The preliminary results for the quarter include $56 million in pre-tax severance expenses ($36.1 million after tax or $0.16 per share) related to restructuring and efficiency efforts in the U.S. and the UK. Absent severance expenses in the quarter, the company’s preliminary earnings would have been $0.85 per share. Pre-tax severance expenses and facility consolidation costs totaled approximately $38 million in the fourth quarter of 2007 ($24.4 million after-tax or $0.11 per share).

The preliminary results, however, do not include non-cash charges expected to be recorded in the quarter, which have not yet been finalized, for the impairment of goodwill, other intangible assets and certain other assets. The non-cash charges are expected to total in the range of $5.1 billion to $5.9 billion on a pre-tax basis and $4.5 billion to $5.2 billion on an after-tax basis. In the fourth quarter a year ago, the company recognized a pre-tax, non-cash impairment charge of $72.0 million ($50.8 million after-tax or $0.22 per share).

Commenting on the fourth quarter results, Craig Dubow, chairman, president and chief executive officer, said: “Our results for the quarter reflect the unprecedented turmoil in the economies of both the U.S. and the UK and in the financial markets. Our anticipated non-cash impairment charges stem from recessions in the U.S. and UK and the resultant impact on business conditions and the broad-based downward pressure on equity share values. The impairment charges, while significant, will not impact operating cash flow, our ability to pay down debt or the way we will operate the company going forward. Despite economic conditions, we pressed forward to transform Gannett and position it for the future and more favorable business conditions. To that end, some tough decisions were made during the quarter regarding the size and structure of our operations, and these actions resulted in significant severance expenses.

“The ongoing weakness in advertising demand had a significant impact on our results in both publishing and broadcasting this quarter. However, we benefited from substantially higher politically related advertising revenue in broadcasting as well as solid results in the digital segment. Lower interest expense and taxes also had a positive impact in the quarter while higher newsprint expense moderated results,” Dubow said.

In accordance with the Statement of Financial Accounting Standards No. 142, the company’s annual impairment test of goodwill and other intangible assets is being completed as of December 28, 2008. Due to the challenges facing the company’s publishing businesses, including recessions in both the U.S. and the UK and their impact on advertising demand, and the decline generally in equity values and specifically its stock price, the company expects to incur non-cash impairment charges in the quarter to reduce the book value of newspaper publishing goodwill, other intangible assets including mastheads, certain property, plant and equipment, newspaper publishing partnership investments and certain other assets. The final amount of the charges will be included in earnings and disclosed in our Form 10-K, which will be filed with the Securities and Exchange Commission on or before February 26, 2009.

Total reported operating revenues for the company were $1.7 billion in the fourth quarter compared to $1.9 billion in the fourth quarter of 2007. A significant pullback in advertising demand as the quarter progressed across our publishing and broadcast businesses, driven by the recessionary economic environment, was offset in part by strong political advertising in the broadcasting segment. Digital segment revenues were higher for the quarter reflecting the consolidation of CareerBuilder and ShopLocal for the full quarter in 2008.

Reported operating expenses totaled $1.5 billion and were down slightly compared to the fourth quarter of 2007, reflecting continued cost containment efforts in publishing and broadcasting offset by higher severance expenses as well as incremental costs from the consolidation of CareerBuilder and ShopLocal. Excluding severance costs in both years and the impairment charge in the fourth quarter of 2007, pro forma operating expenses declined 6.3 percent for the quarter. Corporate expenses excluding severance were 7.6 percent lower than the year ago quarter.

Reported operating cash flow (defined as operating income plus depreciation and amortization) was $327.6 million. Preliminary net income in the quarter was $158.0 million, before anticipated non-cash impairment charges.

Average diluted shares outstanding in the fourth quarter totaled 229,336,000 compared with 231,877,000 in 2007’s fourth quarter.

For the full year, total operating revenues were $6.8 billion, a decline of 9.0 percent compared to 2007. Advertising revenue related to politics and the Olympics that totaled $94 million and $24 million, respectively, and incremental digital segment revenue from the consolidation of CareerBuilder and ShopLocal was more than offset by softer advertising demand overall due to economic and business conditions that deteriorated during the year. Pro forma operating expenses, excluding severance and impairment charges declined 5.7 percent. Operating cash flow was $1.5 billion. Preliminary results for the full year of 2008 (including impairment charges in the second quarter of $11.08 per share) reflect a loss of $7.81 per share. Excluding impairment charges and restructuring expense, preliminary earnings per share were $3.61.

PUBLISHING

Publishing segment operating revenues were $1.4 billion for the quarter compared to $1.7 billion in the fourth quarter of 2007, an 18.6 percent decline. Advertising revenues were $963.4 million compared to $1.2 billion in the fourth quarter of 2007. This advertising revenue decline of 22.7 percent for the publishing segment was driven by a 17.7 percent decline in the U.S. and a 29.3 percent decline in pounds at Newsquest, our operations in the UK. Retail advertising revenues were 13.9 percent lower, national revenues declined 18.2 percent and classified revenues were down 36.7 percent. For comparison purposes, the exchange rate of the British pound declined over 22 percent year-over-year. If the exchange rate had remained constant, total advertising revenues would have been 19.3 percent lower including declines of 11.9 percent in retail, 16.8 percent in national and 31.8 percent in classified.

