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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

**QUARTERLY        REPORT PURSUANT TO SECTION 13 OR 15(d)**

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

**FOR        THE QUARTERLY PERIOD ENDED JUNE 25, 2006**

**Commission      file number 1-8572**

**TRIBUNE      COMPANY**

| **Delaware**(State                or other jurisdiction ofincorporation                or organization)                      | **36-1880355**(I.R.S.                EmployerIdentification                No.) |
|------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|  **435                North Michigan Avenue, Chicago, Illinois**(Address                of principal executive offices) |  **60611**(Zip                code)                                        |

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**TRIBUNE      COMPANY**

**INDEX      TO 2006 SECOND QUARTER FORM 10-Q**

| **Item                  No.**                                  | **Page** |
|----------------------------------------------------------------|----------|
| **PART                  I.   FINANCIAL INFORMATION** |     |

| 1.  Financial                  Statements                                                                                                                                   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed                  Consolidated Statements of Income for the Second Quartersand                  First Halves Ended June 25, 2006 and June 26, 2005                      | 1      |
| Condensed                  Consolidated Balance Sheets at June 25, 2006 and Dec. 25, 2005                                                                                        | 2      |
|                      Condensed Consolidated Statements of Cash Flows for the First Halves                  EndedJune                  25, 2006 and June 26, 2005  | 4      |
| Notes                  to Condensed Consolidated Financial Statements                                                                                                                 |   |
| Note                  1:    Basis of Preparation                                                                                                                       | 5      |
| Note                  2:    Earnings Per Share                                                                                                                         | 6      |
| Note                  3:    Discontinued Operations and Assets Held for                  Sale                                                                          | 6      |
| Note                  4:    Income Taxes                                                                                                                               | 8      |
| Note                  5:    *Newsday*                  and *Hoy*,                  New York Charge                                                                     | 9      |
| Note                  6:    Stock-Based Compensation                                                                                                                   | 10     |
| Note                  7:    Pension and Postretirement Benefits                                                                                                        | 17     |
| Note                  8:    Non-Operating Items                                                                                                                             | 18     |
| Note                  9:    Inventories                                                                                                                                | 19     |
| Note                  10:  Goodwill and Other Intangible Assets                                                                                                                  | 19     |
| Note                  11:  Debt                                                                                                                                                  | 20     |
| Note                  12:  Comprehensive Income                                                                                                                                  | 22     |
| Note                  13:  Other Matters                                                                                                                                         | 23     |
| Note                  14:  Subsequent Events                                                                                                                                     | 24     |
| Note                  15:  Segment Information                                                                                                                                   | 25     |
| 2.                      Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations             | 26     |
| 3.                      Quantitative                  and Qualitative Disclosures About Market Risk                                                               | 40     |
| 4.                      Controls                  and Procedures                                                                                                  | 41     |
|                                                                                                                                                                                  |   |
| **PART                  II.   OTHER INFORMATION**                                                                                                                           |
| 1.                      Legal                  Proceedings                                                                                                        | 42     |
| 1A. Risk                  Factors                                                                                                                                                | 42     |
| 2.                      Unregistered                  Sales of Equity Securities and Use of Proceeds                                                              | 42     |
| 4.                      Submission                  of Matters to a Vote of Security Holders                                                                      | 42     |
| 6.                      Exhibits                                                                                                                                  | 43     |
|                                                                                                                                                                                  |   |
|       Signature                                                                                                                                              | 45     |

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**PART      I.   FINANCIAL INFORMATION**

**ITEM      1.   FINANCIAL STATEMENTS.**

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

|                                                                                                     | **Second                Quarter Ended** |      |   | **First                Half Ended** |   |
|----------------------------------------------------------------------------------------------------------|-----------------------------------------|-----------|--------|-------------------------------------|--------|
|                                                                                                     | **June                25, 2006**        |      |   | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Revenues**                                                               | $                                       | 1,431,853 |   |                                | $      | 1,451,989 |   |   | $ | 2,721,414 |   |   | $ | 2,757,887 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Expenses**                                                                    |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)                                       |                                    | 707,781   |   |                                |   | 701,083 |   |   |   | 1,349,974 |   |   |   | 1,356,983 |   |
| Selling,                general and administrative                                                  |                                    | 362,192   |   |                                |   | 358,265 |   |   |   | 733,548 |   |   |   | 701,752 |   |
| Depreciation                                                                                        |                                    | 50,672    |   |                                |   | 53,005 |   |   |   | 101,322 |   |   |   | 105,802 |   |
| Amortization                of intangible assets                                                    |                                    | 4,763     |   |                                |   | 4,720 |   |   |   | 9,466 |   |   |   | 9,439 |   |
| Total                operating expenses                                                             |                                    | 1,125,408 |   |                                |   | 1,117,073 |   |   |   | 2,194,310 |   |   |   | 2,173,976 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Profit**                                                                 |                                    | 306,445   |   |                                |   | 334,916 |   |   |   | 527,104 |   |   |   | 583,911 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                                     |                                    | 26,017    |   |                                |   | 11,897 |   |   |   | 32,565 |   |   |   | 12,368 |   |
| Interest                and dividend income                                                         |                                    | 2,472     |   |                                |   | 1,165 |   |   |   | 4,652 |   |   |   | 2,247 |   |
| Interest                expense                                                                     |                                    | (47,279   | )      |                                |   | (35,367 | ) |   |   | (96,051 | ) |   |   | (70,458 | ) |
| (Loss)                gain on change in fair values of derivativesand                related investments |                                    | (6,121    | )      |                                |   | 61,803 |   |   |   | (16,438) |   |   |   | 59,551 |   |
| (Loss)                gain on sales of subsidiaries andinvestments,                net                   |                                    | (161      | )      |                                |   | 1,299 |   |   |   | 3,305 |   |   |   | 2,407 |   |
| (Loss)                gain on investment write-downs and other, net                                 |                                    | (442      | )      |                                |   | 3,794 |   |   |   | (7,288 | ) |   |   | 1,094 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Income                from Continuing Operations Before**                                              |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **                       Income Taxes**                          |                                    | 280,931   |   |                                |   | 379,507 |   |   |   | 447,849 |   |   |   | 591,120 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income                taxes                                                                         |                                    | (116,954  | )      |                                |   | (148,178 | ) |   |   | (182,440 | ) |   |   | (218,814 | ) |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Income                from Continuing Operations**                                                |                                    | 163,977   |   |                                |   | 231,329 |   |   |   | 265,409 |   |   |   | 372,306 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **(Loss)                Income from**                                                                    |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **   Discontinued                Operations, net of tax**(Note                3)     |                                    | (76,143   | )      |                                |   | 2,063 |   |   |   | (74,811 | ) |   |   | 3,931 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                                       |                                    | 87,834    |   |                                |   | 233,392 |   |   |   | 190,598 |   |   |   | 376,237 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                dividends                                                                  |                                    | (2,103    | )      |                                |   | (2,090 | ) |   |   | (4,206 | ) |   |   | (4,180 | ) |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income Attributable to Common Shares**                                         | $                                       | 85,731    |   |                                | $      | 231,302 |   |   | $ | 186,392 |   |   | $ | 372,057 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                Per Share**(Note                2):                                            |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                                   |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                     | $                                       | .53       |   |                                | $      | .72 |   |   | $ | .86 |   |   | $ | 1.17 |   |
| Discontinued                operations                                                                   |                                    | (.25      | )      |                                |   | .01 |   |   |   | (.25 | ) |   |   | .01 |   |
| Net                income                                                                           | $                                       | .28       |   |                                | $      | .73 |   |   | $ | .61 |   |   | $ | 1.18 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                                 |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                     | $                                       | .53       |   |                                | $      | .72 |   |   | $ | .86 |   |   | $ | 1.16 |   |
| Discontinued                operations                                                                   |                                    | (.25      | )      |                                |   | .01 |   |   |   | (.25 | ) |   |   | .01 |   |
| Net                income                                                                           | $                                       | .28       |   |                                | $      | .73 |   |   | $ | .61 |   |   | $ | 1.17 |   |
|                                                                                                     |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                per common share                                                           | $                                       | .18       |   |                                | $      | .18 |   |   | $ | .36 |   |   | $ | .36 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                    | **June                25, 2006** |       |   | **Dec.                25, 2005** |   |
|---------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                    |                             |       |   |                             |   |   |   |
| **Assets**                                              |                             |       |   |                             |   |   |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Current                Assets**                       |                             |       |   |                             |   |   |   |
| Cash                and cash equivalents                | $                                | 113,783    |   |                             | $      | 151,110 |   |
| Accounts                receivable, net                 |                             | 805,502    |   |                             |   | 798,441 |   |
| Inventories                                             |                             | 40,120     |   |                             |   | 44,103 |   |
| Broadcast                rights, net                    |                             | 253,566    |   |                             |   | 308,011 |   |
| Deferred                income taxes                    |                             | 59,547     |   |                             |   | 114,274 |   |
| Assets                held for sale                     |                             | 17,364     |   |                             |   | – |   |
| Prepaid                expenses and other               |                             | 103,681    |   |                             |   | 52,458 |   |
| Total                current assets                     |                             | 1,393,563  |   |                             |   | 1,468,397 |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Properties**                                          |                             |       |   |                             |   |   |   |
| Property,                plant and equipment            |                             | 3,584,011  |   |                             |   | 3,585,841 |   |
| Accumulated                depreciation                 |                             | (1,907,655 | )      |                             |   | (1,853,914 | ) |
| Net                properties                           |                             | 1,676,356  |   |                             |   | 1,731,927 |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Other                Assets**                         |                             |       |   |                             |   |   |   |
| Broadcast                rights, net                    |                             | 299,513    |   |                             |   | 361,376 |   |
| Goodwill                                                |                             | 5,901,613  |   |                             |   | 5,947,142 |   |
| Other                intangible assets, net             |                             | 2,887,986  |   |                             |   | 3,087,723 |   |
| Time                Warner stock related to PHONES debt |                             | 271,520    |   |                             |   | 282,880 |   |
| Other                investments                        |                             | 585,328    |   |                             |   | 632,663 |   |
| Prepaid                pension costs                    |                             | 860,469    |   |                             |   | 871,382 |   |
| Assets                held for sale                     |                             | 232,617    |   |                             |   | 24,436 |   |
| Other                                                   |                             | 122,955    |   |                             |   | 138,316 |   |
| Total                other assets                       |                             | 11,162,001 |   |                             |   | 11,345,918 |   |
| Total                assets                             | $                                | 14,231,920 |   |                             | $      | 14,546,242 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                            | **June                25, 2006** |       |   | **Dec.                25, 2005** |   |
|---------------------------------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                            |                             |       |   |                             |   |   |   |
| **Liabilities                and Shareholders’ Equity**                   |                             |       |   |                             |   |   |   |
|                                                                            |                             |       |   |                             |   |   |   |
| **Current                Liabilities**                                          |                             |       |   |                             |   |   |   |
| Borrowings                under revolving credit agreements                     | $                                | 200,000    |   |                             | $      | – |   |
| Commercial                paper                                                 |                             | 622,327    |   |                             |   | 285,268 |   |
| Long-term                debt due within one year                               |                             | 17,656     |   |                             |   | 17,192 |   |
| Contracts                payable for broadcast rights                           |                             | 298,357    |   |                             |   | 329,930 |   |
| Deferred                income                                                  |                             | 169,132    |   |                             |   | 101,065 |   |
| Liabilities                associated with assets held for sale                 |                             | 10,662     |   |                             |   | – |   |
| Accounts                payable, accrued expenses and other current liabilities |                             | 624,976    |   |                             |   | 713,203 |   |
| Total                current liabilities                                        |                             | 1,943,110  |   |                             |   | 1,446,658 |   |
|                                                                            |                             |       |   |                             |   |   |   |
| **Long-Term                Debt**                                               |                             |       |   |                             |   |   |   |
| PHONES                debt related to Time Warner stock                         |                             | 519,120    |   |                             |   | 509,701 |   |
| Other                long-term debt (less portions due within one year)         |                             | 1,746,220  |   |                             |   | 2,449,561 |   |
| Total                long-term debt                                             |                             | 2,265,340  |   |                             |   | 2,959,262 |   |
|                                                                            |                             |       |   |                             |   |   |   |
| **Other                Non-Current Liabilities**                                |                             |       |   |                             |   |   |   |
| Deferred                income taxes                                            |                             | 2,336,191  |   |                             |   | 2,352,633 |   |
| Contracts                payable for broadcast rights                           |                             | 432,716    |   |                             |   | 528,878 |   |
| Liabilities                associated with assets held for sale                 |                             | 15,675     |   |                             |   | – |   |
| Compensation                and other obligations                               |                             | 515,908    |   |                             |   | 533,260 |   |
| Total                other non-current liabilities                              |                             | 3,300,490  |   |                             |   | 3,414,771 |   |
|                                                                            |                             |       |   |                             |   |   |   |
| **Shareholders’                Equity**                                   |                             |       |   |                             |   |   |   |
| Series                C convertible preferred stock, net of treasury stock      |                             | 44,260     |   |                             |   | 44,260 |   |
| Series                D-1 convertible preferred stock, net of treasury stock    |                             | 38,097     |   |                             |   | 38,097 |   |
| Series                D-2 convertible preferred stock, net of treasury stock    |                             | 24,510     |   |                             |   | 24,510 |   |
| Common                stock and additional paid-in capital                      |                             | 6,808,326  |   |                             |   | 6,820,803 |   |
| Retained                earnings                                                |                             | 2,822,750  |   |                             |   | 2,824,762 |   |
| Treasury                common stock (at cost)                                  |                             | (3,002,707 | )      |                             |   | (3,015,581 | ) |
| Accumulated                other comprehensive income (loss)                    |                             | (12,256    | )      |                             |   | (11,300 | ) |
| Total                shareholders’ equity                                 |                             | 6,722,980  |   |                             |   | 6,725,551 |   |
| Total                liabilities and shareholders’ equity                 | $                                | 14,231,920 |   |                             | $      | 14,546,242 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                                          | **First                Half Ended** |     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|----------|
|                                                                                                                                                                                          | **June                25, 2006**    |     |   | **June                26, 2005** |   |
|                                                                                                                                                                                          |                                |     |   |   |   |   |   |
| **Operations**                                                                                                                                                                                |                                |     |   |   |   |   |   |
| Net                income                                                                                                                                                                | $                                   | 190,598  |   |   | $ | 376,237 |   |
| Adjustments                to reconcile net income to net cash providedby                operations:                                                                                          |                                |     |   |   |   |   |   |
| Stock-based                compensation                                                                                                                                                  |                                | 22,607   |   |   |   | – |   |
| Loss                (gain) on change in fair values of derivatives                             and related investments  |                                | 16,438   |   |   |   | (59,551 | ) |
| Gain                on sales of subsidiaries and investments, net                                                                                                                        |                                | (3,305   | ) |   |   | (2,407 | ) |
| Loss                (gain) on investment write-downs and other, net                                                                                                                      |                                | 7,288    |   |   |   | (1,094 | ) |
| Depreciation                                                                                                                                                                             |                                | 102,004  |   |   |   | 106,401 |   |
| Amortization                of intangible assets                                                                                                                                         |                                | 9,620    |   |   |   | 9,593 |   |
|        Expected                loss on sales of discontinued operations                                                                          |                                | 90,055   |   |   |   | – |   |
| Net                income on equity investments                                                                                                                                          |                                | (32,565  | ) |   |   | (12,368 | ) |
| Distributions                from equity investments                                                                                                                                     |                                | 38,535   |   |   |   | 20,930 |   |
| Deferred                income taxes                                                                                                                                                     |                                | 38,991   |   |   |   | 84,575 |   |
| (Increase)                decrease in accounts receivable                                                                                                                                |                                | (14,097  | ) |   |   | 44,887 |   |
| Increase                (decrease) in employee compensation and         benefits,                deferred income and accrued liabilities         |                                | 13,942   |   |   |   | (25,346 | ) |
| Decrease                in accounts payable                                                                                                                                              |                                | (16,507  | ) |   |   | (11,315 | ) |
| Increase                (decrease) in income taxes payable                                                                                                                               |                                | 8,154    |   |   |   | (9,462 | ) |
| Tax                benefit on stock options exercised                                                                                                                                    |                                | –  |   |   |   | 2,598 |   |
| Other,                net                                                                                                                                                                |                                | (1,329   | ) |   |   | 3,653 |   |
| Net                cash provided by operations                                                                                                                                           |                                | 470,429  |   |   |   | 527,331 |   |
|                                                                                                                                                                                          |                                |     |   |   |   |   |   |
| **Investments**                                                                                                                                                                               |                                |     |   |   |   |   |   |
| Capital                expenditures                                                                                                                                                      |                                | (61,870  | ) |   |   | (72,401 | ) |
| Acquisitions                and investments                                                                                                                                              |                                | (50,095  | ) |   |   | (35,711 | ) |
| Proceeds                from sales of subsidiaries, investments and real estate                                                                                                     |                                | 6,963    |   |   |   | 5,166 |   |
| Net                cash used for investments                                                                                                                                             |                                | (105,002 | ) |   |   | (102,946 | ) |
|                                                                                                                                                                                          |                                |     |   |   |   |   |   |
| **Financing**                                                                                                                                                                                 |                                |     |   |   |   |   |   |
| Borrowings                on revolving credit agreements                                                                                                                                 |                                | 200,000  |   |   |   | – |   |
| Repayments                of commercial paper, net                                                                                                                                       |                                | (301,205 | ) |   |   | (67,404 | ) |
| Repayments                of long-term debt                                                                                                                                              |                                | (55,453  | ) |   |   | (61,106 | ) |
| Additional                tax benefits from stock-based compensation                                                                                                                     |                                | 2,106    |   |   |   | – |   |
| Sales                of common stock to employees, net                                                                                                                                   |                                | 19,632   |   |   |   | 24,535 |   |
| Purchases                of Tribune common stock                                                                                                                                         |                                | (137,746 | ) |   |   | (201,399 | ) |
| Dividends                                                                                                                                                                                |                                | (113,114 | ) |   |   | (118,018 | ) |
| Other                                                                                                                                                                                    |                                | (16,974  | ) |   |   | – |   |
| Net                cash used for financing                                                                                                                                               |                                | (402,754 | ) |   |   | (423,392 | ) |
| **Net                (decrease) increase in cash and cash equivalents**                                                                                                                  |                                | (37,327  | ) |   |   | 993 |   |
|                                                                                                                                                                                          |                                |     |   |   |   |   |   |
| Cash                and cash equivalents, beginning of year                                                                                                                              |                                | 151,110  |   |   |   | 124,411 |   |
|                                                                                                                                                                                          |                                |     |   |   |   |   |   |
| Cash                and cash equivalents, end of quarter                                                                                                                                 | $                                   | 113,783  |   |   | $ | 125,404 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1:   BASIS OF PREPARATION**

----

**NOTE      2:   EARNINGS PER SHARE**

|                                                                                                                        | **Second                Quarter Ended** |    |   | **First                Half Ended** |   |
|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|---------|--------|-------------------------------------|--------|
| (in                thousands, except per share data)                                                                        | **June                25, 2006**        |    |   | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                                                                                        |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                EPS:**                                                                                               |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                       | $                                       | 163,977 |   |                                | $      | 231,329 |   |   | $ | 265,409 |   |   | $ | 372,306 |   |
| (Loss)                income from discontinued operations,    net                of                tax  |                                    | (76,143 | )      |                                |   | 2,063 |   |   |   | (74,811 | ) |   |   | 3,931 |   |
| Net                income                                                                                              |                                    | 87,834  |   |                                |   | 233,392 |   |   |   | 190,598 |   |   |   | 376,237 |   |
| Preferred                dividends                                                                                     |                                    | (2,103  | )      |                                |   | (2,090 | ) |   |   | (4,206 | ) |   |   | (4,180 | ) |
| Net                income attributable to common shares                                                                | $                                       | 85,731  |   |                                | $      | 231,302 |   |   | $ | 186,392 |   |   | $ | 372,057 |   |
|                                                                                                                        |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                              |                                    | 302,683 |   |                                |   | 315,466 |   |   |   | 303,451 |   |   |   | 316,387 |   |
| Basic                EPS:                                                                                                   |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                        | $                                       | .53     |   |                                | $      | .72 |   |   | $ | .86 |   |   | $ | 1.17 |   |
| Discontinued                operations                                                                                      |                                    | (.25    | )      |                                |   | .01 |   |   |   | (.25 | ) |   |   | .01 |   |
|                        Net income                                                   | $                                       | .28     |   |                                | $      | .73 |   |   | $ | .61 |   |   | $ | 1.18 |   |
|                                                                                                                        |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS:**                                                                                             |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                       | $                                       | 163,977 |   |                                | $      | 231,329 |   |   | $ | 265,409 |   |   | $ | 372,306 |   |
| (Loss)                income from discontinued operations,   net                of                tax        |                                    | (76,143 | )      |                                |   | 2,063 |   |   |   | (74,811 | ) |   |   | 3,931 |   |
| Net                income                                                                                              |                                    | 87,834  |   |                                |   | 233,392 |   |   |   | 190,598 |   |   |   | 376,237 |   |
| Preferred                dividends                                                                                     |                                    | (2,103  | )      |                                |   | (2,090 | ) |   |   | (4,206 | ) |   |   | (4,180 | ) |
| Net                income attributable to common shares                                                                | $                                       | 85,731  |   |                                | $      | 231,302 |   |   | $ | 186,392 |   |   | $ | 372,057 |   |
|                                                                                                                        |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                              |                                    | 302,683 |   |                                |   | 315,466 |   |   |   | 303,451 |   |   |   | 316,387 |   |
| Adjustment                for stock-based awards, net                                                                  |                                    | 1,809   |   |                                |   | 2,552 |   |   |   | 1,596 |   |   |   | 2,782 |   |
| Adjusted                weighted average common sharesoutstanding                                                           |                                    | 304,492 |   |                                |   | 318,018 |   |   |   | 305,047 |   |   |   | 319,169 |   |
|                                                                                                                        |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                EPS:                                                                                                 |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                        | $                                       | .53     |   |                                | $      | .72 |   |   | $ | .86 |   |   | $ | 1.16 |   |
| Discontinued                operations                                                                                      |                                    | (.25    | )      |                                |   | .01 |   |   |   | (.25 | ) |   |   | .01 |   |
|                        Net income                                                   | $                                       | .28     |   |                                | $      | .73 |   |   | $ | .61 |   |   | $ | 1.17 |   |

