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McClatchy Reports Second Quarter 2007 Earnings

Released 07/19/2007

The McClatchy Company (NYSE: MNI) today reported second quarter 2007 earnings from continuing operations of $39.2 million, or 48 cents per share, subject to final resolution of the accounting treatment of The Seattle Times settlement discussed below.

Earnings from continuing operations in the second quarter of 2006 were $32.2 million, or 69 cents per share. The company's total net income for the 2007 quarter was $40.0 million, or 49 cents per share, compared to total net income of $44.1 million, or 94 cents per share, in the 2006 second quarter. Discontinued operations reflect the results of the (Minneapolis) Star Tribune newspaper which was sold on March 5, 2007. As a result of the acquisition of Knight Ridder on June 27, 2006 (the "Acquisition"), the company issued 35.0 million Class A shares which negatively impacted earnings per share for the 2007 quarter.

Revenues from continuing operations in the second quarter of 2007 were $580.0 million, compared to revenues from continuing operations of $212.0 million in 2006. The increase in revenues reflects the addition of 20 newspapers acquired in the Acquisition. On a pro forma basis, including all newspapers as if they had been owned since the beginning of 2006, revenues from continuing operations were down 8.3% from 2006 pro forma second quarter revenues of $632.4 million. Advertising revenues were $488.3 million, down 9.8% from pro forma advertising in 2006, and circulation revenues were $69.7 million, down 4.6% on a pro forma basis.

The company benefited from strong cost reduction efforts in the 2007 quarter. Cash expenses were down 12.2% as the result of synergies realized from the Acquisition, reduction in staffing levels and lower newsprint expense. Operating cash flow was up 4.4% on a pro forma basis and the operating cash flow margin was 26.9%.

Earnings from continuing operations included a loss from the Company's investments in unconsolidated companies of $3.4 million, compared to income in the second quarter of 2006 (prior to the Acquisition) of $0.5 million. The 2007 loss was due primarily to the operating results of its newsprint investments, which were partially offset by income from other investments.

First Half Results: Earnings from continuing operations for the first half of 2007 were $53.8 million or 66 cents per share compared to earnings from continuing operations of $54.0 million, or $1.15 per share, in the first half of 2006. The company's total net income, including the results of discontinued operations, for the first half of 2007 was $49.0 million, or 60 cents per share, compared to total net income of $71.9 million, or $1.53 per share, in 2006.

Revenues from continuing operations in the first half of 2007 were $1.15 billion, up $740.1 million from 2006 revenues of $406.5 million, due primarily to the addition of the 20 former Knight Ridder newspapers acquired in the third quarter of 2006. Advertising revenues totaled $965.3 million and circulation revenues were $141.6 million.

On a pro forma basis, including the 20 former Knight Ridder newspapers in the first half 2006, total revenues in 2007 would have been down 6.7%, with advertising revenues down 7.6%, and circulation revenues down 4.1%.

Cash operating expenses were down 9.3% in the first half and operating cash flow was up 2.4% in the first six months of the year.

Interest expense from continuing operations for the first half of 2007 includes $5.7 million related to $530 million in debt repaid from the proceeds of the sale of the Star Tribune on March 5, 2007. However, the operations of the Star Tribune were included in discontinued operations during the first two months of 2007. In addition, earnings from continuing operations included a loss from its investments in unconsolidated companies of $13.1 million, primarily related to its newsprint joint ventures as discussed above, compared to income in the first half of 2006 (prior to the Acquisition) of $0.9 million.

Management's Comments: Commenting on second quarter and first half results, Gary Pruitt, chairman and chief executive officer, said, "Advertising results worsened across the board in the second quarter of 2007, but particularly in real estate advertising. Nearly three-quarters of our advertising declines are coming from California and Florida, two regions that benefited strongly from the real estate boom, and are likewise being hurt in the subsequent real estate slowdown. Advertising revenues were down 17.8% in these two regions in the second quarter and were down 14.4% through June 2007. The housing sector is an important component of these states' economies. Hence, California and Florida also account for a majority of the decline in auto and employment advertising, as the real estate downturn is having an impact on these categories as well. Cyclical factors represent a significant portion of the current advertising downturn. In looking longer term, we feel good about our California and Florida regions. They were the best performers in the recent past, and we expect them to be strong performers again. In the meantime, our other regions are faring better and we continued to focus on cost controls to help offset the impact of the revenue challenges.

"We were pleased to see our operating cash flow increase 4.4% to $155.7 million in the quarter and we were able to show substantial improvement in operating cash flow margin-up 3.3 points from the pro forma 2006 quarter to 26.9% in the second quarter of 2007. We believe few newspaper operations can show growth in operating cash flow and related margins in this environment.

