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News Release Knight Ridder 50 West San Fernando St NEWS RELEASE KNIGHT RIDDER 50 WEST SAN FERNANDO ST. SAN JOSE, CA 95113 Knight Ridder Releases May Statistical Report SAN JOSE, June 15, 2004 – (KRI:NYSE) – Total advertising revenue was up 2.9% for May and up 2.0% year to date. For the month, retail was up 0.2%, national was up 3.2% and classified was up 6.2%. For the year to date, retail was down 0.2%, national was up 3.8% and classified was up 4.0%. Within classified, recruitment was up 16.2% for the month. Twenty-five of 27 newspapers had increases in help wanted, including 24 with double-digit gains. Contra Costa was up 36.0%, Miami was up 25.6%, Kansas City was up 21.2%, Fort Worth was up 18.7%, Charlotte was up 16.5% and San Jose was up 11.0%. Real estate was up 7.0%. Auto was down 1.7%. Total operating revenue was up 4.2% for the month and 2.1% for the year to date. Knight Ridder Senior Vice President and Chief Financial Officer Gary Effren said, “As anticipated, advertising revenue in May was significantly better than in April, and the good news in help wanted is encouraging. Nevertheless, total ad revenue year to date is not where we had hoped it would be by this time; softness in Philadelphia and the ongoing downturn in traditional department store advertising continue to hold us back. Accordingly, we think the current consensus with respect to second quarter earnings is optimistic. More probably, we will come in near the low end of the current estimate range.” For the month, total ad revenue was up 5.9% in Fort Worth, 4.8% in St. Paul, 3.9% in San Jose, 3.6% in Charlotte, 3.1% in Kansas City and 2.3% in Miami. Philadelphia was soft. Retail for the month was up 5.1% in Charlotte, 2.1% in Kansas City, 1.9% in Fort Worth and 1.5% in Contra Costa. Miami and Philadelphia were soft. National advertising was up 16.2% in Miami, 14.0% in Charlotte, 10.4% in Fort Worth, 6.8% in St. Paul and 4.7% in San Jose. Contra Costa, Kansas City and Philadelphia were soft. Automotive, airlines, resorts and hotels, pharmaceuticals, telecom and national financial were all up for the major markets as a whole. Computers and entertainment were soft. Classified was up 18.6% in Contra Costa, 12.1% in Kansas City, 12.0% in St. Paul, 10.0% in Fort Worth, 8.0% in San Jose and 7.6% in Miami. Philadelphia and Charlotte were soft. Circulation revenue was down 3.2% for May, mostly from discounting. Other revenue increased $5.8 million due to an increase in earnings from Detroit resulting from post-retirement benefit expense savings. Certain statements contained in this report are forward-looking. They are based on management's current knowledge of factors affecting Knight Ridder's business. Actual results could differ materially from those currently anticipated, depending upon – but not limited to – the effects of interest rates, of national and local economies on revenue, of the evolution of the Internet, of unforeseen changes in the price of newsprint and of negotiations and relations with labor unions. Knight Ridder (NYSE: KRI) is the nation’s second-largest newspaper publisher, with products in print and online. The company publishes 31 daily newspapers in 28 U.S. markets, with a readership of 8.7 million daily and 12.6 million Sunday. Knight Ridder also has investments in a variety of Internet and technology companies and two newsprint companies. The company’s Internet operation, Knight Ridder