Tribune Company Announces 2010 Financial Highlights

Consolidated Operating Cash Flow Up 44% Through July

Tribune Company today announced financial highlights for the first seven months of 2010.*

“We are making solid financial progress,” said Randy Michaels, Tribune’s chief executive officer. “Despite the noise surrounding our Chapter 11 process and a tough economic environment, we have not only stabilized our business, but in 2010 we have grown operating cash flow—and we’re really just getting started.”

Other financial highlights for the seven-month period ending August 1, 2010:

• Operating cash flow increased substantially in both publishing and broadcasting compared to the same period in 2009.
• The company generated approximately $100 million more in consolidated operating cash flow compared to the same period last year, and in the month of July alone, generated $18 million more in consolidated operating cash flow compared to July 2009.
• Consolidated operating cash flow increased 44% and consolidated operating cash flow margin increased to 18% from 12% for the first seven months of 2009.
  

“We continue transforming Tribune from a collection of media businesses to a single media company,” said Michaels. “Working together enables us to continue leveraging the development of scalable, common systems throughout the company, which is the primary factor behind our ability to reduce expenses. Consolidated cash operating expenses were down 7 percent through July, 2010.”

The company’s cable network, WGN America, is more profitable than it has ever been, thanks to new programming, a 25% increase in ratings among all adults, and strong upfront advertising sales. Next month the network will add “Entourage,” “Curb Your Enthusiasm,” “The New Adventures of Old Christine,” and ‘How I Met Your Mother” to its programming line-up.

The company’s television group has added more than 130 hours per week of local news programming since 2008, and later this fall will broadcast a total of eight NFL football games in select markets.

On the publishing side, the company has launched “breaking news” centers in each of its markets, introduced new niche print products and expects to have slowed the trend of circulation declines at its newspapers when it reports results to the Audit Bureau of Circulations in September.

“Our employees have done an incredible job,” said Michaels. “They are talented, innovative, and dedicated to serving our readers, viewers, advertisers and communities. We have built some momentum and accomplished a lot, but there is much more to do.”

Later today, Tribune will file its monthly operating report for July 2010 with the U.S. Bankruptcy Court for the District of Delaware. The report will reflect that the company has approximately $1.6 billion in cash on hand.

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*Tribune Company and its subsidiaries maintain their financial records in accordance with generally accepted accounting principles (“GAAP”); however, the information included herein is preliminary and includes some non‐GAAP financial measures.

The Company uses cash operating expenses and operating cash flow to evaluate internal performance. “Cash operating expenses” are defined as operating expenses before depreciation and amortization, write‐downs of intangible assets, stock‐based compensation, certain special items including severance, non‐operating items, and reorganization costs. “Operating cash flow” is defined as earnings before interest and dividend income, interest expense, equity income and losses, depreciation and amortization, write‐downs of intangible assets, stock‐based compensation, certain special items including severance, non‐operating items, and reorganization costs. Cash operating expenses and operating cash flow are not measures of financial performance under GAAP and should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP.