----

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

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

| 1.        Financial      Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed Consolidated      Statements of Operations for the Second Quartersand First Halves Ended June 29,      2008 and July 1, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 1      |
| Condensed Consolidated Balance      Sheets at June 29, 2008 and Dec. 30, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2      |
| Condensed Consolidated      Statements of Cash Flows for the First Halves EndedJune 29, 2008 and July 1,      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 4      |
| Notes to Condensed Consolidated      Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Note      1:            Basis      of Preparation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 5      |
| Note      2:                 Discontinued Operations and Assets and Liabilities Held for      Disposition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 6      |
| Note      3:            Income      Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 9      |
| Note      4:            Stock-Based      Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 11     |
| Note      5:            Employee      Stock Ownership Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 12     |
| Note      6:            Pension      and Other Postretirement Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 13     |
| Note      7:            Non-Operating      Items                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 14     |
| Note      8:            Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 15     |
| Note      9:            Goodwill      and Other Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 15     |
| Note      10:             Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 17     |
| Note      11:          Fair Value      of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 24     |
| Note      12:          Comprehensive      Income (Loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 25     |
| Note      13:          Other      Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 25     |
| Note      14:          Segment      Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 28     |
| 2.         Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 29     |
| 3.         Quantitative      and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 51     |
| 4.         Controls      and      Procedures                                                                                                                             | 54     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |
| PART      II.  OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 1.         Legal      Proceedings                                                                                                                                        | 55     |
| 1A.           Risk      Factors                                                                                                                                                              | 57     |
| 6.         Exhibits                                                                                                                                                      | 57     |

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|                                                                                                                                                                                                                | Second      Quarter Ended |             |   | First      Half Ended |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|------------------|--------|-----------------------|--------|
|                                                                                                                                                                                                                | June      29, 2008        |             |   | July      1, 2007     |   |   | June      29, 2008 |   |   | July      1, 2007 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Revenues                                                                                                                                                                         | $                         | 1,109,809        |   |                  | $      | 1,176,537 |   |   | $ | 2,115,588 |   |   | $ | 2,264,234 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                                                                                                                                                                                             |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales (exclusive of items shown below)                                                                                                                                                                 |                      | 611,674          |   |                  |   | 599,969 |   |   |   | 1,148,531 |   |   |   | 1,152,184 |   |
| Selling,      general and administrative                                                                                                                                                             |                      | 277,459          |   |                  |   | 350,289 |   |   |   | 549,432 |   |   |   | 666,427 |   |
| Depreciation                                                                                                                                                                                    |                      | 47,560           |   |                  |   | 46,454 |   |   |   | 94,917 |   |   |   | 93,839 |   |
| Amortization      of intangible assets                                                                                                                                                               |                      | 4,647            |   |                  |   | 4,727 |   |   |   | 9,320 |   |   |   | 9,355 |   |
| Write-downs      of intangible assets (Note 9)                                                                                                                                                                      |                      | 3,843,111        |   |                  |   | — |   |   |   | 3,843,111 |   |   |   | — |   |
|          Total operating expenses                                                                                                                                                                    |                      | 4,784,451        |   |                  |   | 1,001,439 |   |   |   | 5,645,311 |   |   |   | 1,921,805 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Profit (Loss)                                                                                                                                                                         |                      | (3,674,642       | )      |                  |   | 175,098 |   |   |   | (3,529,723 | ) |   |   | 342,429 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      income on equity investments                                                                                                                                                                     |                      | 18,172           |   |                  |   | 28,710 |   |   |   | 34,929 |   |   |   | 41,394 |   |
| Interest      and dividend income                                                                                                                                                                         |                      | 3,196            |   |                  |   | 3,827 |   |   |   | 7,126 |   |   |   | 6,979 |   |
| Interest      expense                                                                                                                                                                                          |                      | (211,055         | )      |                  |   | (112,408 | ) |   |   | (463,004 | ) |   |   | (195,658 | ) |
| Gain      (loss) on change in fair values of PHONES and  related      investment                                                                                                                          |                      |  36,440     |   |                  |   |  (27,395 | ) |   |   | 106,320 |   |   |   | (97,175 | ) |
| Strategic      transaction expenses                                                                                                                                                                       |                      | —          |   |                  |   | (20,926 | ) |   |   | — |   |   |   | (35,398 | ) |
| Other      non-operating gain (loss), net                                                                                                                                                                           |                      | (10,286          | )      |                  |   | 17,978 |   |   |   | (11,145 | ) |   |   | 21,515 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from Continuing Operations     Before      Income Taxes                                                                                                                 |                      |  (3,838,175 | )      |                  |   |  64,884 |   |   |   | (3,855,497 | ) |   |   | 84,086 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      taxes (Note      3)                               |                      | 8,912            |   |                  |   | (29,614 | ) |   |   | 1,862,752 |   |   |   | (43,152 | ) |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from Continuing Operations                                                                                                                                                                       |                      | (3,829,263       | )      |                  |   | 35,270 |   |   |   | (1,992,745 | ) |   |   | 40,934 |   |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Income      (Loss) from Discontinued Operations,                                                                                                                                                                    |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
|        net      of tax (Note 2)                                                                                                                                                  |                      | (704,686         | )      |                  |   | 1,006 |   |   |   | (717,742 | ) |   |   | (27,953 | ) |
|                                                                                                                                                                                                                |                      |             |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income (Loss)                                                                                                                                                                                    | $                         | (4,533,949       | )      |                  | $      | 36,276 |   |   | $ | (2,710,487 | ) |   | $ | 12,981 |   |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | June      29, 2008 |       |   | Dec.      30, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               |       |   |               |   |   |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |               |       |   |               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               |       |   |               |   |   |   |
| Current      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |               |       |   |               |   |   |   |
| Cash and cash      equivalents                                                                                                        | $                  | 160,895    |   |               | $      | 233,284 |   |
| Accounts receivable,      net                                                                                                         |               | 602,768    |   |               |   | 732,853 |   |
| Inventories                                                                                                                           |               | 33,077     |   |               |   | 40,675 |   |
| Broadcast      rights                                                                                                                 |               | 224,543    |   |               |   | 287,045 |   |
| Prepaid expenses and      other                                                                                                       |               | 132,497    |   |               |   | 91,166 |   |
| Assets held for      disposition                                                                                                      |               | 113,274    |   |               |   | — |   |
| Total current      assets                                                                                                             |               | 1,267,054  |   |               |   | 1,385,023 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               |       |   |               |   |   |   |
| Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |               |       |   |               |   |   |   |
| Property, plant and      equipment                                                                                                    |               | 3,424,534  |   |               |   | 3,564,436 |   |
| Accumulated      depreciation                                                                                                         |               | (1,887,077 | )      |               |   | (1,998,741 | ) |
| Net      properties                                                                                                                   |               | 1,537,457  |   |               |   | 1,565,695 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               |       |   |               |   |   |   |
| Other      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               |       |   |               |   |   |   |
| Broadcast      rights                                                                                                                 |               | 219,689    |   |               |   | 301,263 |   |
| Goodwill (Note      9)                                                                                                                |               | 1,741,826  |   |               |   | 5,579,926 |   |
| Other intangible      assets, net (Note      9)                                                                                       |               | 1,430,049  |   |               |   | 2,663,152 |   |
| Time Warner stock      related to PHONES      debt                                                                                    |               | 230,720    |   |               |   | 266,400 |   |
| Other      investments                                                                                                                |               | 454,285    |   |               |   | 508,205 |   |
| Prepaid pension      costs                                                                                                            |               | 428,423    |   |               |   | 514,429 |   |
| Assets held for      disposition                                                                                                      |               | 682,973    |   |               |   | 33,780 |   |
| Other                                                                                                                                 |               | 243,091    |   |               |   | 331,846 |   |
| Total other      assets                                                                                                               |               | 5,431,056  |   |               |   | 10,199,001 |   |
| Total      Assets                                                                                       | $                  | 8,235,567  |   |               | $      | 13,149,719 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | June      29, 2008 |       |   | Dec.      30, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Liabilities      and Shareholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               |       |   |               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Current      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |               |       |   |               |   |   |   |
| PHONES      debt related to Time Warner stock (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $                  | 219,184    |   |               | $      | 253,080 |   |
| Other debt due within      one      year                                                                                                                                                                                       |               | 1,479,703  |   |               |   | 750,239 |   |
| Contracts payable for      broadcast      rights                                                                                                                                                                               |               | 287,915    |   |               |   | 339,909 |   |
| Deferred      income      taxes                                                                                                                                                                                                |               | 11,342     |   |               |   | 100,324 |   |
| Deferred      income                                                                                                                                                                                                           |               | 79,155     |   |               |   | 121,239 |   |
| Accounts payable,      accrued expenses and other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |               | 529,154    |   |               |   | 625,175 |   |
| Liabilities held for      disposition                                                                                                                                                                                          |               | 157,301    |   |               |   | — |   |
| Total current      liabilities                                                                                                                                                                                                 |               | 2,763,754  |   |               |   | 2,189,966 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Long-Term      Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |               |       |   |               |   |   |   |
| PHONES debt related      to Time Warner stock (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |               | 56,816     |   |               |   | 343,960 |   |
| Other long-term debt      (less portions due within one year)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               | 10,710,452 |   |               |   | 11,496,246 |   |
| Total long-term      debt                                                                                                                                                                                                      |               | 10,767,268 |   |               |   | 11,840,206 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Other      Non-Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |               |       |   |               |   |   |   |
| Deferred income      taxes                                                                                                                                                                                                     |               | 66,378     |   |               |   | 1,771,845 |   |
| Contracts payable for      broadcast      rights                                                                                                                                                                               |               | 341,268    |   |               |   | 432,393 |   |
| Deferred compensation      and      benefits                                                                                                                                                                                   |               | 249,026    |   |               |   | 264,480 |   |
| Liabilities held for      disposition                                                                                                                                                                                          |               | 7,962      |   |               |   | — |   |
| Other      obligations                                                                                                                                                                                                         |               | 208,138    |   |               |   | 164,769 |   |
| Total other      non-current      liabilities                                                                                                                                                                                  |               | 872,772    |   |               |   | 2,633,487 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Common      Shares Held by ESOP, net of Unearned    Compensation      (Note      5)                                                                                          |               | 22,623     |   |               |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |       |   |               |   |   |   |
| Shareholders’      Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               |       |   |               |   |   |   |
|         Stock      purchase      warrants                                                                                                                |               | 255,000    |   |               |   | 255,000 |   |
| Retained earnings      (deficit)                                                                                                                                                                                               |               | (6,088,018 | )      |               |   | (3,474,311 | ) |
| Accumulated other      comprehensive income      (loss)                                                                                                                                                                        |               | (357,832   | )      |               |   | (294,629 | ) |
| Total shareholders’      equity      (deficit)                                                                                                                                                                           |               | (6,190,850 | )      |               |   | (3,513,940 | ) |
| Total      Liabilities and Shareholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $                  | 8,235,567  |   |               | $      | 13,149,719 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | First      Half Ended |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | June      29, 2008    |       |   | July      1, 2007 |   |
| Operating      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  |       |   |   |   |   |   |
| Net      income      (loss)                                                                                                             | $                     | (2,710,487 | ) |   | $ | 12,981 |   |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  |       |   |   |   |   |   |
| Stock-based      compensation related to equity-classified awards                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                  | —    |   |   |   | 26,398 |   |
| ESOP      compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  | 22,623     |   |   |   | — |   |
| Pension      costs, net of      contributions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | 40,199     |   |   |   | (5,480 | ) |
| Gain      on sale of studio production      lot                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | (82,470    | ) |   |   | — |   |
| Gain      on sales of other real      estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                  | (24,328    | ) |   |   | — |   |
| Write-off      of Los      Angeles Times plant      equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  | —    |   |   |   | 23,982 |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  | 103,559    |   |   |   | 105,855 |   |
| Amortization      of intangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                  | 9,944      |   |   |   | 10,247 |   |
| Write-downs      of intangible assets (Note 9)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | 3,843,111  |   |   |   | — |   |
| Net      income on equity      investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | (34,929    | ) |   |   | (41,394 | ) |
| Distributions      from equity      investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                  | 62,518     |   |   |   | 57,233 |   |
| Amortization      of debt issuance      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  | 36,838     |   |   |   | 9,408 |   |
| (Gain)      loss on change in fair values of PHONES and related    investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  | (106,320   | ) |   |   | 97,175 |   |
| Write-down      of equity      investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  | 10,312     |   |   |   | — |   |
| Subchapter      S corporation election deferred income taxes adjustment (Note      3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  | (1,859,358 | ) |   |   | — |   |
| Loss      on dispositions of discontinued      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | 692,475    |   |   |   | 16,958 |   |
| Changes      in working capital items, excluding effects from acquisitions and      dispositions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                  |       |   |   |   |   |   |
| Accounts      receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                  | 44,477     |   |   |   | 35,836 |   |
| Inventories,      prepaid expenses and other current      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                  | (19,220    | ) |   |   | (20,736 | ) |
| Deferred      income, accounts payable, accrued expenses and other current      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | (53,417    | ) |   |   | 21,477 |   |
| Income      taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  | 68,408     |   |   |   | (41,650 | ) |
| Deferred      compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | (10,796    | ) |   |   | (48,623 | ) |
| Deferred      income taxes, excluding subchapter S corporation election      adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | (23,116    | ) |   |   | (13,739 | ) |
| Tax      benefit on stock options      exercised                                                                                                                                                                                                                                                                                                                                                                                                                   |                  | —    |   |   |   | 11,770 |   |
| Other,      net                                                                                                                                                                                                                                                                                                                                                               |                  | 25,656     |   |   |   | 19,691 |   |
| Net      cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  | 35,679     |   |   |   | 277,389 |   |
| Investing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  |       |   |   |   |   |   |
| Purchase      of TMCT, LLC real estate (Note 13)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                  | (175,141   | ) |   |   | — |   |
| Other      capital      expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  | (44,151    | ) |   |   | (52,224 | ) |
| Acquisitions      and      investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                  | (2,533     | ) |   |   | (7,575 | ) |
| Proceeds      from sales of subsidiaries, intangibles, investments and real      estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  | 160,738    |   |   |   | 18,796 |   |
| Net      cash used for investing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | (61,087    | ) |   |   | (41,003 | ) |
| Financing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  |       |   |   |   |   |   |
| Long-term      borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | 25,000     |   |   |   | 7,015,000 |   |
| Issuance      of exchangeable promissory      note                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                  | —    |   |   |   | 200,000 |   |
| Borrowings      under former bridge credit      facility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                  | —    |   |   |   | 100,000 |   |
| Repayments      under former bridge credit      facility                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | —    |   |   |   | (1,410,000 | ) |
| Repayments      of long-term      debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                  | (71,981    | ) |   |   | (1,613,154 | ) |
| Repayments      of commercial paper,    net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  | —    |   |   |   | (97,019 | ) |
| Long-term      debt issuance      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                  | —    |   |   |   | (134,085 | ) |
| Sales      of common stock to employees,      net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                  | —    |   |   |   | 72,195 |   |
| Sale      of common stock to Zell      Entity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                  | —    |   |   |   | 50,000 |   |
| Purchases      of Tribune common      stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                  | —    |   |   |   | (4,289,192 | ) |
| Dividends                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | —    |   |   |   | (43,247 | ) |
| Net      cash used for financing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                  | (46,981    | ) |   |   | (149,502 | ) |
| Net      Increase (Decrease) in Cash and Cash      Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                  | (72,389    | ) |   |   | 86,884 |   |
| Cash      and cash equivalents, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                  | 233,284    |   |   |   | 174,686 |   |
| Cash      and cash equivalents, end of      quarter                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $                     | 160,895    |   |   | $ | 261,570 |   |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                               |   | Second      Quarter |     |   | First      Half |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|----------|--------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                               |   | 2008                |     |   | 2007            |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                               |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                                                                                                                                                                                                                                                                                            |   | $                   | 117,229  |   |            | $      | 147,399 |   |   | $ | 226,102 |   |   | $ | 284,738 |   |
|                                                                                                                                                                                                                                                                                                                                                                                               |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit    (loss)                                                                                                                                                                                                                                                                                                                            |   | $                   | (3,220   | )      |            | $      | 21,741 |   |   | $ | (4,851 | ) |   | $ | 33,865 |   |
| Interest      income                                                                                                                                                                                                                                                                                                                                            |   |                | —  |   |            |   | 2 |   |   |   | 2 |   |   |   | 4 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                          |   |                | (8,403   | )      |            |   | (3,456 | ) |   |   | (19,732 | ) |   |   | (3,454 | ) |
| Non-operating      loss,    net(1)                                                                                                                                                                                                                                                                                                                         |   |                | —  |   |            |   | (12,000 | ) |   |   | — |   |   |   | (15,000 | ) |
| Gain      (loss) on dispositions of discontinuedoperations                                                                                                                                                                                                                                                                                                      |   |                | (691,960 | )      |            |   | 2,484 |   |   |   | (692,475 | ) |   |   | (16,958 | ) |
| Income      (loss) from discontinued operationsbefore      income taxes                                                                                                                                                                                                                                                                                                                            |   |                | (703,583 | )      |            |   | 8,771 |   |   |   | (717,056 | ) |   |   | (1,543 | ) |
| Income      taxes(2)                                                              |   |                | (1,103   | )      |            |   | (7,765 | ) |   |   | (686 | ) |   |   | (26,410 | ) |
| Income      (loss) from discontinued operations,                                                                                                                                                                                                                                                                                                                                                   |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
|           net of tax                                                                                                                                                                                                                                                                                                                                                           |   | $                   | (704,686 | )      |            | $      | 1,006 |   |   | $ | (717,742 | ) |   | $ | (27,953 | ) |

