McClatchy Reports November 2004 Revenues and Reaffirms Earnings Outlook

McClatchy Reports November 2004 Revenues and Reaffirms Earnings Outlook

SACRAMENTO, Calif., Dec. 8 /PRNewswire-FirstCall/ -- The McClatchy Company (NYSE:MNI) today reported that consolidated advertising revenues in November 2004 increased 7.1% and total revenues increased 5.8%. Revenues include the results of the Merced Sun-Star and nearby weeklies (Merced), which were acquired on January 7, 2004. Excluding Merced's results, advertising revenues were up 5.8% and total revenue increased 4.6% in November. Year-to-date advertising revenues were up 6.8% (5.5% excluding Merced) and total revenues were up 5.8% (4.6% excluding Merced).

Pat Talamantes, chief financial officer of McClatchy, said, "Our revenue growth in October and November has generally been as expected. As a result, our outlook for the rest of the year remains unchanged from the guidance we provided in our third quarter earnings release. We expect fourth quarter earnings to range between 97 cents and $1.00 per share, and full year earnings to range from $3.28 to $3.31 per share. Before the second quarter charge related to our debt refinancing, we expect earnings to range from $3.33 to $3.36 per share."

Mr. Talamantes also noted that, "In 2005, we anticipate advertising revenues to grow in the mid-single-digit range. And despite facing likely double-digit increases in newsprint, retirement and medical expenses, we plan to tightly manage other cash expenses, thereby maintaining our strong margins and holding total cash operating expenses to a projected mid-single-digit growth rate. We expect to achieve record earnings again in 2005, whether or not the Financial Accounting Standards Board requires companies to expense stock options as announced. On a full year basis, we anticipate our 2005 earnings would be lower by 3%, or 10 to 12 cents per share, if we expensed stock options."

McClatchy will review its business in a presentation today at the CSFB Media and Telecom Conference at the Plaza Hotel at 1:30 p.m. The presentation will be webcast live on its site, http://www.mcclatchy.com/ and on http://www.csfb.com/ . McClatchy will also give an update at UBS Warburg's Annual Media Week Conference at the Grand Hyatt New York tomorrow at 11:00 a.m., which will be webcast live on its site, and on http://www.ubs.com/ . McClatchy's presentations via webcast will continue to be archived at its web site for future reference.

The McClatchy Company, headquartered in Sacramento, California, is a leading newspaper and Internet publisher. It publishes 12 daily and 18 non-daily newspapers located in western coastal states, North and South Carolina, and the Twin Cities of Minneapolis/St. Paul. McClatchy has daily circulation of 1.4 million and Sunday circulation of 1.8 million. McClatchy's newspapers include, among others, the Star Tribune in Minneapolis, The Sacramento Bee, The Fresno Bee and The Modesto Bee in California, The News & Observer (Raleigh, NC), The News Tribune (Tacoma, WA) and the Anchorage Daily News.

McClatchy also operates leading local websites in each of its daily newspaper markets, offering users information, comprehensive news, advertising, e-commerce and other services, and owns and operates Nando Media, an interactive operation that provides newspapers with content, publishing tools and software development. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

Additional Information

This release contains forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Those risks and uncertainties are outlined in the company's December 28, 2003 annual report on Form 10-K and its September 26, 2004 quarterly report on Form 10-Q, and include, in particular, the risks that newsprint prices, retirement costs, medical costs and interest rates could rise above current expectations or that the company's businesses could be more severely negatively affected by the continuing economic uncertainty in Minnesota, California's Central Valley, the Carolinas, Washington State or Alaska. The company assumes no obligation to update the information in this release.