**NOTE      3:   DISCONTINUED OPERATIONS AND ASSETS HELD FOR      SALE**

**Sales      of WATL-TV, Atlanta and WCWN-TV, Albany **
** **

----

|                                                                                                                                                        | **Second                Quarter Ended** |          |    | **First                Half Ended** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|---------------|---------|-------------------------------------|--------|
| (in                thousands)                                                                                                                               | **June                25, 2006**        |          |    | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                                                                                                                        |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                                                                      | $                                       | 10,400        |    |                                | $      | 10,079 |   |   | $ | 19,922 |   |   | $ | 19,925 |   |
|                                                                                                                                                        |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit                                                                                                                        | $                                       | 3,095         |    |                                | $      | 3,385 |   |   | $ | 5,293 |   |   | $ | 6,446 |   |
| Expected                loss on sales of discontinued                       operations                                   |                                    |  (90,055 |  ) |                                |   |  – |   |   |   |  (90,055 |  ) |   |   |  – |   |
| (Loss)                income from discontinued operations                       before                income taxes  |                                    |  (86,960 |  ) |                                |   |  3,385 |   |   |   |  (84,762 |  ) |   |   |  6,446 |   |
| Income                taxes (1)                                                                                                                        |                                    | 10,817        |    |                                |   | (1,322 | ) |   |   | 9,951 |   |   |   | (2,515 | ) |
| (Loss)              income from              discontinued operations, net                                                                              |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
|                         of                tax                                                                       | $                                       | (76,143       | )       |                                | $      | 2,063 |   |   | $ | (74,811 | ) |   | $ | 3,931 |   |
|                                                                                                                                                        |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                income from discontinued                        operations per share:                              |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
|         Basic                                                                                                  | $                                       | (.25          | )       |                                | $      | .01 |   |   | $ | (.25 | ) |   | $ | .01 |   |
|         Diluted                                                                                                | $                                       | (.25          | )       |                                | $      | .01 |   |   | $ | (.25 | ) |   | $ | .01 |   |

**Consolidation      of **
***Los      Angeles Times***
**’      Production Operations **
*Los      Angeles Times*
*Los      Angeles Times’*

----

**NOTE      4:   INCOME TAXES**

**Matthew      Bender and Mosby Tax Liability –**

----

| Liability                at Dec. 25, 2005                                                                       | $                87 |   |
|---------------------------------------------------------------------------------------------------------------------------|---------------------|--------|
| California                tax and interest paid in February 2006:                                                         |                |   |
| State                tax ($55 million pretax)                                                                             | (36                 | )      |
| After-tax                interest ($31 million pretax)                                                               | (19                 | )      |
| Liability                at June 25, 2006 (included in “other current                liabilities”)  | $                32 |   |

**PHONES      Interest **

**Other      **

**NOTE      5:   **
***NEWSDAY***
**      AND **
***HOY***
**,      NEW YORK CHARGE**

*Newsday*
*Hoy*
*Newsday*
*Newsday*

*Newsday*
*Hoy*
*Newsday*
*Hoy*
*Newsday*
*Hoy*

*Newsday*
*Hoy*

----

*Newsday*
*Hoy*

| Advertiser                settlement accrual balance at Dec. 28, 2003  | $      | – |   |
|-----------------------------------------------------------------------------|--------|---------|--------|
| 2004                provision                                               |   | 90      |   |
|     2004                payments                   |   | (41     | )      |
| Advertiser                settlement accrual balance at Dec. 26, 2004  |   | 49      |   |
| 2005                payments                                                |   | (34     | )      |
| Advertiser                settlement accrual balance at Dec. 25, 2005  |   | 15      |   |
| First                half 2006 payments                                     |   | (3      | )      |
| Advertiser                settlement accrual balance at June 25, 2006  | $      | 12      |   |

*Newsday      *
*Hoy,*

*Newsday      *
*Hoy*

*Newsday*
*Hoy*
*Newsday*
*Hoy,      *

**NOTE      6:   STOCK-BASED COMPENSATION**

----

|                                                        | **Second                Quarter Ended** |   |   | **First                Half Ended** |   |
|-------------------------------------------------------------|-----------------------------------------|--------|--------|-------------------------------------|--------|
| (in                thousands)                               | **June                25, 2006**        |   |   | **June                25, 2006**    |   |
|                                                        |                                    |   |   |                                |   |   |   |
| Stock-based                compensation expense:            |                                    |   |   |                                |   |   |   |
| Options                                                     | $                                       | 808    |   |                                | $      | 7,530 |   |
| Restricted                stock units                       |                                    | 3,406  |   |                                |   | 13,570 |   |
| Employee                stock purchase plan                 |                                    | 718    |   |                                |   | 1,507 |   |
| Total                stock-based compensation expense  | $                                       | 4,932  |   |                                | $      | 22,607 |   |

|                                                                                            | **Pro                Forma****Second                Quarter Ended** |    |   | **Pro                Forma****First                Half Ended** |   |
|-------------------------------------------------------------------------------------------------|---------------------------------------------------------------------|---------|--------|-----------------------------------------------------------------|--------|
| (in                thousands, except per share data)                                            | **June                26, 2005**                                    |    |   | **June                26, 2005**                                |   |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
| Net                income, as reported                                                     | $                                                                   | 233,392 |   |                                                            | $      | 376,237 |   |
| Less:                 Pro forma stock-basedcompensation                expense, net of tax |                                                                |    |   |                                                            |   |   |   |
| General                options                                                                  |                                                                | (47,911 | )      |                                                            |   | (58,962 | ) |
| Replacement                options                                                              |                                                                | (122    | )      |                                                            |   | (1,154 | ) |
| Employee                stock purchase plan                                                     |                                                                | (893    | )      |                                                            |   | (1,801 | ) |
| Total                stock-based compensation expense, net of tax                          |                                                                | (48,926 | )      |                                                            |   | (61,917 | ) |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
| Pro                forma net income                                                        |                                                                | 184,466 |   |                                                            |   | 314,320 |   |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
| Preferred                dividends                                                         |                                                                | (2,090  | )      |                                                            |   | (4,180 | ) |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
| Net                income attributable to common shares                                    | $                                                                   | 182,376 |   |                                                            | $      | 310,140 |   |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
| Net                income per share:                                                            |                                                                |    |   |                                                            |   |   |   |
|                     Basic:                                                  |                                                                |    |   |                                                            |   |   |   |
| As                reported                                                                 | $                                                                   | .73     |   |                                                            | $      | 1.18 |   |
| Pro                forma                                                                   | $                                                                   | .58     |   |                                                            | $      | .98 |   |
|                                                                                            |                                                                |    |   |                                                            |   |   |   |
|                     Diluted:                                                |                                                                |    |   |                                                            |   |   |   |
| As                reported                                                                 | $                                                                   | .73     |   |                                                            | $      | 1.17 |   |
| Pro                forma                                                                   | $                                                                   | .57     |   |                                                            | $      | .97 |   |

----

|                                  | **June                25, 2006** |
|---------------------------------------|----------------------------------|
|                                  | **Non-vested**                   |   | **Average                Remaining** |
| (in                thousands)         | **Compensation**                 |   | **Recognition                Period** |
|                                  |                             |   |   |   |
| Options                               | $                                | 6,946 |   | 2.64                years |
| Restricted                stock units |                             | 29,328 |   | 2.64                years |
| Total                                 | $                                | 36,274 |   |   |

----

|                                           | **Second                Quarter Ended** |
|------------------------------------------------|-----------------------------------------|
|                                           | **June                25, 2006**        |   | **June                26, 2005** |
|                                           | **General**                             |   | **Replacement** |   | **General** |   | **Replacement** |
|                                           | **Awards**                              |   | **Awards** |   | **Awards** |   | **Awards** |
|                                           |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk-free                interest rate         |                                    | * |   |   |   | * |   |   | 3.7% |   |   |   | * |   |
| Expected                dividend yield         |                                    | * |   |   |   | * |   |   | 1.8% |   |   |   | * |   |
| Expected                stock price volatility |                                    | * |   |   |   | * |   |   | 25.0% |   |   |   | * |   |
| Expected                life (in years)        |                                    | * |   |   |   | * |   |   | 5 |   |   |   | * |   |
|                                           |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average fair value     | $                                       | * |   |   | $ | * |   | $ | 9.10 |   |   | $ | * |   |

|                                           | **First                Half Ended** |
|------------------------------------------------|-------------------------------------|
|                                           | **June                25, 2006**    |   | **June                26, 2005** |
|                                           | **General**                         |   | **Replacement** |   | **General** |   | **Replacement** |
|                                           | **Awards**                          |   | **Awards** |   | **Awards** |   | **Awards** |
|                                           |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Risk-free                interest rate         |                                | 4.6% |   |   |   | * |   |   | 3.7% |   |   |   | 3.3% |   |
| Expected                dividend yield         |                                | 2.5% |   |   |   | * |   |   | 1.8% |   |   |   | 1.8% |   |
| Expected                stock price volatility |                                | 22.0% |   |   |   | * |   |   | 28.1% |   |   |   | 22.8% |   |
| Expected                life (in years)        |                                | 4 |   |   |   | * |   |   | 5 |   |   |   | 3 |   |
|                                           |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average fair value     | $                                   | 5.96 |   |   | $ | * |   | $ | 10.50 |   |   | $ | 6.96 |   |

