# UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, 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: June 26, 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

Number of shares outstanding of each
of the issuers classes of common stock as of July 26, 2005 (excluding 8,676,705
shares of class B common stock, respectively, held by our subsidiary, The Journal
Company):

|Class                | Outstanding at July 26, 2005
|-------------------- | ----------------------------
|Class A Common Stock | 36,155,344                  
|Class B Common Stock | 34,444,146                  
|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                
|         |                       | June 26, 2005 (Unaudited) and December 26, 2004            
|         |                       | Unaudited Consolidated Condensed Statements of Earnings    
|         |                       | for the Second Quarter and Two Quarters Ended              
|         |                       | June 26, 2005 and June 27, 2004                            
|         |                       | Unaudited Consolidated Condensed Statement of              
|         |                       | Shareholders' Equity for the Two Quarters Ended            
|         |                       | June 26, 2005                                              
|         |                       | Unaudited Consolidated Condensed Statements of             
|         |                       | Cash Flows for the Two Quarters Ended June 26, 2005        
|         |                       | and June 27, 2004                                          
|         |                       | Notes to Unaudited Consolidated Condensed                  
|         |                       | Financial Statements as of June 26, 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                                                   

---

# PART I. FINANCIAL
INFORMATION

# ITEM 1. FINANCIAL
STATEMENTS

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

|ASSETS                                                               | June 26, 2005 | December 26, 2004
|-------------------------------------------------------------------- | ------------- | -----------------
|(unaudited)                                                         
|Current assets:                                                      |               |                  
|Cash and cash equivalents                                            |               |                  
|Receivables, less allowance for doubtful accounts                    |               |                  
|of $7,393 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 $354,903 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 June 26, 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 June 26, 2005 and December 26, 2004              |               |                  
|Class B - authorized 120,000,000 shares; issued and outstanding:     |               |                  
|36,360,917 shares at June 26, 2005 and 44,810,712 shares             |               |                  
|at December 26, 2004                                                 |               |                  
|Class A - authorized 170,000,000 shares; issued and outstanding:     |               |                  
|34,503,700 shares at June 26, 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)

|                                               | Second Quarter Ended | Two Quarters Ended
|---------------------------------------------- | -------------------- | ------------------
|
|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      |                      |                   
|tax benefit of $12 and tax expense of          |                      |                   
|$685, $3,061 and $1,078, 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 Two Quarters Ended June 26, 2005
                (dollars in thousands, except per-share amounts)

|                                            | Preferred | Common Stock | AdditionalPaid-in- | 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 |              
|                                            |           |              |                    |          |          |                 |    |              

4

---

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

|                                                     | Two Quarters Ended
|---------------------------------------------------- | ------------------
|
|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 (gain) 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      |                   
|Proceeds from sales of assets                        |                   
|(Acquisition of business) 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 DISCONTINUED OPERATIONS         |                   
|                                                     |                   
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                   
|Cash and cash equivalents:                           |                   
|Beginning of year                                    |                   
|                                                     |                   
|At June 26, 2005 and June 27, 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 second quarter and
two quarters ended June 26, 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 using 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. On April 14, 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 assumptions that the class C shares outstanding were converted
into class A and B shares, common shares are purchased 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:
| | -------------------------------------------------------------

|                                       | Second Quarter Ended | Two Quarters Ended
|-------------------------------------- | -------------------- | ------------------
|
|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
|- | -----------------------------

|                                             | Second Quarter Ended | Two Quarters Ended
|-------------------------------------------- | -------------------- | ------------------
|
|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          |                      |                   
|Impact of restricted stock                   |                      |                   
|Incremental class A and B shares for         |                      |                   
|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
|- | -----------------------------------

|                                              | Second Quarter Ended | Two Quarters Ended
|--------------------------------------------- | -------------------- | ------------------
|
|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
June 26, 2005 and December 26, 2004 consisted of the following:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                          | June 26, 2005 | December 26, 2004
|------------------------- | ------------- | -----------------
|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 expiring 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 June 26, 2005, we had borrowings of $40,445 under the
facility at a weighted average interest rate of 4.05%. 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, an
annual fee of $60 is being amortized using the straight-line method from October 2004
through September 2005.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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 plan are as follows:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                            | Pension Benefits
|------------------------------------------- | ----------------
|
|
|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         |                 
|                                            |                 
|                                           
|
|
|
|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 5 to 40 years and the
non-compete agreements over the terms of the contracts.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Amortization
expense was $322 for the second quarter ended June 26, 2005 and $656 for the two quarters
ended June 26, 2005. Estimated amortization expense for our next five fiscal years is
$1,301 for 2005, $1,288 for 2006, $1,249 for 2007, $1,194 for 2008 and $910 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 June 26, 2005 and December 26, 2004 is
as follows:
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                               | Gross
Carrying
Amount | Accumulated
Amortization | Net
Carrying
Amount
|------------------------------ | --------------------- | ------------------------ | -------------------
|June 26, 2005                  |                       |                          |                    
|Network affiliation agreements |                       |                          | $                  
|Customer lists                 |                       |                          |                    
|Non-compete agreements         |                       |                          |                    
|Other                          |                       |                          |                    
|                               |                       |                          |                    
|Total                          |                       |                          | $                  
|                               |                       |                          |                    
|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 indefinitely 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
two quarters ended June 26, 2005.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | The
change in the carrying amount of goodwill in the two quarters ended June 26, 2005 is as
follows:
| | ----------------------------------------------------------------------------------------------------

|Reporting unit                    | Goodwill at
December 26, 2004 | Adjustment | Goodwill at
June 26, 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

---

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

|10 | 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 second quarter and two quarters ended June 26,
2005 and June 27, 2004:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                           | Second Quarter Ended | Two Quarters Ended
|-------------------------- | -------------------- | ------------------
|
|Revenue                    |                      |                   
|Income before income taxes |                      |                   

