McClatchy Sells Ownership in ShopLocal, LLC

Expects $13.5 Million After-tax Proceeds on Transaction

SACRAMENTO, Calif., July 8 /PRNewswire-FirstCall/ -- The McClatchy Company today reported that it has sold its 15.0% interest in ShopLocal, LLC (ShopLocal) to Gannett Company, Inc. (Gannett) for $7.875 million and has used the proceeds to pay down bank debt.

McClatchy acquired a 33% stake in ShopLocal in the acquisition of Knight-Ridder, Inc. in June 2006, and in August 2006 sold 18.3% to Gannett and The Tribune Company (the other two-thirds owners at the time).

Pat Talamantes, chief financial officer of McClatchy, said, "Given our small ownership interest in ShopLocal and the ability to realize the benefit of a tax loss, it made sense to monetize our interest. As a result of the sale, we will reduce the carrying value of ShopLocal to the sales price and will record a charge of approximately $3 million in our second quarter results. The proceeds from the sale were used to reduce debt immediately and the tax benefit is expected to result in cash tax savings of approximately $5.6 million in the fourth quarter of 2008. In addition, the sale removes any potential for equity losses from ShopLocal's operating results from our equity income. Our newspapers still have access to ShopLocal products and will be able to enjoy its future success in generating advertising revenues on their websites. It's certainly a win-win transaction for us and Gannett."

About McClatchy

The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, the Charlotte Observer, and The (Raleigh) News & Observer.

McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, and 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

Additional Information:

Statements in this press release regarding future financial and operating results, including revenues, operating expenses, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," estimates and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the duration and depth of an economic recession in markets where McClatchy operates its newspapers may reduce its income and cash flow greater than expected; McClatchy may not consummate contemplated transactions which may enable debt reduction on anticipated terms or at all; McClatchy may not complete the repurchase of its public bonds in an amount or upon terms currently anticipated; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 30, 2007, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

CONTACT: Elaine Lintecum of McClatchy Company, +1-916-321-1846, elintecum@mcclatchy.com

Web site: http://www.mcclatchy.com/

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