**Incentive      Compensation**
* *

----

|                                             | **Second                Quarter Ended** |    | **Second                Quarter Ended** |
|--------------------------------------------------|-----------------------------------------|---------|-----------------------------------------|
|                                             | **June                25, 2006**        |    | **June                26, 2005**        |
|                                             |                                    |    | **Weighted**                            |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |
|                                             |                                    |    | **Avg.                Exercise**        |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |
| (shares                in thousands)             | **Shares**                              |    | **Price**                               |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |
|                                             |                                    |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of quarter | 35,724                                  |    | $                                       | 38.06 |   | $ | 14.50 |   | 36,225 |   | $ | 38.17 |   | $ | 15.07 |
| Granted                                          | –                                 |    |                                    | – |   |   | – |   | 50 |   |   | 28.26 |   |   | 15.82 |
| Exercised                                        | (372                                    | )  |                                    | 20.93 |   |   | 18.65 |   | (221 | ) |   | 21.96 |   |   | 17.33 |
| Canceled/forfeited                               | (449                                    | )  |                                    | 42.80 |   |   | 13.80 |   | (366 | ) |   | 43.40 |   |   | 13.73 |
| Outstanding,                end of quarter       | 34,903                                  |    | $                                       | 38.15 |   | $ | 14.46 |   | 35,688 |   | $ | 38.20 |   | $ | 15.07 |
|                                             |                                    |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of quarter       | 32,907                                  |    | $                                       | 38.55 |   | $ | 14.97 |   | 29,684 |   | $ | 37.51 |   | $ | 15.70 |

|                                          | **First                Half Ended** |   | **First                Half Ended** |
|-----------------------------------------------|-------------------------------------|--------|-------------------------------------|
|                                          | **June                25, 2006**    |   | **June                26, 2005**    |
|                                          |                                |   | **Weighted**                        |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |
|                                          |                                |   | **Avg.                Exercise**    |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |
|                                          | **Shares**                          |   | **Price**                           |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |
|                                          |                                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of year | 34,489                              |   | $                                   | 38.38 |   | $ | 15.02 |   | 33,051 |   | $ | 37.87 |   | $ | 15.59 |
| Granted                                       | 1,925                               |   |                                | 31.16 |   |   | 5.96 |   | 3,782 |   |   | 40.45 |   |   | 10.58 |
| Exercised                                     | (556                                | )      |                                | 20.52 |   |   | 20.84 |   | (562 | ) |   | 27.83 |   |   | 16.39 |
| Canceled/forfeited                            | (955                                | )      |                                | 42.51 |   |   | 13.75 |   | (583 | ) |   | 44.31 |   |   | 13.91 |
| Outstanding,                end of half       | 34,903                              |   | $                                   | 38.15 |   | $ | 14.46 |   | 35,688 |   | $ | 38.20 |   | $ | 15.07 |
|                                          |                                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of half       | 32,907                              |   | $                                   | 38.55 |   | $ | 14.97 |   | 29,684 |   | $ | 37.51 |   | $ | 15.70 |

|                                           | **Second                Quarter Ended** |   | **Second                Quarter Ended** |
|------------------------------------------------|-----------------------------------------|--------|-----------------------------------------|
|                                           | **June                25, 2006**        |   | **June                26, 2005**        |
|                                           |                                    |   |                                    | **Weighted                Avg.** |   |   |   |   | **Weighted                Avg.** |
| (shares                in thousands)           | **Shares**                              |   |                                    | **Fair                Value*** |   | **Shares** |   |   | **Fair                Value*** |
|                                           |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Nonvested,                beginning of quarter | 2,010                                   |   |                                    | $ | 6.16 |   |   | 10,811 |   |   | $ | 13.15 |   |
| Granted                                        | –                                 |   |                                    |   | – |   |   | 50 |   |   |   | 15.82 |   |
| Vested                                         | (16                                     | )      |                                    |   | 6.16 |   |   | (4,710 | ) |   |   | 13.15 |   |
| Forfeited                                      | –                                 |   |                                    |   | – |   |   | (147 | ) |   |   | 13.58 |   |
| Nonvested,                end of quarter       | 1,994                                   |   |                                    | $ | 6.12 |   |   | 6,004 |   |   | $ | 11.95 |   |

|                                        | **First                Half Ended** |   | **First                Half Ended** |
|---------------------------------------------|-------------------------------------|--------|-------------------------------------|
|                                        | **June                25, 2006**    |   | **June                26, 2005**    |
|                                        |                                |   |                                | **Weighted                Avg.** |   |   |   |   | **Weighted                Avg.** |
|                                        | **Shares**                          |   |                                | **Fair                Value*** |   | **Shares** |   |   | **Fair                Value*** |
|                                        |                                |   |                                |   |   |   |   |   |   |   |   |   |   |
| Nonvested,                beginning of year | 1,496                               |   |                                | $ | 13.63 |   |   | 12,536 |   |   | $ | 14.34 |   |
| Granted                                     | 1,925                               |   |                                |   | 5.96 |   |   | 3,782 |   |   |   | 10.58 |   |
| Vested                                      | (1,420                              | )      |                                |   | 13.63 |   |   | (10,022 | ) |   |   | 14.34 |   |
| Forfeited                                   | (7                                  | )      |                                |   | 13.81 |   |   | (292 | ) |   |   | 13.94 |   |
| Nonvested,                end of half       | 1,994                               |   |                                | $ | 6.12 |   |   | 6,004 |   |   | $ | 11.95 |   |

----

|                                             | **Second                Quarter Ended** |   | **Second                Quarter Ended** |
|--------------------------------------------------|-----------------------------------------|--------|-----------------------------------------|
|                                             | **June                25, 2006**        |   | **June                26, 2005**        |
|                                             |                                    |   | **Weighted**                            |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |
|                                             |                                    |   | **Avg.                Exercise**        |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |
| (shares                in thousands)             | **Shares**                              |   | **Price**                               |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |
|                                             |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of quarter | 9,281                                   |   | $                                       | 47.78 |   | $ | 8.07 |   | 10,589 |   | $ | 47.76 |   | $ | 8.08 |
| Granted                                          | –                                 |   |                                    | – |   |   | – |   | – |   |   | – |   |   | – |
| Exercised                                        | –                                 |   |                                    | – |   |   | – |   | – |   |   | – |   |   | – |
| Canceled/forfeited                               | (259                                    | )      |                                    | 47.67 |   |   | 8.31 |   | (180 | ) |   | 45.97 |   |   | 8.48 |
| Outstanding,                end of quarter       | 9,022                                   |   | $                                       | 47.78 |   | $ | 8.06 |   | 10,409 |   | $ | 47.79 |   | $ | 8.08 |
|                                             |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of quarter       | 9,022                                   |   | $                                       | 47.78 |   | $ | 8.06 |   | 10,306 |   | $ | 47.84 |   | $ | 8.11 |

|                                          | **First                Half Ended** |   | **First                Half Ended** |
|-----------------------------------------------|-------------------------------------|--------|-------------------------------------|
|                                          | **June                25, 2006**    |   | **June                26, 2005**    |
|                                          |                                |   | **Weighted**                        |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |
|                                          |                                |   | **Avg.                Exercise**    |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |
|                                          | **Shares**                          |   | **Price**                           |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |
|                                          |                                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of year | 9,520                               |   | $                                   | 47.79 |   | $ | 8.06 |   | 10,892 |   | $ | 47.81 |   | $ | 8.11 |
| Granted                                       | –                             |   |                                | – |   |   | – |   | 13 |   |   | 41.83 |   |   | 6.96 |
| Exercised                                     | –                             |   |                                | – |   |   | – |   | (13 | ) |   | 40.84 |   |   | 8.79 |
| Canceled/forfeited                            | (498                                | )      |                                | 47.94 |   |   | 7.98 |   | (483 | ) |   | 48.21 |   |   | 8.85 |
| Outstanding,                end of half       | 9,022                               |   | $                                   | 47.78 |   | $ | 8.06 |   | 10,409 |   | $ | 47.79 |   | $ | 8.08 |
|                                          |                                |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of half       | 9,022                               |   | $                                   | 47.78 |   | $ | 8.06 |   | 10,306 |   | $ | 47.84 |   | $ | 8.11 |

|                                           | **Second                Quarter Ended** |   | **Second                Quarter Ended** |
|------------------------------------------------|-----------------------------------------|--------|-----------------------------------------|
|                                           | **June                25, 2006**        |   | **June                26, 2005**        |
|                                           |                                    |   |                                    | **Weighted                Avg.** |   |   |   |   | **Weighted                Avg.** |
| (shares                in thousands)           | **Shares**                              |   |                                    | **Fair                Value*** |   | **Shares** |   |   | **Fair                Value*** |
|                                           |                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Nonvested,                beginning of quarter | –                                 |   |                                    | $ | – |   |   | 234 |   |   | $ | 6.27 |   |
| Granted                                        | –                                 |   |                                    |   | – |   |   | – |   |   |   | – |   |
| Vested                                         | –                                 |   |                                    |   | – |   |   | (132 | ) |   |   | 6.27 |   |
| Forfeited                                      | –                                 |   |                                    |   | – |   |   | – |   |   |   | – |   |
| Nonvested,                end of quarter       | –                                 |   |                                    | $ | – |   |   | 102 |   |   | $ | 5.11 |   |

|                                        | **First                Half Ended** |   | **First                Half Ended** |
|---------------------------------------------|-------------------------------------|--------|-------------------------------------|
|                                        | **June                25, 2006**    |   | **June                26, 2005**    |
|                                        |                                |   |                                | **Weighted                Avg.** |   |   |   |   | **Weighted                Avg.** |
|                                        | **Shares**                          |   |                                | **Fair                Value*** |   | **Shares** |   |   | **Fair                Value*** |
|                                        |                                |   |                                |   |   |   |   |   |   |   |   |   |   |
| Nonvested,                beginning of year | 13                                  |   |                                | $ | 6.96 |   |   | 2,256 |   |   | $ | 7.45 |   |
| Granted                                     | –                             |   |                                |   | – |   |   | 13 |   |   |   | 6.96 |   |
| Vested                                      | (13                                 | )      |                                |   | 6.96 |   |   | (2,166 | ) |   |   | 7.45 |   |
| Forfeited                                   | –                             |   |                                |   | – |   |   | (1 | ) |   |   | 7.18 |   |
| Nonvested,                end of half       | –                             |   |                                | $ | – |   |   | 102 |   |   | $ | 5.11 |   |