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

|                          | June 26, 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 |               |                  
|                          |               |                  

|11 | 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
operations conduct their business in the United States. We publish a daily newspaper, the
Milwaukee JournalSentinel, 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. 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 3,800 route miles. Our printing
services segment includes the operations of our printing and assembly and fulfillment
business.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11

---

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

|11 | SEGMENT
INFORMATION, continued
|-- | ------------------------------

| | The
following tables summarize revenue, operating earnings, depreciation and amortization and
capital expenditures for the second quarter and two quarters ended June 26, 2005 and June
27, 2004 and identifiable total assets at June 26, 2005 and December 26, 2004:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                              | Second Quarter Ended | Two Quarters Ended
|----------------------------- | -------------------- | ------------------
|
|Revenue                       |                      |                   
|Publishing                    |                      |                   
|Broadcasting                  |                      |                   
|Telecommunications            |                      |                   
|Printing services             |                      |                   
|Other                         |                      |                   
|                              |                      |                   
|                              |                      |                   
|                              |                      |                   
|Operating earnings            |                      |                   
|Publishing                    |                      |                   
|Broadcasting                  |                      |                   
|Telecommunications            |                      |                   
|Printing services             |                      |                   
|Other                         |                      |                   
|                              |                      |                   
|                              |                      |                   
|                              |                      |                   
|Depreciation and amortization |                      |                   
|Publishing                    |                      |                   
|Broadcasting                  |                      |                   
|Telecommunications            |                      |                   
|Printing services             |                      |                   
|Other                         |                      |                   
|                              |                      |                   
|                              |                      |                   
|                              |                      |                   
|Capital expenditures          |                      |                   
|Publishing                    |                      |                   
|Broadcasting                  |                      |                   
|Telecommunications            |                      |                   
|Printing services             |                      |                   
|Other                         |                      |                   
|                              |                      |                   
|                              |                      |                   
|                              |                      |                   

|                                  | June 26, 2005 | December 26, 2004
|--------------------------------- | ------------- | -----------------
|Audited                          
|Identifiable total assets         |               |                  
|Publishing                        |               |                  
|Broadcasting                      |               |                  
|Telecommunications                |               |                  
|Printing services                 |               |                  
|Other and discontinued operations |               |                  
|                                  |               |                  
|                                  |               |                  
|                                  |               |                  

12

---

# 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 second quarter and two quarters ended
June 26, 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. 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 3,800 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

---

We experienced a solid finish in the
second quarter of 2005 as advertising revenue strengthened at our daily newspaper and in a
number of our radio markets, while our television stations continue to be challenged as we
face a soft advertising environment and tougher comparisons due to an off-cycle year in
political and issue advertising. At our telecommunications company, the wholesale business
experienced re-pricing activity and service disconnections and the enterprise business
continued to focus on the development and sales of new products and services in a very
competitive market. At our printing services business, we reported a $1.0 million increase
in operating earnings which was due to improved production efficiencies and increased
sales volume reflecting a successful return to our core printing business and our direct
marketing services business reported a $0.3 million increase in operating earnings.

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

# Results of Operations

| | Second
Quarter Ended June 26, 2005 compared to Second Quarter Ended June 27, 2004
| | ---------------------------------------------------------------------------------

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

Our consolidated revenue from
continuing operations in the second quarter of 2005 was $194.7 million, an increase of
$2.6 million, or 1.4%, compared to $192.1 million in the second quarter of 2004. Our
consolidated operating costs and expenses from continuing operations in the second quarter
of 2005 were $107.1 million, an increase of $4.0 million, or 3.9%, compared to $103.1
million in the second quarter of 2004. Our consolidated selling and administrative
expenses from continuing operations in the second quarter of 2005 were $57.1 million, an
increase of $1.4 million, or 2.4%, compared to $55.7 million in the second 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 second quarter
of 2005 and 2004:

|                                               | 2005                  | Percent of
Total
Revenue | 2004 | Percent of
Total
Revenue
|---------------------------------------------- | --------------------- | ------------------------ | ---- | ------------------------
|Continuing operations:                         | (dollars in millions)
|Revenue:                                       |                       |                          |      |                         
|Publishing                                     |                       |                          | $    | 85.4                    
|Broadcasting                                   |                       |                          |      | 42.9                    
|Telecommunications                             |                       |                          |      | 36.1                    
|Printing services                              |                       |                          |      | 18.1                    
|Other                                          |                       |                          |      | 12.2                    
|                                               |                       |                          |      |                         
|Total revenue                                  |                       |                          |      | 194.7                   
|Total operating costs and expenses             |                       |                          |      | 107.1                   
|Selling and administrative expenses            |                       |                          |      | 57.1                    
|                                               |                       |                          |      |                         
|Total operating costs and expenses and selling |                       |                         
|and administrative expenses                    |                       |                          |      | 164.2                   
|                                               |                       |                          |      |                         
|Total operating earnings                       |                       |                          | $    | 30.5                    
|                                               |                       |                          |      |                         

The increase in total revenue from
continuing operations was due to revenue from our Green Bay television acquisition,
increases in classified, Journal Interactive and retail advertising revenue at our daily
newspaper, an increase in local advertising revenue at our radio stations, an increase in
enterprise services revenue at our telecommunications business due to our newly acquired
infrastructure business, increases in printing and fulfillment revenue at our printing
services business, an increase in postage amounts billed to customers at our direct
marketing services business and an increase in classified advertising at our community
newspapers and shoppers business. These increases were partially offset by a decrease in
political and issue advertising at our television stations and a decrease in wholesale
telecommunications revenue due to contract re-pricings and customer disconnections.

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

14

---

The increase in selling and
administrative expenses from continuing operations is primarily due to an increase in
certain corporate expenses, the addition of the Green Bay television operations, and an
increase in payroll, sales and marketing expenses at our telecommunications business.
These increases were partially offset by a decrease in employee benefit and indirect
expenses at our daily newspaper and cost savings initiatives at our daily newspaper, our
community newspapers and shoppers business and our printing services business.

