Cossette Responds to Cosmos Announcement and Updates on its Strategic Review Process

Cossette Responds to Cosmos Announcement and Updates on its Strategic Review
Process

KOS (TSX)

QUEBEC CITY, Oct. 29 /PRNewswire-FirstCall/ - Cossette Inc. today responded to
the press release of Cosmos Capital Inc. ("Cosmos") issued yesterday
announcing its intention to launch an unsolicited offer to acquire all of the
outstanding subordinate voting shares of Cossette for $5.25 in cash per share.
A price of $5.25 per Cossette share represents a discount of 9.5% to the
closing share price on October 28th.
Consistent with its obligations to maximize value to shareholders, Cossette's
Board of Directors will consider the offer, when launched. Shareholders will
be promptly notified of any recommendation by the Board of Directors through a
news release and circular in accordance with applicable securities laws.
Cossette's Board of Directors remains committed to delivering value for
shareholders and believes that the strategic review process initiated on July
20, 2009 in response to the unsolicited and non-binding proposal of Cosmos
clearly demonstrates this commitment.
Cossette recommends that its shareholders defer making any decision until its
Board of Directors has had an opportunity to fully review Cosmos' expected
offer, compare it to the results of its strategic review process and make a
formal recommendation as to the merits of that expected offer. All written
expressions of interest regarding a potential acquisition of Cossette that
were received by the Company during the first phase of its strategic review
process are financially superior to Cosmos' intended bid of $5.25 per share.

Update on Cossette's Strategic Review Process

Since the update by Cossette on October 16, the second phase of the strategic
review process with certain potential acquirers has progressed as expected.
Potential acquirers were given the opportunity to conduct further business,
financial and legal due diligence and attend management presentations. The
strategic review process is now at an advanced stage.
The Company cautions shareholders that there is no assurance that the Company
will receive a definitive proposal with respect to a potential acquisition as
a result of its strategic review process. Also, even if a definitive proposal
is received, there is no assurance that such proposal will be recommended by
the Special Committee or the Board of Directors or that such proposal will be
implemented.

Cossette Inc. offers a full range of leading-edge communication services to
clients of all sizes, including some of the most prestigious brands in the
world. A customer-driven organization built around highly specialized business
units, Cossette also offers Convergent Communications(TM), a unique working
method that brings added value to the client by integrating various services
offered by the Group, including strategic planning and research, advertising,
media buying and channel planning, sales promotion, direct response, database
and direct marketing, customer relationship management, interactive marketing
and technology solutions, public relations, organizational communication and
change management, sponsorship and alliance marketing, branding and design,
ethnic marketing, business-to-business communications (B2B practices) and
print and video production. Cossette has approximately 1,485 employees and
offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York,
Irvine, Los Angeles, London and Shanghai.
SOURCE COSSETTE INC.

Financial Analysts only: Martin Faucher, Vice-President and Chief Financial
Officer, (418) 521-3784; Investors: Francis Trudeau, Director, Acquisitions
and Investor Relations, (514) 282-4633; Medias: Sylvie Isabelle, Optimum
Public Relations, (418) 521-3184; Source: Cossette Inc., www.cossette.com