Lower classified revenues were driven by declines of 45.7 percent in real estate, 47.5 percent in employment and 30.4 percent in automotive. For U.S. Community Publishing, classified revenues were down 30.7 percent comprised of declines of 32.9 percent in real estate, 46.5 percent in employment and 25.7 percent in automotive. In the UK, classified revenues were 35.3 percent lower, in pounds, reflecting declines of 57.7 percent in real estate, 35.2 percent in employment and 31.2 percent in automotive.

At USA TODAY, advertising revenues were 18.5 percent lower in the fourth quarter compared to the fourth quarter in 2007. Paid advertising pages totaled 788 compared with 1,045 in the same quarter of 2007. The telecommunications, financial and advocacy revenue categories grew compared to the fourth quarter last year but these gains were more than offset by losses in the entertainment, automotive, retail and travel categories.

Total publishing operating expenses were $1.2 billion, a 10.9 percent decline from the same quarter a year ago reflecting cost control efforts, offset, in part, by severance expenses. Publishing expenses, excluding severance expenses and the impairment charge in the year ago quarter, were 6.8 percent lower. Newsprint expenses were 2.0 percent higher for the quarter reflecting a 26.2 percent increase in usage prices which more than offset a 19.2 percent decline in consumption. Operating cash flow in the fourth quarter for the total publishing segment, which includes USA TODAY and Newsquest, was $209.9 million.

BROADCASTING

Broadcasting revenues (which include Captivate) were $212.8 million in the quarter, about even with $212.0 million in the fourth quarter of 2007. Politically related advertising demand of $58.1 million was offset by softness in other categories, primarily automotive and retail.

Operating expenses in the broadcasting segment totaled $120.6 million, relatively unchanged from the fourth quarter a year ago reflecting significant cost control efforts and higher severance. Broadcasting expenses excluding severance were down 4.0 percent. Operating cash flow was $100.7 million in the fourth quarter. Television revenues were 1.7 percent higher and totaled $205.6 million. Based on where we are today, we would expect television revenues to be down in the mid-teens for the first quarter of 2009 compared to the first quarter of 2008.

DIGITAL

The digital segment for the quarter includes results for CareerBuilder, PointRoll, ShopLocal, Planet Discover, Schedule Star and Ripple6 (from the date of its acquisition in November, 2008). Results for CareerBuilder and ShopLocal were initially consolidated in the third quarter of 2008 when the company acquired controlling interest. Results for PointRoll, Planet Discover and Schedule Star, which had been reflected previously in the publishing segment, have been reclassified to the digital segment.

Digital operating revenues totaled $169.9 million in the quarter driven by the consolidation of CareerBuilder, ShopLocal and Ripple6. Operating expenses were $145.8 million. Operating cash flow was $34.2 million reflecting positive results for CareerBuilder, PointRoll and ShopLocal partially offset by investment in other digital properties. On a pro forma basis, operating revenues were 1.4 percent higher while operating expenses excluding severance were 6.3 percent lower. Operating cash flow on a pro forma basis increased 63.5 percent.

NON-OPERATING ITEMS

The company’s equity earnings include its share of operating earnings or losses from unconsolidated investees including the California Newspapers Partnership, Texas-New Mexico Newspapers Partnership, Tucson newspaper partnership and other online/new technology businesses. These amounts included the company’s equity share of results for CareerBuilder and ShopLocal for periods prior to September 3, 2008 and June 30, 2008, respectively, when the company acquired controlling interest.

Preliminary equity income from unconsolidated investees (excluding anticipated non-cash impairment charges) for the fourth quarter of 2008 was $3.6 million compared to $9.4 million for the fourth quarter of 2007. The decline primarily reflects: lower results from our newspaper publishing partnerships; the absence in the 2008 quarter of CareerBuilder earnings which are now consolidated; and increased investments in new businesses including Metromix, Mogulus and Cozi.

Other non-operating items reflect a loss of $7.7 million in 2008 compared with income of $2.7 million in 2007. The decline in non-operating items primarily reflects inclusion of minority interest charges for CareerBuilder for the full quarter, foreign currency translation losses and lower investment income, partially offset by a gain on the redemption of a portion of the company’s notes due in May, 2009, and other asset sale gains.

Interest expense for the fourth quarter was $51.5 million, 10.3 percent lower compared to $57.5 million for the fourth quarter in 2007. The decline was due to lower interest rates and average debt balances.

The company’s effective tax rate on its preliminary earnings for the fourth quarter of 2008 was 22.6 percent compared with 33.1 percent for the fourth quarter of 2007. The 2008 rate benefited from several favorable state tax settlements, the release of certain state tax reserves upon the expiration of statutes of limitation, and from a lower UK statutory tax rate.