| (1)   | Discontinued      operations for the second quarter and first half of 2007 included pretax      non-operating charges of $12 million and $15 million, respectively, for a      civil forfeiture payment related to the inquiry by the United States      Attorney’s Office for the Eastern District of New York into the      circulation practices of Newsday and Hoy, New      York.  See Note 5 to the consolidated financial statements in      the Company’s Annual Report on Form 10-K for the fiscal year ended Dec.      30, 2007, for further information. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Income      taxes for the second quarter and first half of 2008 included tax expense      of $1 million related to the $692 million pretax loss on the NMG      transaction.  The pretax loss included $830 million of allocated      newspaper reporting unit goodwill, most of which is not deductible for      income tax purposes.  Income taxes for the first half of 2007      included tax expense of $16 million related to the $17 million pretax loss      on dispositions of discontinued operations.  The pretax loss      included $58 million of allocated newspaper reporting unit goodwill, most      of which is not deductible for income tax  purposes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                   |   | June      29, 2008 |    |   | Dec.      30, 2007 |   |
|--------------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                                                   |   | Assets             |    |   | Liabilities        |   |   | Assets |   |   | Liabilities |   |
|                                                   |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |
| NMG                                                    |   | $                  | 651,398 |   |               | $      | 29,722 |   |   | $ | — |   |   | $ | — |   |
| Chicago      Cubs and Wrigley Field                    |   |               | 139,415 |   |               |   | 135,541 |   |   |   | — |   |   |   | — |   |
| Studio      production lot, Hollywood, California      |   |               | — |   |               |   | — |   |   |   | 23,322 |   |   |   | — |   |
| SCNI      real estate                                  |   |               | — |   |               |   | — |   |   |   | 5,485 |   |   |   | — |   |
| Other      real estate                                 |   |               | 5,434   |   |               |   | — |   |   |   | 4,973 |   |   |   | — |   |
| Total      assets and liabilities held for disposition |   | $                  | 796,247 |   |               | $      | 165,263 |   |   | $ | 33,780 |   |   | $ | — |   |

----

----

----

|                                        |   | Second      Quarter |    |   | First      Half |   |
|---------------------------------------------|--------|---------------------|---------|--------|-----------------|--------|
|                                        |   | 2008                |    |   | 2007            |   |   | 2008 |   |   | 2007 |   |
|                                        |   |                |    |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Management      equity incentive plan       |   | $                   | 4,999   |   |            | $      | — |   |   | $ | 12,534 |   |   | $ | — |   |
| Options(1)                                  |   |                | — |   |            |   | 726 |   |   |   | — |   |   |   | 1,324 |   |
| Restricted      stock units(1)              |   |                | — |   |            |   | 6,804 |   |   |   | — |   |   |   | 23,718 |   |
| Employee      stock purchase plan(2)        |   |                | — |   |            |   | 192 |   |   |   | — |   |   |   | 723 |   |
| Total      stock-based compensation expense |   | $                   | 4,999   |   |            | $      | 7,722 |   |   | $ | 12,534 |   |   | $ | 25,765 |   |

| (1)   | Pursuant      to an Agreement and Plan of Merger (the “Merger Agreement”) entered into      by the Company on April 1, 2007 with Great Banc Trust Company, not in its      individual or corporate capacity, but solely as trustee of the Tribune      Employee Stock Ownership Trust, a separate trust which forms a part of the      ESOP, Tesop Corporation, a Delaware corporation wholly-owned by the ESOP      (“Merger Sub”), and the Zell Entity (solely for the limited purposes      specified therein), which provided for Merger Sub to be merged with and      into the Company, and following such merger, the Company to continue as      the surviving corporation wholly-owned by the ESOP (the “Merger”), on Dec.      20, 2007, the Company redeemed for cash all outstanding stock awards, each      of which vested in full upon completion of the Merger, with positive      intrinsic value relative to $34.00 per share.  All remaining      outstanding stock awards under the Tribune Company Incentive Plan (the      “Incentive Plan”) as of Dec. 20, 2007 that were not cash settled      pursuant to the Merger Agreement were cancelled.  The Company      does not intend to grant any new equity awards under the Incentive      Plan. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | The      Company’s employee stock purchase plan was discontinued as of Dec. 20,      2007, following the consummation of theMerger. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                          |   | June      29, 2008 |     | Dec.      30, 2007 |   |
|---------------------------------------------------------------|--------|--------------------|----------|--------------------|--------|
|                                                          |   |               |     |               |   |   |   |
| Allocated      ESOP shares (at fair value)(1)                 |   | $                  | 22,623   |               | $      | — |   |
| Unallocated      ESOP shares (at book value)                  |   |               | 240,477  |               |   | 250,000 |   |
| Unearned      compensation related to ESOP                    |   |               | (240,477 | )                  |   | (250,000 | ) |
| Common      shares held by ESOP, net of unearned compensation |   | $                  | 22,623   |               | $      | — |   |

| (1)   | Represents      2,154,650 shares committed to be released at June 29,  2008. |
|-----------------|------------------------------------------------------------------------------|

