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McClatchy Reports Preliminary Third Quarter 2007 Earnings: Expects to Record Non-Cash Impairment Charge to GAAP Earnings

Released 10/16/2007

The McClatchy Company (NYSE: MNI) today reported preliminary earnings from continuing operations in the third quarter of 2007 of $23.5 million, or 29 cents per share.

Preliminary earnings do not include an anticipated non-cash charge to GAAP earnings for impairment of goodwill and long-lived assets discussed below, but do include a three cent per share charge related to certain tax positions taken by the company for which it has established reserves.

Income from continuing operations in the third quarter of 2006 was $52.6 million or 65 cents per share, and included an after-tax gain of seven cents per share related to the sale of land. Total net income in the 2006 third quarter was $51.8 million, or 64 cents per share.

Management noted that it is in the process of performing impairment testing of goodwill and other long-lived assets as of September 30, 2007, due to the continuing challenging business conditions and the resulting weakness in the company's stock price as of the end of its third quarter. Upon completion of that testing, the company expects to record a non-cash impairment charge to GAAP earnings in its third quarter financial statements when it files its Form 10-Q with the Securities and Exchange Commission (SEC) on or before November 9, 2007 and the company will issue a press release announcing the final third quarter results when it files its Form 10-Q with the SEC.

Revenues from continuing operations in the third quarter of 2007 were $540.3 million, down 9.2% from revenues from continuing operations of $595.1 million in 2006. Advertising revenues were $457.0 million, down 9.8% from advertising in 2006, and circulation revenues were $68.0 million, down 3.7%. The company benefited from continued strong cost reduction efforts in the 2007 quarter. Cash expenses were down 8.6% as the result of reduction in staffing levels, lower newsprint expense and continued vigilance in all other expenses.

Total losses recorded from unconsolidated investments were $7.7 million compared to losses from unconsolidated investments in the third quarter of 2006 of $0.8 million. The 2007 losses were due primarily to the operating results of the company's newsprint investments and were partially offset by income from its internet investments.

First Nine Months Results:

Income from continuing operations for the first nine months of 2007 was $72.5 million or 88 cents per share, before the expected non-cash write down of intangible assets discussed above. The company's total net income, including the results of discontinued operations, for the first nine months of 2007 was $67.7 million, or 83 cents per share. Discontinued operations reflect the results of the (Minneapolis) Star Tribune newspaper which was sold on March 5, 2007.

Earnings from continuing operations in the first nine months of 2006 were $106.6 million, or $1.82 per share including the gain on the sale of land. Earnings from discontinued operations in the first nine months of 2006 were $17.1 million. Total net income for the first nine months of 2006 was $123.7 million, or $2.12 per share. Discontinued operations reflect the results of the (Minneapolis) Star Tribune newspaper which was sold on March 5, 2007 and the results of eight former Knight Ridder newspapers which were sold in the third quarter of 2006.

Revenues from continuing operations in the first nine months of 2007 were $1.7 billion compared to $1.0 billion in 2006. The greater revenues primarily reflect the addition of the 20 former Knight Ridder newspapers acquired in the third quarter of 2006. Advertising revenues in 2007 totaled $1.4 billion and circulation revenues were $209.6 million.

On a pro forma basis, including the 20 former Knight Ridder newspapers acquired in June 2006 and excluding the Star Tribune newspaper in the first nine months 2006, total revenues in 2007 would have been down 7.5%, with advertising revenues down 8.4%, and circulation revenues down 4.0%.

Interest expense from continuing operations for the first nine months 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 in the 2007 period included the effect of an after-tax non-cash loss of $4.7 million, or six cents per share, related to a second quarter payment by the Seattle Times Company (in which the company is a 49.5% owner) relating to the settlement of litigation and amendment to a joint operating agreement with The Hearst Company. Total losses recorded from unconsolidated investments were $28.6 million compared to income from unconsolidated investments in the first nine months of 2006 of $81,000.

Management's Comments:

Commenting on McClatchy's results, Gary Pruitt, chairman and chief executive officer, said, "The economic downturn led by real estate continued to impact our advertising revenues in the third quarter. Once again our Florida and California newspapers were disproportionately hurt -- these two regions accounted for 68% of the decline in advertising revenues in the third quarter while accounting for only 33% of total company revenues.