Our consolidated operating earnings
from continuing operations in the second quarter of 2005 were $30.5 million, a decrease of
$2.8 million, or 8.2%, compared to $33.3 million in the second quarter of 2004. The
following table presents our operating earnings by segment for the second quarter of 2005
and 2004:

|                         | 2005                  | Percent of
Total
OperatingEarnings | 2004 | Percent of
Total
OperatingEarnings
|------------------------ | --------------------- | ---------------------------------- | ---- | ----------------------------------
|Continuing operations:   | (dollars in millions)
|Publishing               |                       |                                    | $    | 14.3                              
|Broadcasting             |                       |                                    |      | 8.9                               
|Telecommunications       |                       |                                    |      | 6.7                               
|Printing services        |                       |                                    |      | 0.4                               
|Other                    |                       |                                    |      | 0.2                               
|                         |                       |                                    |      |                                   
|Total operating earnings |                       |                                    | $    | 30.5                              
|                         |                       |                                    |      |                                   

The decrease in total operating
earnings from continuing operations was primarily due to the decrease in political and
issue advertising at our television stations, higher operating costs and expenses
associated with the increase in enterprise services revenue and the decrease in our
wholesale services revenue at our telecommunications business, and an increase in certain
corporate expenses. These decreases were partially offset by increases in revenue at our
daily newspaper, printing services business, and radio stations, and a decrease in
payroll, employee benefit, and bad debt expenses at our direct marketing services
business.

Our consolidated EBITDA in the second
quarter of 2005 was $41.5 million, a decrease of $3.1 million, or 6.8%, compared to $44.6
million in the second quarter of 2004. We define EBITDA as net earnings excluding
gain/loss from discontinued operations, net, provision for income taxes, total other
expense, 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
accounting principles generally accepted in the United States. 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 second
quarter of 2005 and 2004:

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

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

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

Revenue from publishing in the second
quarter of 2005 was $85.4 million, an increase of $1.8 million, or 2.2%, compared to $83.6
million in the second quarter of 2004. Operating earnings from publishing were $14.3
million, an increase of $1.7 million, or 13.4%, compared to $12.6 million in the second
quarter of 2004.

15

---

The following table presents our
publishing revenue by category and operating earnings for the second 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 second
quarter of 2005 accounted for 76.7% of total publishing revenue compared to 75.9% in the
second quarter of 2004.

Retail advertising revenue in the
second quarter of 2005 was $36.2 million, an increase of $0.4 million, or 1.0%, compared
to $35.8 million in the second quarter of 2004. Retail advertising increased $0.3 million
at our daily newspaper and $0.1 million at our community newspapers and shoppers in the
second quarter of 2005 compared to the second quarter of 2004. The $0.3 million increase
at the daily newspaper was primarily due to increases in health services, financial
services and home builders advertising partially offset by decreases in
telecommunications, furniture, automotive, and department store advertising. The $0.1
million increase in retail advertising at our community newspapers and shoppers was
primarily due to growth in both existing and new specialty publications.

Print classified advertising revenue
in the second quarter of 2005 was $20.0 million, an increase of $0.9 million, or 4.4%,
compared to $19.1 million in the second quarter of 2004. At our daily newspaper, increases
in real estate advertising of $0.5 million, employment advertising of $0.4 million and
general/other advertising of $0.3 million were partially offset by a decrease in
automotive advertising of $0.4 million. Employment advertising, which accounted for 36.6%
of classified advertising at our daily newspaper in the second quarter of 2005, increased
6.7% compared to the second quarter 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 primarily due to a decline in advertising by local
automotive dealerships. Classified advertising at our community newspapers and shoppers in
the second quarter of 2005 increased $0.1 million compared to the second 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
second quarter of 2005 of $2.7 million was essentially even compared to the second quarter
of 2004. An increase in telecommunications preprint advertising was partially offset by
decreases in telecommunications, movies, transportation and public utilities and financial
services ROP advertising.

The following table presents our
daily newspapers core newspaper advertising linage by category and core newspaper
and shared mail preprint pieces for the second 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
second quarter of 2005 decreased 4.5% compared to the second quarter of 2004. The decrease
was due to a decrease in full run advertising linage partially offset by an increase in
part run advertising linage. Full run advertising linage in the second quarter of 2005
decreased 5.2% compared to the second quarter of 2004 due to a 5.4% decrease in classified
advertising linage, a 5.0% decrease in retail advertising linage and a 7.0% decrease in
general advertising linage. Classified advertising linage decreased due to a decrease in
automotive advertising partially offset by an increase in employment and real estate
advertising. The decrease in retail advertising linage was primarily due to a decrease in
retail ROP advertising in the daily edition. The decrease in general advertising linage
was primarily due to a decrease in general ROP advertising in the daily edition. Part run
advertising linage increased in the second quarter of 2005 due to an increase in zoned
retail and automotive classified advertising. Preprint advertising pieces increased 15.3%
due to increases in amusement/recreation, telecommunications, and grocery store preprint
pieces and preprint pieces used in our shared mail products.

16

---

The following table presents the full
pages of advertising and revenue per page of our community newspapers and shoppers and
specialty products for the second 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 second quarter of 2005 decreased
5.1% compared to the second 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 6.3% primarily due to the decrease in total full
pages of advertising while increasing or maintaining the same advertising rates.

Other advertising revenue in the
second 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 $6.6 million, an increase of $0.8 million,
or 14.9%, compared to $5.8 million in the second quarter of 2004. The increase was due to
a $0.6 million increase in Journal Interactive advertising primarily due to increased
employment advertising, a $0.1 million increase in direct mail advertising and printing
and a $0.1 million increase in event marketing at our daily newspaper. Other advertising
revenue at our community newspapers and shoppers in the second quarter of 2005 was
essentially even compared to the second quarter of 2004.