----

|                                                                      | Pension      Benefits |    |   | Other      Postretirement Benefits |
|---------------------------------------------------------------------------|-----------------------|---------|--------|------------------------------------|
|                                                                      | Second      Quarter   |    |   | Second      Quarter                |
|                                                                      | 2008                  |    |   | 2007                               |   |   | 2008 |   |   | 2007 |
|                                                                      |                  |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                      | $                     | 5,071   |   |                               | $ | 303 |   |   | $ | 212 |   |   | $ | 323 |   |
| Interest      cost                               |                  | 22,660  |   |                               |   | 20,093 |   |   |   | 1,799 |   |   |   | 1,872 |   |
| Expected      return on plans’ assets      |                  | (36,362 | )      |                               |   | (34,477 | ) |   |   | — |   |   |   | — |   |
| Recognized      actuarial loss (gain)            |                  | 4,931   |   |                               |   | 10,650 |   |   |   | (523 | ) |   |   | 4 |   |
| Amortization      of prior service costs (credits)                        |                  | 376     |   |                               |   | 14 |   |   |   | (366 | ) |   |   | (361 | ) |
| Special      termination benefits(1)                  |                  | 7,135   |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Curtailment      loss(2)                                        |                  | 17,147  |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Net      periodic benefit cost (credit)(3)                           | $                     | 20,958  |   |                               | $ | (3,417 | ) |   | $ | 1,122 |   |   | $ | 1,838 |   |

|                                                          | Pension      Benefits |    |   | Other      Postretirement Benefits |
|---------------------------------------------------------------|-----------------------|---------|--------|------------------------------------|
|                                                          | First      Half       |    |   | First      Half                    |
|                                                          | 2008                  |    |   | 2007                               |   |   | 2008 |   |   | 2007 |
|                                                          |                  |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                              | $                     | 11,118  |   |                               | $ | 873 |   |   | $ | 519 |   |   | $ | 646 |   |
| Interest      cost                                       |                  | 44,598  |   |                               |   | 41,768 |   |   |   | 3,688 |   |   |   | 3,744 |   |
| Expected      return on plans’ assets    |                  | (73,089 | )      |                               |   | (69,326 | ) |   |   | — |   |   |   | — |   |
| Recognized      actuarial loss (gain)          |                  | 11,316  |   |                               |   | 23,482 |   |   |   | (480 | ) |   |   | 8 |   |
| Amortization      of prior service costs (credits)            |                  | 736     |   |                               |   | 69 |   |   |   | (728 | ) |   |   | (722 | ) |
| Special      termination benefits(1)                |                  | 31,288  |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Curtailment      loss(2)                       |                  | 17,147  |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Net      periodic benefit cost (credit)(3)          | $                     | 43,114  |   |                               | $ | (3,134 | ) |   | $ | 2,999 |   |   | $ | 3,676 |   |

| (1)   | Represents      one-time pension benefits related to the elimination of approximately 300      positions in the second quarter of 2008 and 900 positions in the first      half of 2008.  Includes $1.2 million and $7.4 million of      one-time pension benefits in the second quarter and first half of 2008,      respectively, related to discontinued  operations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Relates      entirely to the NMG transaction and is included in discontinued      operations. |
|-----------------|-----------------------------------------------------------------------------------------------|

| (3)   | Includes      benefit costs related to discontinued operations, other than amounts      related to special termination benefits and the curtailment loss described      above, of $.8 million and $.4 million for the second quarters of 2008 and      2007, respectively, and $1.2 million and $.5 million for the first halves      of 2008 and 2007, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                | Second      Quarter 2008 |    |   | First      Half 2008      |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|---------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                | PretaxGain      (Loss)   |    |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gain      on change in fair valuesof PHONES and related      investment                                                                                                                                                                                                                                                                                                                                                             | $                        | 36,440  |   |                      | $      | 36,010 |   |   | $ | 106,320 |   |   | $ | 105,065 |   |
| Write-down      of equity investment                                                                                                                                                                                                                                                                                                                                                                                                |                     | (10,312 | )      |                      |   | (10,190 | ) |   |   | (10,312 | ) |   |   | (10,190 | ) |
| Other,      net                                                                                     |                     | 26      |   |                      |   | 25 |   |   |   | (833 | ) |   |   | (1,047 | ) |
| Income      tax      adjustment                                                                     |                     | — |   |                      |   | — |   |   |   | — |   |   |   | 1,859,358 |   |
| Total      non-operating      items                                                                 | $                        | 26,154  |   |                      | $      | 25,845 |   |   | $ | 95,175 |   |   | $ | 1,953,186 |   |

|                                                                                | Second      Quarter 2007 |    |   | First      Half 2007      |   |
|-------------------------------------------------------------------------------------|--------------------------|---------|--------|---------------------------|--------|
|                                                                                | PretaxGain      (Loss)   |    |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss      on change in fair valuesof PHONES and related      investment   | $                        | (27,395 | )      |                      | $      | (16,711 | ) |   | $ | (97,175 | ) |   | $ | (59,277 | ) |
| Strategic      transaction expenses                                  |                     | (20,926 | )      |                      |   | (15,659 | ) |   |   | (35,398 | ) |   |   | (29,428 | ) |
| Other,      net                                                           |                     | 17,978  |   |                      |   | 10,966 |   |   |   | 21,515 |   |   |   | 13,123 |   |
| Total      non-operating items                                                 | $                        | (30,343 | )      |                      | $      | (21,404 | ) |   | $ | (111,058 | ) |   | $ | (75,582 | ) |