"Our advertising results were in line with management expectations, and we were able to mitigate the impact of the advertising decline on our income with strong cost controls in the quarter. Total cash expenses were down 8.6% in the third quarter and were down 9.1% through the first nine months. Through September 2007, operating cash flow was down just 2.3% from the first nine months of 2006 on a proforma basis.

"Our outlook for the fourth quarter has been tempered by the continuing adverse effect of the real estate downturn and its impact on the economies in our local markets, particularly in California and Florida. It's clear the economies of these two markets and perhaps the country as a whole are experiencing a greater slowdown than many had anticipated just a few months ago -- and McClatchy is feeling the effects more than most other newspaper companies given our significant operations in California and Florida. Accordingly, we expect the advertising revenue decline in the fourth quarter to be similar to that in the second and third quarters. We do not know when this downturn will end, and do not have visibility beyond the fourth quarter. Nonetheless, we believe that cyclical factors represent a significant portion of the current advertising downturn as evidenced by our operations in the California and Florida regions. Looking longer term, we like the prospects for these two regions. We will continue to focus on cost controls and will weather the downturn by remaining efficient and protecting cash flows as best we can.

"The challenging business environment in the second half of 2007, coupled with the drag on our stock price, has resulted in our moving up our annual testing of goodwill and intangible assets for impairment. We are now testing for impairment at the end of the third quarter rather than waiting until the normal time for our testing at year-end. While we are early in our analysis, we expect the real estate downturn and its attendant effects on the local economies in which we operate, together with the additional amount of goodwill recorded under the accounting rules in the Knight Ridder acquisition, will result in an impairment charge.

"We recognize that newspaper revenues have declined and that values have dropped. But McClatchy is a solidly profitable company that is rapidly paying down debt and re-engineering its operations to navigate through a changing environment for all media companies. The impairment at issue involves only non-cash accounting charges, and the simplest way to put that in perspective is to remember that nothing about it changes our operations or our ability to reduce debt."

McClatchy announced the acquisition of Knight-Ridder, Inc. on March 10, 2006 and closed the transaction on June 27, 2006 (the "Acquisition"). Management has disclosed in the company's financial statements since the third quarter of 2006 (when the Acquisition was completed), that it was required to record the value of the 35.0 million shares of McClatchy common stock issued in the Acquisition at $1.821 billion, or $52.06 per share, which was included in the total Acquisition purchase price. The fair value of these shares was actually $1.398 billion as of the Acquisition closing date ($39.03 per share at June 27, 2006), however under the accounting rules the decline of approximately $423.0 million in valuation had no effect on the total Acquisition purchase price recorded. That additional $423.0 million was included in goodwill.

Pat Talamantes, McClatchy's chief financial officer, said, "Our operations continue to produce significant cash which we are using to pay down debt. In addition we completed the sale of land in San Jose, California and several smaller assets during the quarter and used the proceeds to reduce debt. Debt at the end of the third quarter was $2.58 billion, down approximately $98 million in the quarter and down $697.4 million since the end of 2006. We expect debt to be approximately $2.5 billion at the end of 2007, and we expect our debt balance at the end of 2008 to be approximately $2.0 billion."

The company's pro forma statistical report, which summarizes revenue performance for September, the third fiscal quarter and first nine months of 2007, follows. This report includes advertising revenues for the 20 Knight Ridder newspapers the company acquired, but did not own in the first nine months 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 the nine-month interim period of 2006. Reconciliations of non-GAAP terms used in this release are included in attached summary schedules and are posted on our website at http://www.mcclatchy.com.

