MFM/BCCA Annual Conference Atlanta, GA

May 16, 2011

Bond & Pecaro, Inc. 1920 N St., NW – Suite 350 Washington, DC 20036 (202) 775-8870 www.bondpecaro.com

PanelistsJohn S. Sanders, Principal, Bond & Pecaro, Inc.

Gary M. Greene, Managing Director, Cribb, Greene & Associates

Frank J. Grueter, Jr., III, Senior Vice President, Publishing Group, Citizen’s Bank

Nancy Trillo, Vice President – Enterprise Finance, Controller, and Treasurer, Freedom Communications, Inc.

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’95-’00 CAGR: 6.5%

’00-’10 Reasonably Expected CAGR : 5.0%

’95-’00 CAGR: 6.5%

’00-’10 CAGR: -5.4%

’00-’10 Reasonably Expected CAGR : 5.0%

Comparative Operating Performance and Valuations – 2010 to 2011

(Dollars in Thousands)

.04/19/23

  Year Ending  March 30, 2010   Year Ending March 30, 2011

  RevenueRecurring EBITDA Margin

Enterprise Value

EBITDA Multiple   Revenue

Recurring EBITDA Margin

Enterprise Value

EBITDA Multiple

McClatchy $1,411.5  $413.1  29.3% $2,236.0  5.4   $1,343.3  $382.5  28.5% $1,971.0  5.2

Lee              795.1 

                180.9  22.8%

         1,269.0  7.0  

         771.4 

          177.5  23.0%

       1,123.0  6.3

New York Times

          2,424.2 

                398.9  16.5%

         2,296.0  5.8  

     2,372.1 

          365.6  15.4%

       2,244.0  6.1

Daily Journal                

39.9                   

13.4  33.6%               94.0  7.0  

           34.5              12.0  34.8%

             96.0  8.0

A. H. Belo              505.6 

                  46.3  9.2%

             107.0  2.3  

         483.7             35.4  7.3%

           128.0  3.6

                       

  $5,176.3  $1,052.6  20.3% $6,002.0  5.7  $5,005.0  $973.0  19.4% $5,562.0  5.7Percent Change             -3.3% -7.6%  -7.3% 0.3%

Current Newspaper Valuation IssuesMarket Turbulence Has Caused a Multitude of Valuation

IssuesEconomic Decision-making and Transaction Analysis

(debt/equity swaps, financings, etc.)ASC 350 (Formerly FAS 142) Impairment TestingASC 360 (Formerly FAS 144) Long-Lived Assets Including

TangiblesASC 805 (Formerly FAS 141) Business CombinationsProperty Tax ValuationsFresh Start AccountingSec. 1031 Like Kind Exchanges and Ongoing IRS Controversy

Regarding Masthead Valuation IRC 409A Appraisals in connection with stock options and

deferred compensationEmployee Stock Ownership Plans (ESOPs) – Dept. of Labor

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MFM/BCCA Annual Conference Atlanta, GA

May 16, 2011

Bond & Pecaro, Inc. 1920 N St., NW – Suite 350 Washington, DC 20036 (202) 775-8870 www.bondpecaro.com