"As we look to the third quarter, we expect continued declines in real estate advertising, particularly in the California and Florida newspapers. We expect no substantial improvement in advertising trends before the fourth quarter of 2007 and expect that revenues will likely still be negative in that quarter. Also, we expect to record losses from our equity investments that reflect the impact of lower newsprint prices and higher raw material prices on the results of both SP Newsprint Co (SP) and Ponderay Newsprint Company. We expect our total equity losses to equate to seven cents per share in the third quarter largely from these equity investments. As a result of the recently announced strategic alternative review at SP we are seeking to monetize this asset for our shareholders and end the equity losses from that investment, although the timing of any transaction is not yet clear.

"With our portfolio of newspapers and digital assets in growth markets, new alliances with technology companies, and changes we are making in our cost structure, we approach the future with confidence. As we mentioned at the Mid- Year Media Conference last month, we are continuing our talks with Gannett and Tribune about changing our affiliate agreement with CareerBuilder to be more equitable for our newspapers and are hopeful that a resolution will be reached shortly. It is our clear preference to remain with CareerBuilder, and we will update investors once we have made a decision on our online employment solution.

"In the meantime, we are working hard to offset the impact of revenue declines by exerting strong cost discipline. We are building a company for the long term, and we plan on generating value for our shareholders."

Pat Talamantes, McClatchy's chief financial officer, said, "Debt at the end of the second quarter was $2.68 billion, down approximately $79 million since the end of the first quarter of 2007. Currently, we are in the midst of several de-leveraging transactions related to the sale of certain assets and real property. With these transactions and free cash generated by operations we expect to reduce debt by approximately $600 million to $700 million over the next 18 months."

Seattle Times Accounting Matter To Be Resolved: During the second quarter of 2007, The Seattle Times Company (STC) (in which the company owns a 49.5% equity interest) and The Hearst Corporation (Hearst) entered into an agreement to settle certain outstanding legal issues and amend their Joint Operating Agreement. As a result, STC is expected to make a payment of approximately $24 million to Hearst in the third quarter of 2007. The company is in the process of reviewing the agreement and the appropriate accounting treatment. The company's share of such payment may be capitalized, or may be expensed as part of equity loss in the second quarter of 2007. If expensed in the second quarter of 2007, the impact on earnings will be a charge equal to six cents per share. The final accounting treatment for this item will be reflected in the company's second quarter 2007 results in its Form 10-Q filed with the Securities and Exchange Commission on or before August 10, 2007.

The company's pro forma statistical report, which summarizes revenue performance for June, the second fiscal quarter and first half of 2007, follows. This report includes advertising revenues for the 20 Knight Ridder newspapers the company acquired, but did not own in the first half of its fiscal 2006, and excludes the revenues of the Star Tribune newspaper. The pro forma information is meant to provide investors a sense of what the advertising results of the continuing operations would have been in each interim period. A reconciliation of non-GAAP terms used in this release are included in an attached summary schedule and are posted on our website at http://www.mcclatchy.com.

A reconciliation of operating expenses, operating cash flow (as defined) and operating income to pro forma amounts are posted on the company's website for the first three quarters of 2006.

At noon Eastern time today, McClatchy will review its results in a conference call (877-278-1205 pass code 6237510) and webcast (http://www.mcclatchy.com). The webcast will be archived at McClatchy's website.

About McClatchy: The McClatchy Company is the third largest newspaper company in the United States, with 31 daily newspapers, approximately 50 non-dailies and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which complement its newspapers and extends its audience reach in each market. Together with its newspapers and direct marketing products, these operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the (Fort Worth) Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer.

McClatchy also has a portfolio of premium digital assets. Its leading local websites offer users information, comprehensive news, advertising, e- commerce and other services. The company owns and operates McClatchy Interactive, an interactive operation that provides websites with content, publishing tools and software development. McClatchy operates Real Cities (http://www.RealCities.com), the largest national advertising network of local news websites and owns 14.4% 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 the nation's number two online auto website, cars.com, and the number one rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

Additional Information: Statements in this press release regarding future financial and operating results, including revenues, operating expenses, cash flows and debt levels, as well as future opportunities for the company 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 risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward- looking statements, including: McClatchy may not consummate contemplated transactions which may enable debt reduction on anticipated terms or at all; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward- looking information contained in this release.