At noon Eastern Time today, McClatchy will review its results in a conference call (877-278-1205 pass code 18225165) 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 extend 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, debt levels and the expected impairment charge related to goodwill and/or long-lived assets, 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***
             PRELIMINARY CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
                     (In thousands, except per share amounts)

Three Months Ended Nine Months Ended Sept. 30, Sept. 24, Sept. 30, Sept. 24, 2007 2006 2007 2006 REVENUES - NET: Advertising $457,017 $506,774 $1,422,317 $856,791 Circulation 67,995 70,637 209,582 117,905 Other 15,332 17,717 55,030 26,895 540,344 595,128 1,686,929 1,001,591 OPERATING EXPENSES: Compensation 224,309 232,611 689,592 402,453 Newsprint and supplements 63,600 83,171 211,203 136,702 Depreciation and amortization 36,250 36,662 112,440 56,522 Other operating expenses 118,440 129,001 371,180 204,691 442,599 481,445 1,384,415 800,368

OPERATING INCOME 97,745 113,683 302,514 201,223

NON-OPERATING (EXPENSES) INCOME: Interest expense (48,264) (46,689) (151,605) (46,679) Interest income 23 2,007 129 2,035 Equity income (losses) in unconsolidated companies, net (7,652) (811) (28,599) 81 Other - net 700 8,445 1,443 8,390 (55,193) (37,048) (178,632) (36,173) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION 42,552 76,635 123,882 165,050

INCOME TAX PROVISION 19,062 24,025 51,348 58,470

INCOME FROM CONTINUING OPERATIONS 23,490 52,610 72,534 106,580

INCOME (LOSS) FROM DISCONTINUED OPERATIONS - NET OF INCOME TAXES (11) (779) (4,789) 17,114

NET INCOME $23,479 $51,831 $67,745 $123,694

NET INCOME PER COMMON SHARE: Basic: Income from continuing operations $0.29 $0.65 $0.88 $1.83 Income (loss) from discontinued operation (0.00) (0.01) (0.05) 0.30 Net income per share $0.29 $0.64 $0.83 $2.13

Diluted: Income from continuing operations $0.29 $0.65 $0.88 $1.82 Income (loss) from discontinued operation (0.00) (0.01) (0.05) 0.30 Net income per share $0.29 $0.64 $0.83 $2.12

WEIGHTED AVERAGE NUMBER OF COMMON SHARES: Basic 82,040 81,013 81,967 58,173 Diluted 82,098 81,191 82,030 58,416

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

September Combined

Revenues - Net: 2007 2006 % Change

Advertising Retail $64,663 $69,210 -6.6% National 14,253 14,982 -4.9% Classified Total 53,771 63,657 -15.5% Automotive 12,985 15,019 -13.5% Real Estate 14,934 20,250 -26.3% Employment 17,930 21,382 -16.1% Other Class 7,922 7,006 13.1% Direct Marketing 11,155 13,747 -18.9% Other Adv Rev 129 60 115.0% Total Advertising $143,971 $161,656 -10.9%

Circulation 21,532 22,992 -6.4% Other 4,723 5,987 -21.1% Total Revenues $170,226 $190,635 -10.7%

Memo: Online Only Advertising Revenue $13,275 $13,390 -0.9%

Advertising Revenues by Market: California $26,112 $33,116 -21.1% Florida 21,190 26,187 -19.1% Texas 15,242 16,000 -4.7% Southeast 38,882 40,500 -4.0% Midwest 20,170 21,822 -7.6% Northwest 16,342 18,425 -11.3% Other 6,033 5,606 7.6% Total Advertising $143,971 $161,656 -10.9%

Advertising Statistics for Dailies: Full Run ROP Linage

Millions of Preprints Distributed

Average Paid Circulation:* Daily Sunday

September Print Only

Revenues - Net: 2007 2006 % Change

Advertising Retail $62,698 $67,668 -7.3% National 13,135 13,347 -1.6% Classified Total 43,579 53,444 -18.5% Automotive 10,766 13,215 -18.5% Real Estate 13,670 18,928 -27.8% Employment 11,782 14,748 -20.1% Other Class 7,361 6,553 12.3% Direct Marketing 11,155 13,747 -18.9% Other Adv Rev 129 60 115.0% Total Advertising $130,696 $148,266 -11.9%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $24,131 $31,172 -22.6% Florida 19,572 24,046 -18.6% Texas 14,011 14,753 -5.0% Southeast 34,777 36,586 -4.9% Midwest 18,156 19,627 -7.5% Northwest 14,596 16,874 -13.5% Other 5,453 5,208 4.7% Total Advertising $130,696 $148,266 -11.9%