Circulation revenue in the second
quarter of 2005 accounted for 13.1% of total publishing revenue compared to 13.9% in the
second quarter of 2004. Circulation revenue of $11.2 million in the second quarter of 2005
decreased $0.4 million, or 3.9%, compared to $11.6 million in the second quarter of 2004
primarily due to a decrease in single copy sales at our daily newspaper. Circulation
revenue at our community newspapers and shoppers in the second quarter of 2005 was
essentially even compared to the second 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, accounted for 10.2% of total publishing revenue in both the second
quarter of 2005 and the second quarter of 2004. Other revenue of $8.7 million in the
second quarter of 2005 increased $0.1 million, or 2.1%, compared to $8.6 million in the
second quarter of 2004. The increase in other revenue of $0.2 million at the daily
newspaper was primarily due to an increase in commercial printing and was partially offset
by a $0.1 million decrease at our community newspapers and shoppers.

Publishing operating earnings in the
second quarter of 2005 were $14.3 million, an increase of $1.7 million, or 13.4%, compared
to $12.6 million in the second quarter of 2004. The $1.8 million increase at our daily
newspaper was primarily due to the increase in revenue, a decrease in benefit and indirect
expenses and maintaining tight control over other expenses. The second quarter of 2005
comparison to the second quarter of 2004 was positively impacted by approximately $0.5
million from the Easter holiday, which is a light advertising day, falling in the first
quarter of 2005 and the second quarter of 2004. These increases were partially offset by
an increase in newsprint and other paper expense and other operating costs and expenses
attributed to the increase in revenue. The $0.1 million decrease at our community
newspapers and shoppers was primarily due to an increase in newsprint and other paper
expense and an increase in employee benefit expenses. These expense increases were
partially offset by $0.2 million in cost savings initiatives and decreases in depreciation
and workers compensation expenses. Total newsprint and other paper expense for our
publishing businesses in the second quarter of 2005 was $11.6 million, an increase of $0.7
million, or 6.5%, compared to $10.9 million in the second quarter of 2004. The increase in
newsprint and other paper expense was primarily attributed to an increase in the average
price of newsprint per metric ton. In the second quarter of 2005, the daily newspaper
switched to lighter basis-weight newsprint.

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

Revenue from broadcasting in the
second quarter of 2005 was $42.9 million, an increase of $0.6 million, or 1.6%, compared
to $42.3 million in the second quarter of 2004. Operating earnings from broadcasting in
the second quarter of 2005 were $8.9 million, a decrease of $2.2 million, or 19.4%,
compared to $11.1 million in the second quarter of 2004.

17

---

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

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

Revenue from our radio stations in
the second quarter of 2005 was $21.4 million, an increase of $0.9 million, or 4.6%,
compared to $20.5 million in the second quarter of 2004. The increase was primarily due to
a $1.1 million increase in local advertising revenue partially offset by a $0.2 million
decrease in national advertising.

Operating earnings from our radio
stations in the second quarter of 2005 were $5.4 million, an increase of $0.4 million, or
9.4%, compared to $5.0 million in the second quarter of 2004. The increase was primarily
due to the increase in revenue partially offset by increases in sales commissions due to
lower national sales commissions in 2004 and increases in technology and programming
expenses.

Revenue from our television stations
in the second quarter of 2005 was $21.5 million, a decrease of $0.3 million, or 1.3%,
compared to $21.8 million in the second quarter of 2004. Excluding the Green Bay
television operations which were acquired in October 2004, revenue in the second quarter
of 2005 decreased $2.8 million, or 12.6% compared to the second quarter of 2004 due to a
$1.6 million decrease in political and issue advertising, an $0.8 million decrease in
local advertising, a $0.3 million decrease in network revenue, and a $0.1 million decrease
in national advertising.

Operating earnings from our
television stations in the second quarter of 2005 were $3.5 million, a decrease of $2.6
million, or 42.8%, compared to $6.1 million in the second quarter of 2004. Excluding the
Green Bay operations, operating earnings decreased $2.8 million or 45.5%. The decrease was
primarily due to the decrease in political and issue advertising revenue, an adjustment to
our litigation reserve in the second quarter of 2004 due to the settlement of our national
advertising representative litigation and increases in news, promotion and technology
expenses. These increases were partially offset by a decrease in syndicated program
expense.

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

Revenue from telecommunications in
the second quarter of 2005 was $36.1 million, a decrease of $0.7 million, or 1.9%,
compared to $36.8 million in the second quarter of 2004. Operating earnings from
telecommunications in the second quarter of 2005 were $6.7 million, a decrease of $2.4
million, or 26.8%, compared to $9.1 million in the second 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 second quarter of 2005 was
$19.5 million, a decrease of $1.6 million, or 7.8%, compared to $21.1 million in the
second quarter of 2004. The decrease was primarily due to service disconnections and lower
pricing on customer contract renewals. Monthly recurring revenue from wholesale data
services at the end of the second quarter of 2005 was $6.1 million compared to $6.3
million at the beginning of the second quarter 2005 and $6.6 million at the end of the
second quarter of 2004. During the second quarter of 2005, new circuit connections of $0.2
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 38.2% and 36.5% of our telecommunications revenue in the second
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. The
effect of the new contract will occur at various times throughout 2005 with the greatest
impact expected around year-end at which time it should be fully implemented.

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 second quarter of 2005 was $16.6
million, an increase of $0.9 million, or 6.2%, compared to $15.7 million in 2004. The
increase was primarily attributed to our newly acquired infrastructure business and an
increase in the services utilized by our existing customers partially offset by a decrease
in long distance revenue. Monthly recurring revenue from enterprise services was $3.4
million at the end of the second quarter of 2005 and at the beginning of the second
quarter 2005 and $3.5 million at the end of the second quarter of 2004.

