# UNITED STATES
SECURITIES AND EXCHANGE COMMISSION    WASHINGTON, D.C. 20549

# FORM 10-Q

|[X] | QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|--- | ---------------------------------------------------------------------------------------

# For the quarterly
period ended: September 25, 2005

or

|[   ] | TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|----- | ----------------------------------------------------------------------------------------

| | For
the transition period from ________________________ to ____________________________ Commission File Number: 1-31805
| | -----------------------------------------------------------------------------------------------------------------------

|JOURNAL COMMUNICATIONS, INC.                          
|------------------------------------------------------
|(Exact name of registrant as specified in its charter)

|WISCONSIN                                     | 20-0020198                          
|--------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation | (I.R.S. Employer Identification No.)
|or organization)                             
|333 W. State Street, Milwaukee, Wisconsin     | 53203                               
|(Address of principal executive offices)      | (Zip Code)                          

|414-224-2616                                      
|--------------------------------------------------
|Registrant's telephone number, including area code

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No ___

Indicate by check mark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) Yes X No ___

Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ___ No X

Number of shares outstanding of each
of the issuers classes of common stock as of October 27, 2005 (excluding 8,676,705
shares of class B common stock held by our subsidiary, The Journal Company):

|Class                | Outstanding at October 27, 2005
|-------------------- | -------------------------------
|Class A Common Stock | 40,925,793                     
|Class B Common Stock | 28,734,658                     
|Class C Common Stock | 3,264,000                      

---

# JOURNAL
COMMUNICATIONS, INC.

# INDEX

|         |                       |                                                            
|-------- | --------------------- | -----------------------------------------------------------
|         |                       |                                                            
|Part I.  | Financial Information |                                                            
|         | Item 1.               | Financial Statements                                       
|         |                       | Consolidated Condensed Balance Sheets as of                
|         |                       | September 25, 2005 (Unaudited) and December 26, 2004       
|         |                       | Unaudited Consolidated Condensed Statements of Earnings    
|         |                       | for the Third Quarter and Three Quarters Ended             
|         |                       | September 25, 2005 and September 26, 2004                  
|         |                       | Unaudited Consolidated Condensed Statement of              
|         |                       | Shareholders' Equity for the Three Quarters Ended          
|         |                       | September 25, 2005                                         
|         |                       | Unaudited Consolidated Condensed Statements of             
|         |                       | Cash Flows for the Three Quarters Ended September 25, 2005 
|         |                       | and September 26, 2004                                     
|         |                       | Notes to Unaudited Consolidated Condensed                  
|         |                       | Financial Statements as of September 25, 2005              
|         | Item 2.               | Management's Discussion and Analysis of Financial Condition
|         |                       | and Results of Operations                                  
|         | Item 3.               | Quantitative and Qualitative Disclosure of Market Risk     
|         | Item 4.               | Controls and Procedures                                    
|Part II. | Other Information    
|         | Item 1.               | Legal Proceedings                                          
|         | Item 2.               | Unregistered Sales of Equity Securities and Use of Proceeds
|         | Item 3.               | Defaults Upon Senior Securities                            
|         | Item 4.               | Submission of Matters to a Vote of Security Holders        
|         | Item 5.               | Other Information                                          
|         | Item 6.               | Exhibits                                                   

1

---

# PART I. FINANCIAL
INFORMATION

# ITEM 1. FINANCIAL
STATEMENTS

JOURNAL COMMUNICATIONS,
INC.  Consolidated Condensed Balance Sheets  (in thousands, except share and per-share
amounts)

|ASSETS                                                              
|--------------------------------------------------------------------
|Current assets:                                                     
|Cash and cash equivalents                                           
|Receivables, less allowance for doubtful accounts                   
|of $10,547 and $7,210                                               
|Inventories                                                         
|Prepaid expenses                                                    
|Deferred income taxes                                               
|Investment in preferred stock                                       
|Current assets of discontinued operations                           
|                                                                    
|TOTAL CURRENT ASSETS                                                
|Property and equipment, at cost, less accumulated depreciation      
|of $363,774 and $338,674                                            
|Goodwill                                                            
|Broadcast licenses                                                  
|Other intangible assets, net                                        
|Prepaid pension costs                                               
|Other assets, net                                                   
|Non-current assets of discontinued operations                       
|                                                                    
|TOTAL ASSETS                                                        
|                                                                    
|LIABILITIES AND SHAREHOLDERS' EQUITY                                
|Current liabilities:                                                
|Accounts payable                                                    
|Accrued compensation                                                
|Accrued employee benefits                                           
|Deferred revenue                                                    
|Other current liabilities                                           
|Current liabilities of discontinued operations                      
|Current portion of long-term liabilities                            
|                                                                    
|TOTAL CURRENT LIABILITIES                                           
|Accrued employee benefits                                           
|Long-term notes payable to banks                                    
|Deferred income taxes                                               
|Other long-term liabilities                                         
|Shareholders equity:                                               
|Preferred stock, $0.01 par - authorized 10,000,000 shares; no shares
|outstanding at September 25, 2005 and December 26, 2004             
|Common stock, $0.01 par:                                            
|Class C - authorized 10,000,000 shares; issued and outstanding:     
|3,264,000 shares at September 25, 2005 and December 26, 2004        
|Class B - authorized 120,000,000 shares; issued and outstanding:    
|30,475,499 shares at September 25, 2005 and 44,810,712 shares       
|at December 26, 2004                                                
|Class A - authorized 170,000,000 shares; issued and outstanding:    
|39,750,991 shares at September 25, 2005 and 27,417,326 shares       
|at December 26, 2004                                                
|Additional paid-in capital                                          
|Unearned compensation                                               
|Retained earnings                                                   
|Treasury stock, at cost                                             
|                                                                    
|TOTAL SHAREHOLDERS EQUITY                                          
|                                                                    
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                          
|                                                                    

Note: The balance sheet at December
26, 2004 has been derived from the audited financial statements at that date, but does not
include all the information and footnotes required by generally accepted accounting
principles in the United States for complete financial statements.

See accompanying notes
to unaudited consolidated condensed financial statements.

2

---

JOURNAL COMMUNICATIONS,
INC.  Unaudited Consolidated Condensed Statements of Earnings  (in thousands, except
per-share amounts)

|                                              
|----------------------------------------------
|September 25, 2005                            
|Continuing operations:                        
|Revenue:                                      
|Publishing                                    
|Broadcasting                                  
|Telecommunications                            
|Printing services                             
|Other                                         
|                                              
|Total revenue                                 
|Operating costs and expenses:                 
|Publishing                                    
|Broadcasting                                  
|Telecommunications                            
|Printing services                             
|Other                                         
|                                              
|Total operating costs and expenses            
|Selling and administrative expenses           
|                                              
|Total operating costs and expenses and selling
|and administrative expenses                   
|                                              
|Operating earnings                            
|Other income and expense:                     
|Interest income and dividends                 
|Interest expense                              
|                                              
|Total other income and expense                
|                                              
|Earnings from continuing operations before    
|income taxes                                  
|Provision for income taxes                    
|                                              
|Earnings from continuing operations           
|                                              
|Gain from discontinued operations, net of     
|applicable tax expense of $1, $481,           
|$3,062 and $1,559, respectively               
|                                              
|Net earnings                                  
|                                              
|Earnings available to class A and B           
|common shareholders                           
|                                              
|Earnings per share:                           
|Basic:                                        
|Continuing operations                         
|Discontinued operations                       
|                                              
|Net earnings                                  
|                                              
|Diluted:                                      
|Continuing operations                         
|Discontinued operations                       
|                                              
|Net earnings                                  
|                                              

See accompanying notes
to unaudited consolidated condensed financial statements.

3

---

Journal
Communications, Inc.        Unaudited Consolidated Condensed Statement of Shareholders'
Equity            For the Three Quarters Ended September 25, 2005           (dollars in
thousands, except per-share amounts)

|                                            | Preferred | Common Stock | Additional | Unearned | Retained | Treasury
Stock, |    | Comprehensive
|------------------------------------------- | --------- | ------------ | ---------- | -------- | -------- | --------------- | -- | -------------
|
|Balance at December 26, 2004                |           |              | $          | --       |          | $               | 33 |              
|Net earnings and other comprehensive income |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Dividends declared:                         |           |             
|Class C ($0.142 per share)                  |           |              |            |          |          |                 |    |              
|Class B ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Class A ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Issuance of shares:                         |           |             
|Conversion of class B to class A            |           |              |            |          |          |                 |    |              
|Restricted stock grants                     |           |              |            |          |          |                 |    |              
|Stock grants                                |           |              |            |          |          |                 |    |              
|Employee stock purchase plan                |           |              |            |          |          |                 |    |              
|Shares purchased and retired                |           |              |            |          |          |                 |    |              
|Amortization of unearned compensation       |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Balance at March 27, 2005                   |           |              | $          | --       |          | $               | 33 |              
|                                            |           |              |            |          |          |                 |    |              
|Net earnings and other comprehensive income |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Dividends declared:                         |           |             
|Class C ($0.142 per share)                  |           |              |            |          |          |                 |    |              
|Class B ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Class A ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Issuance of shares:                         |           |             
|Conversion of class B to class A            |           |              |            |          |          |                 |    |              
|Stock grants                                |           |              |            |          |          |                 |    |              
|Cancellation of restricted stock grants     |           |              |            |          |          |                 |    |              
|Shares purchased and retired                |           |              |            |          |          |                 |    |              
|Amortization of unearned compensation       |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Balance at June 26, 2005                    |           |              | $          | --       |          | $               | 33 |              
|                                            |           |              |            |          |          |                 |    |              
|Net earnings and other comprehensive income |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Dividends declared:                         |           |             
|Class C ($0.142 per share)                  |           |              |            |          |          |                 |    |              
|Class B ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Class A ($0.065 per share)                  |           |              |            |          |          |                 |    |              
|Issuance of shares:                         |           |             
|Conversion of class B to class A            |           |              |            |          |          |                 |    |              
|Stock grants                                |           |              |            |          |          |                 |    |              
|Cancellation of restricted stock grants     |           |              |            |          |          |                 |    |              
|Employee stock purchase plan                |           |              |            |          |          |                 |    |              
|Shares purchased and retired                |           |              |            |          |          |                 |    |              
|Amortization of unearned compensation       |           |              |            |          |          |                 |    |              
|                                            |           |              |            |          |          |                 |    |              
|Balance at September 25, 2005               |           |              | $          | --       |          | $               | 33 |              
|                                            |           |              |            |          |          |                 |    |              

4

---

# JOURNAL
COMMUNICATIONS, INC.  Unaudited Consolidated Condensed Statements of Cash Flows  (in
thousands)

|                                                       
|-------------------------------------------------------
|September 25, 2005                                     
|Cash flow from operating activities:                   
|Net earnings                                           
|Less gain from discontinued operations                 
|                                                       
|Earnings from continuing operations                    
|Adjustments for non-cash items:                        
|Depreciation                                           
|Amortization                                           
|Provision for doubtful accounts                        
|Deferred income taxes                                  
|Net loss from disposal of assets                       
|Net changes in operating assets and liabilities:       
|Receivables                                            
|Inventories                                            
|Accounts payable                                       
|Other assets and liabilities                           
|                                                       
|NET CASH PROVIDED BY OPERATING ACTIVITIES              
|Cash flow from investing activities:                   
|Capital expenditures for property and equipment        
|Deposits for acquisitions                              
|Proceeds from sales of assets                          
|Acquisition purchase price adjustment                  
|                                                       
|NET CASH USED FOR INVESTING ACTIVITIES                 
|Cash flow from financing activities:                   
|Proceeds from long-term notes payable to banks         
|Payments on long-term notes payable to banks           
|Proceeds from issuance of common stock                 
|Purchase and retirement of Class A common stock        
|Purchase and retirement of Class B common stock        
|Cash dividends                                         
|                                                       
|NET CASH USED FOR FINANCING ACTIVITIES                 
|NET CASH PROVIDED BY (USED FOR) DISCONTINUED OPERATIONS
|                                                       
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   
|Cash and cash equivalents:                             
|Beginning of year                                      
|                                                       
|At September 25, 2005 and September 26, 2004           
|                                                       

See accompanying notes
to unaudited consolidated condensed financial statements.