In January, the company announced it was offering to sell certain assets of the Tucson (AZ) Citizen. If, however, a sale is not completed by March 21, 2009, the newspaper will be closed. It is one of the two newspapers produced by TNI Partners as part of a joint operating arrangement (JOA) under the Newspaper Preservation Act. The Arizona Daily Star, which is owned by a subsidiary of Lee Enterprises Incorporated, is the second newspaper in the JOA. TNI Partners provides the production, distribution, sales and other non-editorial business functions for both the Citizen and The Star.

At the end of the quarter, Gannett had more than 100 domestic publishing Web sites, including USATODAY.com, one of the most popular newspaper sites on the Web. The company also had Web sites in all of its 19 television markets. In December, Gannett’s consolidated domestic Internet audience share was 24.4 million unique visitors reaching 14.7 percent of the Internet audience according to Nielsen//NetRatings. Newsquest is also an Internet leader in the UK where its network of Web sites attracted more than 68 million monthly page impressions from approximately 5.5 million unique users. CareerBuilder’s unique visitors in December totaled 17.9 million, an increase of 24 percent compared to last year.

All references in this release to “comparable” revenue results and “operating cash flow” are to non-GAAP financial measures. Management believes that this use allows management and investors to analyze and compare the Company’s results in a more meaningful and consistent manner. A reconciliation of the non-GAAP operating cash flow amounts to the Company’s consolidated statements of income is attached.

As previously announced, the company will hold an earnings conference call at 10:00 a.m. ET today. The call can be accessed via a live Webcast through the Investor Relations section of the company’s Web site, www.gannett.com, or listen-only conference lines. U.S. callers should dial 1-888-599-8693 and international callers should dial 913-312-0717 at least 10 minutes prior to the scheduled start of the call. The confirmation code for the conference call is 8694836. To access the replay, dial 1-888-203-1112 in the U.S. International callers should use the number 719-457-0820. The confirmation code for the replay is 8694836. Materials related to the call will be available through the Investor Relations section of the company’s Web site Friday morning.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes 17 daily paid-for titles, more than 200 weekly newspapers, magazines and trade publications, and a network of award-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

NEW YORK – The New York Times announced that it has begun offering ad placements on its front page below the fold. CBS was the first to appear.

“This high impact placement represents an exciting new opportunity for our advertisers to reach our educated, affluent and influential readers across the country,” said Denise Warren, senior vice president and chief advertising officer for The New York Times Media Group. “In 2006 we began testing ads on some section fronts and received a very positive response from the advertising community. A strip ad on the front page of The New York Times will be highly attractive to advertisers looking for premium real estate for their campaigns.”

“With a weekday readership of 2.8 million and a Sunday readership of 4.2 million*, The New York Times is the largest seven-day newspaper in the United States,” added Ms. Warren.

“It’s exciting that CBS is kicking off The New York Times’s inaugural front page ad,” said George Schweitzer, president, CBS Marketing Group. “America’s most watched network will clearly have one of the most read ads – and we value this new means of prominently showcasing our valuable media properties.”

Another publication of The New York Times Media Group, The International Herald Tribune, also offers front-page advertising placements. To place a front-page ad in either publication, please contact: Alexis Buryk, 212-556-4104, alexb@nytimes.com.

The New York Times Company (NYSE: NYT), a leading media company with 2007 revenues of $3.2 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 16 other daily newspapers, WQXR-FM and more than 50 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

CBS Corporation is a mass media company with constituent parts that reach back to the beginnings of the broadcast industry, as well as newer businesses that operate on the leading edge of the media industry. The Company, through its many and varied operations, combines broad reach with well-positioned local businesses, all of which provide it with an extensive distribution network by which it serves audiences and advertisers in all 50 states and key international markets. It has operations in virtually every field of media and entertainment, including broadcast television (CBS and The CW – a joint venture between CBS Corporation and Warner Bros. Entertainment), cable television (Showtime Networks and CBS College Sports Network), local television (CBS Television Stations), television production and syndication (CBS Paramount Network Television and CBS Television Distribution), radio (CBS Radio), advertising on out-of-home media (CBS Outdoor), publishing (Simon & Schuster), interactive media (CBS Interactive), music (CBS Records), licensing and merchandising (CBS Consumer Products), video/DVD (CBS Home Entertainment), in-store media (CBS Outernet) and motion pictures (CBS Films). For more information, log on to www.cbscorporation.com.

*Source: MRI Fall 2008

The topics to be discussed will include Gannett’s strategic efforts, particularly its digital segment and content initiatives, and the company’s outlook for 2009.

To listen to the live Webcast, go to www.gannett.com or www.ibb.ubs.com. On www.gannett.com, a link to the Webcast will be under “Company Highlights.” Find Gannett’s Webcast on www.ibb.ubs.com by first clicking on the “Conferences” icon; then click on the “Webcast” icon next to the 36th Annual Global Media and Communication conference heading. Please allow at least 10 minutes to access the links before the presentations begin.

