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For immediate release
10/13/97

Third Quarter 1997 Earnings Report

ARLINGTON, VA — Gannett announced today that earnings per share from continuing operations gained 38 percent in the third quarter to 54 cents per share, a new record. In the third quarter of 1996, earnings from continuing operations were 39 cents per share. Earnings per share results reflect a two-for-one common stock split that was effective Oct. 6, 1997. On a pre-split basis, earnings per share would have been $1.08 for the quarter compared to 79 cents in the year-earlier quarter.

Income from continuing operations increased 37 percent in the quarter to $152,460,000 from $111,210,000 in the third quarter of 1996. Operating revenues from continuing operations gained 5 percent in the quarter to $1,146,090,000, compared to $1,092,703,000 in 1996’s third quarter. Operating income from continuing operations grew 22 percent to $284,701,000 from $233,038,000 in the year-earlier quarter. Operating cash flow from continuing operations advanced to $359,580,000 in the quarter from $305,282,000 in the prior year reflecting continued strong advertising demand at our local newspapers and at USA TODAY and significantly lower newsprint costs.

Average shares outstanding in the quarter totaled 283,597,000 compared to 281,888,000 in 1996’s third quarter. The shares outstanding reflect the two-for-one stock split.

For the first nine months of 1997, earnings per share from continuing operations increased 44 percent to $1.70, compared to $1.18 in 1996. On a pre-split basis, earnings per share would have been $3.41 for the nine months, compared to $2.38 for the same period of 1996. Income from continuing operations grew 44 percent to $482,257,000 from $334,897,000 in 1996. Operating cash flow from continuing operations was $1,127,418,000, compared to $923,132,000 in the year-earlier interval. Operating revenues from continuing operations increased 6 percent to $3,410,674,000 for the nine months.

In a statement, the company said that the newspaper segment posted record operating results for the quarter. Newspaper profitability reflected continued strong advertising demand, particularly in classified, continued strong operating results at USA TODAY, a favorable comparison year over year in Detroit and a 15 percent reduction in newsprint expense. If current pricing trends continue, newsprint expense for the fourth quarter may be up slightly compared to the fourth quarter of 1996. While the Broadcasting group continued to experience strong advertising demand in the quarter, the segment posted unfavorable comparisons year over year reflecting the absence of Summer Olympics-related advertising which buoyed results in the third quarter of 1996.

Operating cash flow from newspapers jumped 29 percent in the quarter to $258,858,000, and revenues were 7 percent higher than last year. Pro forma advertising revenues grew 7 percent, including a 9 percent gain in classified, a 5 percent gain in local and a 9 percent gain in national. Pro forma newspaper advertising volume increased 7 percent for the quarter.

Despite the absence of Olympics-related advertising, advertising revenues at USA TODAY increased 5 percent. Paid advertising pages numbered 1,247 compared to last year’s 1,250. For the nine months, paid pages totaled 3,773 compared to 3,583 last year, and advertising revenues gained 10 percent.

Broadcasting cash flow declined 3 percent in the quarter to $86,288,000. Revenues declined 8 percent to $164,895,000 again reflecting the absence of Olympics-related advertising. On a pro forma basis, revenues declined 5 percent, including a 6 percent decline in television revenues and a 15 percent increase in radio revenues.

Cable and Security operating cash flow advanced 5 percent to $29,519,000, from $28,155,000 in the third quarter of 1996. Revenues gained 9 percent to $63,502,000. Basic cable subscribers totaled 472,947 at the end of the quarter, equal to 61 percent of homes passed. Pay units numbered 332,864 at Sept. 30, 1997. Security ended the quarter with 122,380 customers.

In August, Gannett completed the purchase of Army Times Publishing Company. Also in August, the company announced that it had entered into an agreement to purchase New Jersey Press, Inc. Closing is expected to occur in the fourth quarter.

Gannett is a nationwide news and information company that publishes 89 daily newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine. Gannett also operates 18 television stations, five radio stations, cable television systems in five states and alarm security services.