5

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|1 | BASIS
OF PRESENTATION
|- | ---------------------

| | The
accompanying unaudited consolidated condensed financial statements have been prepared by
Journal Communications, Inc. and its wholly owned subsidiaries in accordance with U.S.
generally accepted accounting principles for interim financial information and pursuant
to the rules and regulations of the Securities and Exchange Commission and reflect normal
and recurring adjustments, which we believe to be necessary for a fair presentation. As
permitted by these regulations, these statements do not include all of the information
and footnotes required by U.S. generally accepted accounting principles for annual
financial statements. However, we believe that the disclosures are adequate to make the
information presented not misleading. The operating results for the third quarter and
three quarters ended September 25, 2005 are not necessarily indicative of the results
that may be expected for the fiscal year ending December 25, 2005. You should read these
unaudited consolidated condensed financial statements in conjunction with the
consolidated financial statements and the notes thereto included in our Annual Report on
Form 10-K for the year ended December 26, 2004.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2 | ACCOUNTING
PERIODS
|- | ------------------

| | Our
fiscal year is a 52-53 week year ending on the last Sunday of December in each year. In
addition, we have four quarterly reporting periods, each consisting of 13 weeks and
ending on a Sunday, provided that once every six years, starting in 2006, the fourth
quarterly reporting period will be 14 weeks.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3 | NEW
ACCOUNTING STANDARD
|- | -----------------------

| | In
May 2005, the FASB issued Statement No. 154, Accounting Changes and Error
Corrections  A Replacement of APB Opinion No. 20 and FASB Statement No. 3, which
requires that a voluntary change in accounting principle be applied retrospectively with
all prior period financial statements presented on the basis of the new accounting
principle, unless it is impracticable to do so. Statement No. 154 also provides that (i)
a change in method of depreciating or amortizing a long-lived nonfinancial asset be
accounted for as a change in estimate (prospectively) that was affected by a change in
accounting principle, and (ii) correction of errors in previously issued financial
statements should be termed a restatement. In accordance with the new rule,
we will adopt Statement No. 154 in the first quarter of 2006. We do not believe the
effect of adopting Statement No. 154 will have a material impact on our consolidated
financial statements.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
December 2004, the FASB issued Statement No. 123R, Share-Based Payment, which
requires a public entity to measure the cost of employee services received in exchange
for an award of equity instruments based on the grant-date fair value of the award (with
limited exceptions). That cost will be recognized over the period during which an
employee is required to provide service in exchange for the award. In April 2005, the
U.S. Securities and Exchange Commission adopted a new rule amending the compliance dates
for Statement No. 123R. In accordance with the new rule, we will adopt Statement No. 123R
in the first quarter of 2006. We do not believe the effect of adopting Statement No. 123R
will have a material impact on our consolidated financial statements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4 | EARNINGS
PER SHARE
|- | ------------------

| | Basic
earnings per share is computed by dividing net earnings available to class A and B common
shareholders by the weighted average number of class A and B shares outstanding during
the period and excludes non-vested restricted stock. Diluted earnings per share is
computed based upon the assumption that the class C shares outstanding were converted
into class A and B shares, common shares are issued upon exercise of certain of our
non-statutory stock options, and common shares will be outstanding upon expiration of the
vesting periods for our non-vested restricted stock.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Basic
and diluted earnings per share are computed as follows:
| | -------------------------------------------------------------

|                                      
|--------------------------------------
|September 25, 2005                    
|Basic earnings:                       
|Earnings from continuing operations   
|Discontinued operations               
|                                      
|Net earnings                          
|Less dividends on class C common stock
|                                      
|Earnings available to class A and B   
|common shareholders                   
|                                      

6

---

JOURNAL COMMUNICATIONS,
INC. Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|4 | EARNINGS
PER SHARE, continued
|- | -----------------------------

|                                            
|--------------------------------------------
|September 25, 2005                          
|Weighted average class A and B              
|shares outstanding                          
|Basic earnings per share:                   
|Continuing operations                       
|Discontinued operations                     
|                                            
|Net earnings                                
|                                            
|Diluted earnings:                           
|Earnings available to class A and B         
|common shareholders                         
|Plus dividends on class C common stock      
|                                            
|Net earnings                                
|                                            
|Weighted average shares outstanding         
|Assumed exercise of stock options           
|Impact of restricted stock                  
|Conversion of class C shares                
|                                            
|Adjusted weighted average shares outstanding
|                                            
|Diluted earnings per share:                 
|Continuing operations                       
|Discontinued operations                     
|                                            
|Net earnings                                
|                                            

| | Each
of the 3,264,000 class C shares outstanding is convertible at any time at the option of
the holder into either (i) 1.363970 class A shares (or a total of 4,451,998 class A
shares) or (ii) 0.248243 class A shares (or a total of 810,265 class A shares) and
1.115727 class B shares (or a total of 3,641,733 class B shares).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5 | STOCK-BASED
COMPENSATION
|- | ------------------------

| | We
account for stock-based compensation by using the intrinsic value-based method in
accordance with Accounting Principles Board Opinion (APB) No. 25, Accounting for
Stock Issued to Employees. Under APB No. 25, we do not recognize compensation
expense for our stock options because the exercise price equals the market price of the
underlying stock on the grant date. We recognize compensation expense related to
restricted stock grants over the vesting period. As permitted, we have elected to adopt
the disclosure only provisions of Statement No. 123, Accounting for Stock-Based
Compensation and Statement No. 148, Accounting for Stock-Based Compensation
 Transition and Disclosure  an Amendment of FASB Statement No. 123.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Statement
No. 123, as amended by Statement No. 148, establishes a fair value-based method of
accounting for employee stock-based compensation plans and encourages companies to adopt
that method. However, it also allows companies to continue to apply the intrinsic
value-based method currently prescribed under APB No. 25. We have chosen to continue to
report stock-based compensation in accordance with APB No. 25, and provide the following
pro forma disclosure of the effects of applying the fair value method to all applicable
awards granted. The following table illustrates the effect on net earnings and net
earnings per share if we had applied the fair value recognition provisions of Statement
No. 123:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|5 | STOCK-BASED
COMPENSATION, continued
|- | -----------------------------------

|                                             
|---------------------------------------------
|September 25, 2005                           
|Net earnings as reported                     
|Add compensation cost of restricted stock,   
|net of related tax effects, included in      
|the determination of net earnings as reported
|Deduct stock based compensation determined   
|under fair value-based method, net of related
|tax effects:                                 
|Stock options                                
|Employee stock purchase plan                 
|Restricted stock                             
|                                             
|Pro forma net earnings                       
|                                             
|Net earnings per share of common stock:      
|Basic earnings per share:                    
|As reported                                  
|                                             
|Pro forma                                    
|                                             
|Diluted earnings per share:                  
|As reported                                  
|                                             
|Pro forma                                    
|                                             

|6 | INVENTORIES
|- | -----------

| | Inventories
are stated at the lower of cost (first in, first out method) or market. Inventories at
September 25, 2005 and December 26, 2004 consisted of the following:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                         
|-------------------------
|Paper and supplies       
|Work in process          
|Finished goods           
|Less obsolescence reserve
|                         
|Inventories              
|                         

|7 | NOTES
PAYABLE TO BANKS
|- | ----------------------

| | We
have a $350 million unsecured revolving credit facility that will expire on September 4,
2008. The interest rate on borrowings is either LIBOR plus a margin that ranges from 87.5
basis points to 150 basis points, depending on our leverage, or the Base Rate, which
equals the higher of the prime rate set by U.S. Bank, N.A. or the Federal Funds Rate plus
one percent per annum. As of September 25, 2005, we had borrowings of $63,655 under the
facility at the weighted average interest rate of 4.84%. Fees in connection with the
facility of $1,997 are being amortized over the term of the facility using the
straight-line method which approximates the effective-interest method. In addition, we
pay an annual fee which is amortized using the straight-line method over the twelve
months following payment.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|8 | EMPLOYEE
BENEFIT PLANS
|- | ----------------------

| | The
components of our net periodic benefit costs for our defined benefit and non-qualified
pension plans and our postretirement health benefit plans are as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                           
|-------------------------------------------
|Third Quarter Ended                        
|September 25, 2005                         
|Service cost                               
|Interest cost                              
|Expected return on plan assets             
|Amortization of:                           
|Unrecognized prior service cost            
|Unrecognized net transition obligation     
|Unrecognized net loss                      
|                                           
|Net periodic benefit cost included in total
|operating costs and expenses and           
|selling and administrative expenses        
|                                           
|                                           
|Other Postretirement Benefits              
|Third Quarter Ended                        
|September 25, 2005                         
|Service cost                               
|Interest cost                              
|Amortization of:                           
|Unrecognized prior service cost            
|Unrecognized net transition obligation     
|Unrecognized net loss                      
|                                           
|Net periodic benefit cost included in      
|selling and administrative expenses        
|                                           

|9 | GOODWILL
AND OTHER INTANGIBLE ASSETS
|- | ------------------------------------

| | Definite-lived
Intangibles
| | --------------------------

| | Our
definite-lived intangible assets consist primarily of network affiliation agreements,
customer lists and non-compete agreements. We amortize the network affiliation agreements
over a period of 25 years, the customer lists over a period of five to 40 years and the
non-compete agreements over the terms of the contracts.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Amortization
expense was $319 for the third quarter ended September 25, 2005 and $975 for the three
quarters ended September 25, 2005. Estimated amortization expense for our next five
fiscal years is $1,295 for 2005, $1,282 for 2006, $1,244 for 2007, $1,188 for 2008 and
$904 for 2009.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|9 | GOODWILL
AND OTHER INTANGIBLE ASSETS, continued
|- | -----------------------------------------------

| | The
gross carrying amount, accumulated amortization and net carrying amount of the major
classes of definite-lived intangible assets as of September 25, 2005 and December 26,
2004 is as follows:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                              
|------------------------------
|As of September 25, 2005      
|Network affiliation agreements
|Customer lists                
|Non-compete agreements        
|Other                         
|                              
|Total                         
|                              
|As of December 26, 2004       
|Network affiliation agreements
|Customer lists                
|Non-compete agreements        
|Other                         
|                              
|Total                         
|                              

| | Indefinite-lived
Intangibles
| | ----------------------------

| | Broadcast
licenses are deemed to have indefinite useful lives because we have renewed these
agreements without issue in the past and we intend to renew them in the future.
Accordingly, we expect the cash flows from our broadcast licenses to continue
indefinitely. There were no changes to the carrying amount of broadcast licenses in the
three quarters ended September 25, 2005.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Goodwill
| | --------

| | The
change in the carrying amount of goodwill in the three quarters ended September 25, 2005
is as follows:
| | -----------------------------------------------------------------------------------------------------------