----

|                    | June      29, 2008 |   | Dec.      30, 2007 |
|-------------------------|--------------------|--------|--------------------|
|                    |               |   |               |   |   |
| Newsprint               | $                  | 21,611 |               | $ | 28,664 |
| Supplies      and other |               | 11,466 |               |   | 12,011 |
| Total      inventories  | $                  | 33,077 |               | $ | 40,675 |

|                                                                                 | June      29, 2008 |    |                    | Dec.      30, 2007 |
|--------------------------------------------------------------------------------------|--------------------|---------|-------------------------|--------------------|
|                                                                                 | GrossAmount        |    | AccumulatedAmortization |               | NetAmount |   |   | GrossAmount |   | AccumulatedAmortization |   |   | NetAmount |
|                                                                                 |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intangible      assets subject toamortization                                        |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscribers      (useful life of 15 to 20 years)                           | $                  | 174,980 |                    | $                  |             (78,727 | ) | $ | 96,253 |   |   | $ | 189,879 |   | $ |             (81,698 | ) |   | $ |              108,181 |
| Network affiliation      agreements (useful life of 40 years)(1)           |               | 278,034 |                    |               | (33,034 | ) |   | 245,000 |   |   |   | 278,034 |   |   | (29,552 | ) |   |   | 248,482 |
|  Other      (useful life of 3 to 40                                        |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     years)                                                  |               | 24,635  |                    |               | (12,717 | ) |   | 11,918 |   |   |   | 25,381 |   |   | (11,707 | ) |   |   | 13,674 |
| Total                                                                                | $                  | 477,649 |                    | $                  | (124,478 | ) |   | 353,171 |   |   | $ | 493,294 |   | $ | (122,957 | ) |   |   | 370,337 |
|                                                                                 |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill      and other intangible assets      not subject to amortization |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                             |               |    |                    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                                           |               |    |                    |               |   |   |   | 301,198 |   |   |   |   |   |   |   |   |   |   | 4,138,685 |
| Broadcasting      and entertainment                                                  |               |    |                    |               |   |   |   | 1,440,628 |   |   |   |   |   |   |   |   |   |   | 1,441,241 |
| Total      goodwill                                                                  |               |    |                    |               |   |   |   | 1,741,826 |   |   |   |   |   |   |   |   |   |   | 5,579,926 |
| Newspaper      mastheads                                                             |               |    |                    |               |   |   |   | 197,000 |   |   |   |   |   |   |   |   |   |   | 1,412,937 |
| FCC      licenses                                                                    |               |    |                    |               |   |   |   | 871,946 |   |   |   |   |   |   |   |   |   |   | 871,946 |
| Tradename                                                                            |               |    |                    |               |   |   |   | 7,932 |   |   |   |   |   |   |   |   |   |   | 7,932 |
| Total                                                                                |               |    |                    |               |   |   |   | 2,818,704 |   |   |   |   |   |   |   |   |   |   | 7,872,741 |
| Total      goodwill and other intangible assets                                 |               |    |                    |               |   |   | $ | 3,171,875 |   |   |   |   |   |   |   |   |   | $ | 8,243,078 |

| (1)   | Network      affiliation agreements, net of accumulated amortization, included $172      million related to FOX affiliations, $71 million related to CW      affiliations and $3 million related to MyNetworkTV affiliations as of June      29, 2008. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Publishing |       |   | BroadcastingandEntertainment |   |      | Total  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|--------|------------------------------|--------|-----------|--------|--------|
| Intangible      assets subject to amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |       |       |   |                         |   |      |   |   |   |   |   |
| Balance      as of Dec. 30,      2007                                                                                   | $          | 70,905     |   |                         | $      | 299,432   |   |   | $ | 370,337 |   |
| Amortization      expense                                                                                                    |       | (3,548     | )      |                         |   | (5,772    | )      |   |   | (9,320 | ) |
| Reclassification      to assets held for disposition (see Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |       | (7,823     | )      |                         |   | —   |   |   |   | (7,823 | ) |
| Foreign      currency translation      adjustment                                                                            |       | (23        | )      |                         |   | —   |   |   |   | (23 | ) |
| Balance      as of June 29,      2008                                                                                        | $          | 59,511     |   |                         | $      | 293,660   |   |   | $ | 353,171 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |       |   |                         |   |      |   |   |   |   |   |
| Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |       |       |   |                         |   |      |   |   |   |   |   |
| Balance      as of Dec. 30,      2007                                                                                   | $          | 4,138,685  |   |                         | $      | 1,441,241 |   |   | $ | 5,579,926 |   |
| Reclassification      to assets held for disposition (see Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |       | (830,481   | )      |                         |   | (613      | )      |   |   | (831,094 | ) |
| Impairment      write-down of      goodwill                                                                                  |       | (3,007,000 | )      |                         |   | —   |   |   |   | (3,007,000 | ) |
| Foreign      currency translation      adjustment                                                                            |       | (6         | )      |                         |   | —   |   |   |   | (6 | ) |
| Balance      as of June 29,      2008                                                                                        | $          | 301,198    |   |                         | $      | 1,440,628 |   |   | $ | 1,741,826 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |       |   |                         |   |      |   |   |   |   |   |
| Other      intangible assets not subject to amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                            |       |       |   |                         |   |      |   |   |   |   |   |
| Balance      as of Dec. 30,      2007                                                                                   | $          | 1,420,869  |   |                         | $      | 871,946   |   |   | $ | 2,292,815 |   |
| Reclassification      to assets held for disposition (see Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |       | (379,826   | )      |                         |   | —   |   |   |   | (379,826 | ) |
| Impairment      write-down of newspaper masthead assets                                                                                                                                                                                                                                                                                                                                                                                                                                                             |       | (836,111   | )      |                         |   | —   |   |   |   | (836,111 | ) |
| Balance      as of June 29,      2008                                                                                        | $          | 204,932    |   |                         | $      | 871,946   |   |   | $ | 1,076,878 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |       |       |   |                         |   |      |   |   |   |   |   |
| Total      goodwill and other intangibles as of June 29, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                       | $          | 565,641    |   |                         | $      | 2,606,234 |   |   | $ | 3,171,875 |   |

----

|                                                                                                                                                               | June      29, 2008 |       | Dec. 30, 2007 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------|-------------------------|
|                                                                                                                                                               |               |       |                    |   |   |
| Tranche      B Facility due 2014, interest rate of 5.48% and 7.91%,      respectively                                                                              | $                  | 7,573,938  |                    | $ | 7,587,163 |
| Tranche      X Facility due 2008-2009, interest rate of 5.48% and      7.99%,respectively                                                                          |               | 1,400,000  |                    |   | 1,400,000 |
| Bridge      Facility due 2008, interest rate of 7.98% and 9.43%,      respectively                                                                                 |               | 1,600,000  |                    |   | 1,600,000 |
| Medium-term      notes due 2008, weighted average interest rate of 5.6% in 2008      and 2007                                                                      |               | 237,585    |                    |   | 262,585 |
| Property      financing obligation, effective interest rate of 7.7% (Note      13)                                                                                 |               | —    |                    |   | 35,676 |
| 4.875%      notes due 2010, net of unamortized discount of $334 and $410,      respectively                                                                        |               | 449,666    |                    |   | 449,589 |
| 7.25%      debentures due 2013, net of unamortized discount of $1,622      and$1,794,      respectively                                                            |               | 80,461     |                    |   | 80,289 |
| 5.25%      notes due 2015, net of unamortized discount of $1,127 and $1,205,      respectively                                                                     |               | 328,874    |                    |   | 328,795 |
| 7.5%      debentures due 2023, net of unamortized discount of $3,614 and $3,732,      respectively                                                                 |               | 95,134     |                    |   | 95,016 |
| 6.61%      debentures due 2027, net of unamortized discount of $2,043 and $2,095,      respectively                                                                |               | 82,917     |                    |   | 82,864 |
| 7.25%      debentures due 2096, net of unamortized discount of $17,832      and$17,926,      respectively                                                          |               | 130,167    |                    |   | 130,073 |
| Subordinated      promissory notes due 2018, effective interest rate of      17%,  netof      unamortized discount of $165,040 and $165,000,respectively |               | 65,547     |                    |   |                60,315 |
| Interest      rate swaps                                                                                                                                           |               | 133,207    |                    |   | 119,029 |
| Other      notes and obligations                                                                                                                                   |               | 12,659     |                    |   | 15,091 |
| Total      debt excluding PHONES                                                                                                                                   |               | 12,190,155 |                    |   | 12,246,485 |
| 2%      PHONES debt related to Time Warner stock, due 2029                                                                                                         |               | 276,000    |                    |   | 597,040 |
| Total      debt                                                                                                                                                    | $                  | 12,466,155 |                    | $ | 12,843,525 |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | June      29, 2008 |       | Dec.      30, 2007 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|------------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |       |               |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               |       |               |   |   |
|     PHONES      debt related to Time Warner      stock                                                                                          | $                  | 219,184    |               | $ | 253,080 |
|     Other      debt due within one      year                                                                                                    |               | 1,479,703  |               |   | 750,239 |
|     Total      current      debt                                                                                                                |               | 1,698,887  |               |   | 1,003,319 |
| Long-term      debt:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |       |               |   |   |
|     PHONES      debt related to Time Warner      stock                                                                                          |               | 56,816     |               |   | 343,960 |
|     Other      long-term      debt                                                                                                              |               | 10,710,452 |               |   | 11,496,246 |
|     Total      long-term      debt                                                                                                              |               | 10,767,268 |               |   | 11,840,206 |
| Total      debt                                                                                                                                                     | $                  | 12,466,155 |               | $ | 12,843,525 |