Gannett will issue a press release covering remarks made at the conference.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

“From the moment we began working with Ripple6, we realized we had found a company that is richly innovative and can change the way social media is offered and monetized online,” said Craig Dubow, chairman, president and CEO of Gannett. “Ripple6 will join our other enterprises in fueling the rapid growth of our digital business, which seeks to apply innovative technology and content solutions to the needs of all our customers. With the Ripple6 platform, we can help users create communities and connect with their friends and family in highly pleasing ways, while providing marketers with innovative advertising opportunities and measurable results.”

Ripple6 currently powers Gannett’s MomsLikeMe.com sites, which recently rolled out in 80 local markets across the country and have more than one million moms visiting each month. The company also powers social media properties for Procter & Gamble and the soon to be launched MixingBowl.com, Meredith Corporation’s social network around meals and meal planning.

“We’re excited, because we get the best of both worlds here,” said Sang Kim, CEO of Ripple6. “We’ll take advantage of the synergy and resources of our new parent, yet we’ll maintain the independence that helps generate innovative solutions for marketers and publishers.”

Using the Ripple6 platform, publishers can offer their users advanced social networking capabilities, while generating incremental revenue through Ripple6’s proprietary social marketing innovations. Ripple Analytics will also help publishers better understand how their users interact within social networks by offering a true word of mouth measurement and mapping capability.

Ripple6 also offers unique opportunities to advertisers and marketers. Among the innovations are offerings that make it possible for marketers to effectively engage in online social networks. Cloud Communities™ enable marketers to participate in their customers’ existing social networks by creating and syndicating communities across the web. With Social Insights™, marketers can conduct ongoing research within the private spaces of social networks. Both solutions include Ripple Analytics for access to metrics and insights beyond page views and visitors, while still protecting the privacy of the individuals interacting with the platform.

“We’ve had a highly productive two-year relationship with Ripple6 to create new communities for our brands, and we look forward to continuing it in their new structure,” said Pat Gentile, head of Procter & Gamble Productions, Inc. “We’ve been impressed by their innovations in social marketing and the insights that they can deliver for marketers.”

As part of the transaction, the 10 percent share of Ripple6 owned by Chris Saridakis, senior vice president and chief digital officer of Gannett, was bought out completely by Gannett. He did not participate in the sale negotiations.

About Gannett

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes 17 daily paid-for titles, approximately 300 weekly newspapers, magazines and trade publications, and a network of award-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

About Ripple6, Inc.

Ripple6™ helps marketers and publishers implement their business strategy through social media. The company provides an enterprise white label social media platform to create consumer engagements and relationships, enable social marketing, generate consumer insights, and facilitate commerce and collaboration. It is easily customized to incorporate a brand’s look and feel for integration into an existing web site or to create an entirely new site. Ripple6 is based in New York and its list of clients and partners includes Procter & Gamble, Gannett Co., Meredith Corporation, and General Mills. For more information, visit www.ripple6.com.

* Howard Elias is president, EMC Global Services and Resource Management Software Group, and executive vice president, EMC Corporation. Elias oversees EMC’s professional services and global customer support organizations, EMC Consulting, and Global Pre-Sales and Education Services. He also has worked at Hewlett-Packard Company, Compaq, Digital, AST Research, and Tandy Corporation.
* Scott McCune is vice president of Integrated Marketing for The Coca-Cola Company. He is responsible for the development of worldwide media, licensing, sports and entertainment marketing strategies. He also has worked at Anheuser-Busch, Inc., and the Sports Time Cable Network.

“Howard Elias and Scott McCune are top executives in their fields, and will bring not only expertise to our board, but also depth in the key areas of technology and marketing,” said Craig A. Dubow, chairman, president and chief executive officer of Gannett. “These two professionals are great additions to our board and we welcome them.”

With this election, Gannett has ten directors.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes 17 daily paid-for titles, approximately 300 weekly newspapers, magazines and trade publications, and a network of award-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

NEW YORK – NYTimes.com announced today the launch of a new video platform that introduces video into more sections of the site and provides enhanced user functionality. This new platform emphasizes The Times’s strong commitment to video as an important journalistic medium. Players, now using a high-definition format, are available on the home page, article pages, in blogs and in the video library, making video an even more integral component of the NYTimes.com experience.

The video platform also introduces:

- Widescreen format – high-definition videos are now displayed in a 16×9 widescreen frame;

- Redesigned video library (www.NYTimes.com/video) – library offers a clean layout and a black background for optimal viewing comfort;

- Individual video pages – an individual playback page for each video that provides a better viewing experience and enhanced searchability;

- “Most Viewed” – a continually updated list of the most viewed videos across the site; and

- Share tools – the ability to share videos to social sites such as Digg, Facebook, LinkedIn, Mixx and Yahoo! Buzz.

“Demand for high-quality video is on the rise across the Web from both our users and our advertisers,” said Nicholas Ascheim, vice president, product management, NYTimes.com. “To meet this need, we have upgraded our technology, increased our production values and given video even more prominence across the site.”

“As our online audience continues to grow, video is an increasingly useful tool for Times journalists,” said Ann Derry, editorial director, video and television, The New York Times. “By further integrating video throughout the site, we can bring to life the rich stories and characters that are best experienced visually.”