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

18

---

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

Revenue from printing services in the
second quarter of 2005 was $18.1 million, an increase of $0.7 million, or 3.8%, compared
to $17.4 million in the second quarter of 2004. Operating earnings from printing services
in the second quarter of 2005 were $0.4 million, an increase of $1.0 million compared to a
loss of $0.6 million in the second quarter of 2004.

The increase in printing services
revenue was primarily due to a $0.7 million increase in printing and fulfillment for
original equipment manufacturers and a $0.4 million increase in publication printing
partially offset by a $0.4 million decrease in revenue from our largest customer, Dell
Computer Corporation, and from other computer-related customers. Dell Computer Corporation
accounted for 18.2% and 20.5% of our printing services revenue in the second quarter of
2005 and 2004, respectively. We anticipate our revenue from Dell to continue to decline in
2005.

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

| | Other
| | -----

Other revenue in the second quarter
of 2005 was $12.2 million, an increase of $0.2 million, or 1.9%, compared to $12.0 million
in the second quarter of 2004. Other operating earnings in the second quarter of 2005 were
$0.2 million, a decrease of $0.9 million, or 77.3%, compared to operating earnings of $1.1
million in the second quarter of 2004.

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

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

The increase in other revenue in the
second quarter of 2005 compared to the second quarter of 2004 was primarily due to an
increase in postage amounts billed to customers partially offset by a decrease in mail,
list and database marketing services. Included in revenue and operating costsand
expenses is $8.0 million and $7.5 million of postage amounts billed to customers in the
second quarter of 2005 and 2004, respectively.

The decrease in operating earnings
was primarily due an increase in certain corporate expenses offset by decreases in
payroll, employee benefits and bad debt expenses at our direct marketing services
business.

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

Interest income and dividends were
$0.2 million in the second quarter of 2005 compared to $0.1 million in the second quarter
of 2004. Interest expense, representing gross interest expense from borrowings under our
credit agreement, was $0.4 million in the second quarter of 2005 compared to $0.3 million
in the second quarter of 2004. Amortization of deferred financing costs was $0.1 million
in the second quarter of 2005 and 2004.

The effective tax rate for continuing
operations was 39.9% in the second quarter of 2005 and 40.1% in the second quarter of
2004. The decrease in the effective tax rate is primarily due to the anticipated deduction
in 2005 for domestic production activities from the recently enacted Section 199 of the
Internal Revenue Code.

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

Our basic and diluted earnings per
share from continuing operations were $0.25 and $0.24, respectively, for the second
quarter of 2005 compared to basic and diluted earnings per share from continuing
operations of $0.26 and $0.25, respectively, for the second quarter of 2004. Our basic and
diluted earnings per share from discontinued operations were each $0.02 for the second
quarter of 2004.

19

---

| | 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 second quarter of 2005 compared to $16.0 million in the
second quarter of 2004. There was no gain from discontinued operations, net of income
taxes, in the second quarter of 2005 compared to $1.1 million in the second quarter of
2004. Applicable income tax expense was $0.7 million in the second quarter of 2004.

| | Two
Quarters Ended June 26, 2005 compared to Two Quarters Ended June 27, 2004
| | -----------------------------------------------------------------------------

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

Our consolidated revenue from
continuing operations in the two quarters of 2005 was $376.1 million, an increase of $4.9
million, or 1.3%, compared to $371.2 million in the two quarters of 2004. Our consolidated
operating costs and expenses from continuing operations in the two quarters of 2005 were
$211.9 million, an increase of $7.7 million, or 3.8%, compared to $204.2 million in the
two quarters of 2004. Our consolidated selling and administrative expenses from continuing
operations in the two quarters of 2005 were $112.4 million, an increase of $4.4 million,
or 4.1%, compared to $108.0 million in the two 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 two 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                      
|                                              

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

The increase in total operating costs
and expenses from continuing operations is due to the higher costs associated with the
increase in telecommunications enterprise services revenue, the addition of the Green Bay
television operations, 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 programming and technology
expenses at our radio stations, and an increase in postage expense at our direct mail
services business. These increases were partially offset by a decrease in operating costs
and expenses at our printing services company in response to a decrease in revenue and
production efficiencies.

The increase in selling and
administrative expenses from continuing operations is primarily due to an increase in
payroll, sales and marketing expenses at our telecommunications business, the addition of
the Green Bay television operations and an adjustment to our litigation reserve in the two
quarters of 2004 due to the settlement of our national advertising representative
litigation at our television stations, an increase in certain corporate expenses, an
increase in vacation expense due to a policy change benefit in the first two quarters of
2004 at our daily newspaper, and an increase in sales commissions due to lower national
sales commissions in the first two quarters of 2004 at our radio stations. 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.

20

---

Our consolidated operating earnings
from continuing operations in the two quarters of 2005 were $51.8 million, a decrease of
$7.2 million, or 12.1%, compared to $59.0 million in the two quarters of 2004.

The following table presents our
operating earnings by segment for the two 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 primarily due to the decrease in political and
issue advertising at our television stations, higher operating costs and expenses
associated with the increase in enterprise services revenue and a decrease in wholesale
services revenue at our telecommunications business, an increase in total newsprint and
paper expense at our publishing businesses, the adverse impact at our daily newspaper from
the addition of three seasonally-light advertising days at the beginning of 2005, an
increase in certain corporate expenses, and an increase in postage expense at our direct
marketing services business. These decreases were partially offset by an increase in
revenue at our radio stations and cost savings initiatives at our community newspapers and
shoppers business and our printing services business.

Our consolidated EBITDA in the two
quarters of 2005 was $74.3 million, a decrease of $7.1 million, or 8.8%, compared to $81.4
million in the two quarters of 2004. We define EBITDA as net earnings excluding gain/loss
from discontinued operations, net, provision for income taxes, total other expense,
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 accounting
principles generally accepted in the United States. 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 two
quarters of 2005 and 2004:

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

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

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

Revenue from publishing in the two
quarters of 2005 was $163.3 million, an increase of $3.0 million, or 1.9%, compared to
$160.3 million in the two quarters of 2004. Operating earnings from publishing were $21.8
million, a decrease of $0.1 million, or 0.7%, compared to $21.7 million in the two
quarters of 2004.