Digital, develops and manages the company’s online properties. It is the founder and operator of Real Cities (www.RealCities.com), the largest national network of city and regional Web sites in more than 100 U.S. markets. Knight Ridder and Knight Ridder Digital are headquartered in San Jose, Calif. # # # For more information, call Vice President/Corporate Relations Polk Laffoon at 408-938-7838 (e-mail: [email protected]), or Director/Corporate Communications Lee Ann Schlatter at 408-938-7839 (e-mail: [email protected]), or visit Knight Ridder’s Web site at www.knightridder.com. STATISTICAL REPORT For the period of 05/03/04 - 05/30/04 May Year-to-Date Percent Percent 2004 2003 Change 2004 2003 Change REVENUE ($000) - See Notes 1 & 2 Advertising Retail 84,846 84,664 0.2% 443,962 444,782 -0.2% National 27,866 27,014 3.2% 141,439 136,258 3.8% Classified 70,252 66,153 6.2% 370,487 356,198 4.0% Total 182,964 177,831 2.9% 955,888 937,238 2.0% Circulation 41,845 43,225 -3.2% 233,669 239,154 -2.3% Other Revenue 13,653 7,811 74.8% 49,732 37,570 32.4% Total Operating Revenue 238,462 228,867 4.2% 1,239,289 1,213,962 2.1% AVERAGE CIRCULATION (000's of copies including Detroit) - Notes 1 & 2 Morning 3,617 3,632 -0.4% 3,647 3,658 -0.3% Evening 171 194 -12.0% 175 196 -10.8% Daily 3,788 3,826 -1.0% 3,822 3,854 -0.8% Sunday 5,099 5,135 -0.7% 5,164 5,188 -0.5% ADVERTISING LINAGE (000's of six-column inches) - Notes 1 & 2 Full-Run ROP Retail 1,137.3 1,146.6 -0.8% 5,923.0 6,112.1 -3.1% National 228.7 232.0 -1.4% 1,123.3 1,108.6 1.3% Classified 1,501.9 1,480.5 1.4% 7,767.2 7,631.8 1.8% Total 2,867.9 2,859.1 0.3% 14,813.5 14,852.5 -0.3% Factored Part-Run ROP 202.6 184.5 9.8% 1,047.0 983.1 6.5% TOTAL PREPRINTS INSERTED 585,909 580,095 1.0% 3,148,197 3,145,378 0.1% Statistical Report For the period of 05/03/04 - 05/30/04 May Year-to-Date Percent Percent 2004 2003 Change 2004 2003 Change FULL-RUN ROP ADVERTISING LINAGE DATA By Markets (000's of six-column inches) - Notes 1 & 2 Akron Beacon Journal 124.6 124.4 0.2% 625.6 653.6 -4.3% Charlotte Observer 134.6 141.2 -4.7% 663.6 690.4 -3.9% Columbia State 96.1 101.0 -4.9% 491.5 508.0 -3.2% Contra Costa (Note 3) 127.4 124.2 2.6% 668.8 636.9 5.0% Fort Wayne News-Sentinel, Journal Gazette 111.5 105.0 6.2% 564.5 574.5 -1.7% Fort Worth Star Telegram 180.3 180.1 0.1% 928.6 952.4 -2.5% Kansas City Star 158.4 157.0 0.9% 821.6 794.6 3.3% Lexington Herald-Leader 96.2 96.2 0.0% 486.7 482.1 1.0% Miami Herald & el Nuevo Herald 152.7 157.6 -3.1% 848.6 863.8 -1.8% Philadelphia Newspapers 193.5 187.7 3.1% 972.6 984.4 -1.2% St. Paul Pioneer Press 102.6 109.3 -6.1% 518.7 516.1 0.5% San Jose Mercury News 197.4 193.4 2.1% 1,004.5 993.2 1.1% Wichita Eagle 70.7 70.5 0.3% 361.5 370.1 -2.3% All Other Dailies 1,121.9 1,111.5 0.9% 5,856.7 5,832.4 0.4% Total - Full-Run ROP 2,867.9 2,859.1 0.3% 14,813.5 14,852.5 -0.3% Note 1 - The Detroit News and the Detroit Free Press operate under a joint operating agreement as Detroit Newspapers (DN). Revenue and linage are excluded for 2004 and 2003. Note 2 - Measured by individual Knight Ridder newspapers. Where necessary, certain previously reported linage has been restated to be consistent with measurement guidelines currently in use. Note 3 - Full-run ROP advertising linage represents the sum of full-run ROP linage for each of Contra Costa's three newspapers. # # # # # # # # # # # For further information, call Polk Laffoon IV at 408-938-7838.
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