The McClatchy Company
Consolidated Statistical Report
(In thousands, except for preprints)

Period 11 Period 11 Year-to-Date
Revenues - Net:* 2004 2003 % Change 2004 2003 % Change
Advertising
Minneapolis $27,511 $26,440 4.1% $284,360 $271,059 4.9%
California 32,513 29,266 11.1% 341,929 310,437 10.1%
Carolinas 13,693 12,610 8.6% 143,454 135,446 5.9%
Northwest 11,441 11,196 2.2% 124,608 120,231 3.6%
Total
Advertising $85,158 $79,512 7.1% $894,351 $837,173 6.8%

Circulation 12,830 12,817 0.1% 154,053 152,935 0.7%
Other 1,920 2,120 -9.4% 21,989 21,341 3.0%
Total
Revenue $99,908 $94,449 5.8% $1,070,393 $1,011,449 5.8%

* Revenues in 2003 are re-classified to report continuing operations only.

Average Paid Circulation:**
Daily 1,477.1 1,447.3 2.1% 1,417.8 1,396.9 1.5%
Sunday 1,840.9 1,921.8 -4.2% 1,848.2 1,864.8 -0.9%
Community
Newspapers 69.2 61.4 12.7% 68.0 61.1 11.3%

** Reflects average paid circulation based upon number of days in period.
Does not reflect ABC reported figures.

Advertising Linage for Dailies:
Full Run ROP
Retail 505.6 513.9 -1.6% 5,156.6 5,134.3 0.4%
National 102.7 106.9 -3.9% 1,107.4 1,112.2 -0.4%
Classified 596.9 568.5 5.0% 7,293.9 6,883.7 6.0%
Total 1,205.2 1,189.3 1.3% 13,557.9 13,130.2 3.3%

Millions of
Preprints
Distributed 367.6 334.6 9.9% 3,105.6 2,960.7 4.9%

Full Run ROP Linage by Market for Dailies:
California:
The Sacramento
Bee 215.4 212.7 1.3% 2,395.4 2,372.6 1.0%
The Fresno Bee 103.2 113.7 -9.2% 1,194.3 1,198.9 -0.4%
The Modesto Bee 105.2 107.5 -2.1% 1,201.4 1,215.2 -1.1%
Merced Sun-Star 43.5 0.0 NA 555.7 0.0 NA
Star Tribune,
Minneapolis 162.7 166.8 -2.5% 1,740.1 1,765.4 -1.4%
Northwest:
The News Tribune,
Tacoma 105.7 119.1 -11.3% 1,156.6 1,247.7 -7.3%
Anchorage Daily
News 76.3 72.9 4.7% 878.6 855.0 2.8%
Tri-City Herald 62.9 59.0 6.6% 774.7 727.0 6.6%
Carolinas:
The News &
Observer,
Raleigh 159.4 155.6 2.4% 1,759.6 1,791.8 -1.8%
South Carolina
Dailies 170.9 182.0 -6.1% 1,901.5 1,956.6 -2.8%
Total 1,205.2 1,189.3 1.3% 13,557.9 13,130.2 3.3%



Data in 2004 includes the Merced Sun-Star and related community newspapers, purchased on January 7, 2004.

THE McCLATCHY COMPANY

SUPPLEMENTAL ADVERTISING REVENUE DATA
BY CATEGORY FOR THE PERIOD
ENDED NOVEMBER 28, 2004

November Year- to-date
Print/ Print/
% Online % Online
Change Combined Change Combined
Print:
Retail 4.6 4.3 2.5 2.3
National 7.5 7.7 5.8 5.9
Classified Total 4.3 7.7 4.9 8.4
Auto (5.0) (3.3) (0.7) 0.7
Real Estate 12.0 13.6 9.4 10.5
Employment 12.6 20.3 9.5 17.7
Direct Marketing 3.8 3.8 8.8 8.8
Online 40.1 NA 50.4 NA

Note: Categories exclude Merced Group.



Source: The McClatchy Company

CONTACT: Elaine Lintecum, Treasurer of The McClatchy Company,
+1-916-321-1846, or elintecum@mcclatchy.com

Web site: http://www.mcclatchy.com/


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