Tribune Company (NYSE: TRB) today reported second quarter 2006 diluted earnings per share from continuing operations of $.53 compared with $.72 in the second quarter of 2005.

Second quarter 2006 results from continuing operations included the following:

• A gain of $.01 per diluted share related to the Company’s share of a one-time favorable income tax adjustment recorded at CareerBuilder.
• A net non-operating loss of $.03 per diluted share.

Second quarter 2005 results from continuing operations included the following:

• A net non-operating gain of $.13 per diluted share.

In May 2006, the Company initiated a modified “Dutch Auction” tender offer, resulting in the acquisition of slightly more than 45 million shares of its common stock at a price of $32.50 per share on July 5, 2006. On July 12, 2006, the Company acquired 10 million shares of its common stock from the McCormick Tribune Foundation and the Cantigny Foundation at a price of $32.50 per share. The Company also expects to repurchase up to an additional 20 million shares in the open market by the end of 2006. In addition, the Company plans to achieve cost savings of $200 million over the next two years and sell non-core assets totaling at least $500 million.

As part of this initiative, during the second quarter the Company announced agreements to sell its Atlanta and Albany television stations. Operating results for these stations for all periods presented have been reclassified as discontinued operations. The sales are expected to result in a loss, which has also been included in discontinued operations.

Tribune presents earnings per share amounts on a generally accepted accounting principles (“GAAP”) basis only. This differs from the pro forma earnings per share amounts supplied by broker analysts to databases such as First Call.

“With the successful completion of the tender offer, our leveraged recapitalization is on track. We are moving aggressively with additional divestitures of non-core assets. Initiatives to improve operating results at our newspapers and television stations also will continue,” said Dennis FitzSimons, Tribune chairman, president and chief executive officer. “In publishing, the competitive environment in our larger markets is still challenging, but we saw good growth in the second quarter at many of our medium-sized markets like Orlando and South Florida. Interactive revenues, the fastest growing segment of our business, were up 27 percent this quarter. In television, our stations in Los Angeles, Seattle, Indianapolis and Sacramento were our top performers.”

SECOND QUARTER 2006 RESULTS FROM CONTINUING OPERATIONS¹
(Compared to Second Quarter 2005)

CONSOLIDATED

Tribune’s 2006 second quarter operating revenues decreased 1 percent, or $20 million, to $1.43 billion. Consolidated cash operating expenses were up 1 percent, or $11 million. In the second quarter of 2006, cash operating expenses included $5 million of stock-based compensation expense. Operating cash flow was down 8 percent to $362 million from $393 million, while operating profit declined 9 percent to $306 million from $335 million.

PUBLISHING

Publishing’s second quarter operating revenues were $1 billion, down 1 percent, or $10 million. Publishing cash operating expenses were about flat compared with the 2005 second quarter despite $3 million of stock-based compensation recorded in the second quarter of 2006. Publishing operating cash flow was $251 million, a 4 percent decrease from $263 million in 2005. Publishing operating profit decreased 4 percent to $209 million, down from $218 million in 2005.

Management Discussion

• Advertising revenues were flat for the quarter. Excluding Newsday, advertising revenues increased 2 percent.
• Retail advertising revenues increased 1 percent for the quarter. Increases at Los Angeles, Chicago, and South Florida were partially offset by a decrease at Newsday. Preprint revenues were flat compared to the second quarter of 2005; excluding Newsday, preprint revenues were up 4 percent.
• National advertising revenues were down 7 percent for the quarter, with decreases in movies, autos, resorts, and technology, partially offset by increases in health care, media, financial and transportation.
• Classified advertising was up 3 percent for the quarter: real estate revenues rose 29 percent, auto revenues were down 13 percent, and help wanted revenues were down 3 percent.
• Interactive revenues, which are included in the above categories, were up
  27 percent to $57 million, mainly due to strength across all classified categories.
• Circulation revenues were down 5 percent, or $8 million, for the quarter.
  • Individually paid circulation (home delivery plus single copy) for Tribune’s 11 metro newspapers averaged 2.7 million copies daily (Mon-Fri), down about 2 percent from the same reporting period in 2005, and 4.1 million copies Sunday, down about 2.5 percent from the same reporting period in 2005.
  • Total net paid circulation averaged 2.9 million copies daily (Mon-Fri) in the second quarter, down 5 percent from the prior year, and 4.2 million copies Sunday, representing a decline of 4 percent from the prior year as the Company continued to reduce “other paid” circulation.
• Cash operating expenses were flat at $777 million. Compensation expense decreased 1 percent, or $3 million, as $3 million of stock-based compensation was more than offset by a 6 percent reduction in full time equivalent employees. A 5 percent increase in newsprint and ink expense was offset by reductions in other cash expenses.