|Reporting unit                    | Goodwill at
December 26, 2004 | Adjustment | Goodwill at
September 25, 2005
|--------------------------------- | ----------------------------- | ---------- | ------------------------------
|Daily newspaper                   |                               |            | $                             
|Community newspapers and shoppers |                               |            |                               
|Broadcasting                      |                               |            |                               
|Telecommunications                |                               |            |                               
|Direct marketing services         |                               |            |                               
|                                  |                               |            |                               
|Total                             |                               |            | $                             
|                                  |                               |            |                               

| | The
adjustment to goodwill at our broadcasting unit represents a purchase price adjustment
for goodwill associated with a two-year syndicated program acquired with the Green Bay
television operations. The syndicated programs second season was cancelled.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|10 | ACQUISITION
|-- | -----------

| | On
August 22, 2005, we announced an agreement to purchase the business and assets of three
television stations from Emmis Communications Corporation for $235,000, subject to
certain adjustments. The stations are FOX affiliate WFTX-TV, Fort Myers/Naples, Florida;
ABC affiliate KGUN-TV, Tucson, Arizona; and CBS affiliate KMTV, Omaha, Nebraska. In the
third quarter of 2005, we paid a $23,500 deposit towards the purchase, which is included
in other assets, net in our consolidated condensed balance sheet as of September 25,
2005. We expect to complete the purchase of WFTX-TV and KGUN-TV in late 2005 after
receipt of approval from the Federal Communications Commission and other regulatory
approvals. At the same time, we will acquire certain assets of KMTV and we will begin
programming KMTV under a local marketing agreement. We will pay $201,500 at the time of
closing. The remaining $10,000 of the purchase price will be paid upon the transfer of
the KMTV broadcast license or in $5,000 installments no later than October 2007 and
October 2008.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|11 | DISCONTINUED
OPERATIONS
|-- | -----------------------

| | On
January 25, 2005, we entered into a definitive asset sale agreement with Multi-Color
Corporation pursuant to which Multi-Color Corporation acquired substantially all of the
assets and certain liabilities of NorthStar Print Group, Inc., our label printing
business. The purchase price, excluding certain real estate holdings, was $26,144 in
cash.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following table summarizes the results of operations of NorthStar Print Group, Inc.,
which are included in the gain from discontinued operations in the unaudited consolidated
condensed statement of earnings for the third quarter and three quarters ended September
25, 2005 and September 26, 2004:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                          
|--------------------------
|September 25, 2005        
|Revenue                   
|Income before income taxes

| | The
current and non-current assets and liabilities of discontinued operations in the
consolidated condensed balance sheets at September 25, 2005 and December 26, 2004
consisted of the following:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                          | September 25, 2005 | December 26, 2004
|------------------------- | ------------------ | -----------------
|Cash                      |                    |                  
|Receivables               |                    |                  
|Inventories, net          |                    |                  
|Prepaid expenses          |                    |                  
|                          |                    |                  
|Total current assets      |                    |                  
|                          |                    |                  
|Property and equipment    |                    |                  
|Goodwill                  |                    |                  
|Prepaid pension costs     |                    |                  
|                          |                    |                  
|Total non-current assets  |                    |                  
|                          |                    |                  
|Accounts payable          |                    |                  
|Accrued compensation      |                    |                  
|Accrued employee benefits |                    |                  
|Other current liabilities |                    |                  
|                          |                    |                  
|Total current liabilities |                    |                  
|                          |                    |                  

|12 | SEGMENT
INFORMATION
|-- | -------------------

| | We
conduct our operations through four reportable segments: publishing, broadcasting,
telecommunications and printing services. In addition, our direct marketing services
business and certain administrative activities are aggregated and reported as other. All
segments conduct their business in the United States. We publish a daily newspaper, the
Milwaukee Journal  Sentinel, and more than 90 weekly shoppers and community
newspapers in eight states. Our broadcasting segment consists of 38 radio stations and
seven television stations in 11 states, as well as the operation of one additional
television station under a local marketing agreement. We also have signed an agreement
with Emmis Communications Corporation to purchase three additional television stations
located in Omaha, Nebraska; Tucson, Arizona and Fort Myers, Florida. Our
telecommunications segment consists of wholesale and business-to-business
telecommunications services provided through a high speed fiber optic telecommunications
network that covers more than 4,400 route miles in seven states, of which we operate
about 4,100 route miles. Our printing services segment includes the operations of our
printing and assembly and fulfillment business.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
following tables summarize revenue, operating earnings, depreciation and amortization and
capital expenditures for the third quarter and three quarters ended September 25, 2005
and September 26, 2004 and identifiable total assets at September 25, 2005 and December
26, 2004:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---

JOURNAL COMMUNICATIONS,
INC.  Notes to Unaudited Consolidated Condensed Financial Statements  (in thousands,
except per-share amounts)

|12 | SEGMENT
INFORMATION, continued
|-- | ------------------------------

|                             
|-----------------------------
|September 25, 2005           
|Revenue                      
|Publishing                   
|Broadcasting                 
|Telecommunications           
|Printing services            
|Other                        
|                             
|                             
|                             
|Operating earnings (loss)    
|Publishing                   
|Broadcasting                 
|Telecommunications           
|Printing services            
|Other                        
|                             
|                             
|                             
|Depreciation and amortization
|Publishing                   
|Broadcasting                 
|Telecommunications           
|Printing services            
|Other                        
|                             
|                             
|                             
|Capital expenditures         
|Publishing                   
|Broadcasting                 
|Telecommunications           
|Printing services            
|Other                        
|                             
|                             
|                             

|                                 
|---------------------------------
|Identifiable total assets        
|Publishing                       
|Broadcasting                     
|Telecommunications               
|Printing services                
|Other and discontinued operations
|                                 
|                                 
|                                 

|13 | SUBSEQUENT
EVENT
|-- | ----------------

| | On
September 30, 2005, we announced the closing of our New Orleans, Louisiana printing
facility which is included in our publishing segment. Because our printing facility had
been experiencing persistent weakness in its business prior to the impacts of Hurricane
Katrina and its customers were widely dispersed after the storm, we decided to close this
facility. We have revised our estimate of the pre-tax charge for shut-down-related costs to
between $1.5 million to $3.4 million, including a non-cash charge from the write off of
goodwill. We expect that most of the shut-down-related costs will be recorded in the
fourth quarter 2005.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12

---

# JOURNAL
COMMUNICATIONS, INC.

|ITEM 2. | MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|------- | -------------------------------------------------------------------------------------

The following discussion of our
financial condition and results of operations should be read together with our unaudited
consolidated condensed financial statements for the third quarter and three quarters ended
September 25, 2005, including the notes thereto.

More information regarding us is
available at our website at www.journalcommunications.com. We are not including the
information contained in our website as a part of, or incorporating it by reference into,
this Quarterly Report on Form 10-Q. Our Annual Report on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and any amendments to those reports are made
available to the public at no charge, other than a readers own internet access
charges, through a link appearing on our website. We provide access to such material
through our website as soon as reasonably practicable after we electronically file such
material with, or furnish it to, the Securities and Exchange Commission.

# Forward-Looking
Statements

We make certain statements in this
Quarterly Report on Form 10-Q that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. We intend these
forward-looking statements to be covered by the safe harbor provisions for forward-looking
statements contained in that Act, and we are including this statement for purposes of
those safe harbor provisions. These forward-looking statements generally include all
statements other than statements of historical fact, including statements regarding our
future financial position, business strategy, budgets, projected revenues and expenses,
expected regulatory actions and plans and objectives of management for future operations.
We often use words such as may, will, intend,
anticipate, believe, or should and similar expressions
in this Quarterly Report on Form 10-Q to identify forward-looking statements. These
forward-looking statements are not guarantees of future performance and are subject to
risks, uncertainties and other factors, some of which are beyond our control. These risks,
uncertainties and other factors could cause actual results to differ materially from those
expressed or implied by those forward-looking statements. Among such risks, uncertainties
and other factors that may impact us are the following:

| | changes
in advertising demand;
|- | ------------------------------

| | changes
in newsprint prices and other costs of materials;
|- | ---------------------------------------------------------

| | changes
in federal or state laws and regulations or their interpretations (including changes in
regulations governing the number and types of broadcast and cable system properties,
newspapers and licenses that a person may control in a given market or in total);
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | changes
in legislation or customs relating to the collection, management and aggregation and use
of consumer information through telemarketing and electronic communication efforts;
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | the
availability of quality broadcast programming at competitive prices;
|- | ------------------------------------------------------------------------

| | changes
in network affiliation agreements;
|- | ------------------------------------------

| | quality
and rating of network over-the-air broadcast programs available to our customers;
|- | -----------------------------------------------------------------------------------------

| | effects
of the loss of commercial  inventory resulting from uninterrupted  television news
coverage and potential  advertising      cancellations due to war or terrorist acts;
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | effects
of the rapidly changing nature of the publishing, broadcasting, telecommunications, and
printing industries, including general business issues, competitive issues and the
introduction of new technologies;
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | effects
of bankruptcies on customers for our telecommunications wholesale services;
|- | -----------------------------------------------------------------------------------

| | the
ability of regional telecommunications companies to expand service offerings to include
intra-exchange services;
|- | --------------------------------------------------------------------------------------------------------------------

| | effects
of potential acquisitions of or mergers of telecommunications companies or advertisers;
|- | -----------------------------------------------------------------------------------------------

| | changes
in interest rates;
|- | --------------------------

| | the
outcome of pending or future litigation;
|- | --------------------------------------------

| | energy
costs;
|- | -------------

| | the
 availability  and effect of  acquisitions,  investments,  and  dispositions  on our
results of  operations  or  financial          condition; and
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------

| | changes
in general economic conditions.
|- | ---------------------------------------

We caution you not to place undue
reliance on these forward-looking statements, which we have made as of the date of this
Quarterly Report on Form 10-Q.

# Overview

Our business segments are based on
the organizational structure used by management for making operating and investment
decisions and for assessing performance. Our reportable business segments are: (i)
publishing; (ii) broadcasting; (iii) telecommunications; (iv) printing services; and (v)
other. Our publishing segment consists of a daily newspaper, the Milwaukee Journal
Sentinel, and more than 90 community newspapers and shoppers in eight states. Our
broadcasting segment consists of 38 radio stations and seven television stations in 11
states, as well as the operation of one additional television station under a local
marketing agreement. We also have signed an agreement with Emmis Communications
Corporation to purchase three additional television stations located in Omaha, Nebraska;
Tucson, Arizona and Fort Myers, Florida. Our telecommunications segment consists of
wholesale and business-to-business telecommunications services provided through a high
speed fiber optic telecommunications network that covers more than 4,400 route miles in
seven states, of which we operate about 4,100 route miles. Our printing services segment
reflects the operations of our printing and assembly and fulfillment business. Our other
segment consists of a direct marketing services business and corporate expenses and
eliminations.

13

---

Continued weakness in advertising,
especially at our television stations, and the anticipated reduction in earnings at our
telecommunications business caused a challenging third quarter. Our comparables were
formidable because third quarter 2004 political, issue and Olympic revenues were very
strong. We also faced an unusual loss of business at our Louisiana-based community
newspapers and shoppers business due to Hurricane Katrina in the third quarter. Our daily
newspaper finished the quarter with an upswing in earnings as it continues to improve
margins and the printing services business experienced an operating earnings turnaround of
about $1.3 million for the quarter as it continues the successful return to its core
business.

Because our printing facility in New
Orleans, Louisiana had been experiencing persistent weakness in its business prior to the
impacts of the hurricane and its customers were widely dispersed after the storm, we
decided to close this facility. We have revised our estimate of the pre-tax charge for
shut-down-related costs to between $1.5 million to $3.4 million, including a non-cash
charge from the write off of goodwill. We expect that most of the shut-down-related costs
will be recorded in the fourth quarter 2005.

