From: Dennis FitzSimons
Sent: Monday, June 04, 2007 2:56 PM
Dear Fellow Employee:
I wanted to update you on a couple of recent developments:
· Last Friday we announced that a settlement is pending in our appeal of the 2005 Tax Court decision relating to Matthew Bender, a former subsidiary of Times Mirror. Under the proposed agreement, Tribune would receive refunds of about $350 million in federal and state income taxes and interest. We anticipate resolution within 90 days.
· Today we announced that the three Chandler Trusts representatives on Tribune’s board of directors have resigned. This was according to plan, as Jeff Chandler, Roger Goodan and William Stinehart had previously agreed that they would leave the board following completion of our tender offer. The Chandler Trusts sold about 28 million Tribune shares through the tender, and have arranged to sell all of their remaining shares through a block trade transaction underwritten by Goldman Sachs.
Press releases with more details are available on TribLink and at www.tribune.com.
Finally, this week marks the formal completion of the tender offer, with funds being distributed to those who tendered shares. Our sights are now set on stage two of our going private transaction. We’ll continue to communicate with you on our progress.