21

---

The following table presents our
publishing revenue by category and operating earnings for the two quarters 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 two
quarters of 2005 accounted for 75.2% of total publishing revenue compared to 74.7% in the
two quarters of 2004.

Retail advertising revenue in the two
quarters of 2005 was $67.3 million, an increase of $0.4 million, or 0.7%, compared to
$66.9 million in the two quarters of 2004. Retail advertising increased $0.4 million at
our daily newspaper and was essentially even at our community newspapers and shoppers in
the two quarters of 2005 compared to the two quarters of 2004. The $0.4 million increase
at the daily newspaper was primarily due to increases in health services, home builders,
financial services, and grocery store advertising partially offset by decreases in
telecommunications, furniture and department store advertising.

Print classified advertising revenue
in the two quarters of 2005 was $37.5 million, an increase of $1.3 million, or 3.4%,
compared to $36.2 million in the two quarters of 2004. At our daily newspaper, increases
in employment advertising of $1.2 million, real estate advertising of $0.6 million, and
general/other advertising of $0.1 million were partially offset by a decrease in
automotive advertising of $0.7 million. Employment advertising, which accounted for 39.0%
of classified advertising at our daily newspaper in the two quarters of 2005, increased
9.7% compared to the two 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 primarily due to a decline in advertising by local
automotive dealerships. Classified advertising at our community newspapers and shoppers in
the two quarters of 2005 increased $0.1 million compared to the two quarters 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
two quarters of 2005 was $5.6 million, a decrease of $0.4 million, or 6.1%, compared to
$6.0 million for the two quarters of 2004. The decrease was primarily due to decreases in
movies, 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 two 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 two
quarters of 2005 decreased 3.1% compared to the two 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. Full run advertising linage in the two quarters of 2005 decreased 4.6%
compared to the two quarters of 2004 due to a 7.3% decrease in classified advertising
linage, a 12.7% decrease in general advertising linage and a 0.7% decrease in retail
advertising linage. Classified advertising linage decreased due to a decrease in
automotive advertising partially offset by an increase in employment and real estate
advertising. The decrease in general advertising linage was primarily due to lower general
ROP advertising in the daily edition. Retail advertising lineage decreased due to a
decline in retail ROP advertising in the daily and Sunday editions. Part run advertising
linage increased in the two quarters of 2005 due to an increase in zoned retail and
automotive classified advertising. Preprint advertising pieces increased 12.8% due to
increases in furniture, department stores, and amusement/recreation preprint pieces and
preprint pieces used in our shared mail products.

22

---

The following table presents the full
pages of advertising and revenue per page of our community newspapers and shoppers and
specialty products for the two 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 two quarters of 2005 decreased 3.9%
compared to the two 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 4.6% primarily due to the decrease in total full
pages of advertising while increasing or maintaining the same advertising rates.

Other advertising revenue in the two
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 $12.5 million, an increase of $1.9 million, or
17.9%, compared to $10.6 million in the two quarters of 2004. The increase was due to a
$1.3 million increase in Journal Interactive advertising primarily due to increased
employment advertising and a $0.5 million increase in direct mail advertising and printing
at our daily newspaper. Other advertising revenue at our community newspapers and shoppers
in the two quarters of 2005 increased $0.1 million compared to the two quarters of 2004.

Circulation revenue in the two
quarters of 2005 accounted for 13.7% of total publishing revenue compared to 14.2% in the
two quarters of 2004. Circulation revenue of $22.3 million in the two quarters of 2005
decreased $0.5 million, or 2.2%, compared to $22.8 million in the two quarters of 2004
primarily due to a decrease in single copy sales at our daily newspaper. Circulation
revenue at our community newspapers and shoppers in the two quarters of 2005 was
essentially even compared to the two quarters of 2004.

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 flat for the daily edition (Monday-Saturday) and
it 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 have not yet been 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 11.1% of total publishing revenue in the two quarters
of 2005 and 2004. Other revenue of $18.1 million in the two quarters of 2005 increased
$0.3 million, or 2.0%, compared to $17.8 million in the two quarters of 2004. The increase
in other revenue of $0.3 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 in the two quarters of 2005 was essentially even
compared to the two quarters of 2004.

Publishing operating earnings in the
two quarters of 2005 were $21.8 million, an increase of $0.1 million, or 0.7%, compared to
$21.7 million in the two quarters of 2004. The $0.3 million increase at our daily
newspaper was primarily due to the increase in revenue and a decrease in depreciation
expense partially offset by the adverse impact from the addition of three seasonally-light
advertising days at the beginning of 2005, an increase in newsprint and other paper
expense, an increase in vacation expense due to the policy change benefit we recorded in
the first quarter of 2004, and increases in operating costs and expenses attributed to the
increase in revenue and circulation expenses. The $0.2 million decrease at our community
newspapers and shoppers was primarily due to an increase in employee benefit expenses and
an increase in newsprint and other paper expense. These expense increases were partially
offset by $0.6 million in cost savings initiatives and decreases in depreciation and bad
debt expenses. Total newsprint and other paper expense for our publishing businesses in
the two quarters of 2005 was $21.9 million, an increase of $1.3 million, or 6.3%, compared
to $20.6 million in the two quarters of 2004. The increase in newsprint and other paper
expense was primarily attributed to an increase in the average price of newsprint per
metric ton. In the second quarter of 2005, the daily newspaper switched to lighter
basis-weight newsprint.

23

---

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

Revenue from broadcasting in the two
quarters of 2005 was $80.1 million, an increase of $3.2 million, or 4.2%, compared to
$76.9 million in the two quarters of 2004. Operating earnings from broadcasting in the two
quarters of 2005 were $14.3 million, a decrease of $3.3 million, or 18.6%, compared to
$17.6 million in the two quarters of 2004.

