Journal Register Company Reports Third Quarter Results

Journal Register Company (NYSE: JRC) today reported net income of $11.2 million, or $0.28 per diluted share, for the quarter ended September 30, 2007, as compared to net income of $7.3 million or $0.19 per diluted share, for the quarter ended September 24, 2006.

The Company's 2007 Third Quarter included a federal income tax benefit of $6.1 million, or $0.15 per share, and a beneficial net tax adjustment of approximately $1.8 million, or $0.05 per share, from a Michigan State tax law change.

Results presented in the accompanying financial summary are from continuing operations only and exclude the performance of the Company's Massachusetts and Rhode Island properties, which were sold in February 2007. The Massachusetts and Rhode Island properties are shown as discontinued operations and their results are excluded from revenues, operating expenses and operating income, but are included in the 2006 and 2007 net income and earnings per share. Net income from discontinued operations totaled $0.8 million, or $0.02 per diluted share, for the 2006 Third Quarter.

James W. Hall, Journal Register's Chairman and Chief Executive Officer effective November 1st, said, "In spite of a very challenging advertising environment, the Company achieved a number of objectives during the quarter and was able to record improved if not satisfactory results. I am especially pleased to note that we continue to maintain circulation numbers while keeping our focus on cost control. Our investments in the online side of our business -- both in talent and in technical assets -- continue to develop according to plan and we are seeing positive results from those efforts. And although the direction of the economy is uncertain, our management team and employees are working hard to generate more revenue by improving our business model, integrating our print and online operations, and developing new and exciting products for our customers.

"We also extend a special note of appreciation to Robert M. Jelenic, our outgoing Chairman and Chief Executive Officer for his years of service to the Company. Mr. Jelenic's last day with the Company will be November 1, 2007.

"In terms of strengthening our senior management team, Scott Wright took over as President and Chief Operating Officer on October 1st. We will look to Scott to lead us in revenue generation and in improving the effectiveness and efficiency of the operations of our clusters."

Please note that unless otherwise stated, all results compare Third Quarter 2007 to Third Quarter 2006.

Overall Revenue

Total revenues from continuing operations for the quarter ended September 30, 2007 were $113.0 million, as compared to total revenues of $122.0 million for the prior year, a decrease of 7.4%.

Executive Vice President and Chief Financial Officer Julie A. Beck said, "While we are not satisfied with our overall performance, our results for the quarter are demonstrating some mild improvements. For example, categories such as retail and classified employment results are slightly better than the previous quarter, and our online business, while still a small percentage of our total business model, is producing satisfactory results. We are working hard on three objectives -- to revitalize revenue, to achieve long term growth and to enhance shareholder value."

Advertising Revenue

Total advertising revenues for the Third Quarter decreased 9.4 percent to $85.8 million as compared to the Third Quarter of 2006. Excluding the results of the Company's Michigan cluster, total advertising revenues declined 7.9 percent.

Online Revenue

Total online revenue increased 23.1 percent, and was up in all six of the Company's clusters. In fact, online revenue accounted for 5.6 percent of total advertising revenue for the quarter. The Greater Philadelphia, Michigan, Greater Cleveland, New York Mid-Hudson and Capital Saratoga clusters showed significant double-digit gains, with retail and employment as the leading categories. The Company's Web sites generated 97.7 million page views, an increase of approximately 12.7 percent as compared to the prior year quarter. In September, the Company reported approximately 4.0 million unique visits to its Web sites.

Revenue Performance by Category:

Retail

Retail advertising revenue was $46.5 million, or a decline of 7.9 percent over Third Quarter 2006. Excluding the Company's Michigan cluster, retail advertising revenue declined 6.4 percent. Shortfalls were in the grocery/food/drug stores and building/hardware stores advertising categories.

Classified

Classified advertising revenues fell by 10.3 percent. Excluding the Michigan cluster, total classified advertising revenues for the Third Quarter 2007 declined 7.9 percent.

Classified other advertising revenues were down 2.6 percent. Excluding the Michigan cluster, classified other revenues increased 1.5 percent during the Third Quarter.

Classified employment advertising revenues for the Third Quarter 2007 declined 4.6 percent as compared to the Third Quarter 2006. Excluding the Michigan cluster, classified employment revenues dropped 5.7 percent. Several daily newspapers showed improvement in classified employment: The Trentonian, in Trenton, New Jersey; Macomb Daily, in Macomb, Michigan; The Bristol Press in Bristol, Connecticut; The Record in Troy, New York; and The Register Citizen in Torrington, Connecticut.