The Times produces over 100 original videos per month, featuring breaking news and analysis, as well as enterprise and investigative reporting by Times journalists around the world, many of whom are shooting video themselves. The Times also continues to develop video series by well-known journalists such as David Pogue, Mark Bittman (The Minimalist), David Carr (The Carpetbagger) and A.O. Scott (Critics’ Picks). NYTimes.com/video currently houses over 3,000 videos. NYTimes.com also offers select videos from CNBC, MSNBC, Reuters and Bloggingheads.tv, as well as more than 15,000 movie trailers and clips. In recent weeks, NYTimes.com has begun hosting video at the top of the homepage, including live streaming video of the presidential and vice presidential debates.

The new video experience uses Brightcove 3, the latest version of Brightcove’s online video platform; The New York Times Company is an investor in Brightcove Inc.

According to Nielsen Online, NYTimes.com had 20.1 million unique visitors in September 2008, and was the No. 1 newspaper Web site in United States, a position it has long held.

The New York Times Company (NYSE: NYT), a leading media company with 2007 revenues of $3.2 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 16 other daily newspapers, WQXR-FM and more than 50 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.

This press release can be downloaded from www.nytco.com

As previously reported, the company acquired all of its partners’ ownership stakes in ShopLocal LLC on June 30, 2008. In addition, the company acquired an additional 10 percent stake in CareerBuilder increasing its ownership to 50.8 percent on September 3, 2008. The results for ShopLocal and CareerBuilder were fully consolidated beginning in the seventh and ninth periods, respectively. Prior to these acquisitions the company’s equity share of CareerBuilder and ShopLocal results was reported as equity earnings. Beginning with the third quarter, a new “Digital” business segment is being reported which includes CareerBuilder and ShopLocal results from the date of full consolidation as well as PointRoll, Planet Discover and Schedule Star. Prior period results for PointRoll, Planet Discover and Schedule Star have been reclassified from the publishing segment to the digital segment.

“While our results this quarter reflect the difficult and volatile economy both here and in the UK, they also highlight our determination to move forward with our strategic plan,” said Chairman, President and Chief Executive Officer Craig Dubow.

“Our positive online results confirm, for instance, the importance of digital to our plan going forward. We also were delighted to complete, this quarter, the acquisition of an additional 10 percent stake in CareerBuilder, the largest online job site in the U.S., and the remainder of ShopLocal.

“Within our core operations, revenues from Olympics advertising reflected the strength of our NBC affiliated stations. Political advertising is strong and continues to surge as we move toward November. Meanwhile, we continue to transform our cost structure and create efficiencies as we manage through this economic downturn.

“And there were some headwinds in addition to the weakening economic conditions which impacted ad spending across the board,” Dubow said. “We faced significantly higher newsprint prices and an unfavorable exchange rate.”

Total reported operating revenues for the company were $1.64 billion in the third quarter compared to $1.80 billion in the same quarter a year ago. The decline was due to softer publishing advertising demand resulting primarily from weak economic conditions in the U.S. and the UK, offset partially by Olympic and political ad spending in Broadcasting and revenues from the consolidation of CareerBuilder and ShopLocal. On a pro forma basis, assuming Gannett owned the same complement of properties in the third quarters of 2008 and 2007, operating revenues would have been 10.2 percent lower.

Reported operating expenses declined 2.2 percent in the quarter to $1.38 billion from $1.41 billion in the third quarter of 2007. The decline was driven by continued cost containment and efficiency efforts and lower newsprint expense, reduced, in part, by severance expenses, the consolidation of CareerBuilder and ShopLocal expenses and our accelerated ramp up of our digital initiatives. On a pro forma basis and excluding severance costs, operating expenses declined 5.3 percent for the quarter. Corporate expenses were $14.3 million, 19.2 percent lower than the year ago quarter driven by cost control efforts offset slightly by buyout expenses. Operating cash flow (defined as operating income plus depreciation and amortization) was $324.0 million. Net income in the quarter was $158.1 million.

Average diluted shares outstanding in the third quarter totaled 228,331,000 compared with 232,698,000 in 2007’s third quarter.

PUBLISHING

Publishing segment operating revenues were $1.36 billion for the quarter, a 14.4 percent decline from the third quarter of 2007. Advertising revenues were $977.1 million compared to $1.19 billion in the third quarter of 2007. On a pro forma basis, advertising revenues were 17.6 percent lower. Pro forma advertising revenues declined 14.9 percent in the U.S. and 23.6 percent, in pounds, at Newsquest, our operations in the UK. On a pro forma basis for the publishing segment, retail advertising revenues were 10.1 percent lower, national revenues declined 7.8 percent and classified revenues were down 28.5 percent. For comparison purposes, the exchange rate of the British pound in the quarter declined compared to last year. If the exchange rate had remained constant year-over-year total pro forma advertising revenues would have been 16.5 percent lower including declines of 9.5 percent in retail, 7.3 percent in national and 27.0 percent in classified.

