SEC Settlement of Newsday/Hoy Circulation Issues

-----Original Message-----

From: FitzSimons, Dennis J. [Notes]
Sent: Tuesday, May 30, 2006 9:39 AM
Subject: SEC Settlement of Newsday/Hoy Circulation Issues

Dear Fellow Employee,

I want to make you aware of two announcements today related to the 2004 circulation issues at Newsday and Hoy. First, the Securities and Exchange Commission (SEC) announced closure of its two year investigation regarding the newspapers. As you know, we have been cooperating with the SEC and U.S. Attorney's office since we uncovered and reported circulation issues at Newsday and Hoy in 2004. Today, the SEC issued a "cease and desist" order requiring accurate circulation reporting and continuation of our improved internal controls. No fines or other sanctions were levied against the company. We are pleased that the SEC's investigation confirmed all of the conclusions of the company's 2004 investigation and that the commission has closed its inquiry.

Second, the U.S. Attorney's office in New York has announced that nine former employees and contractors of Newsday and Hoy have pleaded guilty to charges connected to the circulation fraud. All of these individuals were identified in the company's investigation in 2004; the employees were severed from the company and the contractors were terminated as a result of the information we uncovered. We will continue cooperating with the U.S. Attorney's office until their investigation concludes.

Following the SEC's announcement, Tribune Company issued a press release which is now posted on TribLink and tribune.com. We're pleased to have the SEC investigation behind us and are looking forward to a future at Newsday and Hoy with a renewed focus on readership and service to the community.

Sincerely,

Dennis