The third quarter of 2005 and the
third quarter of 2004 each contained 91 days while the three quarters of 2005 contained
three more days than the three quarters of 2004.

# Results of Operations

| | Third
Quarter Ended September 25, 2005 compared to Third Quarter Ended September 26, 2004
| | -----------------------------------------------------------------------------------------

| | Consolidated
| | ------------

Our consolidated revenue from continuing
operations in the third quarter of 2005 was $184.6 million, a decrease of $4.8 million, or
2.5%, compared to $189.4 million in the third quarter of 2004. Our consolidated operating
costs and expenses from continuing operations in the third quarter of 2005 were $105.0
million, an increase of $1.5 million, or 1.5%, compared to $103.5 million in the third
quarter of 2004. Our consolidated selling and administrative expenses from continuing
operations in the third quarter of 2005 were $55.4 million, an increase of $0.8 million,
or 1.3%, compared to $54.6 million in the third quarter of 2004.

The following table presents our
total revenue by segment, total operating costs and expenses, selling and administrative
expenses and total operating earnings as a percent of total revenue for the third quarter
of 2005 and 2004:

|                                              
|----------------------------------------------
|Continuing operations:                        
|Revenue:                                      
|Publishing                                    
|Broadcasting                                  
|Telecommunications                            
|Printing services                             
|Other                                         
|                                              
|Total revenue                                 
|Total operating costs and expenses            
|Selling and administrative expenses           
|                                              
|Total operating costs and expenses and selling
|and administrative expenses                   
|                                              
|Total operating earnings                      
|                                              

The decrease in total revenue from
continuing operations was due to a decrease in political and issue and Olympic advertising
revenue at our television stations, a decrease in wholesale telecommunications revenue due
to contract re-pricings and customer disconnections, a decrease in revenue from several
computer-related customers in our printing services business, a decrease in commercial
printing revenue at our community newspapers and shoppers due to the impact of Hurricane
Katrina and a decrease in enterprise services revenue at our telecommunications business
due to a decrease in long distance revenue. These decreases were partially offset by
revenue from our Green Bay television operations, which were acquired in October 2004, an
increase in Journal Interactive advertising revenue at our daily newspaper, an increase in
postage amounts billed to customers at our direct marketing services business and an
increase in local advertising revenue at our radio stations.

14

---

The increase in total operating costs
and expenses from continuing operations is due to the addition of the Green Bay television
operations, an increase in postage expense at our direct marketing services business, an
increase in newsprint and other paper expense at our publishing businesses and higher
operating costs associated with a higher mix of enterprise services revenue at our
telecommunications business. These increases were partially offset by a decrease in
operating costs and expenses at our printing services business due to improved production
efficiencies and a decrease in programming expenses at our television stations.

The increase in selling and
administrative expenses from continuing operations is due primarily to an increase in
payroll, sales and marketing expenses at our telecommunications business to retain current
customers and to sell new products, the addition of the Green Bay television operations
and Hurricane Katrina-related charges at our community newspapers and shoppers business.
These increases were partially offset by a decrease in certain corporate expenses, cost
savings initiatives at our printing services business, a decrease in payroll and employee
benefit expenses at our daily newspaper, a decrease in promotional expenses at our
television stations and cost savings initiatives at our community newspapers and shoppers
business.

Our consolidated operating earnings
from continuing operations in the third quarter of 2005 were $24.2 million, a decrease of
$7.1 million, or 22.6%, compared to $31.3 million in the third quarter of 2004. The
following table presents our operating earnings by segment for the third quarter of 2005
and 2004:

|                        
|------------------------
|(dollars in millions)   
|Continuing operations:  
|Publishing              
|Broadcasting            
|Telecommunications      
|Printing services       
|Other                   
|                        
|Total operating earnings
|                        

The decrease in total operating
earnings from continuing operations was due primarily to the decrease in political and
issue and Olympic advertising revenue at our television stations, the decrease in
wholesale services revenue and higher operating costs and expenses associated with the
higher mix of enterprise services revenue at our telecommunications business and charges
for uncollectible receivables, operating losses and building damages related to Hurricane
Katrina at our community newspapers and shoppers business. These decreases were partially
offset by improved production efficiencies at our printing services business, a decrease
in certain corporate expenses, an increase in revenue and a decrease in payroll and
employee benefit expenses at our daily newspaper and an increase in revenue at our radio
stations.

Our consolidated EBITDA in the third
quarter of 2005 was $35.0 million, a decrease of $6.8 million, or 16.3%, compared to $41.8
million in the third quarter of 2004. We define EBITDA as net earnings excluding gain/loss
from discontinued operations, net, provision for income taxes, total other expense, net,
depreciation and amortization. We believe the presentation of EBITDA is relevant and
useful because it helps improve our investors ability to understand our operating
performance and makes it easier to compare our results with other companies that have
different financing and capital structures or tax rates. Our management uses EBITDA, among
other things, to evaluate our operating performance, to value prospective acquisitions and
as a component of incentive compensation targets for certain management personnel. In
addition, our lenders use EBITDA as one of the measures of our ability to service our
debt. EBITDA is not a measure of performance calculated in accordance with U.S. generally
accepted accounting principles. EBITDA should not be considered in isolation of, or as a
substitute for, net earnings as an indicator of operating performance or cash flows from
operating activities as a measure of liquidity. EBITDA, as we calculate it, may not be
comparable to EBITDA measures reported by other companies. In addition, EBITDA does not
represent funds available for discretionary use.

The following table presents a
reconciliation of our consolidated net earnings to consolidated EBITDA for the third
quarter of 2005 and 2004:

|                                      
|--------------------------------------
|(dollars in millions)                 
|Net earnings                          
|Gain from discontinued operations, net
|Provision for income taxes            
|Total other expense, net              
|Depreciation                          
|Amortization                          
|                                      
|EBITDA                                
|                                      

15

---

The decrease in EBITDA is consistent
with the decrease in operating earnings at our broadcasting, telecommunications, and
publishing segments partially offset by an increase in operating earnings at our printing
services and other segments.

| | Publishing
| | ----------

Revenue from publishing in the third
quarter of 2005 was $81.9 million, an increase of $0.4 million, or 0.5%, compared to $81.5
million in the third quarter of 2004. Operating earnings from publishing were $10.4
million, a decrease of $0.6 million, or 5.3%, compared to $11.0 million in the third
quarter of 2004.

The following table presents our
publishing revenue by category and operating earnings for the third quarter of 2005 and
2004:

|                          |                                
|------------------------- | -------------------------------
|Daily
Newspaper           | Community
Newspapers
& Shoppers
|(dollars in millions)    
|Advertising revenue:      |                                
|Retail                    |                                
|Classified                |                                
|General                   |                                
|Other                     |                                
|                          |                                
|Total advertising revenue |                                
|Circulation revenue       |                                
|Other revenue             |                                
|                          |                                
|Total revenue             |                                
|                          |                                
|Operating earnings        |                                
|                          |                                

Advertising revenue in the third
quarter of 2005 accounted for 76.3% of total publishing revenue compared to 75.6% in the
third quarter of 2004.

Retail advertising revenue in the
third quarter of 2005 was $33.4 million, a decrease of $0.3 million, or 0.6%, compared to
$33.7 million in the third quarter of 2004. Retail advertising was essentially even at our
daily newspaper and it decreased $0.3 million at our community newspapers and shoppers in
the third quarter of 2005 compared to the third quarter of 2004. Decreases in ROP revenue
at the daily newspaper in automotive, communications, business services, entertainment,
and furniture advertising were offset by increases in preprint revenue in entertainment,
home improvement, department store and grocery store advertising. The $0.3 million
decrease in retail advertising at our community newspapers and shoppers was due primarily
to the business interruption caused by Hurricane Katrina in our Louisiana publishing
operations. Without the impact of the hurricane, revenue would have increased 1.0%.

Print classified advertising revenue
in the third quarter of 2005 was $20.1 million, an increase of $0.6 million, or 3.2%,
compared to $19.5 million in the third quarter of 2004. At our daily newspaper, increases
in real estate advertising of $0.6 million and mkeadvertising of $0.3 million were
partially offset by decreases in automotive advertising of $0.6 million and general and
niche product advertising of $0.1 million. Employment advertising, which accounted for
37.1% of classified advertising at our daily newspaper in the third quarter of 2005, was
essentially even compared to the third quarter of 2004. The decrease in automotive
advertising is due primarily to a decline in advertising by local automotive dealerships.
Classified advertising at our community newspapers and shoppers in the third quarter of
2005 increased $0.4 million compared to the third quarter of 2004 due to increases in
classified liners and employment advertising related to the cross-sell program established
with the daily newspaper.

General advertising revenue in the
third quarter of 2005 was $2.3 million, a decrease of $0.2 million, or 8.2%, compared to
$2.5 million in the third quarter of 2004. Decreases in telecommunications, movie, and
entertainment ROP advertising were partially offset by increases in telecommunications
preprint advertising.

16

---

The following table presents our
daily newspapers core newspaper advertising linage by category and core newspaper
and shared mail preprint pieces for the third quarter of 2005 and 2004:

|                              
|------------------------------
|Advertising linage (inches):  
|Full run                      
|Retail                        
|Classified                    
|General                       
|                              
|Total full run                
|Part run                      
|                              
|Total advertising linage      
|                              
|Preprint pieces (in thousands)
|                              

Total advertising linage in the third
quarter of 2005 decreased 6.6% compared to the third quarter of 2004. The decrease in
advertising linage in our daily newspapers core newspaper is consistent with the
decline in ROP advertising revenue. The increase in advertising revenue at the daily
newspaper is due primarily to an increase in Journal Interactive and preprint revenue.
Full run advertising linage in the third quarter of 2005 decreased 6.2% compared to the
third quarter of 2004 due to a 7.5% decrease in classified advertising linage, a 3.6%
decrease in retail advertising linage and a 21.1% decrease in general advertising linage.
Classified advertising linage decreased due to a decrease in automotive advertising
partially offset by an increase in real estate and mkeadvertising. The decrease in
retail advertising linage was due primarily to a decrease in retail ROP advertising in the
daily and Sunday edition. The decrease in general advertising linage was due to a decrease
in general ROP advertising in the daily and Sunday edition. Part run advertising linage in
the third quarter of 2005 decreased 10.1% compared to the third quarter of 2004 due to a
decrease in zoned retail advertising primarily from local political advertising during the
third quarter of 2004. Preprint advertising pieces increased 11.7% due to increases in
entertainment, home improvement, department store, grocery store and telecommunications
preprint pieces and preprint pieces used in our shared mail products.

The following table presents the full
pages of advertising and revenue per page of our community newspapers and shoppers and
specialty products for the third quarter of 2005 and 2004:

|                               
|-------------------------------
|Full pages of advertising:     
|Community newspapers           
|Shoppers and specialty products
|                               
|Total full pages of advertising
|                               
|Revenue per page               
|                               

Total full pages of advertising for
our community newspapers and shoppers business in the third quarter of 2005 decreased 4.1%
compared to the third quarter of 2004. The decrease was due to more efficient use of the
amount of available space on each page partially offset by an increase in specialty
products. Revenue per page increased 5.6% due primarily to the decrease in total full
pages of advertising while increasing or maintaining the same advertising rates.