Lower pro forma classified revenues were driven by declines of 41.5 percent in real estate, 34.0 percent in employment and 21.4 percent in automotive. For U.S. Community Publishing classified revenues were down 26.5 percent comprised of declines of 33.4 percent in real estate, 36.5 percent in employment and 18.7 percent in automotive. In the UK, classified revenues were 29.1 percent lower, in pounds, reflecting declines of 51.3 percent in real estate, 25.2 percent in employment and 25.3 percent in automotive.

At USA TODAY, advertising revenues were 7.1 percent lower in the third quarter compared to the year ago quarter. Paid advertising pages totaled 713 compared with 803 in the same quarter of 2007. Growth in the advocacy, financial and home and building categories was offset by softness in the entertainment, travel, automotive and technology categories.

Total publishing operating expenses were $1.18 billion, a 6.6 percent decline from the same quarter a year ago reflecting continued efficiency efforts in the U.S. and the UK and lower newsprint expense offset in part by severance expenses. Pro forma publishing expenses excluding severance expenses were 7.1 percent lower. Newsprint expense declined 3.4 percent for the quarter reflecting a 15.9 percent increase in usage prices which was more than offset by a 16.7 percent decline in consumption. Operating cash flow in the third quarter for the total publishing segment, which includes USA TODAY and Newsquest, was $231.7 million.

BROADCASTING

Broadcasting revenues (which include Captivate) were $197.0 million in the quarter, a 3.9 percent increase compared to $189.5 million in the third quarter of 2007. The increase was driven by almost $24 million in ad spending related to the Olympics on our NBC affiliates and about $26 million in politically related advertising. Online revenue in the quarter was up 15.0 percent. The weakening economy had an unfavorable impact on certain core advertising categories including auto and retail which partially offset the increase from Olympic and political ad revenue.

Operating expenses in the broadcasting segment totaled $113.0 million down 4.3 percent from $118.1 million a year ago reflecting continued efficiencies, offset in part by severance expense. Broadcasting expenses excluding severance were down 6.0 percent. Operating cash flow was $92.5 million in the third quarter. Television revenues were 4.8 percent higher and totaled $192.8 million. Based on where we are today, we would expect television revenues to be up in the low single digits for the fourth quarter of 2008 compared to the fourth quarter of 2007 led by strong political advertising demand.

DIGITAL

As noted previously, the digital segment includes results for CareerBuilder, PointRoll, ShopLocal, Planet Discover and Schedule Star. Results for ShopLocal were included for the entire third quarter while CareerBuilder’s results were included for the last month in the quarter. Results for PointRoll, Planet Discover and Schedule Star, which had been previously reflected in the publishing segment, have been reclassified to the digital segment. Total digital operating revenues from these businesses were $77.6 million in the quarter driven by the consolidation of CareerBuilder and ShopLocal. Operating expenses totaled $71.5 million. Operating cash flow was $10.2 million reflecting positive results for CareerBuilder, PointRoll and ShopLocal partially offset by continued investment in Schedule Star and the ramp up of our digital infrastructure.

NON-OPERATING ITEMS

The company’s equity share of operating earnings or losses from our unconsolidated investees including the California Newspapers Partnership, Texas-New Mexico Newspapers Partnership, Tucson and online/new technology businesses is reported in “Equity income (losses) in unconsolidated investees, net” in the non-operating section of the Consolidated Statements of Income. These amounts include the company’s equity share of results for CareerBuilder and ShopLocal for periods prior to September 3, 2008 and June 30, 2008, respectively.

The decline in equity income from unconsolidated investees for the third quarter of 2008 was due primarily to: lower results from our newspaper partnerships reflecting the challenging publishing advertising environment; continued investment in digital assets like Metromix; and the inclusion of CareerBuilder results for two months in the quarter compared to 3 months in last year’s third quarter.

The decrease in other non-operating items reflects the inclusion of minority interest expense related to CareerBuilder, a reduced level of investment income and foreign currency charges associated primarily with UK pound-denominated transactions.

Interest expense for the third quarter was $46.8 million, a 25.7 percent decline compared to $63.0 million for the third quarter in 2007. The decline was due to lower interest rates and average debt balances.

As expected, some favorable tax settlements of prior year state return positions and a lower UK statutory tax rate impacted the tax rate for the quarter. We expect further favorable tax settlements in the fourth quarter.

At the end of the quarter, Gannett had more than 100 domestic publishing Web sites, including USATODAY.com, one of the most popular newspaper sites on the Web. The company also had Web sites in all of its 19 television markets. In September, Gannett’s consolidated domestic Internet audience share was 25.4 million unique visitors reaching 15.6 percent of the Internet audience according to Nielsen//NetRatings. Newsquest is also an Internet leader in the UK where its network of Web sites attracted more than 85.6 million monthly page impressions from approximately 6.5 million unique users. CareerBuilder’s average unique visitors year-to-date totaled 23.4 million, an increase of almost 6 percent compared to last year.