----

** **
** **

|                                                           | **Second                Quarter Ended** |
|----------------------------------------------------------------|-----------------------------------------|
|                                                           | **June                25, 2006**        |
|                                                           |                                    |   | **Weighted                Avg.** |
| (units                in thousands)                            | **Units**                               |   | **Fair                Value*** |
|                                                           |                                    |   |   |   |
| Outstanding                and nonvested, beginning of quarter | 1,493                                   |   | $ | 31.16 |
| Restricted                stock units granted                  | 2                                       |   |   | 27.62 |
| Dividend                equivalent units granted               | 8                                       |   |   | 27.62 |
| Forfeited                                                      | (8                                      | ) |   | 31.00 |
| Vested                and issued                               | –                                 |   |   | – |
| Outstanding                and nonvested, end of quarter       | 1,495                                   |   | $ | 30.90 |

|                                                        | **First                Half Ended** |
|-------------------------------------------------------------|-------------------------------------|
|                                                        | **June                25, 2006**    |
|                                                        |                                |   | **Weighted                Avg.** |
|                                                        | **Units**                           |   | **Fair                Value*** |
|                                                        |                                |   |   |   |
| Outstanding                and nonvested, beginning of year | –                             |   | $ | – |
| Restricted                stock units granted               | 1,493                               |   |   | 31.15 |
| Dividend                equivalent units granted            | 16                                  |   |   | 30.81 |
| Forfeited                                                   | (14                                 | ) |   | 32.29 |
| Vested                and issued                            | –                             |   |   | – |
| Outstanding                and nonvested, end of half       | 1,495                               |   | $ | 30.90 |

----

**Employee      Stock Purchase Plan**

**NOTE      7:   PENSION AND POSTRETIREMENT BENEFITS**

|                                                        | **Pension                Benefits**     |    |   | **Other                Postretirement Benefits** |   |
|-------------------------------------------------------------|-----------------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                        | **Second                Quarter Ended** |    |   | **Second                Quarter Ended**          |   |
| (in                thousands)                               | **June                25, 2006**        |    |   | **June                26, 2005**                 |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                        |                                    |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Service                cost                            | $                                       | 776     |   |                                             | $      | 6,323 |   |   | $ | 322 |   |   | $ | 299 |   |
| Interest                cost                           |                                    | 20,960  |   |                                             |   | 20,106 |   |   |   | 1,889 |   |   |   | 1,395 |   |
| Expected                return on plans’ assets  |                                    | (32,088 | )      |                                             |   | (31,903 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss (gain)        |                                    | 17,217  |   |                                             |   | 13,877 |   |   |   | (75 | ) |   |   | (219 | ) |
| Amortization                of prior service costs     |                                    | 75      |   |                                             |   | (350 | ) |   |   | (361 | ) |   |   | (359 | ) |
| Amortization                of transition asset        |                                    | – |   |                                             |   | (1 | ) |   |   | – |   |   |   | – |   |
| Special                termination benefits (1)        |                                    | 420     |   |                                             |   | – |   |   |   | – |   |   |   | – |   |
| Net                periodic benefit cost               | $                                       | 7,360   |   |                                             | $      | 8,052 |   |   | $ | 1,775 |   |   | $ | 1,116 |   |

|                                                        | **Pension                Benefits** |    |   | **Other                Postretirement Benefits** |   |
|-------------------------------------------------------------|-------------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                        | **First                Half Ended** |    |   | **First                Half Ended**              |   |
| (in                thousands)                               | **June                25, 2006**    |    |   | **June                26, 2005**                 |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                        |                                |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Service                cost                            | $                                   | 1,889   |   |                                             | $      | 12,594 |   |   | $ | 667 |   |   | $ | 735 |   |
| Interest                cost                           |                                | 41,412  |   |                                             |   | 40,740 |   |   |   | 3,683 |   |   |   | 3,887 |   |
| Expected                return on plans’ assets  |                                | (63,213 | )      |                                             |   | (63,681 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss (gain)        |                                | 32,915  |   |                                             |   | 29,403 |   |   |   | (63 | ) |   |   | (219 | ) |
| Amortization                of prior service costs     |                                | 109     |   |                                             |   | (708 | ) |   |   | (722 | ) |   |   | (722 | ) |
| Amortization                of transition asset        |                                | – |   |                                             |   | (2 | ) |   |   | – |   |   |   | – |   |
| Special                termination benefits (1)        |                                | 1,381   |   |                                             |   | – |   |   |   | – |   |   |   | – |   |
| Net                periodic benefit cost               | $                                   | 14,493  |   |                                             | $      | 18,346 |   |   | $ | 3,565 |   |   | $ | 3,681 |   |

----

**NOTE      8:   NON-OPERATING ITEMS**

|                                                                                                    | **Second                Quarter Ended** |    |   | **First                Half Ended** |   |
|---------------------------------------------------------------------------------------------------------|-----------------------------------------|---------|--------|-------------------------------------|--------|
|                                                                                                    | **June                25, 2006**        |    |   | **June                25, 2006**    |   |
| (in                thousands)                                                                           | **Pretax****Loss**                      |    |   | **After-tax****Loss**               |   |   | **Pretax****Gain                (Loss)** |   |   | **After-tax****Gain                (Loss)** |   |
|                                                                                                    |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                       | (6,121  | )      |                                | $      | (3,734 | ) |   | $ | (16,438 | ) |   | $ | (10,027 | ) |
| (Loss)                gain on sales of investments                                                 |                                    | (161    | )      |                                |   | (98 | ) |   |   | 3,305 |   |   |   | 2,016 |   |
| Loss                on investment write-downs and other, net                                       |                                    | (442    | )      |                                |   | (270 | ) |   |   | (7,288 | ) |   |   | (4,446 | ) |
| Income                tax settlements and adjustments                                              |                                    | – |   |                                |   | (3,595 | ) |   |   | – |   |   |   | (3,595 | ) |
| Total                non-operating items                                                           | $                                       | (6,724  | )      |                                | $      | (7,697 | ) |   | $ | (20,421 | ) |   | $ | (16,052 | ) |

|                                                                                                    | **Second                Quarter Ended** |    |   | **First                Half Ended** |   |
|---------------------------------------------------------------------------------------------------------|-----------------------------------------|---------|--------|-------------------------------------|--------|
|                                                                                                    | **June                26, 2005**        |    |   | **June                26, 2005**    |   |
| (in                thousands)                                                                           | **Pretax****Gain**                      |    |   | **After-tax****Gain**               |   |   | **Pretax****Gain** |   |   | **After-tax****Gain** |   |
|                                                                                                    |                                    |    |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on change in fair valuesof                derivatives and related investments  | $                                       | 61,803  |   |                                | $      | 37,700 |   |   | $ | 59,551 |   |   | $ | 36,326 |   |
| Gain                on sales of subsidiaries and investments, net                                  |                                    | 1,299   |   |                                |   | 792 |   |   |   | 2,407 |   |   |   | 1,469 |   |
| Other,                net                                                                          |                                    | 3,794   |   |                                |   | 2,315 |   |   |   | 1,094 |   |   |   | 667 |   |
| Income                tax settlements and adjustments                                              |                                    | – |   |                                |   | – |   |   |   | – |   |   |   | 11,829 |   |
| Total                non-operating items                                                           | $                                       | 66,896  |   |                                | $      | 40,807 |   |   | $ | 63,052 |   |   | $ | 50,291 |   |

----

**NOTE      9:   INVENTORIES**

| (in                thousands)     | **June                25, 2006** |   |   | **Dec.                25, 2005** |   |
|-----------------------------------|----------------------------------|--------|--------|----------------------------------|--------|
|                              |                             |   |   |                             |   |   |   |
| Newsprint                         | $                                | 27,397 |   |                             | $      | 32,672 |   |
| Supplies                and other |                             | 12,723 |   |                             |   | 11,431 |   |
| Total                inventories  | $                                | 40,120 |   |                             | $      | 44,103 |   |

**NOTE      10:   GOODWILL AND OTHER INTANGIBLE ASSETS**

|                                                                                                   | **June                25, 2006** |    |   | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------------------------------------|----------------------------------|---------|--------|----------------------------------|--------|
|                                                                                                   | **Gross**                        |    |   | **Accumulated**                  |   |   | **Net** |   |   | **Gross** |   |   | **Accumulated** |   |   | **Net** |   |
| (in                thousands)                                                                          | **Amount**                       |    |   | **Amortization**                 |   |   | **Amount** |   |   | **Amount** |   |   | **Amortization** |   |   | **Amount** |   |
|                                                                                                   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Intangible                assets subject to****amortization:**                                       |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscribers                (useful life of 15to                20 years)                               | $                                | 190,657 |   |                             | $      | (67,134 | ) |   | $ | 123,523 |   |   | $ | 190,657 |   |   | $ | (62,110 | ) |   | $ | 128,547 |   |
| Network                affiliation agreements(useful                life of 40 years) (1) (2)          |                             | 278,034 |   |                             |   | (19,103 | ) |   |   | 258,931 |   |   |   | 290,320 |   |   |   | (16,330 | ) |   |   | 273,990 |   |
| Other                (useful life of 3 to 40 years)                                               |                             | 28,555  |   |                             |   | (7,685 | ) |   |   | 20,870 |   |   |   | 23,482 |   |   |   | (6,696 | ) |   |   | 16,786 |   |
| Total                                                                                             | $                                | 497,246 |   |                             | $      | (93,922 | ) |   |   | 403,324 |   |   | $ | 504,459 |   |   | $ | (85,136 | ) |   |   | 419,323 |   |
|                                                                                                   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Goodwill                and other intangible assets****not                subject to amortization:** |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                               |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                                                             |                             |    |   |                             |   |   |   |   |   | 4,415,741 |   |   |   |   |   |   |   |   |   |   |   | 4,380,483 |   |
| Broadcasting                and entertainment (2)                                                      |                             |    |   |                             |   |   |   |   |   | 1,485,872 |   |   |   |   |   |   |   |   |   |   |   | 1,566,659 |   |
| Total                goodwill                                                                     |                             |    |   |                             |   |   |   |   |   | 5,901,613 |   |   |   |   |   |   |   |   |   |   |   | 5,947,142 |   |
| Newspaper                mastheads                                                                |                             |    |   |                             |   |   |   |   |   | 1,575,814 |   |   |   |   |   |   |   |   |   |   |   | 1,575,814 |   |
| FCC                licenses (2)                                                                   |                             |    |   |                             |   |   |   |   |   | 900,916 |   |   |   |   |   |   |   |   |   |   |   | 1,084,654 |   |
| Tradename                                                                                         |                             |    |   |                             |   |   |   |   |   | 7,932 |   |   |   |   |   |   |   |   |   |   |   | 7,932 |   |
| Total                                                                                             |                             |    |   |                             |   |   |   |   |   | 8,386,275 |   |   |   |   |   |   |   |   |   |   |   | 8,615,542 |   |
|                                                                                                   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                goodwill and other intangibleassets                                               |                             |    |   |                             |   |   |   |   | $ | 8,789,599 |   |   |   |   |   |   |   |   |   |   | $ | 9,034,865 |   |