Other advertising revenue in the
third quarter of 2005, consisting of revenue from direct mail, event marketing efforts,
and Journal Interactive for our daily newspaper and company-sponsored event advertising
for our community newspapers and shoppers, was $6.7 million, an increase of $0.8 million,
or 12.2%, compared to $5.9 million in the third quarter of 2004. The increase was due to a
$0.5 million increase in Journal Interactive advertising due primarily to increases in
OnWisconsin.com packages, sponsorships and employment advertising and a $0.3 million
increase in direct mail advertising and printing. Other advertising revenue at our
community newspapers and shoppers in the third quarter of 2005 was essentially even
compared to the third quarter of 2004.

Circulation revenue in the third
quarter of 2005 accounted for 13.8% of total publishing revenue compared to 14.3% in the
third quarter of 2004. Circulation revenue of $11.3 million in the third quarter of 2005
decreased $0.4 million, or 3.4%, compared to $11.7 million in the third quarter of 2004
due primarily to a decrease in single copy sales and our decision to decrease third-party
sales and event hawking at our daily newspaper. Circulation revenue at our community
newspapers and shoppers in the third quarter of 2005 decreased $0.1 million compared to
the third quarter of 2004.

Other revenue, which consists of
revenue from commercial printing customers at the printing plants for our community
newspapers and shoppers and promotional, distribution and commercial printing revenue at
our daily newspaper, in the third quarter of 2005 accounted for 9.9% of total publishing
revenue compared to 10.1% in the third quarter of 2004. Other revenue of $8.1 million in
the third quarter of 2005 decreased $0.1 million, or 1.4%, compared to $8.2 million in the
third quarter of 2004. The $0.3 million decrease in other revenue at our community
newspapers and shoppers was due to the impact of Hurricane Katrina on our Louisiana-based
printing operations in the amount of $0.4 million and was partially offset by a $0.2
million increase at the daily newspaper due primarily to an increase in commercial
printing.

17

---

Publishing operating earnings in the
third quarter of 2005 were $10.4 million, a decrease of $0.6 million, or 5.3%, compared to
$11.0 million in the third quarter of 2004. The $0.6 million increase at our daily
newspaper was due primarily to the increase in revenue and a decrease in payroll and
employee benefit expenses due to a reduction in employees. These operating earnings
increases were partially offset by an increase in direct operating expenses attributed to
the increase in revenue, indirect expenses and an increase in newsprint and other paper
expense. The $1.2 million decrease at our community newspapers and shoppers was due
primarily to recording $1.6 million for uncollectible receivables, operating losses and
building damages related to Hurricane Katrina and an increase in employee benefit expense
and newsprint and other paper expense. Partially offsetting these expense increases were
decreases in depreciation expense and cost savings initiatives. Total newsprint and other
paper expense for our publishing businesses in the third quarter of 2005 was $11.3
million, an increase of $0.3 million, or 2.9%, compared to $11.0 million in the third
quarter of 2004. Despite an increase of 12.6% in the cost per-ton of newsprint at our
daily newspaper, we were able to partially offset the price increase by printing fewer
pages per copy, printing fewer copies and switching to lighter basis weight paper.

| | Broadcasting
| | ------------

Revenue from broadcasting in the
third quarter of 2005 was $40.5 million, a decrease of $3.5 million, or 7.8%, compared to
$44.0 million in the third quarter of 2004. Operating earnings from broadcasting in the
third quarter of 2005 were $7.2 million, a decrease of $4.6 million, or 39.0%, compared to
$11.8 million in the third quarter of 2004.

The following table presents our
broadcasting revenue and operating earnings for the third quarter of 2005 and 2004:

|                     
|---------------------
|Radio                
|(dollars in millions)
|Revenue              
|                     
|Operating earnings   
|                     

Revenue from our radio stations in
the third quarter of 2005 was $22.0 million, an increase of $0.2 million, or 0.8%,
compared to $21.8 million in the third quarter of 2004. The increase was due primarily to
a $0.4 million increase in local advertising revenue and a $0.1 million increase in other
revenue partially offset by a $0.3 million decrease in political and issue advertising.
National advertising revenue in the third quarter of 2005 was essentially even compared to
the third quarter of 2004.

Operating earnings from our radio
stations in the third quarter of 2005 were $6.2 million, an increase of $0.3 million, or
4.9%, compared to $5.9 million in the third quarter of 2004. The increase was due
primarily to the increase in revenue and a decrease in programming expense.

Revenue from our television stations
in the third quarter of 2005 was $18.5 million, a decrease of $3.7 million, or 16.3%,
compared to $22.2 million in the third quarter of 2004. Excluding the Green Bay television
operations which were acquired in October 2004, revenue in the third quarter of 2005
decreased $5.7 million, or 25.6%, compared to the third quarter of 2004 due to a $3.2
million decrease in political and issue advertising, a $2.5 million decrease in Olympic
advertising revenue on our NBC stations, a $0.4 million decrease in network and other
revenue and a $0.2 million decrease in local advertising. These decreases were partially
offset by a $0.6 million increase in national advertising.

Operating earnings from our
television stations in the third quarter of 2005 were $1.0 million, a decrease of $4.9
million, or 83.1%, compared to $5.9 million in the third quarter of 2004. The ratings
decline at NBC coupled with lower advertising demand compared to last year adversely
affected our average unit rates and the lack of political and issue advertising demand
negatively impacted our results. Excluding the Green Bay operations, operating earnings
decreased $4.7 million or 79.5%. The decrease was due primarily to decreases in political
and issue and Olympic advertising revenue and an increase in technology expense partially
offset by decreases in sales commissions and syndicated program expenses.

| | Telecommunications
| | ------------------

Revenue from telecommunications in
the third quarter of 2005 was $33.8 million, a decrease of $2.0 million, or 5.4%, compared
to $35.8 million in the third quarter of 2004. Operating earnings from telecommunications
in the third quarter of 2005 were $4.9 million, a decrease of $3.8 million, or 43.3%,
compared to $8.7 million in the third quarter of 2004.

Wholesale telecommunication services
provide network transmission solutions for other service providers by offering bulk
transmission capacity. Revenue from wholesale services in the third quarter of 2005 was
$18.3 million, a decrease of $1.9 million, or 9.5%, compared to $20.2 million in the third
quarter of 2004. The decrease was due primarily to service disconnections and lower
pricing on customer contract renewals. Monthly recurring revenue from wholesale data
services at the end of the third quarter of 2005 was $5.8 million compared to $6.1 million
at the beginning of the third quarter 2005 and $6.3 million at the end of the third
quarter of 2004. During the third quarter of 2005, new circuit connections of $0.1 million
in monthly recurring revenue were more than offset by service disconnections and
re-pricings.

18

---

We have substantial business
relationships with a few large customers, including major long distance carriers. Our top
10 customers accounted for 36.4% and 38.5% of our telecommunications revenue in the third
quarter of 2005 and 2004, respectively. In February 2005, we signed a new five-year
contract extension with MCI whereby they remain a significant customer. The new contract
includes reduced prices for current services being provided to MCI and provisions for
higher capacity circuits to replace specific existing circuits being disconnected. We
expect the effects of the new contract to be fully implemented by the first quarter of
2006.

Enterprise telecommunication services
provide advanced data communications and long distance service to small and medium-sized
businesses in the Upper Midwest, principally in Wisconsin, Michigan, Indiana, Minnesota
and Illinois. Revenue from enterprise services in the third quarter of 2005 was $15.5
million, a decrease of $0.1 million, or 0.1%, compared to $15.6 million in the third
quarter of 2004. The decrease was due primarily to a decrease in long distance revenue and
aggressive pricing competition. Monthly recurring revenue from enterprise services was
$3.4 million at the beginning and end of the third quarter of 2005 and $3.5 million at the
end of the third quarter of 2004.

The decrease in operating earnings
from telecommunications was due primarily to a decrease in wholesale revenue, higher
operating costs and expenses associated with the higher mix of enterprise services revenue
and increased sales and marketing expenses to retain current customers and to sell new
products.

| | Printing
Services
| | -----------------

Revenue from printing services in the
third quarter of 2005 was $17.3 million, a decrease of $0.6 million, or 3.9%, compared to
$17.9 million in the third quarter of 2004. Operating earnings from printing services in
the third quarter of 2005 were $0.6 million compared to a loss of $0.7 million in the
third quarter of 2004.

The decrease in printing services
revenue was due primarily to decreases of $1.4 million from our largest customer, Dell
Computer Corporation, and from other computer-related customers. These decreases were
partially offset by an $0.8 million increase in printing revenue from original equipment
manufacturers and publications. Dell accounted for 20.0% and 25.3% of our printing
services revenue in the third quarter of 2005 and 2004, respectively. Our revenue from
Dell is expected to decline by approximately 90% in 2006 compared to 2005 expected annual
revenue as we cease supplying products and services to Dell early in 2006. We do not
expect this reduction in revenue to have an adverse impact on our results of operations.

The increase in printing services
operating earnings was primarily attributed to improved production efficiencies, lower
production costs due to the sales mix change from Dell and other computer-related
customers, cost savings initiatives and the continued strategic transition back to our
core printing business.

| | Other
| | -----

Other revenue in the third quarter of
2005 was $11.1 million, an increase of $0.9 million, or 8.6%, compared to $10.2 million in
the third quarter of 2004. Other operating earnings in the third quarter of 2005 were $1.1
million, an increase of $0.6 million, or 134.5%, compared to $0.5 million in the third
quarter of 2004.

The following table presents our
other revenue and operating earnings for the third quarter of 2005 and 2004:

|                          |                           
|------------------------- | --------------------------
|Direct
Marketing
Services | Corporate
and
Eliminations
|(dollars in millions)    
|Revenue                   |                           
|                          |                           
|Operating earnings        |                           
|                          |                           

The increase in other revenue in the
third quarter of 2005 compared to the third quarter of 2004 was due primarily to an
increase in postage amounts billed to customers and laser printing services partially
offset by a decrease in list services. Included in revenue and operating costsand
expenses is $7.0 million and $6.6 million of postage amounts billed to customers in the
third quarter of 2005 and 2004, respectively.

The increase in operating earnings
was due primarily to a decrease in certain corporate compensation expenses partially offset
by increases in operating costs and expenses at our direct marketing services business.

| | Non-Operating
Income and Taxes
| | ------------------------------

19

---

Interest income and dividends in the
third quarter of 2005 were insignificant compared to $0.1 million in the third quarter of
2004. Interest expense, representing gross interest expense from borrowings under our
credit agreement, was $0.6 million in the third quarter of 2005 compared to $0.4 million
in the third quarter of 2004. Amortization of deferred financing costs was $0.1 million in
the third quarter of 2005 and 2004.

The effective tax rate for continuing
operations was 40.4% in the third quarter of 2005 and 40.0% in the third quarter of 2004.

| | Earnings
per Share
| | ------------------

Our basic and diluted earnings per
share from continuing operations were both $0.19 for the third quarter of 2005 compared to
basic and diluted earnings per share from continuing operations of $0.25 and $0.24,
respectively, for the third quarter of 2004. Our basic and diluted earnings per share from
discontinued operations were $0.01 for the third quarter of 2004.

| | Discontinued
Operations
| | -----------------------

On January 25, 2005, we entered into
a definitive asset sale agreement with Multi-Color Corporation pursuant to which
Multi-Color Corporation acquired substantially all of the assets and certain liabilities
of our label printing business, NorthStar Print Group, Inc. The label printing business
was part of the Other reportable segment and the operations have been
reflected as discontinued operations in our unaudited consolidated condensed financial
statements and, accordingly, prior periods have been restated to reflect this treatment.