----

----

----

----

----

|                                                                                                                                                              | Balances      PriorTo      Adoption |     |   | Net      Gain/(Loss)Upon      Adoption |   | Balances      After Adoption |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|----------|--------|----------------------------------------|--------|------------------------------|
|                                                                                                                                                              |                                |     |   |                                   |   |                         |   |   |   |   |   |
| PHONES      debt (current and long-term portions)                                                                                                                 | $                                   | (597,040 | )      |                                   | $      | 177,040                      |   |   | $ | (420,000 | ) |
| Unamortized      debt issuance costs related to PHONES          included in other non-current      assets       | $                                   | 18,384   |   |                                   |   | (18,384                      | ) |   |  $ | — |   |
| Pretax      cumulative effect of      adoption                                                                            |                                |     |   |                                   |   | 158,656                      |   |   |   |   |   |
| Increase      in deferred income tax liabilities                                                                                                                  |                                |     |   |                                   |   | (61,876                      | ) |   |   |   |   |
| Cumulative      effect of adoption (increase to     retained      earnings)                                     |                                |     |   |                                   | $      | 96,780                       |   |   |   |   |   |

----

| ·   | Level 1 – Financial      assets and liabilities whose values are based on unadjusted quoted prices      for identical assets or liabilities in an active market.  Level      One financial assets for the Company include its investment in Time Warner      stock related to its PHONES debt and other investments in the securities      of public companies that are classified as available for      sale.  Level One financial liabilities for the Company include      its PHONES debt related to Time Warner stock (see Note 10 for additional      information pertaining to the fair value of the Company’s PHONES      debt). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 2 – Financial      assets and liabilities whose values are based on quoted prices in markets      where trading occurs infrequently or whose values are based on quoted      prices of instruments with similar attributes in active      markets.  Level Two financial assets and liabilities also      include assets and liabilities whose values are derived from valuation      models whose inputs are observable.  Level Two financial assets      and liabilities for the Company include its interest rate swaps (see Note      10 for additional information on the Company’s interest rate      swaps). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – Financial      assets and liabilities whose values are based on valuation models or      pricing techniques that utilize unobservable inputs that are significant      to the overall fair value measurement.  The Company does not      currently have any Level Three financial assets or      liabilities. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | June      29, 2008 |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Level      1       |    |   | Level      2 |   |
| Financial      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |               |    |   |   |   |   |   |
|    Time      Warner stock related to      PHONES                                                                                                               | $                  | 230,720 |   |   | $ | — |   |
|    Other      investments in securities of public      companies                                                                                               |               | 3,184   |   |   |   | — |   |
|    Interest      rate      swaps                                                                                                                               |               | — |   |   |   | 33,999 |   |
| Total                                                                                                                                                                         | $                  | 233,904 |   |   | $ | 33,999 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |               |    |   |   |   |   |   |
| Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |               |    |   |   |   |   |   |
|    PHONES      debt related to Time Warner      stock                                                                                                          | $                  | 276,000 |   |   | $ | — |   |
|    Interest      rate      swaps                                                                                                                               |               | — |   |   |   | 133,207 |   |
| Total                                                                                                                                                                         | $                  | 276,000 |   |   | $ | 133,207 |   |

----

|                                                                                                                                                                                                                   | Second      Quarter |       |   | First      Half |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------|--------|-----------------|--------|
|                                                                                                                                                                                                                   | 2008                |       |   | 2007            |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                                                                                                                   |                |       |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                                                                                                                                                                                                 | $                   | (4,533,949 | )      |            | $      | 36,276 |   |   | $ | (2,710,487 | ) |   | $ | 12,981 |   |
| Change      in unrecognized benefit plan losses,net      of taxes                                                                                                                                                      |                | (45,544    | )      |            |   | — |   |   |   | (57,109 | ) |   |   | — |   |
| Adjustment      for previously unrecognized benefitplan losses included in net income,      net of taxes                                                                                                               |                | 4,365      |   |            |   | 6,357 |   |   |   | 10,716 |   |   |   | 13,999 |   |
| Unrealized      loss on marketable securities, net of taxes                                                                                                                                                            |                | (727       | )      |            |   | (1,720 | ) |   |   | (2,096 | ) |   |   | (2,331 | ) |
| Unrecognized      gains (losses) on cash flow hedging instruments:                                                                                                                                                     |                |       |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Gains      (losses) on cash flow hedging instruments arising during the period,      net of taxes                                                                                                                      |                | 55,423     |   |            |   | — |   |   |   | (13,032 | ) |   |   | — |   |
|         Adjustment      for gains on cash flow hedging                       instruments included in net income, net of |                |       |   |            |   |   |   |   |   |   |   |   |   |   |   |
|          taxes                                                                                                                                                                                          |                | (1,645     | )      |            |   | — |   |   |   | (1,617 | ) |   |   | — |   |
|              Unrecognized gains (losses) on cash flow                                                                                                                               |                |       |   |            |   |   |   |   |   |   |   |   |   |   |   |
|              hedging instruments, net of taxes                                                                                                                                      |                | 53,778     |   |            |   | — |   |   |   | (14,649 | ) |   |   | — |   |
| Change      in foreign currency translation                                                                                                                                                                            |                |       |   |            |   |   |   |   |   |   |   |   |   |   |   |
|              adjustments, net of taxes                                                                                                                                              |                | (59        | )      |            |   | 187 |   |   |   | (65 | ) |   |   | 204 |   |
| Other      comprehensive income (loss)                                                                                                                                                                                 |                | 11,813     |   |            |   | 4,824 |   |   |   | (63,203 | ) |   |   | 11,872 |   |
| Comprehensive      income (loss)                                                                                                                                                                                       | $                   | (4,522,136 | )      |            | $      | 41,100 |   |   | $ | (2,647,284 | ) |   | $ | 24,853 |   |