| (1)   | At                June 25, 2006, network affiliation agreements, net of accumulated                amortization, included $181 million related to Fox affiliations and                $78                million related to WB affiliations. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The                declines in network affiliation agreements, broadcasting and entertainment                goodwill and FCC licenses during the first half of 2006 reflect the                reclassification of WATL-TV, Atlanta and WCWN-TV, Albany as assets                held                for sale (see Note 3). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE      11:   DEBT**

| (in                thousands)                                                                                                                                        | **June                25, 2006** |      |   | **Dec.                25, 2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------|--------|----------------------------------|--------|
|                                                                                                                                                                 |                             |      |   |                             |   |   |   |
| Borrowings                under revolving credit agreements, interest rate of 5.5%                                                                              | $                                | 200,000   |   |                             | $      | – |   |
| Commercial                paper, weighted average interest rate of 5.3%and                4.4%, respectively                                                         |                             | 622,327   |   |                             |   | 923,532 |   |
| Medium-term                notes, weighted average interest rate of 6.2% in 2006 and 2005,                    due                2006-2008  |                             | 512,585   |   |                             |   | 555,585 |   |
| Property                financing obligation, effective interest rate of7.7%,                expiring 2009                                                           |                             | 52,912    |   |                             |   | 60,372 |   |
| 4.875%                notes due 2010, net of unamortized discount of $641and                $718, respectively                                                       |                             | 449,359   |   |                             |   | 449,282 |   |
| 7.25%                debentures due 2013, net of unamortized discount of $2,308and                $2,478, respectively                                               |                             | 79,775    |   |                             |   | 79,605 |   |
| 5.25%                debentures due 2015, net of unamortized discount of $1,441and                $1,519, respectively                                               |                             | 328,559   |   |                             |   | 328,481 |   |
| 7.5%                debentures due 2023, net of unamortized discount of $4,086and                $4,204, respectively                                                |                             | 94,664    |   |                             |   | 94,546 |   |
| 6.61%                debentures due 2027, net of unamortized discount of $2,253and                $2,305, respectively                                               |                             | 82,707    |   |                             |   | 82,655 |   |
| 7.25%                debentures due 2096, net of unamortized discount of $18,210and                $18,304, respectively                                             |                             | 129,790   |   |                             |   | 129,696 |   |
| Interest                rate swap                                                                                                                               |                             | 16,158    |   |                             |   | 29,714 |   |
| Other                notes and obligations                                                                                                                      |                             | 17,367    |   |                             |   | 18,553 |   |
| Total                debt excluding PHONES                                                                                                                      |                             | 2,586,203 |   |                             |   | 2,752,021 |   |
| Less                portions due within one year                                                                                                                |                             | (839,983  | )      |                             |   | (302,460 | ) |
| Long-term                debt excluding PHONES                                                                                                                  |                             | 1,746,220 |   |                             |   | 2,449,561 |   |
| 2%                PHONES debt related to Time Warner stock, due 2029                                                                                            |                             | 519,120   |   |                             |   | 509,701 |   |
| Total                long-term debt                                                                                                                             | $                                | 2,265,340 |   |                             | $      | 2,959,262 |   |

**Debt      due within one year –**

**Exchangeable      Subordinated Debentures due 2029 (“PHONES”) –**

----

| (in                thousands)                                            | **June                25, 2006** |    |   | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------|----------------------------------|---------|--------|----------------------------------|--------|
|                                                                     |                             |    |   |                             |   |   |   |
| PHONES                Debt:                                              |                             |    |   |                             |   |   |   |
| Discounted                debt component (at book value)                 | $                                | 459,520 |   |                             | $      | 454,038 |   |
| Derivative                component (at fair value)                      |                             | 59,600  |   |                             |   | 55,663 |   |
| Total                                                                    | $                                | 519,120 |   |                             | $      | 509,701 |   |
|                                                                     |                             |    |   |                             |   |   |   |
| Time                Warner stock related to PHONES (at fair value)  | $                                | 271,520 |   |                             | $      | 282,880 |   |

**Revolving      Credit Agreements**

**Medium-Term      Notes –**

**New      Credit Agreements –**

----

**NOTE      12:   COMPREHENSIVE INCOME**

|                                                                                                                                                                                                        | **Second                Quarter Ended** |   |   | **First                Half Ended** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------|--------|-------------------------------------|--------|
| (in                thousands)                                                                                                                                                                               | **June                25, 2006**        |   |   | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                                                                                                                                                                        |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                                              | $                                       | 87,834 |   |                                | $      | 233,392 |   |   | $ | 190,598 |   |   | $ | 376,237 |   |
|                                                                                                                                                                                                        |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding loss on marketablesecurities                classified as available-for-sale:Unrealized                holding loss arising duringthe                period, before taxes |                                    | (3,466 | )      |                                |   | (1,894 | ) |   |   | (1,811 | ) |   |   | (7,076 | ) |
| Income                taxes                                                                                                                                                                            |                                    | 1,351  |   |                                |   | 739 |   |   |   | 706 |   |   |   | 2,760 |   |
| Unrealized              loss on              marketable securities                                                                                                                                          |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|    classified                as                available-for-sale, net of taxes                                                                                                         |                                    | (2,115 | )      |                                |   | (1,155 | ) |   |   | (1,105 | ) |   |   | (4,316 | ) |
|                                                                                                                                                                                                        |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Change              in foreign              currency translation adjustments,                                                                                                                               |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|   net                of                taxes                                                                                                                                                 |                                    | 137    |   |                                |   | (104 | ) |   |   | 149 |   |   |   | (119 | ) |
|                                                                                                                                                                                                        |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive loss                                                                                                                                                                |                                    | (1,978 | )      |                                |   | (1,259 | ) |   |   | (956 | ) |   |   | (4,435 | ) |
|                                                                                                                                                                                                        |                                    |   |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                                                                    | $                                       | 85,856 |   |                                | $      | 232,133 |   |   | $ | 189,642 |   |   | $ | 371,802 |   |

----

**NOTE      13:   OTHER MATTERS**

**Media      Ownership Rules **

**Variable      Interest Entities **

**CW      Network Affiliations – **

**New      Accounting Standards  –**
** **

----

**NOTE      14:   SUBSEQUENT EVENTS**

----

**NOTE      15:   SEGMENT INFORMATION**

|                                                | **Second                Quarter Ended** |      |   | **First                Half Ended** |   |
|-----------------------------------------------------|-----------------------------------------|-----------|--------|-------------------------------------|--------|
| (in                thousands)                       | **June                25, 2006**        |      |   | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues:**              |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                     | $                                       | 1,028,303 |   |                                | $      | 1,038,624 |   |   | $ | 2,024,832 |   |   | $ | 2,044,136 |   |
| Broadcasting                and entertainment  |                                    | 403,550   |   |                                |   | 413,365 |   |   |   | 696,582 |   |   |   | 713,751 |   |
| Total                operating revenues        | $                                       | 1,431,853 |   |                                | $      | 1,451,989 |   |   | $ | 2,721,414 |   |   | $ | 2,757,887 |   |
|                                                |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit**(1):             |                                    |      |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                     | $                                       | 208,657   |   |                                | $      | 217,651 |   |   | $ | 382,879 |   |   | $ | 416,190 |   |
| Broadcasting                and entertainment  |                                    | 111,808   |   |                                |   | 130,737 |   |   |   | 178,608 |   |   |   | 194,641 |   |
| Corporate                expenses              |                                    | (14,020   | )      |                                |   | (13,472 | ) |   |   | (34,383 | ) |   |   | (26,920 | ) |
| Total                operating profit          | $                                       | 306,445   |   |                                | $      | 334,916 |   |   | $ | 527,104 |   |   | $ | 583,911 |   |

|                                                                                 | **June                25, 2006** |       |   | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                 |                             |       |   |                             |   |   |   |
| **Assets:**                                                                          |                             |       |   |                             |   |   |   |
| Publishing                                                                           | $                                | 8,591,033  |   |                             | $      | 8,612,740 |   |
| Broadcasting                and entertainment                                        |                             | 4,038,132  |   |                             |   | 4,425,135 |   |
| Corporate                                                                            |                             | 1,352,774  |   |                             |   | 1,483,931 |   |
|                        Assets held for sale  |                             | 249,981    |   |                             |   | 24,436 |   |
| Total                assets                                                     | $                                | 14,231,920 |   |                             | $      | 14,546,242 |   |

----

**ITEM      2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**      AND      RESULTS OF      OPERATIONS.**

**FORWARD-LOOKING      STATEMENTS**

**RECENT      DEVELOPMENTS**

**Sales      of WATL-TV, Atlanta and WCWN-TV, Albany –**
** **

----

**Tender      Offer**

**New      Credit Agreements –**

**CW      Network Affiliations **

----

**Critical      Accounting Policies **
**–      **

**NON-OPERATING      ITEMS**

|                                                                                                    | **Second                Quarter Ended****June                25, 2006** |    | **First                Half Ended****June                25, 2006** |   |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
| (in                millions, except per share data)                                                     | **Pretax****Loss**                                                      |    | **After-tax****Loss**                                               |   | **Diluted****EPS** |   | **Pretax****Gain                (Loss)** |   | **After-tax****Gain                (Loss)** |   | **Diluted****EPS** |   |
|                                                                                                    |                                                                    |    |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                                                       | (6.1    | )                                                                   | $      | (3.7 | ) | $ | (.01 | ) | $ | (16.4 | ) | $ | (10.0 | ) | $ | (.03 | ) |
| (Loss)                gain on sales of investments                                                 |                                                                    | (.2     | )                                                                   |   | (.1 | ) |   | – |   |   | 3.3 |   |   | 2.0 |   |   | .01 |   |
| Loss                on investment write-downs and other, net                                       |                                                                    | (.4     | )                                                                   |   | (.3 | ) |   | – |   |   | (7.3 | ) |   | (4.4 | ) |   | (.02 | ) |
| Income                tax adjustments                                                              |                                                                    | – |                                                                |   | (3.6 | ) |   | (.01 | ) |   | – |   |   | (3.6 | ) |   | (.01 | ) |
| Total                non-operating items                                                           | $                                                                       | (6.7    | )                                                                   | $      | (7.7 | ) | $ | (.03 | ) | $ | (20.4 | ) | $ | (16.0 | ) | $ | (.05 | ) |

|                                                                                                    | **Second                Quarter Ended****June                26, 2005** |    | **First                Half Ended****June                26, 2005** |   |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|---------|---------------------------------------------------------------------|--------|
| (in                millions, except per share data)                                                     | **Pretax****Gain**                                                      |    | **After-tax****Gain**                                               |   | **Diluted****EPS** |   | **Pretax****Gain** |   | **After-tax****Gain** |   | **Diluted****EPS** |   |
|                                                                                                    |                                                                    |    |                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on change in fair valuesof                derivatives and related investments  | $                                                                       | 61.8    |                                                                | $      | 37.7 |   | $ | .12 |   | $ | 59.6 |   | $ | 36.3 |   | $ | .12 |   |
| Gain                on sales of subsidiaries and                investments, net                   |                                                                    | 1.3     |                                                                |   | .8 |   |   | – |   |   | 2.4 |   |   | 1.5 |   |   | .01 |   |
| Other,                net                                                                          |                                                                    | 3.8     |                                                                |   | 2.3 |   |   | .01 |   |   | 1.1 |   |   | .7 |   |   | – |   |
| Income                tax settlement adjustments                                                   |                                                                    | – |                                                                |   | – |   |   | – |   |   | – |   |   | 11.8 |   |   | .03 |   |
| Total                non-operating items                                                           | $                                                                       | 66.9    |                                                                | $      | 40.8 |   | $ | .13 |   | $ | 63.1 |   | $ | 50.3 |   | $ | .16 |   |