Advertising Statistics for Dailies: Full Run ROP Linage 2,481.4 2,820.8 -12.0%

Millions of Preprints Distributed 486.3 548.8 -11.4%

Average Paid Circulation:* Daily 2,745.1 2,841.6 -3.4% Sunday 3,353.5 3,494.9 -4.0%

* 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 3 Combined

Revenues - Net: 2007 2006 % Change

Advertising Retail $204,349 $210,934 -3.1% National 41,718 47,578 -12.3% Classified Total 173,794 206,971 -16.0% Automotive 42,331 49,727 -14.9% Real Estate 48,322 65,349 -26.1% Employment 59,155 69,804 -15.3% Other Class 23,987 22,091 8.6% Direct Marketing 36,639 41,011 -10.7% Other Adv Rev 517 280 84.3% Total Advertising $457,017 $506,774 -9.8%

Circulation 67,995 70,637 -3.7% Other 15,332 17,717 -13.5% Total Revenues $540,344 $595,128 -9.2%

Memo: Online Only Advertising Revenue $41,568 $41,009 1.4%

Advertising Revenues by Market: California $86,405 $106,163 -18.6% Florida 66,530 80,572 -17.4% Texas 47,891 50,804 -5.7% Southeast 119,461 123,127 -3.0% Midwest 64,089 67,902 -5.6% Northwest 53,248 57,319 -7.1% Other 19,393 20,887 -7.2% Total Advertising $457,017 $506,774 -9.8%

Advertising Statistics for Dailies: Full Run ROP Linage

Millions of Preprints Distributed

Average Paid Circulation:* Daily Sunday

Quarter 3 Print Only

Revenues - Net: 2007 2006 % Change

Advertising Retail $198,243 $206,602 -4.0% National 39,511 42,632 -7.3% Classified Total 140,539 175,240 -19.8% Automotive 35,778 44,266 -19.2% Real Estate 44,485 61,273 -27.4% Employment 38,046 49,052 -22.4% Other Class 22,230 20,649 7.7% Direct Marketing 36,639 41,011 -10.7% Other Adv Rev 516 280 84.3% Total Advertising $415,448 $465,765 -10.8%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $79,982 $99,927 -20.0% Florida 61,649 74,978 -17.8% Texas 44,231 47,430 -6.7% Southeast 106,900 112,022 -4.6% Midwest 57,682 61,842 -6.7% Northwest 47,683 52,651 -9.4% Other 17,321 16,915 2.4% Total Advertising $415,448 $465,765 -10.8%

Advertising Statistics for Dailies: Full Run ROP Linage 8,019.8 9,037.3 -11.3%

Millions of Preprints Distributed 1,603.9 1,716.7 -6.6%

Average Paid Circulation:* Daily 2,645.8 2,730.8 -3.1% Sunday 3,311.6 3,434.8 -3.6%

* 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)

September Year-to-Date Combined Revenues - Net: *Pro Forma % As Reported 2007 2006 Change 2006

Advertising Retail $623,878 $642,716 -2.9% $350,132 National 132,934 148,816 -10.7% 76,759 Classified Total 550,406 639,775 -14.0% 363,310 Automotive 128,264 151,773 -15.5% 86,570 Real Estate 158,233 197,224 -19.8% 120,897 Employment 195,182 224,069 -12.9% 121,075 Other Class 68,728 66,709 3.0% 34,768 Direct Marketing 113,531 119,336 -4.9% 65,330 Other Adv Rev 1,568 1,272 23.3% 1,260 Total Advertising $1,422,317 $1,551,915 -8.4% $856,791

Circulation 209,582 218,308 -4.0% 117,905 Other 55,030 53,631 2.6% 26,895 Total Revenues $1,686,929 $1,823,854 -7.5% $1,001,591

