LOOK COMMUNICATIONS REPORTS FIRST QUARTER 2004 RESULTS
Corporation Records Eleventh Consecutive Quarter of Positive EBITDA

TORONTO and MONTRÉAL, May 13, 2004 – Look Communications Inc. (TSX Venture: LOK) today reported its financial and operating results for the first quarter ended March 31, 2004.

During the quarter, Look completed a successful rights offering which raised gross proceeds of $10,665,000. “We were delighted with the response to our rights offering,” said Michael Cytrynbaum, Chairman, President and CEO. “Our shareholders over-subscribed to the offering, and in so doing, helped us raise the necessary capital to allow us to implement our growth plans.” With the successful completion of the rights issue, if all the 7% convertible debentures convert to common shares, the impact would be to increase the number of common shares outstanding from 29,331,237 to 171,527,682 common shares.

Revenues for the first quarter of 2004 were $11.4 million compared to $12.6 million for the same period in 2003, the result of a lower subscriber base. However, the blended monthly average revenue per subscriber (ARPU) continued to increase. It reached $30.41 in the first quarter of 2004, compared to $29.40 in the first quarter of 2003.

Gross margin was $6.8 million in the first quarter of 2004 compared to $6.8 million, in the corresponding period of 2003. Gross margin in percentage improved to 60% from 53.9% in the first quarter of 2003. This is the direct results of cost cutting and contract renegotiation which took place during 2003. EBITDA (earnings before interest, financing charges, income taxes, depreciation and amortization) for the first quarter of 2004 was $37,000 compared to $25,000 for the same period in 2003, an increase attributable to the factors described above. This marks the eleventh consecutive quarter with positive EBITDA. The net loss for the first quarter of 2004 was $1.8 million, or $0.05 per share, compared to a net loss of $1.4 million or $0.05 per share in the first quarter of 2003.

Financial Highlights (in 000’s, except EPS)

* Earnings before interest, financing charges, taxes, depreciation and amortization. Management views EBITDA as an important measure of operating performance of the company; however, since EBITDA does not have any standardized meaning prescribed by Canadian Generally Accepted Accounting Principles (GAAP), it may not be considered in isolation of GAAP measures such as (1) net loss (net income), as an indicator of operating performance or (2) cash flows from operating, investing and financing activities, as a measure of liquidity.

As at March 31, 2004, Look had experienced a sequential decrease in its subscriber base. It ended the quarter with 117,000 subscribers, compared to 125,000 subscribers at the end of December 2003. Of the subscriber losses 71% or 5,700 subscribers are attributable to Residential Internet Dial-Up accounts, which were anticipated in the light of migration to high speed Internet. Contributing to the higher ARPU, however, was the number of business Internet high-speed subscribers that continued to grow in the first quarter, by 8% over the last quarter and 86% over the same period last year.

Subsequent to the end of the quarter, Look obtained an order from the Ontario Superior Court of Justice dismissing the motion brought by Craig Wireless International Inc. for, among other things, an interim injunction which would prevent UBS from voting its shares of Look and converting into common shares the debentures issued to UBS pursuant to Look’s recent rights offering. Craig Wireless requested and consented to the dismissal. Craig Wireless also requested and agreed to a dismissal of its appeal to the Federal Court of Appeal of the October 2003 decision of the CRTC, which approved Look’s application to permit UBS to acquire a controlling interest in Look.

About Look Communications Inc.
Look Communications delivers a full range of communications services, including high-speed and dial-up Internet access, Web applications, digital television distribution and superior customer service to both the business and residential markets across Canada. We deliver high-speed connections and a full range of Web solutions that help SMEs achieve their business objectives. Through our advanced wireless infrastructure, we also offer high quality digital entertainment services to consumers in Ontario and Quebec. Look shares are listed on the TSX Venture Exchange under the symbol “LOK”.

The corporate information contained in this release contains forward-looking statements regarding future events and the future performance of Look that involve risks and uncertainties that could cause actual results to differ materially. Assumptions used in the preparation of such information, although considered reasonable by Look at the time of preparation, may prove to be incorrect. The actual results achieved will vary from the information provided herein and the variations may be material. Consequently, there is no representation by Look that actual results achieved will be the same in whole or in part as those forecast.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Michael Cytrynbaum
Chairman, President and CEO
Look Communications
(514) 599-2629
michael@cytrynbaum.com 

Look Communications Inc.

BALANCE SHEETS
(In thousands of dollars)

As at

STATEMENTS OF INCOME (LOSS) AND DEFICIT
(In thousands of dollars, except per share amounts)

Three months ended March 31

STATEMENTS OF CASH FLOWS
(In thousands of dollars)

Three months ended March 31