There was no revenue from
discontinued operations in the third quarter of 2005 compared to $15.0 million in the
third quarter of 2004. Gain from discontinued operations, net of income taxes, was
insignificant in the third quarter of 2005 compared to $0.8 million in the third quarter
of 2004. Income tax expense applicable to discontinued operations was $0.5 million in the
third quarter of 2004.

| | Three
Quarters Ended September 25, 2005 compared to Three Quarters Ended September 26, 2004
| | -------------------------------------------------------------------------------------------

| | Consolidated
| | ------------

Our consolidated revenue from
continuing operations of $560.7 million in the three quarters of 2005 was essentially even
compared to $560.5 million in the three quarters of 2004. Our consolidated operating costs
and expenses from continuing operations in the three quarters of 2005 were $316.9 million,
an increase of $9.3 million, or 3.0%, compared to $307.6 million in the three quarters of
2004. Our consolidated selling and administrative expenses from continuing operations in
the three quarters of 2005 were $167.8 million, an increase of $5.1 million, or 3.1%,
compared to $162.7 million in the three quarters of 2004.

The following table presents our
total revenue by segment, total operating costs and expenses, selling and administrative
expenses and total operating earnings as a percent of total revenue for the three quarters
of 2005 and 2004:

|                                              
|----------------------------------------------
|Continuing operations:                        
|Revenue:                                      
|Publishing                                    
|Broadcasting                                  
|Telecommunications                            
|Printing services                             
|Other                                         
|                                              
|Total revenue                                 
|Total operating costs and expenses            
|Selling and administrative expenses           
|                                              
|Total operating costs and expenses and selling
|and administrative expenses                   
|                                              
|Total operating earnings                      
|                                              

We experienced increases in total
revenue from continuing operations due to revenue from our Green Bay television
acquisition, increases in Journal Interactive advertising revenue and classified
advertising revenue at our daily newspaper, an increase in enterprise services revenue
attributed to our newly acquired infrastructure business at our telecommunications
business, an increase in local advertising revenue at our radio stations and an increase
in postage amounts billed to customers at our direct marketing services business. These
increases were offset by a decrease in political and issue and Olympic advertising revenue
at our television stations, a decrease in wholesale telecommunications revenue due to
service disconnections and contract re-pricings and a decrease in revenue from several
computer-related customers at our printing services business.

20

---

The increase in total operating costs
and expenses from continuing operations is due to the addition of the Green Bay television
operations, the higher costs associated with the increase in enterprise services revenue
at our telecommunications business, increases at our daily newspaper due to the increase
in revenue and the additional three days at the beginning of 2005, an increase in
newsprint and other paper expense at our publishing businesses, an increase in postage
expense at our direct mail services business and an increase in programming and technology
expenses at our radio stations. These increases were partially offset by a decrease in
operating costs and expenses at our printing services business in response to a decrease
in revenue and gained production efficiencies and a decrease in syndicated program expense
at our television stations.

The increase in selling and
administrative expenses from continuing operations is due primarily to an increase in
payroll, sales and marketing expenses at our telecommunications business to retain current
customers and to sell new products, the addition of the Green Bay television operations,
an adjustment to our litigation reserve in the second quarter of 2004 due to the
settlement of our national advertising representative litigation at our television
stations, an increase in sales commissions due to lower national sales commissions in the
first three quarters of 2004 at our radio stations and an increase in certain corporate
expenses. The increase in total selling and administrative expenses was partially offset
by cost savings initiatives at our community newspapers and shoppers business and our
printing services business and a decrease in bad debt expense at our direct marketing
services business.

Our consolidated operating earnings
from continuing operations in the three quarters of 2005 were $76.0 million, a decrease of
$14.2 million, or 15.7%, compared to $90.2 million in the three quarters of 2004.

The following table presents our
operating earnings by segment for the three quarters of 2005 and 2004:

|                        
|------------------------
|                        
|Continuing operations:  
|Publishing              
|Broadcasting            
|Telecommunications      
|Printing services       
|Other                   
|                        
|Total operating earnings
|                        

The decrease in total operating
earnings from continuing operations was due primarily to the decrease in political and
issue and Olympic advertising at our television stations, a decrease in wholesale services
revenue and higher operating costs and expenses associated with the higher mix of
enterprise services revenue at our telecommunications business, charges for uncollectible
receivables, operating losses and building damages related to Hurricane Katrina and a
decrease in list and database marketing revenue at our direct marketing services business
(which have higher profit margins than mail services). These decreases were partially
offset by improved production efficiencies and cost savings initiatives at our printing
services business, an increase in revenue at our radio stations and an increase in revenue
at our daily newspaper.

Our consolidated EBITDA in the three
quarters of 2005 was $109.2 million, a decrease of $14.0 million, or 11.4%, compared to
$123.2 million in the three quarters of 2004. We define EBITDA as net earnings excluding
gain/loss from discontinued operations, net, provision for income taxes, total other
expense, net, depreciation and amortization. We believe the presentation of EBITDA is
relevant and useful because it helps improve our investors ability to understand our
operating performance and makes it easier to compare our results with other companies that
have different financing and capital structures or tax rates. Our management uses EBITDA,
among other things, to evaluate our operating performance, to value prospective
acquisitions and as a component of incentive compensation targets for certain management
personnel. In addition, our lenders use EBITDA as one of the measures of our ability to
service our debt. EBITDA is not a measure of performance calculated in accordance with
U.S. generally accepted accounting principles. EBITDA should not be considered in
isolation of, or as a substitute for, net earnings as an indicator of operating
performance or cash flows from operating activities as a measure of liquidity. EBITDA, as
we calculate it, may not be comparable to EBITDA measures reported by other companies. In
addition, EBITDA does not represent funds available for discretionary use.

21

---

The following table presents a
reconciliation of our consolidated net earnings to consolidated EBITDA for the three
quarters of 2005 and 2004:

|                                      
|--------------------------------------
|(dollars in millions)                 
|Net earnings                          
|Gain from discontinued operations, net
|Provision for income taxes            
|Total other expense, net              
|Depreciation                          
|Amortization                          
|                                      
|EBITDA                                
|                                      

The decrease in EBITDA is consistent
with the decrease in operating earnings at our broadcasting, telecommunications,
publishing and other segments partially offset by an increase in operating
earnings at our printing services segment.

| | Publishing
| | ----------

Revenue from publishing in the three
quarters of 2005 was $245.2 million, an increase of $3.4 million, or 1.4%, compared to
$241.8 million in the three quarters of 2004. Operating earnings from publishing were
$32.2 million, a decrease of $0.5 million, or 1.3%, compared to $32.7 million in the three
quarters of 2004.

The following table presents our
publishing revenue by category and operating earnings for the three quarters of 2005 and
2004:

|                         
|-------------------------
|Daily
Newspaper          
|(dollars in millions)    
|Advertising revenue:     
|Retail                   
|Classified               
|General                  
|Other                    
|                         
|Total advertising revenue
|Circulation revenue      
|Other revenue            
|                         
|Total revenue            
|                         
|Operating earnings       
|                         

Advertising revenue in the three
quarters of 2005 accounted for 75.6% of total publishing revenue compared to 74.9% in the
three quarters of 2004.

Retail advertising revenue in the
three quarters of 2005 was $100.8 million, an increase of $0.3 million, or 0.2%, compared
to $100.5 million in the three quarters of 2004. Retail advertising increased $0.4 million
at our daily newspaper due to preprint advertising increases in the department store,
entertainment, home improvement and grocery store categories. These increases were
partially offset by ROP advertising decreases in the furniture, telecommunications, auto
and entertainment categories. Retail advertising decreased $0.1 million at our community
newspapers and shoppers due primarily to the business interruption caused by Hurricane
Katrina in our Louisiana publishing operations, partially offset by growth in existing and
new specialty publications.

Print classified advertising revenue
in the three quarters of 2005 was $57.6 million, an increase of $1.9 million, or 3.3%,
compared to $55.7 million in the three quarters of 2004. At our daily newspaper, increases
in real estate advertising of $1.2 million, employment advertising of $1.1 million, and
mke advertising of $0.5 million were partially offset by decreases in automotive
advertising of $1.3 million and general and niche product advertising of $0.1 million.
Employment advertising, which accounted for 38.7% of classified advertising at our daily
newspaper in the three quarters of 2005, increased 6.2% compared to the three quarters of
2004. We believe the increase in employment advertising is due to an increase in
recruiting in the southeastern Wisconsin market. The decrease in automotive advertising is
due primarily to a decline in advertising by local automotive dealerships. Classified
advertising at our community newspapers and shoppers in the three quarters of 2005
increased $0.5 million compared to the three quarters of 2004 due to increases in
classified liners and employment advertising related to the cross-sell program established
with the daily newspaper.

22

---

General advertising revenue in the
three quarters of 2005 was $7.9 million, a decrease of $0.6 million, or 6.7%, compared to
$8.5 million for the three quarters of 2004. The decrease was due primarily to decreases
in movies, telecommunications, transportation and public utilities and financial services
ROP advertising partially offset by an increase in telecommunications preprint
advertising.

The following table presents our
daily newspapers core newspaper advertising linage by category and core newspaper
and shared mail pieces for the three quarters of 2005 and 2004:

|                              
|------------------------------
|Advertising linage (inches):  
|Full run                      
|Retail                        
|Classified                    
|General                       
|                              
|Total full run                
|Part run                      
|                              
|Total advertising linage      
|                              
|Preprint pieces (in thousands)
|                              

Total advertising linage in the three
quarters of 2005 decreased 4.3% compared to the three quarters of 2004. The decrease was
due to a decrease in full run advertising linage partially offset by an increase in part
run advertising linage. The decrease in advertising linage in our daily newspapers
core newspaper is consistent with the decline in ROP advertising revenue. The increase in
advertising revenue at the daily newspaper is due primarily to an increase in Journal
Interactive and preprint revenue. Full run advertising linage in the three quarters of
2005 decreased 5.2% compared to the three quarters of 2004 due to a 7.3% decrease in
classified advertising linage, a 1.7% decrease in retail advertising linage and a 15.2%
decrease in general advertising linage. Classified advertising linage decreased due to a
decrease in automotive advertising partially offset by an increase in real estate and
employment advertising. Retail advertising lineage decreased due to a decline in retail
ROP advertising in the daily and Sunday editions. The decrease in general advertising
linage was due primarily to lower general ROP advertising in the daily edition. Part run
advertising linage increased 3.8% in the three quarters of 2005 compared to the three
quarters of 2004 due to an increase in zoned classified advertising. Preprint advertising
pieces increased 12.4% due to increases in the department store, entertainment, home
improvement, grocery store, telecommunications categories and preprint pieces used in our
shared mail products.

The following table presents the full
pages of advertising and revenue per page of our community newspapers and shoppers and
speicalty products for the three quarters of 2005 and 2004:

|                               
|-------------------------------
|Full pages of advertising:     
|Community newspapers           
|Shoppers and specialty products
|                               
|Total full pages of advertising
|                               
|Revenue per page               
|                               

Total full pages of advertising for
our community newspapers and shoppers business in the three quarters of 2005 decreased
4.0% compared to the three quarters of 2004. The decrease was due to more efficient use of
the amount of available space on each page partially offset by an increase in specialty
products. Revenue per page increased 5.0% due primarily to the decrease in total full
pages of advertising while increasing or maintaining the same advertising rates.