                            ***THE McCLATCHY COMPANY***
                   CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                     (In thousands, except per share amounts)

Three Months Ended Six Months Ended

July 1, June 25, July 1, June 25, 2007 2006 2007 2006 REVENUES - NET: Advertising $488,277 $183,683 $965,300 $350,017 Circulation 69,707 23,504 141,587 47,268 Other 22,043 4,813 39,698 9,178 580,027 212,000 1,146,585 406,463 OPERATING EXPENSES: Compensation 228,959 84,103 465,283 169,842 Newsprint and supplements 72,186 27,267 147,603 53,531 Depreciation and amortization 38,357 9,973 76,190 19,860 Other operating expenses 123,144 38,396 252,740 75,690 462,646 159,739 941,816 318,923

OPERATING INCOME 117,381 52,261 204,769 87,540

NON-OPERATING (EXPENSES) INCOME: Interest expense (49,556) - (103,341) - Interest income 42 15 106 28 Equity income (losses) in unconsolidated

companies, net (3,395) 496 (13,144) 892 Other - net 791 (38) 743 (45) (52,118) 473 (115,636) 875

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION 65,263 52,734 89,133 88,415

INCOME TAX PROVISION 26,019 20,545 35,376 34,445

INCOME FROM CONTINUING OPERATIONS 39,244 32,189 53,757 53,970

INCOME (LOSS) FROM DISCONTINUED OPERATIONS - NET OF INCOME TAXES 705 11,947 (4,778) 17,893

NET INCOME $39,949 $44,136 $48,979 $71,863

NET INCOME PER COMMON SHARE: Basic: Income from continuing operations $0.48 $0.69 $0.66 $1.15 Income (loss) from discontinued operations 0.01 0.25 (0.06) 0.39 Net income per share $0.49 $0.94 $0.60 $1.54

Diluted: Income from continuing operations $0.48 $0.69 $0.66 $1.15 Income (loss) from discontinued operations 0.01 0.25 (0.06) 0.38 Net income per share $0.49 $0.94 $0.60 $1.53

WEIGHTED AVERAGE NUMBER OF COMMON SHARES: Basic 81,976 46,771 81,931 46,753 Diluted 82,037 46,985 82,010 47,028

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

June

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

Advertising Retail $65,387 $68,267 -4.2% $22,409 National 14,635 15,402 -5.0% 5,011 Classified Total 57,196 69,194 -17.3% 25,150 Automotive 13,727 16,165 -15.1% 5,632 Real Estate 16,627 21,453 -22.5% 9,458 Employment 19,560 24,504 -20.2% 8,066 Other Class 7,282 7,072 3.0% 1,994 Direct Marketing 10,253 12,443 -17.6% 3,975 Other Adv Rev 272 155 75.5% 153 Total Advertising $147,743 $165,461 -10.7% $56,698

Circulation 21,112 22,133 -4.6% 7,124 Other 5,736 5,274 8.8% 1,494 Total Revenues $174,591 $192,868 -9.5% $65,316

Memo: Online Only Advertising Revenue $13,761 $14,038 -2.0% $3,723

Advertising Revenues by Market: California $30,459 $35,431 -14.0% $33,206 Southeast 36,825 38,634 -4.7% 12,587 Florida 20,595 27,554 -25.3% 0 Midwest 21,052 22,711 -7.3% 0 Northwest 17,480 17,768 -1.6% 10,905 Texas 15,323 16,948 -9.6% 0 Other 6,009 6,415 -6.3% 0 Total Advertising $147,743 $165,461 -10.7% $56,698

Advertising Statistics for Dailies: Full Run ROP Linage 1,021.4

Millions of Preprints Distributed 182.4

Average Paid Circulation:** Daily Sunday

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

June

Print Only

Revenues - Net: *Pro Forma 2007 2006 % Change

Advertising Retail $63,179 $66,749 -5.3% National 13,980 14,793 -5.5% Classified Total 46,298 57,283 -19.2% Automotive 11,746 14,341 -18.1% Real Estate 15,429 20,126 -23.3% Employment 12,321 16,257 -24.2% Other Class 6,802 6,559 3.7% Direct Marketing 10,253 12,443 -17.6% Other Adv Rev 272 155 75.5% Total Advertising $133,982 $151,423 -11.5%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $28,277 $33,352 -15.2% Southeast 32,916 34,871 -5.6% Florida 18,590 25,512 -27.1% Midwest 19,031 20,536 -7.3% Northwest 15,619 16,241 -3.8% Texas 14,169 15,731 -9.9% Other 5,380 5,180 3.9% Total Advertising $133,982 $151,423 -11.5%