Memo: Online Only Advertising Revenue $125,555 $123,846 1.4% $63,098

Advertising Revenues by Market: California $274,117 $320,795 -14.6% $307,347 Florida 221,328 265,983 -16.8% 80,572 Texas 147,076 157,954 -6.9% 50,804 Southeast 362,508 372,460 -2.7% 203,431 Midwest 195,865 208,741 -6.2% 67,902 Northwest 163,721 167,516 -2.3% 125,848 Other 57,702 58,466 -1.3% 20,887 Total Advertising $1,422,317 $1,551,915 -8.4% $856,791

Advertising Statistics for Dailies: Full Run ROP Linage 14,957.0

Millions of Preprints Distributed 2,843.9

Average Paid Circulation:** Daily Sunday

September Year-to-Date Print Only Revenues - Net: *Pro Forma 2007 2006 % Change

Advertising Retail $605,338 $631,109 -4.1% National 127,548 139,262 -8.4% Classified Total 448,777 537,090 -16.4% Automotive 110,028 136,140 -19.2% Real Estate 146,912 185,274 -20.7% Employment 128,009 153,489 -16.6% Other Class 63,829 62,187 2.6% Direct Marketing 113,531 119,336 -4.9% Other Adv Rev 1,568 1,272 23.3% Total Advertising $1,296,762 $1,428,069 -9.2%

Circulation Other Total Revenues

Memo: Online Only Advertising Revenue

Advertising Revenues by Market: California $254,514 $302,246 -15.8% Florida 205,116 247,367 -17.1% Texas 136,534 147,224 -7.3% Southeast 324,783 338,146 -4.0% Midwest 176,967 189,385 -6.6% Northwest 146,985 153,933 -4.5% Other 51,864 49,768 4.2% Total Advertising $1,296,763 $1,428,069 -9.2%

Advertising Statistics for Dailies: Full Run ROP Linage 24,487.2 27,245.4 -10.1%

Millions of Preprints Distributed 4,929.2 5,191.9 -5.1%

Average Paid Circulation:** Daily 2,732.2 2,830.1 -3.5% Sunday 3,384.3 3,524.0 -4.0%

* 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 Nine Months Ended

Sept. 30, Sept. 24, Sept. 30, Sept. 24, 2007 2006 2007 2006 Pro Forma REVENUES - NET: Advertising $457,017 $506,774 $1,422,317 $1,551,915 Circulation 67,995 70,637 209,582 218,308 Other 15,332 17,717 55,030 53,631 540,344 595,128 1,686,929 1,823,854 OPERATING EXPENSES: Cash expenses 406,349 444,783 1,271,975 1,399,228 Depreciation and amortization 36,250 36,662 112,440 117,058 442,599 481,445 1,384,415 1,516,286

OPERATING INCOME 97,745 113,683 302,514 307,568 Add back depreciation and amortization 36,250 36,662 112,440 117,058 OPERATING CASH FLOW $133,995 $150,345 $ 414,954 $424,626

OPERATING CASH FLOW MARGIN 24.8% 25.3% 24.6% 23.3%

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.

Management is in the process of performing impairment testing of goodwill and other long-lived assets as of September 30, 2007, due to the continuing challenging business conditions and the resulting weakness in the company's stock price as of the end of its third quarter. Upon completion of that testing, the company expects to record a non-cash impairment charge to GAAP earnings in its third quarter financial statements when it files its Form 10-Q with the Securities and Exchange Commission (SEC) on or before November 9, 2007.

***The McClatchy Company*** RECONCILIATION OF GAAP AMOUNTS Pro Forma Operating Income and Cash Flow Nine Months ended September 24, 2006 (in thousands)

Historical Acquisitions/ Pro Forma Amounts Divestitures Amounts REVENUES -NET Advertising $856,791 $695,124 $1,551,915 Circulation 117,905 100,403 218,308 Other 26,895 26,736 3,631 1,001,591 822,263 1,823,854 OPERATING EXPENSES Cash expenses 743,846 655,382 1,399,228 Depreciation and amortization 56,522 60,536 117,058 800,368 715,918 1,516,286

OPERATING INCOME 201,223 106,345 307,568 Add back depreciation and amortization 56,522 60,536 117,058 OPERATING CASH FLOW $257,745 $166,881 $424,626

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