All references in this release to “comparable” revenue results and “operating cash flow” are to non-GAAP financial measures. Management believes that this use allows management and investors to analyze and compare the Company’s results in a more meaningful and consistent manner. A reconciliation of the non-GAAP operating cash flow amounts to the Company’s consolidated statements of income is attached.

As previously announced, the company will hold an earnings conference call at 10:00 a.m. ET today. The call can be accessed via a live Webcast through the Investor Relations section of the company’s Web site, www.gannett.com, or listen-only conference lines. U.S. callers should dial 1-888-215-7015 and international callers should dial 913-312-1504 at least 10 minutes prior to the scheduled start of the call. The confirmation code for the conference call is 5339774. To access the replay, dial 1-888-203-1112 in the U.S. International callers should use the number 719-457-0820. The confirmation code for the replay is 5339774. Materials related to the call will be available through the Investor Relations section of the company’s Web site Friday morning.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

Certain statements in this press release may be forward looking in nature or “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company’s SEC reports, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.

Gannett is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this press release by wire services, Internet service providers or other media.

Gannett has continued to fund itself in the commercial paper market despite current market disruptions over the past few weeks. As a prudent liquidity measure in light of the ongoing credit market dislocations, Gannett partially drew down on its committed revolving credit facilities sufficient funds to cover all of its commercial paper obligations outstanding. This action was taken prior to — and was completely unrelated to — Standard & Poor’s actions today.

Irrespective of any actions Standard & Poor’s may take in the future, Gannett continues to generate substantial cash flow and also has significant untapped availability under its $3.9 billion of committed revolving credit facilities, far in excess of our total commercial paper obligations.

“Our underlying fundamentals remain strong and we continue to be a solid investment grade company,” said Craig A. Dubow, chairman, president and chief executive officer.

Gannett Co., Inc. (NYSE:GCI) is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes 17 daily paid-for titles, approximately 300 weekly newspapers, magazines and trade publications, and a network of award-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

It’s only been two weeks since Gannett made public their partnership with Platform-A’s ADTECH and have their content network monetized through Helios IQ. At the time, the move went almost unnoticed because, well, companies do tend to switch ad serving providers every now and then.

However, what was really cooking behind the scenes was the funding of Mogulus, a company who’s got what Gannett is currently after: video inventory, with a marginal CPM profit significantly higher than traditional display ads. In this light, it seems that Gannett may have jumped over to ADTECH in exchange for a sweet deal on ad serving fees, although, of course, this is mere supposition.

Read the press release in full below.

McLEAN, VA – Gannett said today it has made a minority investment in Mogulus, a New York- based Internet video platform. The investment extends and expands on Gannett’s three-month-old commercial agreement with Mogulus to provide broadcasting services on the company’s Web sites.

That agreement, signed in April, has enabled Gannett newspapers and television stations to perform live, groundbreaking broadcasts, including:

* The Indianapolis Star’s (www.indystar.com) live editorial interview of Democratic presidential candidate, Sen. Barak Obama, which attracted more than 40,000 concurrent viewers.
* The Webcast by www.azcentral.com of the press conference when the NFL announced the city that will be hosting the 2012 Super Bowl. Azcentral.com is the combined Web site of The Arizona Republic and KPNX-TV in Phoenix, AZ.
* A live Webcast of the interview with Sen. Hillary Clinton by the Argus Leader (www.argusleader.com) in Sioux Falls, SD.

Terms of the agreement and the investment were not disclosed.

“Mogulus adds a new and exciting dimension to Gannett’s already broad-based multimedia journalism efforts. Our reporters and photographers in the field are equipped with video cameras, laptops and broadband wireless connections to enable timely and relevant news delivery to the Web. Now, with Mogulus, all our journalists – including print and Web reporters – can deliver live, multi-camera broadcasts of news events to our customers,” said Craig A. Dubow, chairman, president and chief executive officer of Gannett Co., Inc. (NYSE: GCI) “Live internet broadcasting tools are essential in this new media age. We believe in the space and in the ability of Mogulus to deliver.”

Mogulus gives users everything they need to launch their own live 24/7 television station online, including multiple camera and editing capability. So far, more than 100,000 producers have launched their own Mogulus channels, which can be viewed at www.mogulus.com and throughout the Web via the Mogulus players. The viewing audience has doubled every 60 days for the past 10 months, mounting up to more than 200,000,000 unique viewer minutes monthly.

Mogulus will complement Gannett’s already robust multimedia infrastructure by adding the capabilities of its broadcast studio “in a box” to journalists’ information gathering tool kits. Using the Mogulus studio, professionals and amateurs can easily mix multiple live cameras, video clips and overlay graphics.

Mogulus offers an ad-supported free service as well as an upcoming white label Pro version; the service is live and on-demand. Mogulus producers range from video bloggers and independent producers to large media companies such as Fox and Gannett.

“This investment from Gannett is a terrific partnership which will not only give us the financial resources to secure Mogulus as the leading live broadcasting service but also gives us our first major Mogulus Pro customer,” said Max Haot, co-founder and CEO at Mogulus. “Our immediate priority is now to accelerate our product development to launch Mogulus Pro, recruit senior executives in the areas of service sales and advertising sales and deploy the Mogulus Pro service deeper within Gannett properties and those of other customers.”