BROADCASTING AND ENTERTAINMENT

Broadcasting and entertainment’s second quarter operating revenues decreased 2 percent to $404 million, down from $413 million in 2005. Group cash operating expenses increased 3 percent, or $9 million, to $279 million. Operating cash flow was $124 million, down 13 percent from $143 million, and operating profit decreased 14 percent to $112 million from $131 million in 2005.

Television’s second quarter revenues decreased 1 percent to $320 million, down from
$324 million in 2005. Television cash operating expenses were up 4 percent, or $8 million from last year. Television operating cash flow was $116 million, a 10 percent decrease from $129 million in 2005. Television operating profit declined 11 percent to $105 million, down from $118 million.

Management Discussion

• Station revenues in New York and Chicago were down for the quarter, while Los Angeles showed improvement. Declines in the auto, retail, and movie categories were partially offset by gains in the telecom, education, and financial advertising categories.
• Television’s cash operating expenses were up 4 percent due to an $8 million increase in broadcast rights and $1 million of stock-based compensation expense, partially offset by cost savings.
• Radio/entertainment revenues reflect lower revenues at WGN Radio, reduced syndication revenues at Tribune Entertainment and fewer home games for the Chicago Cubs.

EQUITY RESULTS

Net equity income was $26 million in the second quarter of 2006, compared with $12 million in the second quarter of 2005. The increase reflects operating improvements at TV Food Network and CareerBuilder and includes the Company’s $6 million share of a one-time favorable income tax adjustment at CareerBuilder. In addition, the Company is no longer recording losses for The WB Network as the Company’s recorded investment has been reduced to zero.

NON-OPERATING ITEMS

In the 2006 second quarter, Tribune recorded a pretax non-operating loss of $7 million, primarily from marking-to-market the derivative component of the Company’s PHONES and the related Time Warner investment. In addition, the Company recorded income tax adjustments of $4 million as an increase in income tax expense.

In the 2005 second quarter, Tribune recorded a pretax non-operating gain of $67 million, primarily from marking-to-market the Company’s PHONES derivatives and related Time Warner investment.

ADDITIONAL FINANCIAL DETAILS

Corporate expenses for the 2006 second quarter increased to $14 million from $13.5 million in the second quarter of 2005, primarily due to $1 million of stock-based compensation expense.

Interest expense for the 2006 second quarter increased to $47 million, up 34 percent from $35 million in the second quarter of 2005, primarily due to higher interest rates and debt levels. Debt, excluding the PHONES, was $2.6 billion at the end of the 2006 second quarter and $1.9 billion at the end of the 2005 second quarter.

Diluted weighted average shares outstanding declined by 4 percent from the second quarter of 2005, primarily due to stock repurchases. The Company repurchased 4.6 million shares in the first half of 2006 prior to the announcement of the tender offer.

Capital expenditures were $40 million in the second quarter of 2006.

DISCONTINUED OPERATIONS

In June 2006, the Company announced the sales of its Atlanta and Albany television stations. The assets and liabilities of these stations are now classified as held for sale and their results of operations are reported as discontinued operations. In the second quarter of 2006, the Company recorded a pretax loss of $90 million, including $80 million of allocated television group goodwill, to write down the Atlanta and Albany net assets to estimated fair value, less costs to sell. In accordance with Financial Accounting Standard (“FAS”) No. 142, “Goodwill and Other Intangible Assets”, the Company aggregates all of its television stations into one reporting unit for goodwill accounting purposes. Although no goodwill was recorded when the Atlanta station was acquired and only $0.3 million of goodwill was recorded for the Albany acquisition, FAS 142 requires the Company to allocate a portion of its total television group goodwill to stations that are sold based on the fair value of the stations, relative to the fair value of the Company’s remaining stations. The station sales are expected to generate pretax proceeds of about $200 million and will close upon regulatory approval.

DETAILS OF CONFERENCE CALL

Today at 8 a.m, CT, management will host a conference call to discuss second quarter 2006 results. To access the call, dial 866/277-1182 (domestic) or 617/597-5359 (international) at least 10 minutes prior to the scheduled 8 a.m. start. The participant access code is 30255633. Replays of the conference call will be available July 13 through July 20. To hear the replay, dial 888/286-8010 (domestic) or 617/801-6888 (international) and use access code 91055015. A live webcast will be accessible through www.tribune.com and www.earnings.com. An archive of the webcast will be available on these sites from July 13 through July 27.

More information about Tribune is available at www.tribune.com or by calling
800/757-1694.

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¹ “Operating profit” for each segment excludes interest and dividend income, interest expense, equity income and losses, non-operating items and income taxes. “Operating cash flow” is defined as operating profit before depreciation and amortization. “Cash operating expenses” are defined as operating expenses before depreciation and amortization. Tables accompanying this release include a reconciliation of operating profit to operating cash flow and operating expenses to cash operating expenses. References to individual daily newspapers include their related businesses.