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

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

Revenue from our radio stations in
the two quarters of 2005 was $39.6 million, an increase of $2.4 million, or 6.7%, compared
to $37.2 million in the two quarters of 2004. The increase was primarily due to a $2.4
million increase in local advertising revenue and a $0.1 million increase in national
advertising revenue partially offset by a $0.1 million decrease in political and issue
advertising.

Operating earnings from our radio
stations in the two quarters of 2005 were $9.2 million, an increase of $1.1 million, or
14.0%, compared to $8.1 million in the two quarters of 2004. The increase was primarily
attributed to the increase in revenue partially offset by increases in sales commissions
due to lower national sales commissions in 2004, and increases in programming and
technology expenses.

Revenue from our television stations
in the two quarters of 2005 was $40.5 million, an increase of $0.8 million, or 1.9%,
compared to $39.7 million in the two quarters of 2004. Excluding the Green Bay television
operations which were acquired in October 2004, revenue in the two quarters of 2005
decreased $3.8 million or 9.6% compared to the two quarters of 2004. This decrease was
primarily due to a $3.0 million decrease in political and issue advertising, an $0.8
million decrease in local advertising and a $0.4 million decrease in network revenue. This
was partially offset by a $0.4 million increase in national advertising.

Operating earnings from our
television stations in the two quarters of 2005 were $5.1 million, a decrease of $4.4
million, or 46.3%, compared to $9.5 million in the two quarters of 2004. Excluding the
Green Bay operations, operating earnings decreased $4.6 million or 48.4%. The decrease was
primarily due to the decrease in political and issue advertising revenue, an increase in
news expenses, an adjustment to our litigation reserve in the two quarters of 2004 due to
the settlement of our national advertising representative litigation, and increases in
technology and promotion expenses. These increases were partially offset by a decrease in
syndicated program expense.

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

Revenue from telecommunications in
the two quarters of 2005 was $73.6 million, an increase of $1.2 million, or 1.7%, compared
to $72.4 million in the two quarters of 2004. Operating earnings from telecommunications
in the two quarters of 2005 were $14.4 million, a decrease of $3.4 million, or 19.1%,
compared to $17.8 million in the two 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 two quarters of 2005 was
$39.8 million, a decrease of $1.9 million, or 4.4%, compared to $41.7 million in the two
quarters of 2004. The decrease was primarily due to service disconnections and lower
pricing on customer contract renewals. Monthly recurring revenue from wholesale data
services at the end of the two quarters of 2005 was $6.1 million compared to $6.4 million
at the beginning of 2005 and $6.6 million at the end of the two quarters of 2004. During
the two quarters of 2005, new circuit connections of $0.4 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 36.7% and 37.1% of our telecommunications revenue in the two
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. The
effect of the new contract will occur at various times throughout 2005 with the greatest
impact expected around year-end at which time it should be fully implemented.

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 two quarters of 2005 was $33.8
million, an increase of $3.1 million, or 10.0%, compared to $30.7 million in 2004. The
increase was primarily attributed to our newly acquired infrastructure business and an
increase in the services utilized by our existing customers partially offset by a decrease
in long distance revenue. Monthly recurring revenue from enterprise services was $3.4
million at the end of the two quarters of 2005 and at the beginning of 2005 and $3.5
million at the end of the two quarters of 2004.

24

---

The decrease in operating earnings
from telecommunications was primarily due to 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
two quarters of 2005 was $36.4 million, a decrease of $2.8 million, or 7.2%, compared to
$39.2 million in the two quarters of 2004. Operating earnings from printing services in
the two quarters of 2005 were $0.8 million, an increase of $0.5 million compared to $0.3
million in the two quarters of 2004.

The decrease in printing services
revenue was primarily due to a $2.4 million decrease in revenue from our largest customer,
Dell Computer Corporation, a $0.7 million decrease in revenue from other computer-related
customers and a $0.5 million decrease in printing and fulfillment for original equipment
manufacturers. These decreases were partially offset by an $0.8 increase in publication
printing revenue. Dell Computer Corporation accounted for 19.5% and 24.2% of our printing
services revenue in the two quarters of 2005 and 2004, respectively. We anticipate our
revenue from Dell to continue to decline in 2005.

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

| | Other
| | -----

Other revenue in the two quarters of
2005 was $22.7 million, an increase of $0.3 million, or 1.4%, compared to $22.4 million in
the two quarters of 2004. Other operating earnings in the two quarters of 2005 were $0.5
million, a decrease of $1.1 million, or 68.2%, compared to operating earnings of $1.6
million in the two quarters of 2004.

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

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

The increase in other revenue in the
two quarters of 2005 compared to the two quarters of 2004 was primarily due to an increase
in postage amounts billed to customers partially offset by a decrease in mail, list and
database marketing services. Included in revenue and operating costsand expenses
is $14.8 million and $13.7 million of postage amounts billed to customers in the two
quarters of 2005 and 2004, respectively.

The decrease in operating earnings
was primarily due to an increase in certain corporate expenses and an increase in postage
and production expenses at our direct marketing services business. These expense increases
were partially offset by a decrease in bad debt and legal expenses at our direct marketing
services business.

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

Interest income and dividends were
$0.3 million in the two quarters of 2005 compared to $0.1 million in the two quarters of
2004. Interest expense, representing gross interest expense from borrowings under our
credit agreement, was $0.9 million in the two quarters of 2005 compared to $0.8 million in
the two quarters of 2004. Amortization of deferred financing costs was $0.2 million in the
two quarters of 2005 and 2004.

The effective tax rate for continuing
operations was 39.8% in the two quarters of 2005 and 40.1% in the two quarters of 2004.
The decrease in the effective tax rate is primarily due to the anticipated deduction in
2005 for domestic production activities from the recently enacted Section 199 of the
Internal Revenue Code.