Other advertising revenue in the
three quarters of 2005, consisting of revenue from direct mail and event marketing
efforts, and Journal Interactive for our daily newspaper and company-sponsored event
advertising for our community newspapers and shoppers, was $19.1 million, an increase of
$2.6 million, or 15.8%, compared to $16.5 million in the three quarters of 2004. The
increase was due to a $1.8 million increase in Journal Interactive advertising due
primarily to increases in employment advertising and OnWisconsin.com packages, an $0.8
million increase in direct mail advertising and printing and a $0.1 million increase in
event marketing efforts at our daily newspaper. Other advertising revenue at our community
newspapers and shoppers in the three quarters of 2005 decreased $0.1 million compared to
the three quarters of 2004.

Circulation revenue in the three
quarters of 2005 accounted for 13.7% of total publishing revenue compared to 14.3% in the
three quarters of 2004. Circulation revenue of $33.6 million in the three quarters of 2005
decreased $0.9 million, or 2.6%, compared to $34.5 million in the three quarters of 2004
due primarily to a decrease in single copy sales at our daily newspaper. Circulation
revenue at our community newspapers and shoppers in the three quarters of 2005 was
essentially even compared to the three quarters of 2004.

23

---

We reported in our Publishers
Statement for the six month period ended March 31, 2005 that average net paid circulation
for the daily newspaper was essentially even for the daily edition (Monday-Saturday) and
decreased 4.4% for the Sunday edition compared to the six month period ended March 31,
2004. For the 12-month period ended March 31, 2005, we disclosed in our Quarterly Report
on Form 10-Q filed May 4, 2005 that average net paid circulation decreased approximately
1.0% for the daily edition (Monday-Saturday) and 2.4% for the Sunday edition compared to
the 12-month period ended March 31, 2004. The numbers for the 12-month period ended March
31, 2005 are in the process of being audited by the Audit Bureau of Circulations and are
subject to change.

Other revenue, which consists of
revenue from commercial printing customers at the printing plants for our community
newspapers and shoppers and promotional, distribution and commercial printing revenue at
our daily newspaper, accounted for 10.7% of total publishing revenue in the three quarters
of 2005 compared to 10.8% in the three quarters of 2004. Other revenue of $26.2 million in
the three quarters of 2005 increased $0.1 million, or 0.9%, compared to $26.1 million in
the three quarters of 2004. The increase in other revenue of $0.5 million at the daily
newspaper was due to an increase in distribution revenue and an increase in commercial
printing revenue. Other revenue at our community newspapers and shoppers decreased $0.4
million in the three quarters of 2005 compared to the three quarters of 2004 due primarily
to the impact of Hurricane Katrina on our Louisiana printing operations.

Publishing operating earnings in the
three quarters of 2005 were $32.2 million, a decrease of $0.5 million, or 1.3%, compared
to $32.7 million in the three quarters of 2004. The $1.0 million increase at our daily
newspaper was due primarily to the increase in revenue partially offset by the adverse
impact from the addition of three seasonally-light advertising days at the beginning of
2005, increases in operating costs and expenses attributed to the increase in revenue, an
increase in newsprint and other paper expense and an increase in vacation expense due to
the policy change benefit we recorded in the first quarter of 2004. The $1.5 million
decrease at our community newspapers and shoppers was due primarily to recording $1.6
million for uncollectible receivables, operating losses and building damages related to
Hurricane Katrina and an increase in newsprint and other paper expense and employee
benefit expenses. Partially offsetting these expense increases were decreases in
depreciation expense and cost savings initiatives. Total newsprint and other paper expense
for our publishing businesses in the three quarters of 2005 was $33.3 million, an increase
of $1.6 million, or 5.2%, compared to $31.7 million in the three quarters of 2004. The
increase in newsprint and other paper expense was primarily attributed to an increase in
the cost per-ton of newsprint partially offset by a decrease in consumption.

| | Broadcasting
| | ------------

Revenue from broadcasting in the
three quarters of 2005 was $120.6 million, a decrease of $0.3 million, or 0.2%, compared
to $120.9 million in the three quarters of 2004. Operating earnings from broadcasting in
the three quarters of 2005 were $21.5 million, a decrease of $7.9 million, or 26.8%,
compared to $29.4 million in the three quarters of 2004.

The following table presents our
broadcasting revenue and operating earnings for the three quarters of 2005 and 2004:

|                     
|---------------------
|Radio                
|(dollars in millions)
|Revenue              
|                     
|Operating earnings   
|                     

Revenue from our radio stations in
the three quarters of 2005 was $61.6 million, an increase of $2.7 million, or 4.5%,
compared to $58.9 million in the three quarters of 2004. The increase was due primarily to
a $2.8 million increase in local advertising revenue, a $0.2 million increase in national
advertising revenue and a $0.1 million increase in other revenue partially offset by a
$0.4 million decrease in political and issue advertising.

Operating earnings from our radio
stations in the three quarters of 2005 were $15.4 million, an increase of $1.4 million, or
10.1%, compared to $14.0 million in the three quarters of 2004. The increase was primarily
attributed to the increase in revenue and a decrease in amortization expense partially
offset by increases in technology and programming expenses and increased sales commissions
due to lower national sales commissions in 2004.

Revenue from our television stations
in the three quarters of 2005 was $59.0 million, a decrease of $3.0 million, or 4.6%,
compared to $62.0 million in the three quarters of 2004. Excluding the Green Bay
television operations, which were acquired in October 2004, revenue in the three quarters
of 2005 decreased $9.5 million or 15.3% compared to the three quarters of 2004. This
decrease was due primarily to a $6.1 million decrease in political and issue advertising,
a $2.5 million decrease in Olympic advertising, a $1.0 million decrease in local
advertising and a $0.8 million decrease in network revenue. This was partially offset by a
$0.9 million increase in national advertising.

Operating earnings from our
television stations in the three quarters of 2005 were $6.1 million, a decrease of $9.3
million, or 60.4%, compared to $15.4 million in the three quarters of 2004. The ratings
decline at NBC coupled with lower advertising demand compared to last year adversely
affected our average unit rates and the lack of political and issue advertising demand
negatively impacted our results. The Green Bay operations were essentially break even for
the three quarters of 2005. The decrease in operating earnings was due primarily to the
decrease in political and issue and Olympic advertising revenue. Increases in news
expenses, an adjustment to our litigation reserve in the three quarters of 2004 due to the
settlement of our national advertising representative litigation, and increases in
technology and administrative expenses were offset by a decrease in syndicated program
expense and sales commissions.

24

---

| | Telecommunications
| | ------------------

Revenue from telecommunications in
the three quarters of 2005 was $107.4 million, a decrease of $0.7 million, or 0.7%,
compared to $108.1 million in the three quarters of 2004. Operating earnings from
telecommunications in the three quarters of 2005 were $19.3 million, a decrease of $7.2
million, or 27.0%, compared to $26.5 million in the three quarters of 2004.

Wholesale telecommunication services
provide network transmission solutions for other service providers by offering bulk
transmission capacity. Revenue from wholesale services in the three quarters of 2005 was
$58.1 million, a decrease of $3.8 million, or 6.1%, compared to $61.9 million in the three
quarters of 2004. The decrease was due primarily to service disconnections and lower
pricing on customer contract renewals. Monthly recurring revenue from wholesale data
services at the end of the three quarters of 2005 was $5.8 million compared to $6.4
million at the beginning of 2005 and $6.3 million at the end of the three quarters of
2004. During the three quarters of 2005, new circuit connections of $0.5 million in
monthly recurring revenue were more than offset by service disconnections and re-pricings.

We have substantial business
relationships with a few large customers, including major long distance carriers. Our top
10 customers accounted for 36.6% and 37.6% of our telecommunications revenue in the three
quarters of 2005 and 2004, respectively. In February 2005, we signed a new five-year
contract extension with MCI whereby they remain a significant customer. The new contract
includes reduced prices for current services being provided to MCI and provisions for
higher capacity circuits to replace specific existing circuits being disconnected. We
expect the effects of the new contract to be fully implemented by the first quarter of
2006.

Enterprise telecommunication services
provide advanced data communications and long distance service to small and medium-sized
businesses in the Upper Midwest, principally in Wisconsin, Michigan, Indiana, Minnesota
and Illinois. Revenue from enterprise services in the three quarters of 2005 was $49.3
million, an increase of $3.1 million, or 6.6%, compared to $46.2 million in 2004. The
increase was primarily attributed to our newly acquired infrastructure business and was
partially offset by a decrease in long distance revenue. Monthly recurring revenue from
enterprise services was $3.4 million at the end of the three quarters of 2005 and $3.5
million at the beginning of 2005 and at the end of the three quarters of 2004.

The decrease in operating earnings
from telecommunications was due primarily to the decrease in wholesale revenue and higher
operating costs and expenses associated with the higher mix of enterprise services revenue
and increases in payroll, marketing and amortization expenses.

| | Printing
Services
| | -----------------

Revenue from printing services in the
three quarters of 2005 was $53.7 million, a decrease of $3.4 million, or 6.1%, compared to
$57.1 million in the three quarters of 2004. Operating earnings from printing services in
the three quarters of 2005 were $1.4 million compared to a loss of $0.4 million in the
three quarters of 2004.

The decrease in printing services
revenue was due primarily to a $3.4 million decrease in revenue from our largest
customer, Dell Computer Corporation, and a $1.0 million decrease in revenue from other
computer-related customers. These decreases were partially offset by a $1.0 million
increase in printing revenue from publications and original equipment manufacturers. Dell
accounted for 19.7% and 24.5% of our printing services revenue in the three quarters of
2005 and 2004, respectively. Our revenue from Dell is expected to decline by
approximately 90% in 2006 compared to 2005 expected annual revenue as we cease supplying
products and services to Dell early in 2006. We do not expect this reduction in revenue
to have an adverse impact on our results of operations.

The increase in printing services
operating earnings was due primarily to improved production efficiencies, lower production
costs due to the sales mix change from Dell and other computer-related customers, cost
savings initiatives and the continued strategic transition back to our core printing
business.

| | Other
| | -----

Other revenue in the three quarters
of 2005 was $33.8 million, an increase of $1.2 million, or 3.6%, compared to $32.6 million
in the three quarters of 2004. Other operating earnings in the three quarters of 2005 were
$1.6 million, a decrease of $0.4 million, or 23.0%, compared to operating earnings of $2.0
million in the three quarters of 2004.

The following table presents our
other revenue and operating earnings for the three quarters of 2005 and 2004:

|                         
|-------------------------
|Direct
Marketing
Services
|(dollars in millions)    
|Revenue                  
|                         
|Operating earnings       
|                         

25

---

The increase in other revenue in the
three quarters of 2005 compared to the three quarters of 2004 was due primarily to an
increase in postage amounts billed to customers and laser printing services partially
offset by a decrease in mail, list and database marketing services due the loss of two
customers. Included in revenue and operating costsand expenses is $21.7 million
and $20.2 million of postage amounts billed to customers in the three quarters of 2005 and
2004, respectively.

The decrease in operating earnings
was due primarily to the decrease in list and database marketing revenue at our direct
marketing services business which have higher profit margins and an increase in certain
corporate expenses.

| | Non-Operating
Income and Taxes
| | ------------------------------

Interest income and dividends were
$0.3 million in the three quarters of 2005 compared to $0.2 million in the three quarters
of 2004. Interest expense, representing gross interest expense from borrowings under our
credit agreement, was $1.4 million in the three quarters of 2005 compared to $1.2 million
in the three quarters of 2004. Amortization of deferred financing costs was $0.3 million
in the three quarters of 2005 and 2004.

