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Gannett Executives Speak at Credit Suisse First Boston Media Conference

NEW YORK, NY — Gannett executives today reported on the company’s strong performance in 2000 and the outlook for another record year in 2001 at the Credit Suisse First Boston Media Conference held here this week.

Douglas H. McCorkindale, President and CEO, commented that “2000 will be another year of record revenues, profits and cash flow.” In his speech, McCorkindale commented that the company is comfortable with most First Call estimates that show “diluted earnings per share from continuing operations and before a net, after-tax non-operating gain from the sale of cable assets, will be in a range of $3.60 to $3.64 for 2000.

“We also anticipate that diluted cash earnings per share from continuing operations will probably range from $5.01 to $5.05,” he said.

Commenting on the company’s outlook for next year, McCorkindale said “2001 promises to be another record year for the company. But, it will be a more challenging one with the absence of Olympics, and election and millennium ad spending and much tougher newsprint comparisons, particularly in the first half of the year.”

McCorkindale noted the company “expects to generate approximately $60 million to $65 million in Internet revenues in 2000 and sustain a modest loss of a couple of million dollars.” In 2001, the company is budgeting “that total Internet revenues may approach the $100 million mark and that these activities may be profitable for the year.”

Gary Watson, President of the Newspaper Division, discussed progress the company has made on the Central Newspapers, Inc. acquisition. “Given the size of The Arizona Republic and The Indianapolis Star, the focus has been on assimilating these operations into the company as well as positioning what are now our two largest newspapers for a strong 2001.”

Tom Curley, President and Publisher of USA TODAY, reported another record year of advertising revenue in 2000 for the nation’s newspaper. Curley went on to note that he expects further growth in 2001.

Convergence became a reality at Gannett last July when USA TODAY Live debuted to cover the Concorde crash near Paris, Curley said. USA TODAY LIVE takes USA TODAY content and makes it available to Gannett Television stations. Reporters from USA TODAY can now provide coverage in the nation’s largest newspaper, on one of the most popular news web sites and by the largest local affiliate station group. “Nobody else in media can make that claim,” Curley said.

Cecil Walker, Chairman and CEO of Gannett Television, reported on another strong year for the division. Walker noted that three Gannett stations are ranked among the top 10 for morning news, including No. 1 KSDK in St. Louis, and four are ranked among the top 10 for late news, including KUSA in Denver.

Copies of the speeches by the Gannett executives, including a luncheon address on the newspaper industry by McCorkindale, are available below.

Attached to this release are Gannett’s operating assumptions for 2001.

Gannett Co., Inc. is an international news and information company that publishes 99 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns in excess of 300 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. In the United Kingdom, Gannett subsidiary Newsquest plc publishes nearly 300 titles, including 15 daily newspapers. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by most of its TV stations and newspapers including, one of the most popular news sites on the Web.

Certain statements in this press release, including the operating assumptions for 2001, 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 including the operating assumptions are subject to a number of risks and uncertainties that could adversely affect the Company’s ability to obtain these results including, without limitation, the following factors: (a) increased consolidation among the major retailers or other events which may adversely affect business operations of major customers and depress the level of local, national or classified advertising; (b) an economic downturn in some or all of the Company’s principal newspaper or television markets leading to decreased circulation or local or national advertising; (c) a decline in general newspaper readership patterns as a result of the competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (l) a weakening in the British pound to U.S. dollar exchange rate; and (j) general economic and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are listed from time to time in the Company’s SEC reports, including but not limited to the Company’s annual report on Form 10-K and quarterly reporters on Form 10-Q. Any forward-looking statements in this release should be evaluated in light of these important risk factors.

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

Click here for Gannett’s operating assumptions — 2001.

Click here for management’s presentations.