A 21st CENTURY NEWS & INFORMATION LEADER

 
 

McClatchy Reports February 2007 Revenues

Released 03/20/2007

The McClatchy Company (NYSE: MNI) today reported that consolidated advertising revenues in February 2007 decreased 5.2% and total revenues were down 5.1% compared to pro forma revenues (including the addition of newspapers purchased in the Knight Ridder acquisition and excluding the Minneapolis Star Tribune newspaper). Year-to-date advertising revenues declined 5.5% and total revenues were down 5.2% on a pro forma basis.

Pat Talamantes, McClatchy's chief financial officer, said, "Internet advertising was up 1.0% in February and was up 7.6% year-to-date, but is being affected by the new affiliate agreement with CareerBuilder for online employment advertising. This agreement is helping to grow online employment revenues at the legacy McClatchy newspapers (up 40.7% in February and 31.0% year-to-date in this category) and is an attractive agreement for these papers. However, under the new affiliate agreement selected products are no longer available to be sold by the 20 acquired Knight Ridder newspapers, which is depressing their internet revenues. We will begin cycling through this change in August 2007. We believe our underlying online advertising is quite healthy, as represented by our February growth of 19.8% in online advertising excluding the employment category."

Advertising revenue performance at the company's newspapers is summarized in McClatchy's statistical report that follows.

The McClatchy Company is the third largest newspaper company in the United States (after the sale of the Minneapolis Star Tribune newspaper), with 31 daily newspapers and approximately 50 non-dailies. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, The Kansas City Star, the (Fort Worth) Star-Telegram, The Charlotte Observer, and The (Raleigh) News & Observer. In addition, McClatchy has a robust network of internet assets, including leading local websites in each of its daily newspaper markets, offering users 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, the largest national advertising network of local news websites and 15.0% of CareerBuilder, the nation's largest online job site. McClatchy also owns 25.6% of Classified Ventures, a newspaper industry partnership that offers classified websites such as cars.com and apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

ADDITIONAL INFORMATION

Statements in this press release regarding 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 ability to consummate the transaction; to realize the benefits from the transaction and to realize future opportunities; and the other factors described in McClatchy's Annual Report on Form 10-K for the year ended December 31, 2006. McClatchy disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this document.

                           ***The McClatchy Company***
                         Consolidated Statistical Report
                       (In thousands, except for preprints)

February Combined Print Only Revenues - Net: *Pro As *Pro Forma % Reported Forma % 2007 2006 Change 2006 2007 2006 Change

Advertising Retail $64,028 $65,225 -1.8% $ 20,544 $62,028 $64,183 -3.4% National 14,280 13,698 4.2% 3,870 13,775 13,123 5.0% Classified Total 59,456 67,835 -12.4% 23,893 48,696 56,313 -13.5% Automotive 13,397 15,305 -12.5% 5,623 11,563 13,671 -15.4% Real Estate 17,944 21,205 -15.4% 8,433 16,712 19,963 -16.3% Employment 21,524 24,271 -11.3% 7,909 14,269 16,148 -11.6% Other Class 6,591 7,054 -6.6% 1,928 6,152 6,531 -5.8% Direct Marketing 12,145 11,273 7.7% 3,535 12,145 11,273 7.7% Other Adv Rev 102 140 -27.1% 137 102 140 -27.1% Total Adverti- sing $150,011 $158,171 -5.2% $ 51,979 $136,746 $145,032 -5.7%

Circulation 22,314 23,026 -3.1% 7,243 Other 4,911 5,654 -13.1% 1,385 Total Revenues $177,236 $186,851 -5.1% $ 60,607

Memo: Online Only Advertising Revenue $13,265 $13,139 1.0% $3,346

Advertising Revenues by Market: California $28,850 $32,069 -10.0% $ 30,053 $26,818 $30,165 -11.1% Southeast 37,629 37,512 0.3% 11,966 33,660 33,934 -0.8% Florida 25,788 29,662 -13.1% 0 23,808 27,466 -13.3% Midwest 20,204 21,214 -4.8% 0 18,217 19,122 -4.7% Northwest 16,203 15,965 1.5% 9,960 14,543 14,642 -0.7% Texas 15,464 16,008 -3.4% 0 14,401 14,772 -2.5% Other 5,873 5,741 2.3% 0 5,299 4,931 7.5% Total Adverti- sing $150,011 $158,171 -5.2% $51,979 $136,746 $145,032 -5.7%

Advertising Statistics for Dailies: Full Run ROP Linage 924.8 2,382.9 2,606.6 -8.6%

Millions of Preprints Distributed 169.3 577.8 532.8 8.4%

Average Paid Circulation:** Daily 2,845.5 2,972.6 -4.3% Sunday 3,479.9 3,614.6 -3.7%

*Pro Forma includes Knight Ridder acquisition and excludes (Minneapolis) Star Tribune newspaper. **Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.

***The McClatchy Company*** Consolidated Statistical Report (In thousands, except for preprints)

February Year-to-Date Combined Print Only

*Pro As *Pro Revenues - Net: Forma % Reported Forma % 2007 2006 Change 2006 2007 2006 Change

Advertising Retail $137,560 $138,492 -0.7% $43,798 $133,642 $136,433 -2.0% National 31,745 35,083 -9.5% 9,588 30,836 33,393 -7.7% Classified Total 127,736 142,594 -10.4% 51,659 104,898 120,641 -13.0% Automotive 28,289 34,857 -18.8% 12,847 24,544 31,706 -22.6% Real Estate 37,436 42,437 -11.8% 17,543 34,928 39,973 -12.6% Employment 47,446 50,271 -5.6% 16,962 31,854 34,955 -8.9% Other Class 14,565 15,029 -3.1% 4,307 13,572 14,007 -3.1% Direct Marketing 25,409 24,892 2.1% 7,398 25,409 24,892 2.1% Other Adv Rev 222 382 -41.9% 378 222 382 -41.9% Total Adverti- sing $322,672 $341,443 -5.5% $112,821 $295,007 $315,741 -6.6%

Circulation 49,750 51,172 -2.8% 16,284 Other 11,511 12,271 -6.2% 2,954 Total Revenues $383,933 $404,886 -5.2% $132,059

Memo: Online Only Advertising Revenue $27,665 $25,702 7.6% $6,934

Advertising Revenues by Market: California $62,905 $69,957 -10.1% $65,752 $58,484 $66,054 -11.5% Southeast 80,001 80,738 -0.9% 25,530 71,821 73,464 -2.2% Florida 57,170 63,935 -10.6% 0 53,083 59,647 -11.0% Midwest 42,441 45,735 -7.2% 0 38,292 41,503 -7.7% Northwest 35,294 34,538 2.2% 21,539 31,721 31,819 -0.3% Texas 32,358 35,159 -8.0% 0 30,237 32,782 -7.8% Other 12,503 11,381 9.9% 0 11,369 10,472 8.6% Total Adverti- sing $322,672 $341,443 -5.5% $112,821 $295,007 $315,741 -6.6%

Advertising Statistics for Dailies: Full Run ROP Linage 2,030.7 5,106.6 5,708.2 -10.5%

Millions of Preprints Distributed 366.2 1,164.3 1,105.5 5.3%

Average Paid Circulation:** Daily 2,822.8 2,922.5 -3.4% Sunday 3,472.6 3,606.2 -3.7%

*Pro Forma includes Knight Ridder acquisition and excludes (Minneapolis) Star Tribune newspaper. **Reflects average paid circulation based upon number of days in period. Does not reflect ABC reported figures.