Advertising Statistics for Dailies: Full Run ROP Linage 2,645.3 2,790.2 -5.2%

Millions of Preprints Distributed 486.8 532.2 -8.5%

Average Paid Circulation:** Daily 2,606.1 2,714.6 -4.0% Sunday 3,309.0 3,432.2 -3.6%

* Pro Forma includes Knight Ridder acquisitions 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)

Quarter 2 Combined

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

Advertising Retail $213,203 $227,220 -6.2% $74,971 National 46,064 50,821 -9.4% 15,394 Classified Total 187,802 220,669 -14.9% 79,435 Automotive 43,760 51,729 -15.4% 18,085 Real Estate 54,687 67,492 -19.0% 28,916 Employment 66,236 78,363 -15.5% 25,954 Other Class 23,119 23,085 0.2% 6,480 Direct Marketing 40,523 42,185 -3.9% 13,417 Other Adv Rev 685 473 44.8% 466 Total Advertising $488,277 $541,368 -9.8% $183,683

Circulation 69,707 73,087 -4.6% 23,505 Other 22,043 17,978 22.6% 4,813 Total Revenues $580,027 $632,433 -8.3% $212,001

Memo: Online Only Advertising Revenue $42,780 $43,762 -2.2% $11,580

Advertising Revenues by Market: California $95,226 $112,166 -15.1% $104,963 Southeast 124,186 129,427 -4.0% 42,067 Florida 72,616 92,045 -21.1% 0 Midwest 67,943 72,830 -6.7% 0 Northwest 57,899 59,069 -2.0% 36,653 Texas 50,745 55,176 -8.0% 0 Other 19,662 20,655 -4.8% 0 Total Advertising $488,277 $541,368 -9.8% $183,683

Advertising Statistics for Dailies: Full Run ROP Linage 3,291.9

Millions of Preprints Distributed 580.6

Average Paid Circulation:** Daily Sunday

* Pro Forma includes Knight Ridder acquisitions 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)

Quarter 2

Print Only

Revenues - Net: *Pro Forma 2007 2006 % Change

Advertising Retail $206,664 $223,126 -7.4% National 44,289 48,461 -8.6% Classified Total 153,337 183,361 -16.4% Automotive 37,722 46,382 -18.7% Real Estate 50,889 63,370 -19.7% Employment 43,268 52,140 -17.0% Other Class 21,458 21,469 0.0% Direct Marketing 40,523 42,185 -3.9% Other Adv Rev 684 473 44.6% Total Advertising $445,497 $497,606 -10.5%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $88,488 $105,698 -16.3% Southeast 111,492 117,344 -5.0% Florida 67,127 85,430 -21.4% Midwest 61,536 65,945 -6.7% Northwest 52,081 54,319 -4.1% Texas 47,112 51,335 -8.2% Other 17,661 17,535 0.7% Total Advertising $445,497 $497,606 -10.5%

Advertising Statistics for Dailies: Full Run ROP Linage 8,874.0 9,030.7 -1.7%

Millions of Preprints Distributed 1,619.0 1,768.6 -8.5%

Average Paid Circulation:** Daily 2,720.5 2,825.1 -3.7% Sunday 3,361.2 3,514.3 -4.4%

* Pro Forma includes Knight Ridder acquisitions 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)

June Year-to-Date

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

Advertising Retail $419,231 $431,565 -2.9% $139,659 National 91,214 101,220 -9.9% 29,152 Classified Total 376,338 432,344 -13.0% 155,717 Automotive 85,895 101,950 -15.7% 36,585 Real Estate 109,837 131,706 -16.6% 55,379 Employment 135,882 154,076 -11.8% 51,082 Other Class 44,724 44,612 0.2% 12,671 Direct Marketing 77,465 79,020 -2.0% 24,509 Other Adv Rev 1,052 993 5.9% 979 Total Advertising $965,300 $1,045,142 -7.6% $350,016

Circulation 141,587 147,672 -4.1% 47,267 Other 39,698 35,914 10.5% 9,179 Total Revenues $1,146,585 $1,228,728 -6.7% $406,462

Memo: Online Only Advertising Revenue $83,985 $82,840 1.4% $22,081

Advertising Revenues by Market: California $187,712 $214,632 -12.5% $201,184 Southeast 243,046 249,332 -2.5% 80,303 Florida 154,797 185,410 -16.5% 0 Midwest 131,776 140,840 -6.4% 0 Northwest 110,472 110,198 0.2% 68,529 Texas 99,185 107,150 -7.4% 0 Other 38,312 37,580 1.9% 0 Total Advertising $965,300 $1,045,142 -7.6% $350,016

