal and business cheques; electronic transaction products such as credit, debit, telephone & smart cards; secure ticketing products, such as airline, transit and event tickets; and stamps, both postal and excise.

About Maxxcom Inc.

Maxxcom, a subsidiary of MDC, is a multi-national business services company with operating units in Canada, the United States and the United Kingdom. Maxxcom is built around entrepreneurial partner firms that provide a comprehensive range of communications services to clients in North America and the United Kingdom. Services include advertising, direct marketing, database management, sales promotion, corporate communications, marketing research, corporate identity and branding, and interactive marketing. Maxxcom Shares are traded on the Toronto Stock Exchange under the symbol MXX.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties which may cause the actual results or objectives to be materially different from those expressed or implied by such forward-looking statements. Such factors include, among other things, MDC’s financial performance; changes in the competitive environment; adverse changes in the economy; ability to maintain long-term relationships with customers; financing requirements and other factors set forth in the MDC’s Form 40-F for its fiscal year ended December 31, 2002 and subsequent SEC filings.