THIRD-QUARTER 1997 FINANCIAL STATEMENTS


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


                                          Quarter Ended              % Inc
                                  Sept. 28, 1997     Sept. 29, 1996  (Dec)

Net Operating Revenues:
Newspaper advertising             $      633,019   $     585,814       8.1
Newspaper circulation                    235,439         229,197       2.7
Broadcasting                             164,895         178,879      (7.8)
Cable & Security                          63,502          58,332       8.9
Other                                     49,235          40,481      21.6
                                    -------------    ------------   -------
Total                                  1,146,090       1,092,703       4.9
                                    -------------    ------------   -------
Operating Expenses:
Cost of sales and operating
    expenses, exclusive of
    depreciation                         602,418         612,888      (1.7)
Selling, general and administrative
    expenses, exclusive of
    depreciation                         184,092         174,533       5.5
Depreciation                              49,979          48,772       2.5
Amortization of intangible assets         24,900          23,472       6.1
                                    -------------    ------------   -------
Total                                    861,389         859,665       0.2
                                    -------------    ------------   -------
Operating income                         284,701         233,038      22.2
                                    -------------    ------------   -------
Non-operating income (expense):
Interest expense                         (23,418)        (34,111)    (31.3)
Other                                     (1,573)         (3,917)    (59.8)
                                    -------------    ------------   -------
Total                                    (24,991)        (38,028)    (34.3)
                                    -------------    ------------   -------
Income before income taxes               259,710         195,010      33.2
Provision for income taxes               107,250          83,800      28.0
                                    -------------    ------------   -------
Income from continuing operations        152,460         111,210      37.1
Discontinued operations:
Income from discontinued operations,
   net of income tax                                       8,861    (100.0)
Gain from sale of discontinued
   operations, net of income tax                         294,580    (100.0)

                                    -------------    ------------   -------
Net income                        $      152,460   $     414,651     (63.2)
                                    =============    ============   =======

Earnings per share:
Earnings from continuing
   operations                              $0.54           $0.39      38.5
Earnings from discontinued
   operations, net of tax                                   0.03    (100.0)
Gain from sale of discontinued
   operations, net of tax                                   1.05    (100.0)
                                        --------        --------    --------
Net income per share*                      $0.54           $1.47     (63.3)
                                            ====            ====      ====

Dividends per share*                       $0.19           $0.18       5.6
                                            ====            ====      ====

*All per common share amounts have been adjusted to reflect the two-for-one
   stock split effective on October 6, 1997.


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

                                          Year-to-date Ended           % Inc
                                     Sept. 28, 1997    Sept. 29, 1996  (Dec)


Net Operating Revenues:
Newspaper advertising                $   1,882,877   $   1,747,679       7.7
Newspaper circulation                      701,046         685,874       2.2
Broadcasting                               504,746         496,873       1.6
Cable & Security                           189,411         172,676       9.7
Other                                      132,594         122,778       8.0
                                       ------------    ------------   -------
Total                                    3,410,674       3,225,880       5.7
                                       ------------    ------------   -------
Operating Expenses:
Cost of sales and operating expenses,
    exclusive of depreciation            1,744,586       1,790,918      (2.6)
Selling, general and administrative
    expenses, exclusive of depreciation    538,670         511,830       5.2
Depreciation                               149,737         146,643       2.1
Amortization of intangible assets           74,640          70,468       5.9
                                       ------------    ------------   -------
Total                                    2,507,633       2,519,859      (0.5)
                                       ------------    ------------   -------
Operating income                           903,041         706,021      27.9
                                       ------------    ------------   -------
Non-operating income (expense):
Interest expense                           (73,819)       (112,042)    (34.1)
Other                                       (7,665)         (6,157)     24.5
                                       ------------    ------------   -------
Total                                      (81,484)       (118,199)    (31.1)
                                       ------------    ------------   -------
Income before income taxes                 821,557         587,822      39.8
Provision for income taxes                 339,300         252,925      34.2
                                       ------------    ------------   -------
Income from continuing operations          482,257         334,897      44.0
Discontinued operations:
Income from discontinued operations,
   net of income tax                                        24,540    (100.0)
Gain from sale of discontinued
   operations, net of income tax                           294,580    (100.0)
                                       ------------    ------------   -------
Net income                           $     482,257   $     654,017     (26.3)
                                       ============    ============   =======
Earnings per share:
Earnings from continuing operations          $1.70           $1.18      44.1
Earnings from discontinued
   operations, net of tax                                     0.09    (100.0)
Gain from sale of discontinued
   operations, net of tax                                     1.05    (100.0)
                                          --------        --------    --------
Net income per share*                        $1.70           $2.32     (26.7)
                                              ====            ====      ====

Dividends per share*                         $0.55           $0.53       3.8
                                              ====            ====      ====

*All per common share amounts have been adjusted to reflect the two-for-one
   stock split effective on October 6, 1997.


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

                                                Quarter Ended           % Inc
                                       Sept. 28, 1997   Sept. 29, 1996   (Dec)
Operating Revenues:
Newspaper publishing                      $  917,693     $   855,492      7.3
Broadcasting                                 164,895         178,879     (7.8)
Cable and Security                            63,502          58,332      8.9
                                          --------------   ----------  -------
Total                                     $1,146,090     $ 1,092,703      4.9
                                          ==============   ==========  =======

Operating Income
(net of depreciation and amortization):
Newspaper publishing                      $  217,793     $   159,783     36.3
Broadcasting                                  71,884          76,116     (5.6)
Cable and Security                            12,323          11,546      6.7
Corporate                                    (17,299)        (14,407)   (20.1)
                                          --------------   ----------   -------
Total                                     $  284,701     $   233,038     22.2
                                          ==============   ==========   =======

Depreciation and Amortization:
Newspaper publishing                      $   41,065     $    40,282      1.9
Broadcasting                                  14,404          12,886     11.8
Cable and Security                            17,196          16,609      3.5
Corporate                                      2,214           2,467    (10.3)
                                          --------------   ----------   -------
Total                                     $   74,879     $    72,244      3.6
                                          ==============   ==========   =======

Operating Cash Flow:
Newspaper publishing                      $  258,858     $   200,065     29.4
Broadcasting                                  86,288          89,002     (3.0)
Cable and Security                            29,519          28,155      4.8
Corporate                                    (15,085)        (11,940)   (26.3)
                                        	 --------------   ----------  -------
Total                                     $   359,580     $   305,282    17.8
                                           ==============   ==========  =======

NOTE:
Operating Cash Flow represents operating income for each of the Company's business segments plus related depreciation and amortization expense.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars

Year-to-date Ended % Inc
Sept. 28, 1997 Sept. 29, 1996 (Dec)
Operating Revenues:
Newspaper publishing $ 2,716,517 $ 2,556,331 6.3
Broadcasting 504,746 496,873 1.6
Cable and Security 189,411 172,676 9.7
------------- ---------- -------
Total $ 3,410,674 $ 3,225,880 5.7
============= ========== =======

Operating Income
(net of depreciation and amortization):
Newspaper publishing $ 688,569 $ 509,833 35.1
Broadcasting 226,275 208,264 8.6
Cable and Security 39,573 35,335 12.0
Corporate (51,376) (47,411) (8.4)
------------- ---------- -------
Total $ 903,041 $ 706,021 27.9
============= ========== =======

Depreciation and Amortization:
Newspaper publishing $ 123,577 $ 121,741 1.5
Broadcasting 43,898 38,904 12.8
Cable and Security 50,348 48,887 3.0
Corporate 6,554 7,579 (13.5)
------------- ---------- -------
Total $ 224,377 $ 217,111 3.3
============= ========== =======

Operating Cash Flow:
Newspaper publishing $ 812,146 $ 631,574 28.6
Broadcasting 270,173 247,168 9.3
Cable and Security 89,921 84,222 6.8
Corporate (44,822) (39,832) (12.5)
------------- ---------- -------
Total $ 1,127,418 $ 923,132 22.1
============= ========== =======

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