----

----

----

|                     |   | Second      Quarter |   |   | First      Half |   |
|--------------------------|--------|---------------------|--------|--------|-----------------|--------|
|                     |   | 2008                |   |   | 2007            |   |   | 2008 |   |   | 2007 |   |
|                     |   |                |   |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues: |   |                |   |   |            |   |   |   |   |   |   |   |   |   |   |   |

|      Publishing |   | $  | 700,555    |   |   | $      | 783,578   |   |   | $  | 1,414,652  |   |   | $      | 1,588,267 |   |
|------------------------------------------|--------|---------|------------|--------|--------|--------|-----------|--------|--------|---------|------------|--------|--------|--------|-----------|--------|
| Broadcasting and      entertainment      |   |    | 409,254    |   |   |   | 392,959   |   |   |    | 700,936    |   |   |   | 675,967   |   |
| Total      operating revenues            |   | $       | 1,109,809  |   |   | $      | 1,176,537 |   |   | $       | 2,115,588  |   |   | $      | 2,264,234 |   |
|                                     |   |    |       |   |   |   |      |   |   |    |       |   |   |   |      |   |
| Operating      profit (loss)(1):         |   |    |       |   |   |   |      |   |   |    |       |   |   |   |      |   |
| Publishing(2)                            |   | $       | (3,767,918 | )      |   | $      | 81,336    |   |   | $       | (3,729,697 | )      |   | $      | 206,926   |   |
| Broadcasting and      entertainment      |   |    | 103,403    |   |   |   | 107,734   |   |   |    | 238,598    |   |   |   | 169,116   |   |
| Corporate      expenses                  |   |    | (10,127    | )      |   |   | (13,972   | )      |   |    | (38,624    | )      |   |   | (33,613   | )      |
| Total      operating profit (loss)       |   | $       | (3,674,642 | )      |   | $      | 175,098   |   |   | $       | (3,529,723 | )      |   | $      | 342,429   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | June      29, 2008 |      |   | Dec.      30, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |      |   |               |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |               |      |   |               |   |   |   |
| Publishing                                                                                                                                                         |   | $                  | 2,729,802 |   |               | $      | 8,121,133 |   |
| Broadcasting and      entertainment                                                                                                                                |   |               | 3,713,853 |   |               |   | 3,993,933 |   |
| Corporate                                                                                                                                                          |   |               | 995,665   |   |               |   | 1,000,873 |   |
|     Assets      held for      disposition                                                                                       |   |               | 796,247   |   |               |   | 33,780 |   |
| Total      assets                                                                                                                                   |   | $                  | 8,235,567 |   |               | $      | 13,149,719 |   |

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

| (2)   | The      second quarter and first half 2008 operating loss for the publishing      segment included non-cash pretax impairment write-downs of intangible      assets totaling $3,843 million.  See Note  9. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM      2.  | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND   RESULTS OFOPERATIONS. |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | On      April 1, 2007, the Company entered into an Agreement and Plan of Merger      (the “Merger Agreement”) with GreatBanc Trust Company, not in its      individual or corporate capacity, but solely as trustee of the Tribune      Employee Stock Ownership Trust, a separate trust which forms a part of the      ESOP, Tesop Corporation, a Delaware corporation wholly-owned by the ESOP      (“Merger Sub”), and the Zell Entity (solely for the limited purposes      specified therein) providing for Merger Sub to be merged with and into the      Company, and following such merger, the Company to continue as the      surviving corporation wholly-owned by the ESOP (the      “Merger”). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      April 1, 2007, the ESOP purchased 8,928,571 shares of the Company’s common      stock from the Company at a price of $28.00 per share. The ESOP paid for      this purchase with a promissory note of the ESOP in favor of the Company      in the principal amount of $250 million, to be repaid by the ESOP over the      30-year life of the loan through its use of annual contributions from the      Company to the ESOP and/or distributions paid on the shares of the      Company’s common stock held by the ESOP. Upon consummation of the Merger,      the 8,928,571 shares of the Company’s common stock held by the ESOP were      converted into 56,521,739 shares of common stock and represent the only      outstanding shares of capital stock of the Company after the      Merger. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      April 23, 2007, pursuant to a purchase agreement dated April 1, 2007 (the      “Zell Entity Purchase Agreement”), the Zell Entity made an initial      investment of $250 million in the Company in exchange for (1) 1,470,588      shares of the Company’s common stock at a price of $34.00 per share and      (2) an unsecured subordinated exchangeable promissory note of the Company      in the principal amount of $200 million.  The shares were      converted at the effective time of the Merger into the right to receive      $34.00 per share in cash, and the unsecured subordinated exchangeable      promissory note, including approximately $6 million of interest accrued      thereon, was repaid by the Company immediately prior to the      Merger.  Pursuant to the Zell Entity Purchase Agreement, on May      9, 2007, Mr. Zell was appointed as a member of the  Board. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      April 25, 2007, the Company commenced a tender offer to repurchase up to      126 million shares of the Company’s common stock that were then      outstanding at a price of $34.00 per share in cash (the “Share      Repurchase”). The tender offer expired on May 24, 2007 and 126 million      shares of the Company’s common stock were repurchased and subsequently      retired on June 4, 2007 utilizing proceeds from the Credit Agreement (as      defined in the “Credit Agreements” section  below). |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The      Company granted registration rights to Chandler Trust No. 1 and Chandler      Trust No. 2 (together, the “Chandler Trusts”), which were significant      shareholders of the Company prior to the Company’s entry into the      Leveraged ESOP Transactions. On April 25, 2007, the Company filed a shelf      registration statement in connection with the registration rights granted      to the Chandler Trusts. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      June 4, 2007, the Chandler Trusts entered into an underwriting agreement      with Goldman, Sachs & Co. (“Goldman Sachs”) and the Company, pursuant      to which the Chandler Trusts sold an aggregate of 20,351,954 shares of the      Company’s common stock, which represented the remainder of the shares of      the Company’s common stock owned by them following the Share Repurchase,      through a block trade underwritten by Goldman Sachs. The shares were      offered pursuant to the shelf registration statement filed by the Company      on April 25, 2007. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      Dec. 20, 2007, the Company completed its merger with Merger Sub, with the      Company surviving the Merger. Pursuant to the terms of the Merger      Agreement, each share of common stock of the Company, par value $0.01 per      share, issued and outstanding immediately prior to the Merger, other than      shares held by the Company, the ESOP or Merger Sub immediately prior to      the Merger (in each case, other than shares held on behalf of third      parties) and shares held by shareholders who validly exercised appraisal      rights, was cancelled and automatically converted into the right to      receive $34.00, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | without      interest and less any applicable withholding taxes, and the Company became      wholly-owned by the ESOP. |
|--------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | Following      the consummation of the Merger, the Zell Entity purchased from the      Company, for an aggregate of $315 million, a $225 million subordinated      promissory note and a 15-year warrant.  For accounting purposes,      the subordinated promissory note and 15-year warrant were recorded at fair      value based on the relative fair value method. The warrant entitles the      Zell Entity to purchase      43,478,261 shares of the Company’s common stock (subject to adjustment),      which represents approximately 40% of the economic equity interest in the      Company following the Merger (on a fully-diluted basis, including after      giving effect to share equivalents granted under a new management equity      incentive plan which is described in Note 4 to the Company’s unaudited      condensed consolidated financial statements in Part I, Item 1, hereof).      The warrant has an initial aggregate exercise price of $500 million,      increasing by $10 million per year for the first 10 years of the warrant,      for a maximum aggregate exercise price of $600 million (subject to      adjustment). Thereafter, the Zell Entity assigned minority interests in      the subordinated promissory note and the warrant to certain permitted      assignees. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On      Dec. 20, 2007, the Company notified the New York Stock Exchange (the      “NYSE”) that the Merger was consummated and requested that the Company’s      common stock (and associated Series A junior participating preferred stock      purchase rights) be suspended from the NYSE, effective as of the close of      the market on Dec. 20, 2007.  Subsequently, the NYSE filed with      the Securities and Exchange Commission an application on Form 25 reporting      that the shares of the Company’s common stock and associated Series A      junior participating preferred stock purchase rights are no longer listed      on the NYSE. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