----

**RESULTS      OF OPERATIONS**

**CONSOLIDATED**

|                                                                                       | **Second                Quarter** |   | **First                Half** |
|--------------------------------------------------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions, except per share data)                                        | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                     | $                                 | 1,432  |                          | $ | 1,452 |   | - | 1% |   | $ | 2,721 |   | $ | 2,758 |   | - | 1% |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)                                                   | $                                 | 306    |                          | $ | 335 |   | - | 9% |   | $ | 527 |   | $ | 584 |   | - | 10% |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                       | $                                 | 26     |                          | $ | 12 |   | + | 119% |   | $ | 33 |   | $ | 12 |   | + | 163% |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                      | $                                 | 164    |                          | $ | 231 |   | - | 29% |   | $ | 265 |   | $ | 372 |   | - | 29% |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                income from discontinued operations, net                of tax  | $                                 | (76    | )                             | $ | 2 |   |   | * |   | $ | (75 | ) | $ | 4 |   |   | * |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                             | $                                 | 88     |                          | $ | 233 |   | - | 62% |   | $ | 191 |   | $ | 376 |   | - | 49% |
|                                                                                       |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                 |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                  | $                                 | .53    |                          | $ | .72 |   | - | 26% |   | $ | .86 |   | $ | 1.16 |   | - | 26% |
| Discontinued                operations                                                |                              | (.25   | )                             |   | .01 |   |   | * |   |   | (.25 | ) |   | .01 |   |   | * |
| Net                income                                                             | $                                 | .28    |                          | $ | .73 |   | - | 62% |   | $ | .61 |   | $ | 1.17 |   | - | 48% |

| (1)   | Operating                profit excludes interest and dividend income, interest expense, equity                income and losses, non-operating items and income                taxes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Earnings      Per Share (“EPS”) –**
** **

----

**Operating      Revenues and Profit –**

|                                                             | **Second                Quarter** |   | **First                Half** |
|------------------------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)                                     | **2006**                          |   |                          | **2005** |   |   | **Change** |   | **2006** |   |   | **2005** |   |   | **Change** |
|                                                             |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**                            |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                 | 1,028  |                          |   | $ | 1,039 |   |   | - | 1% |   | $ | 2,025 |   |   | $ | 2,044 |   |   | - | 1% |
| Broadcasting                and entertainment               |                              | 404    |                          |   |   | 413 |   |   | - | 2% |   |   | 696 |   |   |   | 714 |   |   | - | 2% |
| Total                operating revenues                     | $                                 | 1,432  |                          |   | $ | 1,452 |   |   | - | 1% |   | $ | 2,721 |   |   | $ | 2,758 |   |   | - | 1% |
|                                                             |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation                and amortization expense**         |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                 | 42     |                          |   | $ | 45 |   |   | - | 6% |   | $ | 85 |   |   | $ | 90 |   |   | - | 5% |
| Broadcasting                and entertainment               |                              | 13     |                          |   |   | 12 |   |   | + | 4% |   |   | 25 |   |   |   | 24 |   |   | + | 2% |
| Corporate                                                   |                              | -      |                          |   |   | 1 |   |   | - | 15% |   |   | - |   |   |   | 1 |   |   | - | 15% |
| Total                depreciation and amortization expense  | $                                 | 55     |                          |   | $ | 58 |   |   | - | 4% |   | $ | 110 |   |   | $ | 115 |   |   | - | 4% |
|                                                             |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)**                   |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                 | 208    |                          |   | $ | 218 |   |   | - | 4% |   | $ | 383 |   |   | $ | 416 |   |   | - | 8% |
| Broadcasting                and entertainment               |                              | 112    |                          |   |   | 131 |   |   | - | 14% |   |   | 178 |   |   |   | 195 |   |   | - | 8% |
| Corporate                expenses                           |                              | (14    | )                             |   |   | (14 | ) |   | + | 4% |   |   | (34 | ) |   |   | (27 | ) |   | + | 28% |
| Total                operating profit                       | $                                 | 306    |                          |   | $ | 335 |   |   | - | 9% |   | $ | 527 |   |   | $ | 584 |   |   | - | 10% |

----

**Operating      Expenses –**

|                                                     | **Second                Quarter** |   | **First                Half** |
|----------------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)                             | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                     |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales                        | $                                 | 708    |                          | $ | 701 |   | + | 1% |   | $ | 1,350 |   | $ | 1,357 |   | - | 1% |
| Selling,                general and administrative  |                              | 362    |                          |   | 358 |   | + | 1% |   |   | 734 |   |   | 702 |   | + | 5% |
| Depreciation                and amortization        |                              | 55     |                          |   | 58 |   | - | 4% |   |   | 110 |   |   | 115 |   | - | 4% |
| Total                operating expenses             | $                                 | 1,125  |                          | $ | 1,117 |   | + | 1% |   | $ | 2,194 |   | $ | 2,174 |   | + | 1% |

**PUBLISHING**

**Operating      Revenues and Profit –**

|                                      | **Second                Quarter** |   | **First                Half** |
|-------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)              | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                      |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues    | $                                 | 1,028  |                          | $ | 1,039 |   | - | 1% |   | $ | 2,025 |   | $ | 2,044 |   | - | 1% |
|                                      |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses    |                              | 820    |                          |   | 821 |   |   | - |   |   | 1,642 |   |   | 1,628 |   | + | 1% |
|                                      |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)  | $                                 | 208    |                          | $ | 218 |   | - | 4% |   | $ | 383 |   | $ | 416 |   | - | 8% |

----

|                                   | **Second                Quarter** |   | **First                Half** |
|----------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)           | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
| Advertising                            |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                            | $                                 | 334    |                          | $ | 332 |   | + | 1% |   | $ | 632 |   | $ | 636 |   | - | 1% |
| National                          |                              | 177    |                          |   | 190 |   | - | 7% |   |   | 361 |   |   | 390 |   | - | 8% |
| Classified                        |                              | 312    |                          |   | 301 |   | + | 3% |   |   | 618 |   |   | 584 |   | + | 6% |
| Total                advertising  |                              | 823    |                          |   | 823 |   |   | - |   |   | 1,611 |   |   | 1,610 |   |   | - |
| Circulation                       |                              | 142    |                          |   | 150 |   | - | 5% |   |   | 288 |   |   | 302 |   | - | 5% |
| Other                             |                              | 63     |                          |   | 66 |   | - | 4% |   |   | 126 |   |   | 132 |   | - | 4% |
| Total                revenues     | $                                 | 1,028  |                          | $ | 1,039 |   | - | 1% |   | $ | 2,025 |   | $ | 2,044 |   | - | 1% |

----

|                                                                           | **Second                Quarter** |   | **First                Half** |
|--------------------------------------------------------------------------------|-----------------------------------|--------|-------------------------------|
| **Inches**(in                thousands)                                        | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                                           |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full                run                                                        |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                    |                              | 1,491  |                          |   | 1,495 |   |   | - |   |   | 2,816 |   |   | 2,880 |   | - | 2% |
| National                                                                  |                              | 879    |                          |   | 919 |   | - | 4% |   |   | 1,776 |   |   | 1,885 |   | - | 6% |
| Classified                                                                |                              | 2,794  |                          |   | 2,608 |   | + | 7% |   |   | 5,439 |   |   | 4,989 |   | + | 9% |
| Total                full run                                             |                              | 5,164  |                          |   | 5,022 |   | + | 3% |   |   | 10,031 |   |   | 9,754 |   | + | 3% |
| Part                run                                                   |                              | 5,586  |                          |   | 5,306 |   | + | 5% |   |   | 10,547 |   |   | 10,305 |   | + | 2% |
| Total                inches                                               |                              | 10,750 |                          |   | 10,328 |   | + | 4% |   |   | 20,578 |   |   | 20,059 |   | + | 3% |
|                                                                           |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Preprint                pieces**** **(in                millions)  |                              | 3,624  |                          |   | 3,759 |   | - | 4% |   |   | 6,978 |   |   | 7,257 |   | - | 4% |

----

**Operating      Expenses **

|                                               | **Second                Quarter** |   | **First                Half** |
|----------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)                       | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                               |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                (1)               | $                                 | 337    |                          | $ | 340 |   | - | 1% |   | $ | 695 |   | $ | 686 |   | + | 1% |
| Newsprint                and ink              |                              | 128    |                          |   | 122 |   | + | 5% |   |   | 252 |   |   | 240 |   | + | 5% |
| Circulation                distribution       |                              | 118    |                          |   | 115 |   | + | 2% |   |   | 234 |   |   | 229 |   | + | 2% |
| Promotion                                     |                              | 26     |                          |   | 30 |   | - | 12% |   |   | 50 |   |   | 54 |   | - | 7% |
| Depreciation                and amortization  |                              | 42     |                          |   | 45 |   | - | 6% |   |   | 85 |   |   | 90 |   | - | 5% |
| Other                (2)                      |                              | 169    |                          |   | 169 |   |   | - |   |   | 326 |   |   | 329 |   | - | 1% |
| Total                operating expenses       | $                                 | 820    |                          | $ | 821 |   |   | - |   | $ | 1,642 |   | $ | 1,628 |   | + | 1% |