Advertising Statistics for Dailies: Full Run ROP Linage 6,287.1

Millions of Preprints Distributed 1,116.2

Average Paid Circulation:** Daily Sunday

* Pro Forma includes Knight Ridder acquisitions 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)

June Year-to-Date

Print Only

Revenues - Net: *Pro Forma 2007 2006 % Change

Advertising Retail $406,798 $424,288 -4.1% National 88,036 96,612 -8.9% Classified Total 307,965 361,390 -14.8% Automotive 74,211 91,779 -19.1% Real Estate 102,353 123,831 -17.3% Employment 89,818 104,249 -13.8% Other Class 41,583 41,531 0.1% Direct Marketing 77,465 79,020 -2.0% Other Adv Rev 1,051 992 5.9% Total Advertising $881,315 $962,302 -8.4%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $174,532 $202,319 -13.7% Southeast 217,883 226,124 -3.6% Florida 143,467 172,390 -16.8% Midwest 119,284 127,543 -6.5% Northwest 99,302 101,282 -2.0% Texas 92,303 99,794 -7.5% Other 34,544 32,850 5.2% Total Advertising $881,315 $962,302 -8.4%

Advertising Statistics for Dailies: Full Run ROP Linage 16,400.9 17,420.2 -5.9%

Millions of Preprints Distributed 3,287.7 3,402.1 -3.4%

Average Paid Circulation:** Daily 2,775.4 2,879.9 -3.6% Sunday 3,420.7 3,570.6 -4.2%

* Pro Forma includes Knight Ridder acquisitions 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*** RECONCILIATION OF GAAP AMOUNTS (In thousands)

Three Months Ended Six Months Ended

July 1, June 25, July 1, June 25, 2007 2006 2007 2006 Pro Forma Pro Forma REVENUES - NET: Advertising $488,277 $541,368 $965,300 $1,045,141 Circulation 69,707 73,087 141,587 147,672 Other 22,043 17,978 39,698 35,915 580,027 $632,433 1,146,585 $1,228,728 OPERATING EXPENSES: Cash expenses 424,289 483,330 865,626 954,445 Depreciation and amortization 38,357 36,783 76,190 73,990 462,646 520,113 941,816 1,028,435

OPERATING INCOME 117,381 112,320 204,769 200,293 Add back depreciation and amortization 38,357 36,783 76,190 73,990 OPERATING CASH FLOW $155,738 $149,103 $280,959 $274,283

OPERATING CASH FLOW MARGIN 26.9% 23.6% 24.5% 22.3% Operating cash flow margins are derived by dividing operating cash flow by total net revenues for each period. The company believes operating cash flow is commonly used as a measure of performance for newspaper companies, however, it does not purport to represent cash provided by operating activities as shown in the company's statement of cash flows, nor is it meant as a substitute for measures of performance prepared in accordance with generally accepted accounting principles. ***The McClatchy Company*** RECONCILIATION OF GAAP AMOUNTS Pro Forma Operating Income and Cash Flow Three Months ended June 25, 2006 (in thousands)

Historical Acquisitions/ Pro Forma Amounts Divestitures Amounts REVENUES -NET Advertising revenues $258,900 $282,468 $541,368 Circulation Revenues 39,255 33,832 73,087 Other Revenues 6,079 11,899 17,978 304,234 328,199 632,433 OPERATING EXPENSES Cash expenses 216,328 267,002 483,330 Depreciation and amortization 13,639 23,144 36,783 229,967 290,146 520,113

OPERATING INCOME 74,267 38,053 112,320 Add back depreciation and amortization 13,639 23,144 36,783 OPERATING CASH FLOW $87,906 $61,197 $149,103

Note: Excludes synergies that have been or may be realized from the Knight Ridder Acquisition.

***The McClatchy Company*** RECONCILIATION OF GAAP AMOUNTS Pro Forma Operating Income and Cash Flow Six Months ended June 25, 2006 (in thousands)

Historical Acquisitions/ Pro Forma Amounts Divestitures Amounts

REVENUES - NET Advertising revenues $495,989 $549,152 $1,045,141 Circulation Revenues 78,803 68,869 147,672 Other Revenues 11,446 24,469 35,915 586,238 642,490 1,228,728 OPERATING EXPENSES Cash expenses 434,692 519,753 954,445 Depreciation and amortization 29,656 44,334 73,990 464,348 564,087 1,028,435

OPERATING INCOME 121,890 78,403 200,293 Add back depreciation and amortization 29,656 44,334 73,990 OPERATING CASH FLOW $151,546 $122,737 $274,283

Note: Excludes synergies that have been or may be realized from the Knight Ridder Acquisition.