Gannett Co., Inc. Releases February Statistical Report

Business Wire, March 14, 2008

MCLEAN, Va. -- Gannett Co., Inc. (NYSE:GCI) reported today that total pro forma operating revenues for the second period ended March 2, 2008 declined 7.2 percent compared with the same period in 2007. The exchange rate of the British pound was virtually flat with last year and therefore had no meaningful impact on results.

Pro forma newspaper advertising revenues in the second period were down 8.3 percent compared with a year ago. Pro forma assumes all properties presently owned were owned in both periods.

Pro forma retail advertising revenues were 7.7 percent lower in February as most major categories lagged last year's results.

Pro forma classified revenues declined 13.6 percent in the second period. Real estate revenues were down 20.7 percent, employment revenues were 16.1 percent lower, and automotive revenues declined 13.3 percent. U.S. Community Publishing pro forma classified revenues were 18.0 percent lower in February reflecting declines of 26.6 percent in real estate revenues, 23.3 percent in employment revenues and 10.9 percent in automotive revenues. Classified results at our operations in the UK were better than in U.S. Community Publishing. Classified revenues at Newsquest in the UK declined 5.3 percent, in pounds. Real estate revenues were down 10.3 percent, employment revenues were 1.0 percent lower and automotive revenues declined 20.3 percent while other revenues were 3.5 percent higher.

Pro forma national advertising revenues in February were up 6.0 percent. At USA TODAY, advertising revenues were 14.5 percent higher on paid ad pages of 296 versus 291 last year. In the second period of 2008 at USA TODAY, there was strong growth in the travel, technology, financial, packaged goods, retail, advocacy and pharmaceutical categories while the telecommunications and automotive categories lagged results for the same period in 2007. National revenues in U.S. Community Publishing were also 11.7 percent ahead of last year.

Pro forma broadcasting revenues, which include Captivate, were 7.1 percent lower in the period. Television revenues declined 7.6 percent in February as local and national revenues were 8.5 percent and 10.1 percent lower, respectively. Based on results to date and current pacings, television revenues for the first quarter of 2008 would lag last year's first quarter in the mid single digits.

Based on figures from Nielsen//Net ratings, in February, Gannett's domestic Web sites had 25.8 million unique visitors reaching 15.9 percent of the Internet audience.

On May 7, 2007, the company completed its sale of the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV. In addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21, 2007. The revenue and statistical data related to these properties has been excluded from all periods presented.

To conform with current year presentation, the company's equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have been reclassified from "Other revenue" and are reflected in a separate line in the Non-Operating section of the Statement of Income titled "Equity income in unconsolidated investees, net." Other revenue is now comprised principally of commercial printing revenues and revenue from PointRoll.

Circulation volume numbers for Newsquest's paid daily newspapers are included in the enclosed statistics, but volume from unpaid daily and non-daily publications is not included in the circulation volume statistics.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

Certain statements in this press release may be forward looking in nature or "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company's SEC reports, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.