Dear Fellow Employee:
Tribune’s board of directors met this afternoon and approved several important items. Full details are in our press release now posted on tribune.com and TribLink.
First, the board established a special committee of independent directors to oversee management’s exploration of strategic alternatives for the company designed to maximize shareholder value. The committee expects to make a final recommendation to the full board by the end of 2006.
During the strategic review process we will continue to execute the performance improvement plan announced last May. We’re making solid progress on many fronts, and your efforts are appreciated.
Also today, the board reviewed and approved a plan to restructure the partnerships known as TMCT I and TMCT II. Tribune inherited the partnerships when it acquired Times Mirror in June 2000. The transaction agreed upon today benefits all Tribune shareholders. Among the advantages, it
· simplifies our capital structure by eliminating all preferred stock;
· has no impact on Tribune’s earnings; and
· it frees the company to explore all strategic value-creating alternatives.
We will keep you informed of any new developments associated with today’s board actions. Thank you for your dedication during this important time in Tribune Company’s history.