TABLE OF CONTENTS 2006 Financial Summary . 1 Letter to Shareholders . 2 Board of Directors . 7 Company and Divisional Officers . 8 Form 10-K COMPANY PROFILE: Gannett Co., Inc. is a leading international news and information company. In the United States, the company publishes 90 daily newspapers, including USA TODAY,and nearly 1,000 non-daily publications. Along with each of its daily newspapers, the company operates Internet sites offering news and advertising that is customized for the market served and integrated with its publishing operations. USA TODAY.com is one of the most popular news sites on the Web. The company is the largest newspaper publisher in the U.S. Newspaper publishing operations in the United Kingdom, operating as Newsquest, include 17 paid-for daily news- papers, almost 300 non-daily publications, locally integrated Web sites and classified business Web sites with national reach. Newsquest is the second largest regional newspaper publisher in the U.K. In broadcasting, the company operates 23 television stations in the U.S. with a market reach of more than 20.1 million households. Each of these stations also operates locally oriented Internet sites offering news, entertainment and advertising content, in text and video format. Through its Captivate subsidiary, the broadcasting group delivers news and advertising to a highly desirable audience demographic through its video screens in office tower and select hotel elevators. Gannett’s total Online U.S. Internet Audience in January 2007 was nearly 23.2 million unique visitors, reaching about 14.8% of the Internet audience, as measured by Nielsen//NetRatings. Complementing its publishing and broadcasting businesses, the company has made strategic investments in online advertising. These include PointRoll, which provides online advertisers with rich media marketing services, and Planet Discover, which provides our local Web sites with deep, robust local search technology, and through several important partnership investments, including CareerBuilder for employment advertising; Classified Ventures for auto and real estate ads; Topix.net, a news content aggregator; ShermansTravel, an online travel service; ShopLocal, a provider of online marketing solutions for local, regional and national advertisers of all types; and 4INFO, which provides mobile phone search services. Gannett was founded by Frank E. Gannett and associates in 1906 and incorporated in 1923. The company went public in 1967. It reincorporated in Delaware in 1972. Its more than 234 million outstanding shares of common stock are held by approximately 9,579 shareholders of record in all 50 states and several foreign countries. The company has approximately 49,675 employees. Its headquarters are in McLean,Va., near Washington, D.C. 1 2006 FINANCIAL SUMMARY Operating revenues, in millions In thousands, except per share amounts 02 $6330 2006 2005 Change 03 $6616 Operating revenues . $ 8,033,354 $ 7,598,939 5.7% 04 $7284 Operating income . $ 1,998,237 $ 2,048,071 (2.4%) 05 $7599 Income from continuing operations $ 1,160,782 $ 1,211,255 (4.2%) 06 $8033 Income per share from continuing operations – diluted . $ 4.90 $ 4.92 (0.4%) Income from continuing operations, in millions 02 $1138 Working capital . $ 415,071 $ 365,730 13.5% 03 $1190 04 $1295 Long-term debt . $ 5,210,021 $ 5,438,273 (4.2%) 05 $1211 Total assets . $16,223,804 $15,743,396 3.1% 06 $1161 Capital expenditures (1) . $ 198,756 $ 258,936 (23.2%) Shareholders’ equity . $ 8,382,263 $ 7,570,562 (10.7%) Income per share (diluted) from continuing operations Dividends per share . $ 1.20 $ 1.12 7.1% 02 $4.23 Weighted average common 03 $4.38 shares outstanding – diluted . 236,756 246,256 (3.9%) 04 $4.84 (1) Excluding capitalized interest and discontinued operations. 05 $4.92 06 $4.90 FAREWELL For 35 years, Douglas H. McCorkindale Multimedia Inc.; Britain’s Newsquest, was the very essence of Gannett. Newscom and SMG’s publishing busi- Financial acuity. Smart deals. Strong ness; 19 daily newspapers as well as management. First Amendment values. numerous weekly and niche publica- All are synonymous with Gannett – and tions from Thomson Newspapers; and Doug. Central Newspapers. During his tenure – which ended with He began at Gannett as general his retirement in June – Gannett grew in counsel, lured in 1971 by Al Neuharth size and stature, winning the respect of and Paul Miller from Thacher, Proffitt & Wall Street and our peers in the media Wood where he had been practicing industry. With Doug, Gannett grew from since graduating from Columbia a small upstate New York newspaper University in 1961 and its law school in company with 37 daily newspapers, two radio stations 1964. He rose through Gannett’s ranks, becoming CFO in and one TV station to the international media power- 1979; president in 1997; and adding the CEO title in 2000 house it is today. and chairman in 2001. Along the