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

Our basic and diluted earnings per
share from continuing operations were $0.41 and $0.40, respectively, for the two quarters
of 2005, compared to basic and diluted earnings per share from continuing operations of
$0.46 and $0.45, respectively, for the two quarters of 2004. Our basic and diluted
earnings per share from discontinued operations were each $0.07 for the two quarters of
2005 compared to basic and diluted earnings per share from discontinued operations of
$0.02 each for the two quarters ended 2004.

25

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

Revenue from discontinued operations
in the two quarters of 2005 was $4.1 million compared to $29.5 million in the two quarters
of 2004. Gain from discontinued operations, net of income taxes, in the two quarters of
2005 was $4.8 million compared to $1.7 million in the two quarters of 2004. Applicable
income tax expense was $3.1 million and $1.1 million in the two quarters of 2005 and 2004,
respectively. Net liabilities of discontinued operations at June 26, 2005 were $2.1
million and net assets of discontinued operations were $13.3 million at December 26, 2004.

# Liquidity and Capital
Resources

We have a $350 million unsecured
revolving credit facility expiring 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 June 26, 2005, we had borrowings outstanding of $40.4 million under the facility at a
weighted average interest rate of 4.05%. 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, an annual fee of $0.1
million is being amortized using the straight line method from October 2004 through
September 2005. 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.
|- | -------------------------------------------------------------------------------------------------------------------

| | 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 June 26, 2005, we are in
compliance with all of our financial covenants.

Cash balances were $7.0 million at
June 26, 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 1,483,864 class A common shares at a weighted
average price per share of $16.57 in the two quarters of 2005 of which $1.2 million in
payments was unsettled at June 26, 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.

# Cash Flow

Cash provided by operating activities
was $57.4 million in the two quarters of 2005 compared to $60.9 million in the two
quarters of 2004. The decrease was primarily due to a decrease in earnings from continuing
operations.

Cash used for investing activities
was $12.9 million in the two quarters of 2005 compared to $15.1 million in the two
quarters of 2004. Capital expenditures for property and equipment were $13.4 million in
the two quarters of 2005 compared to $14.6 million in the two quarters of 2004.

Cash used for financing activities
was $64.1 million in the two quarters of 2005 compared to $50.4 million in the two
quarters of 2004. Borrowings under our new credit facility during the two quarters of 2005
were $97.9 million and we made payments of $127.8 million compared to borrowings of $157.6
million and payments of $164.9 million in the two quarters of 2004. In the two quarters of
2005, we received $0.6 million in proceeds from the issuance of our class B common stock
to our employees under our Employee Stock Purchase Plan and we paid $24.6 million to
purchase our class A common stock under our stock repurchase program. In the two quarters
of 2004, we received $116.0 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 $10.3 million and $10.5 million in the two quarters of 2005 and 2004,
respectively.

Cash provided by discontinued
operations was $20.3 million in the two quarters of 2005 primarily due to the proceeds
received from the sale of NorthStar Print Group, Inc. Cash provided by discontinued
operations was $2.3 million in the two quarters of 2004 primarily due to NorthStar Print
Group, Inc.s net earnings.

# 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.

26

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Presented below is our unaudited
consolidated condensed statements of earnings covering the four quarters ended June 26,
2005, which covers the period June 28, 2004 to June 26, 2005.

JOURNAL COMMUNICATIONS,
INC.  Unaudited Consolidated Condensed Statements of Earnings(in thousands)

|                                                                          
|--------------------------------------------------------------------------
|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 $5,252
|                                                                          
|Net earnings                                                              
|                                                                          

27

---

# 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.

# PART II. OTHER
INFORMATION

# ITEM 1. LEGAL PROCEEDINGS

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 from 1996 on. 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. 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 second quarter ended June 26, 2005:

# Issuer Purchases of
Equity Securities

|                           | (a)                              | (b)                          | (c)                                                                                  | (d)                                                                           
|-------------------------- | -------------------------------- | ---------------------------- | ------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------
|Period                     | Total Number of
Shares Purchased | Average Price
Paid Per Share | Total Number of
Shares Purchased as
Part of Publicly
Announced Plans
Or Programs (1) | Maximum Number
Of Shares that May
Yet Be Purchased
Under the Plans
or Programs
|March 28 to April 24, 2005 | 219,400                          | $  16.81                     | 219,400                                                                              | 4,666,400                                                                     
|April 25 to May 22, 2005   | 544,800                          | $  16.37                     | 544,800                                                                              | 4,121,600                                                                     
|May 23 to June 26, 2005    | 605,464                          | $  16.65                     | 605,464                                                                              | 3,516,136                                                                     

| | (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.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28

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# ITEM 3. DEFAULTS UPON
SENIOR SECURITIES

None.

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

On April 28, 2005, we held our annual
meeting of shareholders for the purpose of voting on the following item:

o The election of three Class II
directors, Steven J. Smith, Mary Ellen Stanek, and Jeanette Tully.

Steven J. Smith and Douglas G. Kiel,
as the designated proxies, voted the shares of Journal Communications, Inc. common stock
as they were instructed by the shareholders of Journal Communications, Inc. Approximately
68% of all shares of common stock eligible to vote were represented at the meeting in
person or by proxy. The votes were:

|               
|---------------
|Steven J. Smith
|Votes For      
|Votes Withheld 
|               
|Total Votes    
|               

|                     
|---------------------
|Term Expiring in 2006
|                     
|                     
|                     

# ITEM 5. OTHER INFORMATION

None.

# ITEM 6. EXHIBITS

|(a) | 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.
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

29

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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:  August 1, 2005 | /s/ Steven J. Smith                                                   
|                      | Steven J. Smith, Chairman and Chief Executive Officer                 
|Date:  August 1, 2005 | /s/ Paul M. Bonaiuto                                                  
|                      | Paul M. Bonaiuto, Executive Vice President and Chief Financial Officer

30