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Press Release


TORONTO, Ontario (October 22, 2002) -MDC Corporation Inc. of Toronto (TSE: MDZ.A; NASDAQ: MDCA) and Custom Direct Income Fund announced today that the Fund has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada in connection with a proposed initial public offering of units of the Fund.

The net proceeds of the offering together with proceeds from a new credit facility to be entered into concurrently with the closing will be used in connection with the acquisition of an approximate 80% interest in MDC’s U.S. based direct-to-customer cheque business, operated by Custom Direct, Inc. and affiliated companies. The offering is being underwritten by a syndicate led by CIBC World Markets Inc. and TD Securities Inc., and includes Scotia Capital Inc., Griffiths McBurney & Partners and National Bank Financial Inc.

MDC will retain a 20% subordinated interest in the business after the offering and has agreed not to sell its interest before December 31, 2003.

“MDC has developed Custom Direct from a modest platform and built it into one of the pre-eminent paper payment businesses in the United States,” said Miles Nadal, MDC’s President and Chief Executive Officer. “The crystalization of value through this high quality income fund represents another important step in MDC’s strategy to increase its financial flexibility and realize incremental value for our shareholders,” said Nadal.

About Custom Direct

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 with forecast sales and EBITDA for the year ending December 31, 2002 of approximately US$103 million and US$20 million respectively.

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, 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. MDC shares are traded on the Toronto Stock Exchange under the symbol MDZ.A and on NASDAQ National Market under the symbol MDCA.

Maxxcom, approximately 78% owned by 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. Maxxcom shares are traded on the Toronto Stock Exchange under the symbol MXX.