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For immediate release
4/14/97

First Quarter 1997 Earnings

ARLINGTON, Va. — Gannett announced today that earnings per share from continuing operations advanced 55 percent in the first quarter to 96 cents per share, a new record. In the first quarter of 1996, earnings per share from continuing operations were 62 cents per share.

Net income from continuing operations increased 56 percent in the quarter to $135,064,000 from $86,448,000 in the year-earlier quarter. Operating revenues from continuing operations gained 5 percent in the quarter to $1,076,757,000, compared to $1,023,883,000 in 1996’s first quarter. Operating income from continuing operations advanced 36 percent to $260,820,000 from $192,309,000 in the first quarter of 1996. Operating cash flow from continuing operations advanced to $335,444,000 in the quarter from $264,661,000 in the prior year reflecting strong advertising demand at our local newspapers and at USA TODAY, sharply lower newsprint costs year over year and a healthy broadcast environment.

First quarter expense included the gift of the Niagara Gazette newspaper to the Gannett Foundation. Subsequent to the transfer, the Gannett Foundation sold the Niagara Gazette so that the proceeds could be used to fund the Foundation and its community grants. The sale also resolved the FCC newspaper-television cross-ownership issues that arose as a result of the company’s acquisition of a television station in Buffalo, New York.

Average shares outstanding in the quarter totaled 141,421,000, compared with 140,680,000 in 1996’s first quarter.

In a statement the company said each of its business segments posted record operating results for the quarter. Newspaper earnings soared reflecting stronger advertising demand, a 29 percent reduction in newsprint expense compared to the year earlier quarter, strong operating results at USA TODAY, and a favorable comparison year to year at The Detroit News. The Broadcasting group also achieved record results for the first quarter.

Operating cash flow from newspapers jumped 32 percent in the quarter to $248,343,000 and revenues in the quarter were 5 percent higher than last year. Advertising revenues grew 7 percent, including a 10 percent gain in classified and a 6 percent gain in local advertising revenues. Newspaper advertising volume advanced 7 percent for the quarter.

In the first quarter of 1997, the company reported a profit at The Detroit News versus a loss in the first quarter of 1996. The strike that began in Detroit in July 1995 ended in February 1997. However, while the strike has ended, a subscriber and advertiser boycott continues as the unions do not yet have contracts.

At USA TODAY, advertising revenues grew 9 percent. Paid advertising pages advanced 5 percent to 1,129 compared to 1,080 in the first quarter of 1996.

Broadcasting cash flow advanced 14 percent in the quarter to $72,212,000 as revenues gained 6 percent to $150,606,000. On a pro forma basis, revenues advanced 7 percent, including a 6 percent gain in television revenue. Radio revenues increased 24 percent in the quarter.

Cable and Security operating cash flow grew 8 percent in the first quarter to $29,858,000 from $27,678,000 in the first quarter of 1996. Revenues gained 9 percent to $61,546,000. Basic cable subscribers totaled 470,272 at the end of the quarter, equal to 61percent of homes passed. Pay units numbered 320,492 at quarter end.

In January, Gannett announced that it had entered into an agreement to acquire two television stations in Arizona. On April 10 the company announced that it had reached agreement to sell its remaining five radio stations to Evergreen Media. Both closings are expected to occur after regulatory approvals are obtained.

Gannett is a nationwide news and information company that publishes 91 daily newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine. Gannett also operates 16 television stations, five radio stations, cable television systems in five states and alarm security services.


CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)

                                          Quarter ended              % Inc
                                    Mar. 30, 1997  Mar. 31, 1996     (Dec)
                                    -------------  -------------     -----

Net Operating Revenues:
Newspaper advertising               $     593,552  $     556,885       6.6
Newspaper circulation                     233,370        229,417       1.7
Broadcasting                              150,606        141,688       6.3
Cable & Security                           61,546         56,612       8.7
Other                                      37,683         39,281      (4.1)
                                    -------------  -------------     -----
Total                                   1,076,757      1,023,883       5.2

Operating Expenses:
Cost of sales and operating expenses,
  exclusive of depreciation               566,522        590,515      (4.1)
Selling, general and administrative
  expenses, exclusive of depreciation     174,791        168,707       3.6
Depreciation                               49,782         48,837       1.9
Amortization of intangible assets          24,842         23,515       5.6
                                    -------------  -------------     -----
Total                                     815,937        831,574      (1.9)
                                    -------------  -------------     -----
Operating income                          260,820        192,309      35.6

Non-operating income (expense):
Interest expense                          (25,618)       (39,528)     35.2
Other                                      (5,088)        (1,583)   (221.4)
                                    -------------  -------------     -----
Total                                     (30,706)       (41,111)     25.3
                                    -------------  -------------     -----
Income before income taxes                230,114        151,198      52.2
Provision for income taxes                 95,050         64,750      46.8
                                    -------------  -------------     -----
Income from continuing operations         135,064         86,448      56.2
Discontinued operations:
Income from discontinued operations,
  net of income taxes                                      2,902    (100.0)
                                    -------------  -------------     -----
Net income                          $     135,064  $      89,350      51.2
                                    =============  =============     =====

Earnings per share:
Earnings from continuing operations         $0.96          $0.62      54.8
Earnings from discontinued
   operations, net of tax                                  $0.02    (100.0)
                                            -----          -----     -----
Net income  per share                       $0.96          $0.64      50.0
                                            =====          =====     =====

Dividends per share                         $0.36          $0.35       2.9


BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars

                                              Quarter Ended
                                       March 30, 1997  March 31, 1996     % Inc
                                       --------------  --------------     -----

Operating Revenues:
Newspaper publishing                   $      864,605  $      825,583      4.7
Broadcasting                                  150,606         141,688      6.3
Cable and Security                             61,546          56,612      8.7
                                       --------------  --------------     -----
Total                                  $    1,076,757  $    1,023,883      5.2
                                       ==============  ==============     =====

Operating Income:
(net of depreciation and amortization)
Newspaper publishing                   $      207,194  $      146,971     41.0
Broadcasting                                   57,400          50,039     14.7
Cable and Security                             13,365          11,717     14.1
Corporate                                     (17,139)        (16,418)    (4.4)
                                       --------------  --------------     -----
Total                                  $      260,820  $      192,309     35.6
                                       ==============  ==============     =====

Depreciation and Amortization:
Newspaper publishing                   $       41,149  $       40,716      1.1
Broadcasting                                   14,812          13,119     12.9
Cable and Security                             16,493          15,961      3.3
Corporate                                       2,170           2,556    (15.1)
                                       --------------  --------------     -----
Total                                  $       74,624  $       72,352      3.1
                                       ==============  ==============     =====

Operating Cash Flow:
Newspaper publishing                   $      248,343  $      187,687     32.3
Broadcasting                                   72,212          63,158     14.3
Cable and Security                             29,858          27,678      7.9
Corporate                                     (14,969)        (13,862)    (8.0)
                                       --------------  --------------     -----
Total                                  $      335,444  $      264,661     26.7
                                       ==============  ==============     =====

NOTE:

Operating Cash Flow represents operating income for each of the Company's
business segments plus related depreciation and amortization expense.