way, he enunciated the principles that have As chairman, president and CEO, Doug presided over a guided Gannett’s acquisition strategy to unrivaled suc- Gannett that consistently topped industry results and cess: look at every opportunity that comes your way; returned value to shareholders. He was named best CEO know exactly what you’re buying; don’t be sentimental; in the publishing and advertising agencies category of and never pay too much.Words of wisdom for any buyer Institutional Investor magazine’s “best CEOs in America” – or seller. list in 2003, 2004 and 2005. Among the many deals he had a hand in bringing to “Best” is a word that just fits Doug McCorkindale. He Gannett: Federated Publications; Speidel Newspapers; expected the best from himself and his employees, and Combined Communications; Evening News Association; he got it. Thank you, Doug. 2 LETTER TO SHAREHOLDERS We knew 2006 would be an exciting year for Gannett, mission is to successfully transform Gannett to this new and we weren’t disappointed. environment; to provide must-have news and informa- Inside Gannett and out, remarkable changes occurred tion on demand across all media, ever mindful of our that set our company off in new and significant direc- journalistic responsibilities. tions.The consumer and technology revolutions that had We then set about creating a plan that not only been developing for years took hold in 2006 and would help us achieve those goals, but also would be changed the marketplace for information. Customers realistic, attainable and flexible enough to adapt to the demanded and received information how, when and rapid changes occurring in our industry. The plan had to where they wanted it. recognize the value of USA TODAY as a national brand, Gannett was ready for the challenges, and the terrific as well as the unequaled ability of our community news- opportunities. papers and television stations to deliver local – indeed Early in 2006, we announced a new strategic plan hyper-local – information. designed to embrace these trends and remake Most importantly, the plan had to redefine the company to deliver on them. Then we Gannett’s relationship with its customers. set about putting the plan into action, No longer could we decide what our one initiative after another. By year’s customers wanted and needed, then end, we had made great progress in deliver it our way. Customers had to transforming the company in both become the central focus of all we do. tangible and intangible ways. From product development, to con- Most importantly, we made this tent gathering, to advertising sales, we transformation while delivering for our needed to put the customer first. This shareholders as solidly and consistently is the key strategic shift for Gannett. as we always have. Our operating revenues The plan we ultimately crafted is elegant from continuing operations for 2006 rose to in its simple premise: Gannett will achieve a record $8.03 billion, a 5.7 percent increase CRAIG A. DUBOW, its mission and vision by supporting and CHAIRMAN, PRESIDENT over 2005. Our operating income was $2 bil- enhancing our core businesses – our local AND CHIEF EXECUTIVE lion; net income was $1.16 billion. Earnings OFFICER newspapers, USA TODAY and our television per diluted share for the year were $4.90. stations – while growing a robust, interna- These results are among the best in the business.We tional digital business. recognize how important it is to continue to deliver for First up was the creation of Gannett Digital – an entity our shareholders while making this transition. We also empowered to take the necessary steps we need to grow know it is absolutely critical to continue our transforma- and attract customers. We would do this through our tra- tion as a company in 2007 and beyond. We are commit- ditional smart acquisitions, as well as through alliances, ted to being nimble, innovative and customer centric: partnerships and joint ventures. We must be to survive and thrive – and deliver for our The plan also set out three basic initiatives designed shareholders into the future. to fundamentally change the way we operate and deliver So let me tell you what we did in this remarkable year, both for the core and for digital. They are: and why we did it. • Drive innovation throughout the company, beginning with the creation of a Gannett Center for Design and Gannett’s Strategic Plan: Roadmap to the future… Innovation. The goal: harness the creativity and ingenu- We began developing our strategic plan by defining our ity of Gannett’s employees to find ways to grow the top vision and mission for Gannett. Our vision is that con- line. sumers will choose Gannett media for their news and • Transform our newsrooms into Information Centers to information needs, anytime, anywhere, in any form. Our gather and disseminate news and information across 3 multiple platforms 24 hours a day, seven days a week.