About Mogulus

Mogulus is the most powerful live broadcast platform on the Internet. Producers can use the Mogulus browser-based Studio application to create LIVE, scheduled and on-demand Internet television to broadcast anywhere on the Web through a single player widget. The service comes in two flavors: Free (ad-supported) and Pro (white-label, no-ads, pay for usage). Unique features include the ability to mix multiple live cameras, imported videos clips, and overlay graphics. With Mogulus, producers can broadcast live from a mobile phone; use a customizable flash player with integrated chat; and develop a branded channel page on Mogulus.com that incorporates interactive chat.

About Gannett

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

“By aggregating the online audiences of quadrantONE’s participating media companies, large national advertisers can immediately access tens of millions of unique visitors in the country’s top markets,” said Dana Hayes, Interim CEO, quadrantONE, and senior vice president for sales of Tribune Interactive. “Each participating company has agreed to dedicate advertising inventory to quadrantONE, so the network can offer customized online campaigns on a highly competitive basis. Imagine placing the same ad across hundreds of local Web sites on the same day with one buy—that’s the power of this network.”

The network has a reach of nearly 50 million monthly unique visitors [Source: Nielsen Online, Dec. 2007] and covers 27 out of the top 30 markets. quadrantONE will, for the first time, offer advertisers the capability to consistently deliver their brands and messages on a national scale through advertising with the well-established and trusted online newspaper and broadcasting sites of the participating media companies.

“For the first time, the media industry will be able to compete effectively for advertising dollars currently going to the national portals and others,” said Jack Williams, president of Gannett Digital Ventures. “quadrantONE’s audience is of the highest quality. By networking our Web sites, we have delivered – in one stroke – the reach and scope desired by national advertisers.”

The network will cover the nation’s top markets including New York, Los Angeles, Chicago, San Francisco, Boston, Atlanta, Houston, Phoenix, Detroit, Dallas, Philadelphia, Washington, D.C., Baltimore, Cincinnati, Denver, Minneapolis/St. Paul, Orlando, San Antonio, Sarasota, Ft. Lauderdale, San Jose and Albany, N.Y. A full list of participating Web sites is available at www.quadrantONE.com.

Chris Boothe, president/chief activation officer at Starcom USA, said: “When faced with a growing number of fragmented ad media options, particularly on the Web, advertisers are looking for new opportunities and innovative models providing a valuable, measurable consumer experience. quadrantONE steps up to the challenge of the new media future, and on behalf of our advertisers, we appreciate that it provides hyperlocalized opportunities for brand impact that resonate with targeted audiences.”

Starcom handles media planning and buying for some of the world’s biggest brands.

“With the rapid expansion of online inventory, advertisers we talk with are seeking trusted alternatives,” added Steven Ainsley, publisher of The Boston Globe. “Guaranteed placements within quality branded environments, coupled with the ease of a one-order, one-invoice approach to a national buy, makes for a very competitive proposition.”
Lincoln Millstein, senior vice president for digital media at Hearst Newspapers, said, “We now have the ability to offer advertisers the aggregated inventory of our prized content categories such as health, business news, technology, sports, personal finance and auto news. That’s never been possible before.”

In addition to the four owner companies, quadrantONE is open to any affiliate companies that wish to participate.

About Tribune Company
Tribune is America’s largest employee-owned media company, operating businesses in publishing, interactive and broadcasting. In publishing, Tribune’s leading daily newspapers include the Los Angeles Times, Chicago Tribune, Newsday (Long Island, N.Y.), The Sun (Baltimore), South Florida Sun-Sentinel, Orlando Sentinel and Hartford Courant. The company’s broadcasting group operates 23 television stations, Superstation WGN on national cable, Chicago’s WGN-AM and the Chicago Cubs baseball team. Popular news and information Web sites complement Tribune’s print and broadcast properties and extend the company’s nationwide audience.

About Gannett Co., Inc.
Gannett (NYSE: GCI) is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 1,000 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 18 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

About Hearst Corporation
Hearst Corporation (www.hearst.com) is one of the nation’s largest diversified media companies. Its major interests include ownership of 12 daily and 31 weekly newspapers, including the San Francisco Chronicle, Houston Chronicle and Albany Times Union; as well as interests in an additional 47 daily and 38 non-daily newspapers owned by MediaNews Group which include the Denver Post and Salt Lake Tribune; nearly 200 magazines around the world, including Cosmopolitan and O, The Oprah Magazine; 29 television stations through Hearst-Argyle Television (NYSE:HTV) which reach a combined 18% of U.S. viewers; ownership in leading cable networks, including Lifetime, A&E, The History Channel and ESPN; as well as business publishing, including a joint venture interest in Fitch Ratings; Internet businesses, television production, newspaper features distribution and real estate.

About The New York Times Company
The New York Times Company (NYSE: NYT), a leading media company with 2007 revenues of $3.2 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers, WQXR-FM and more than 50 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.