The effective tax rate for continuing
operations was 40.0% in the three quarters of 2005 and 40.1% in the three quarters of
2004.

| | Earnings
per Share
| | ------------------

Our basic and diluted earnings per
share from continuing operations were $0.60 and $0.59, respectively, for the three
quarters of 2005 compared to basic and diluted earnings per share from continuing
operations of $0.71 and $0.69, respectively, for the three quarters of 2004. Our basic and
diluted earnings per share from discontinued operations were each $0.07 and $0.06,
respectively, for the three quarters of 2005 compared to basic and diluted earnings per
share from discontinued operations of $0.03 for the three quarters of 2004.

| | Discontinued
Operations
| | -----------------------

Revenue from discontinued operations
in the three quarters of 2005 was $4.1 million compared to $44.6 million in the three
quarters of 2004. Gain from discontinued operations, net of income taxes, in the three
quarters of 2005 was $4.9 million compared to $2.5 million in the three quarters of 2004.
Income tax expense applicable to discontinued operations was $3.1 million and $1.6 million
in the three quarters of 2005 and 2004, respectively. Net liabilities of discontinued
operations at September 25, 2005 were $0.8 million and net assets of discontinued
operations were $13.3 million at December 26, 2004.

# Acquisition

On August 22, 2005, we announced an
agreement to purchase the business and assets of three television stations from Emmis
Communications Corporation for $235 million, subject to certain adjustments. The stations
are FOX affiliate WFTX-TV, Fort Myers/Naples, Florida; ABC affiliate KGUN-TV, Tucson,
Arizona; and CBS affiliate KMTV, Omaha, Nebraska. In the third quarter of 2005, we paid a
$23.5 million deposit towards the purchase which is included in other assets, net in our
consolidated condensed balance sheet as of September 25, 2005. We expect to complete the
purchase of WFTX-TV and KGUN-TV in late 2005 after receipt of approval from the Federal
Communications Commission and other regulatory approvals. At the same time, we will
acquire certain assets of KMTV and we will begin programming KMTV under a local marketing
agreement. We will pay $201.5 million at the time of closing. The remaining $10.0 million
of the purchase price will be paid upon the transfer of the KMTV broadcast license or in
$5.0 million installments no later than October 2007 and October 2008.

# Liquidity and Capital
Resources

We have a $350 million unsecured
revolving credit facility that will expire on September 4, 2008. The interest rate on
borrowings is either LIBOR plus a margin that ranges from 87.5 basis points to 150 basis
points, depending on our leverage, or the Base Rate, which equals the higher
of the prime rate set by U.S. Bank, N.A. or the Federal Funds Rate plus one percent per
annum. As of September 25, 2005, we had borrowings outstanding of $63.7 million under the
facility at a weighted average interest rate of 4.84%. Fees of $2.0 million in connection
with the facility are being amortized over the term of the facility using the
straight-line method which approximates the effective-interest method. In addition, we pay
an annual fee which is amortized using the straight line method over the twelve months
following payment. The financial covenants of this agreement include the following:

| | A
consolidated funded debt ratio as determined for the four fiscal quarter period preceding
the date of determination.
|- | ----------------------------------------------------------------------------------------------------------------------

| | A
fixed charge coverage ratio as determined for the four fiscal quarter period preceding
the date of determination.
|- | -------------------------------------------------------------------------------------------------------------------

26

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| | A
consolidated tangible net worth as of the end of any quarter.
|- | ---------------------------------------------------------------

| | Consolidated
capital expenditures during any fiscal year.
|- | ---------------------------------------------------------

| | A
consolidated rent expense during any fiscal year.
|- | ---------------------------------------------------

As of September 25, 2005, we are in
compliance with all of our financial covenants.

Cash balances were $8.2 million at
September 25, 2005. We believe our expected cash flows from operations and borrowings
available under our credit facility will adequately meet our needs for the foreseeable
future. In January 2005, the proceeds from the sale of our label printing business reduced
our $350 million unsecured revolving credit facility. In February 2005, we announced a
stock repurchase program of up to 5 million shares of our class A common stock over a term
to expire in August 2006 and we purchased 2,161,295 class A common shares at a weighted
average price per share of $16.42 in the three quarters of 2005, of which $1.1 million in
payments was unsettled at September 25, 2005. In April 2005, we received $4.4 million for
the redemption of our investment in preferred stock in our former subsidiary, Perry
Printing Company.

We have the ability to finance the
Emmis acquisition by using available cash-on-hand and drawing from our current credit
facility. However, we expect to establish of a larger credit facility prior to consummation
of the acquisition.

# Cash Flow

Cash provided by operating activities
was $86.9 million in the three quarters of 2005 compared to $96.0 million in the three
quarters of 2004. The decrease was due primarily to a decrease in earnings from continuing
operations.

Cash used for investing activities
was $47.8 million in the three quarters of 2005 compared to $20.7 million in the three
quarters of 2004. Capital expenditures for property and equipment were $24.8 million in
the three quarters of 2005 compared to $20.2 million in the three quarters of 2004. In the
third quarter of 2005, we paid a $23.5 million deposit towards our purchase of three
television stations from Emmis Communications Corporation.

Cash used for financing activities
was $56.3 million in the three quarters of 2005 compared to $76.4 million in the three
quarters of 2004. Borrowings under our new credit facility during the three quarters of
2005 were $172.4 million and we made payments of $179.1 million compared to borrowings of
$196.2 million and payments of $224.8 million in the three quarters of 2004. In the three
quarters of 2005, we received $1.2 million in proceeds from the issuance of our class B
common stock to our employees under our Employee Stock Purchase Plan and we purchased
$35.5 million of class A common stock under our stock repurchase program. In the three
quarters of 2004, we received $116.5 million net proceeds from the issuance of our class A
common stock and we paid $148.7 million to purchase and retire our class B common stock.
We paid cash dividends of $15.3 million and $15.6 million in the three quarters of 2005
and 2004, respectively.

Cash provided by discontinued
operations was $18.9 million in the three quarters of 2005 due primarily to the proceeds
received from the sale of NorthStar Print Group, Inc. Cash used for discontinued
operations was $0.4 million in the three quarters of 2004 due primarily to capital
expenditures.

# Critical Accounting
Policies

There are no material changes to the disclosures
regarding critical accounting policies made in our Annual Report on Form 10-K for the year
ended December 26, 2004.

# ITEM 3.    QUANTITATIVE AND
QUALITATIVE DISCLOSURE OF MARKET RISK

There are no material changes to the
disclosures regarding interest rate risk and foreign currency exchange risk made in our
Annual Report on Form 10-K for the year ended December 26, 2004.

# ITEM 4.    CONTROLS AND
PROCEDURES

We carried out an evaluation, under
the supervision and with the participation of our Disclosure Committee, including our
Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the
design and operation of our disclosure controls and procedures, as defined in Exchange Act
Rules 13a-14(c) and 15d-14(c) as of the end of the period covered by this Quarterly Report
on Form 10-Q. Based on that evaluation, the Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures are effective to ensure that
information required to be disclosed in our Exchange Act reports is recorded, processed,
summarized and reported within the time periods specified in the Securities and Exchange
Commissions rules and forms, and that such information is accumulated and
communicated to them to allow timely decisions regarding required disclosure.

There has been no change in our
internal control over financial reporting that occurred during our last fiscal quarter
that has materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

27

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# PART II. OTHER
INFORMATION

# ITEM 1.    LEGAL PROCEEDINGS

On November 1, 2005, the Milwaukee
Public Interest Media Coalition filed a petition at the Federal Communications
Commission (the FCC) asking it to deny the pending license renewal
applications of all eleven commercial television stations in the Milwaukee Designated
Market Area, including our station, WTMJ-TV, on the grounds that the stations failed to
provide adequate coverage of state and local issues during the 2004 election campaign. We
believe the petition is without merit and will vigorously defend the allegations against
us in proceedings before the FCC.

On April 25, 2005, a lawsuit was
filed against Journal Sentinel, Inc., a subsidiary of Journal Communications, Inc., in
Milwaukee County Circuit Court.  The plaintiff, Shorewest Realtors, seeks to bring a
class action lawsuit on behalf ofMilwaukee Journal Sentinel advertisers, alleging
that the newspaper improperly inflated its circulation numbers since 1996. Shorewest is
seeking disgorgement or restitution by Journal Sentinel of alleged improperly collected
charges (with interest), plus an unspecified amount of damages. Journal Sentinel, Inc.
filed a motion to dismiss the plaintiffs claims on July 20, 2005. On October 10,
2005, the court ruled on Journal Sentinels Amended motion to dismiss.  The
court dismissed the plaintiffs claims based on breach of contract and breach of the
duty of good faith and fair dealing and allowed the plaintiffs to proceed with their other
claims. We intend to defend the action vigorously. No litigation reserve has been recorded
for this matter.

# ITEM 2.    UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In February 2005, we announced a
stock repurchase program of up to 5,000,000 of our class A common stock over a term to
expire in August 2006. The following table provides information about our repurchases of
our class A common stock in the third quarter ended September 25, 2005:

# Issuer Purchases of
Equity Securities

|                               
|-------------------------------
|Period                         
|June 27 to July 24, 2005       
|July 25 to August 21, 2005     
|August 22 to September 25, 2005

| | (1) | All
shares of class A common stock purchased by us were purchased pursuant to a
               repurchase program publicly announced on February 10, 2005 and commenced
on                March 14, 2005, pursuant to which our board of directors authorized the
               repurchase of up to 5,000,000 shares. These shares will remain authorized
but                unissued. The repurchase program will expire in August 2006.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

# ITEM 3.    DEFAULTS UPON
SENIOR SECURITIES

None.

# ITEM 4.    SUBMISSION OF MATTERS
TO A VOTE OF SECURITY HOLDERS

None.

# ITEM 5.    OTHER INFORMATION

None.

# ITEM 6.    EXHIBITS

| | Exhibit No. | Description
| | ----------- | -----------

| | 31.1 | Certification
 by Steven J. Smith,  Chairman and Chief Executive  Officer of Journal  Communications,
 Inc.,                            pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certification
 by Paul M.  Bonaiuto,  Executive  Vice  President  and Chief  Financial  Officer  of
 Journal                            Communications, Inc., pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32 | Certification
of Steven J. Smith, Chairman and Chief Executive Officer and Paul M. Bonaiuto, Executive
Vice President and Chief Financial                            Officer of Journal
Communications, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                           906 of the Sarbanes-Oxley Act of 2002.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

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SIGNATURES

Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.

|                       | JOURNAL COMMUNICATIONS, INC.                                          
|---------------------- | ----------------------------------------------------------------------
|                       | Registrant                                                            
|Date: November 4, 2005 | /s/ Steven J. Smith                                                   
|                       | Steven J. Smith, Chairman and Chief Executive Officer                 
|Date: November 4, 2005 | /s/ Paul M. Bonaiuto                                                  
|                       | Paul M. Bonaiuto, Executive Vice President and Chief Financial Officer

29

---

# JOURNAL
COMMUNICATIONS, INC.

EXHIBIT INDEX

| | Exhibit No. | Description
| | ----------- | -----------

| | 31.1 | Certification
 by Steven J. Smith,  Chairman and Chief Executive  Officer of Journal  Communications,
 Inc.,                            pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 31.2 | Certification
 by Paul M.  Bonaiuto,  Executive  Vice  President  and Chief  Financial  Officer  of
 Journal                            Communications, Inc., pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 32 | Certification
of Steven J. Smith, Chairman and Chief Executive Officer and Paul M. Bonaiuto, Executive
Vice President and Chief Financial                            Officer of Journal
Communications, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                           906 of the Sarbanes-Oxley Act of 2002.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30