----

**BROADCASTING      AND ENTERTAINMENT**

**Operating      Revenues and Profit –**

|                                           | **Second                Quarter** |   | **First                Half** |
|------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)                   | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                           |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**          |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                | $                                 | 320    |                          | $ | 324 |   | - | 1% |   | $ | 595 |   | $ | 605 |   | - | 2% |
| Radio/entertainment                       |                              | 84     |                          |   | 89 |   | - | 6% |   |   | 101 |   |   | 109 |   | - | 7% |
| Total                operating revenues   | $                                 | 404    |                          | $ | 413 |   | - | 2% |   | $ | 696 |   | $ | 714 |   | - | 2% |
|                                           |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses**          |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                | $                                 | 215    |                          | $ | 207 |   | + | 4% |   | $ | 418 |   | $ | 403 |   | + | 4% |
| Radio/entertainment                       |                              | 77     |                          |   | 76 |   | + | 1% |   |   | 100 |   |   | 116 |   | - | 14% |
| Total                operating expenses   | $                                 | 292    |                          | $ | 283 |   | + | 3% |   | $ | 518 |   | $ | 519 |   |   | - |
|                                           |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)** |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                | $                                 | 105    |                          | $ | 118 |   | - | 11% |   | $ | 177 |   | $ | 202 |   | - | 12% |
| Radio/entertainment                       |                              | 7      |                          |   | 13 |   | - | 49% |   |   | 1 |   |   | (7 | ) | + | * |
| Total                operating profit     | $                                 | 112    |                          | $ | 131 |   | - | 14% |   | $ | 178 |   | $ | 195 |   | - | 8% |

----

**Operating      Expenses**

|                                               | **Second                Quarter** |   | **First                Half** |
|----------------------------------------------------|-----------------------------------|--------|-------------------------------|
| (in                millions)                       | **2006**                          |   | **2005**                      |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                               |                              |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                                  | $                                 | 131    |                          | $ | 129 |   | + | 2% |   | $ | 203 |   | $ | 217 |   | - | 6% |
| Programming                                   |                              | 91     |                          |   | 86 |   | + | 7% |   |   | 180 |   |   | 170 |   | + | 6% |
| Depreciation                and amortization  |                              | 13     |                          |   | 12 |   | + | 4% |   |   | 25 |   |   | 24 |   | + | 2% |
| Other                                         |                              | 57     |                          |   | 56 |   | + | 1% |   |   | 110 |   |   | 108 |   | + | 2% |
| Total                operating expenses       | $                                 | 292    |                          | $ | 283 |   | + | 3% |   | $ | 518 |   | $ | 519 |   |   | - |

**CORPORATE      EXPENSES**

**EQUITY      RESULTS**

**INTEREST      AND DIVIDEND INCOME, INTEREST EXPENSE, AND INCOME TAXES**

----

**DISCONTINUED      OPERATIONS**

|                                                                                                                                                   | **Second                Quarter Ended** |          |    | **First                Half Ended** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|---------------|---------|-------------------------------------|--------|
| (in                thousands)                                                                                                                          | **June                25, 2006**        |          |    | **June                26, 2005**    |   |   | **June                25, 2006** |   |   | **June                26, 2005** |   |
|                                                                                                                                                   |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                                                                 | $                                       | 10,400        |    |                                | $      | 10,079 |   |   | $ | 19,922 |   |   | $ | 19,925 |   |
|                                                                                                                                                   |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit                                                                                                                   | $                                       | 3,095         |    |                                | $      | 3,385 |   |   | $ | 5,293 |   |   | $ | 6,446 |   |
| Expected                loss on sales of discontinued                       operations                              |                                    |  (90,055 |  ) |                                |   |  – |   |   |   |  (90,055 |  ) |   |   |  – |   |
| (Loss)                income from discontinued operations\                      before                income taxes  |                                    |  (86,960 |  ) |                                |   |  3,385 |   |   |   |  (84,762 |  ) |   |   |  6,446 |   |
| Income                taxes (1)                                                                                                                   |                                    | 10,817        |    |                                |   | (1,322 | ) |   |   | 9,951 |   |   |   | (2,515 | ) |
|  (Loss)              income from discontinued operations, net                                                                                     |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| of                tax                                                                                                                             | $                                       | (76,143       | )       |                                | $      | 2,063 |   |   | $ | (74,811 | ) |   | $ | 3,931 |   |
|                                                                                                                                                   |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
| (Loss)                income from discontinued                      operations per share:                           |                                    |          |    |                                |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                                                                     | $                                       | (.25          | )       |                                | $      | .01 |   |   | $ | (.25 | ) |   | $ | .01 |   |
|     Diluted                                                                                                                   | $                                       | (.25          | )       |                                | $      | .01 |   |   | $ | (.25 | ) |   | $ | .01 |   |

----

**LIQUIDITY      AND CAPITAL RESOURCES **

----

**Off-Balance      Sheet Arrangements **

----

**ITEM      3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET      RISK.**

**EQUITY      PRICE RISK**

**Available-For-Sale      Securities**
** –**

|                                                                      | **Valuation                of Investments****Assuming                Indicated Decrease****in                Stock’s Price**  |   |  **June                25,                2006** |   | **Valuation                of Investments****Assuming                Indicated Increase****in                Stock’s Price**  |
|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|  (In              thousands)                                         | **-30%**                                                                                                                            |   | **-20%**                                         |   | **-10%**                                                                                                                            |   |  **Fair                Value** |   | **+10%**  |   | **+20%** |   | **+30%**  |
| Common                stock investments inpublic                companies | $38,485                                                                                                                                  |   | $43,983                                               |   | $49,481                                                                                                                                  |   | $54,979(1)                (2) |   | $60,477 |   | $65,975 |   | $71,473 |

| (1)   | Excludes                16 million shares of Time Warner common stock. See discussion below                in                “Derivatives and Related Trading Securities.” |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In                July 2006, the Company sold 2.8 million shares of Time Warner common                stock                unrelated to PHONES for net proceeds of approximately $46                million. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Derivatives      and Related Trading Securities –**

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|                                    | **Valuation                of Investment****Assuming                Indicated Decrease****in                Stock’s Price**  |   |  **June                25,                2006** |   | **Valuation                of Investment****Assuming                Indicated Increase****in                Stock’s Price**  |
|-----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|  (In              thousands)       | **-30%**                                                                                                                           |   | **-20%**                                         |   | **-10%**                                                                                                                           |   |  **Fair                Value** |   | **+10%**  |   | **+20%**  |   | **+30%**  |
| Time                Warner common stock | $190,064                                                                                                                                |   | $217,216                                              |   | $244,368                                                                                                                                |   | $271,520 |   | $298,672 |   | $325,824 |   | $352,976 |

**ITEM      4.  CONTROLS AND PROCEDURES.**

**Conclusion      Regarding the Effectiveness of Disclosure Controls and      Procedures**

**Changes      in Internal Control Over Financial Reporting**

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**PART      II.   OTHER INFORMATION**

**ITEM      1.  **
**LEGAL      PROCEEDINGS.**

**ITEM      1A.   RISK FACTORS.**

**Changes      in our credit ratings may affect our borrowing costs**

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

|                                                   | **Shares****Repurchased** |   | **Average****Price** |    | **Total                Number of****Shares                Repurchased** |   | **Value                of Shares****that                May Yet be****Repurchased                (1)** |
|--------------------------------------------------------|---------------------------|--------|----------------------|---------|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|
|                                                   |                      |   |                 |    |                                                                    |   |                                                                                                   |   |   |
| Period                1 (5 weeks ended Jan. 29, 2006)  | 1,000                     |   | $                    | 30.46   |                                                                    | 57,426 |                                                                                                   | $ | 969,520 |
| Period                2 (4 weeks ended Feb. 26, 2006)  | 3,604                     |   |                 | 29.74   |                                                                    | 61,030 |                                                                                                   |   | 862,254 |
| Period                3 (4 weeks ended March 26, 2006) | –                   |   |                 | – |                                                                    | 61,030 |                                                                                                   |   | 862,254 |
| Period                4 (4 weeks ended April 23, 2006) | –                   |   |                 | – |                                                                    | 61,030 |                                                                                                   |   | 862,254 |
| Period                5 (4 weeks ended May 21, 2006)   | –                   |   |                 | – |                                                                    | 61,030 |                                                                                                   |   | 862,254 |
| Period                6 (5 weeks ended June 25, 2006)  | –                   |   |                 | – |                                                                    | 61,030 |                                                                                                   |   | 862,254 |

| (1)   | Value                of shares that may yet be repurchased at June 25, 2006 excludes the                additional 12 million shares of the Company’s common stock the Board of                Director’s authorized for repurchase in May, 2006. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (a)   | The                Company held its annual meeting of shareholders on May 2,                2006. |
|-----------------|---------------------------------------------------------------------------------------------------|

| (b)   | No                answer required. |
|-----------------|------------------------------------|

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| (c)   | Proposal                1 involved the election of four directors to serve until the 2009                Annual                Meeting. Those directors and the voting results were as                follows: |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  | **Votes****“For”** |   | **Votes****“Withheld”** |
|---------------------------------------|--------------------------------|--------|-------------------------------------|
| Dennis                J. FitzSimons   | 256,560,813                    |   | 13,056,107                          |
| Betsy                D. Holden        | 258,694,360                    |   | 10,922,560                          |
| Robert                S. Morrison     | 258,786,196                    |   | 10,830,724                          |
| William                Stinehart, Jr. | 249,679,329                    |   | 19,937,591                          |

|   | **Votes****“For”** |   | **Votes****“Against”** |   | **Votes****“Abstained”** |
|--------|--------------------------------|--------|------------------------------------|--------|--------------------------------------|
|   | 263,418,332                    |   | 4,526,856                          |   | 1,671,732                            |

|   | **Votes****“For”** |   | **Votes****“Against”** |   | **Votes****“Abstained”** |   | **Broker                Non-Votes** |
|--------|--------------------------------|--------|------------------------------------|--------|--------------------------------------|--------|-------------------------------------|
|   | 115,602,172                    |   | 128,767,673                        |   | 2,895,201                            |   | 22,351,874                          |

**ITEM      6. EXHIBITS.**

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**SIGNATURE**

|                                     | TRIBUNE                COMPANY(Registrant)                                                                                                                                                             |
|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                                                                                                   |
|                                     |                                                                                                                                                                                                   |
| Date:                 July 28, 2006 | /s/                R. Mark MalloryR.                Mark MalloryVice                President and Controller(on                behalf of the registrantand                as Chief Accounting Officer) |

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