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McClatchy Completes Transaction With MediaNews and Hearst Coporation

McClatchy Completes Transaction With MediaNews and Hearst Coporation
Released 08/02/2006

The McClatchy Company (NYSE: MNI) announced that it has successfully completed the transaction with MediaNews Group, Inc. (MediaNews) and Hearst Corporation (Hearst) under which the companies will pay McClatchy $1.0 billion in cash to acquire four newspapers. As part of this transaction, MediaNews has acquired the San Jose Mercury News and Contra Costa Times, and Hearst has acquired the Monterey (CA) Herald and the St. Paul Pioneer Press in St. Paul, Minnesota.

Under a separate agreement between Hearst and MediaNews, Hearst agreed to contribute the St. Paul Pioneer Press and Monterey Herald to MediaNews in return for an equity investment in the non San Francisco Bay Area assets of MediaNews, subject to, among other things, regulatory approval. Hearst and MediaNews have also entered into an agreement whereby MediaNews will manage the papers on behalf of Hearst. MediaNews intends to contribute the San Jose Mercury News and Contra Costa Times to the California Newspapers Partnership, owned 54.23% by MediaNews with partners Gannett and Stephens Media. McClatchy acquired the four newspapers through its acquisition of Knight-Ridder, Inc., which closed on June 27, 2006.

About McClatchy

The McClatchy Company is the second-largest newspaper company in the United States, with 32 daily newspapers and approximately 50 non-dailies. McClatchy-owned newspapers include The Charlotte Observer, Fort Worth Star- Telegram, The Miami Herald, The Kansas City Star, the (Minneapolis) Star Tribune, The (Raleigh) News & Observer and The Sacramento Bee. In addition, McClatchy has a robust network of valuable internet assets, including leading local websites in each of its daily newspaper markets, offering readers information, comprehensive news, advertising, e-commerce and other services. The company also owns and operates McClatchy Interactive, an interactive operation that provides websites with content, publishing tools and software development; Real Cities ( http://www.RealCities.com ), the largest national network of city and regional websites, operating in more than 110 U.S. markets, and is part owner of CareerBuilder, the nation's largest online classified employment listing service. McClatchy also owns 25 percent of Classified Ventures, a newspaper industry partnership that includes such online classified web sites as cars.com and apartments.com.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS

Statements in this press release regarding: the expected use of proceeds from the transactions and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward- looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including the factors described in McClatchy's Annual Report on Form 10-K for the year ended December 25, 2005. McClatchy disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.