|                                                                                      | Second      Quarter 2008 |    |   | First      Half 2008      |   |
|-------------------------------------------------------------------------------------------|--------------------------|---------|--------|---------------------------|--------|
| (in      millions)                                                                        | PretaxGain      (Loss)   |    |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                      |                     |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gain      on change in fair valuesof PHONES and related      investment                   | $                        | 36.4    |   |                      | $      | 36.0 |   |   | $ | 106.3 |   |   | $ | 105.1 |   |
| Write-down      of equity      investment         |                     | (10.3   | )      |                      |   | (10.2 | ) |   |   | (10.3 | ) |   |   | (10.2 | ) |
| Other,      net                                                       |                     | — |   |                      |   | — |   |   |   | (.8 | ) |   |   | (1.0 | ) |
| Income      tax adjustment                                       |                     | — |   |                      |   | — |   |   |   | — |   |   |   | 1,859.4 |   |
| Total      non-operating      items               | $                        | 26.2    |   |                      | $      | 25.8 |   |   | $ | 95.2 |   |   | $ | 1,953.2 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                 | Second      Quarter 2007 |   |   | First      Half 2007      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|--------|--------|---------------------------|--------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                   | PretaxGain      (Loss)   |   |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                 |                     |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Loss      on change in fair valuesof PHONES and related      investment                                                                                                                                                                                                                                                                                                                              | $                        | (27.4  | )      |                      | $      | (16.7 | ) |   | $ | (97.2 | ) |   | $ | (59.3 | ) |
| Strategic      transaction      expenses                                                           |                     | (20.9  | )      |                      |   | (15.7 | ) |   |   | (35.4 | ) |   |   | (29.4 | ) |
| Other,      net                                                                                    |                     | 18.0   |   |                      |   | 11.0 |   |   |   | 21.5 |   |   |   | 13.1 |   |
| Total      non-operating      items                                                                | $                        | (30.3  | )      |                      | $      | (21.4 | ) |   | $ | (111.1 | ) |   | $ | (75.6 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                | Second      Quarter |   | First      Half |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                  | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                           | $                   | 1,110  |            | $ | 1,177 |   | - | 6% |   | $ | 2,116 |   | $ | 2,264 |   | - | 7% |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit (loss)(1):                                                                                                                                                                                                                                                                                                                                                    |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before      write-downs of intangible assets                                                                                                                                                                                                                                                                                                                                        | $                   | 168    |            | $ | 175 |   | - | 4% |   | $ | 313 |   | $ | 342 |   | - | 8% |
| Write-downs      of intangible assets(2)                                                                                                                                                                                                                                                                                                                                            |                | (3,843 | )               |   | – |   |   | * |   |   | (3,843 | ) |   | - |   |   | * |
| After      write-downs of intangible assets                                                                                                                                                                                                                                                                                                                                         | $                   | (3,675 | )               | $ | 175 |   |   | * |   | $ | (3,530 | ) | $ | 342 |   |   | * |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss):                                                                                                                                                                                                                                                                                                                                                             |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) from continuing operations(3)                                                                                                                                                                                                                                                                                                                                    | $                   | (3,829 | )               | $ | 35 |   |   | * |   | $ | (1,993 | ) | $ | 41 |   |   | * |
|              Income (loss) from discontinued operations,                                                                                                                                                                                                                                                                                         |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|          net of      tax                                                                    |                | (705   | )               |   | 1 |   |   | * |   |   | (718 | ) |   | (28 | ) |   | * |
| Net income      (loss)                                                                      | $                   | (4,534 | )               | $ | 36 |   |   | * |   | $ | (2,710 | ) | $ | 13 |   |   | * |

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

| (2)   | Write-downs      of intangible assets included a $3,007 million non-cash write-down of the      Company’s newspaper reporting unit goodwill and an $836 million non-cash      write-down of newspaper masthead intangible  assets. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Due      to the Company’s election to be treated as a subchapter S corporation      beginning in 2008, nearly all of its net deferred tax liabilities have      been eliminated as of Dec. 31, 2007.  This resulted in a $1,859      million reduction in income tax expense in the first quarter of      2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                        | Second      Quarter |   | First      Half |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                          | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                        |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                                                                                                                                                                                                                                                                                                     |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                                                                          | $                   | 701    |            | $ | 784 |   | - | 11% |   | $ | 1,415 |   | $ | 1,588 |   | - | 11% |
| Broadcasting and      entertainment                                                                                 |                | 409    |            |   | 393 |   | + | 4% |   |   | 701 |   |   | 676 |   | + | 4% |
| Total      operating      revenues                                                                        | $                   | 1,110  |            | $ | 1,177 |   | - | 6% |   | $ | 2,116 |   | $ | 2,264 |   | - | 7% |
|                                                                                                                                                                                                                                                                                                                                                                                                        |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit (loss)(1)                                                                                                                                                                                                                                                                                                                                                                             |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing:                                                                                                                                                                                                                                                                                                                                                                                                 |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before write-downs of      intangible assets                                                                                                                                                                                                                                                                                                                                                                | $                   | 75     |            | $ | 81 |   | - | 8% |   | $ | 113 |   | $ | 207 |   | - | 45% |
| Write-downs      of intangible assets(2)                                                                                                                                                                                                                                                                                                                                                                    |                | (3,843 | )               |   | — |   |   | * |   |   | (3,843 | ) |   | — |   |   | * |
| After      write-downs of intangible assets                                                                                                                                                                                                                                                                                                                                                                 |                | (3,768 | )               |   | 81 |   |   | * |   |   | (3,730 | ) |   | 207 |   |   | * |
| Broadcasting and      entertainment                                                                                 |                | 103    |            |   | 108 |   | - | 4% |   |   | 239 |   |   | 169 |   | + | 41% |
|     Corporate      expenses                                                           |                | (10    | )               |   | (14 | ) | + | 28% |   |   | (39 | ) |   | (34 | ) | - | 15% |
| Total      operating profit      (loss)                                                                   | $                   | (3,675 | )               | $ | 175 |   |   | * |   | $ | (3,530 | ) | $ | 342 |   |   | * |

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

| (2)   | Write-downs      of intangible assets included a $3,007 million non-cash write-down of the      Company’s newspaper reporting unit goodwill and an $836 million non-cash      write-down of newspaper masthead intangible  assets. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                      | Second      Quarter |   | First      Half |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                        | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                      |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of sales (exclusive of items shown below)                                                                                                                                                                                                                                                                                                                                                       | $                   | 612    |            | $ | 600 |   | + | 2% |   | $ | 1,149 |   | $ | 1,152 |   |   | — |
| Selling,      general and      administrative                                                           |                | 277    |            |   | 350 |   | - | 21% |   |   | 549 |   |   | 666 |   | - | 18% |
| Depreciation      and      amortization                                                                 |                | 52     |            |   | 51 |   | + | 2% |   |   | 104 |   |   | 103 |   | + | 1% |
| Total      operating expenses before write-downs of intangible    assets                                                                                                                                                                                                                                                                                                                                  |                | 941    |            |   | 1,001 |   | - | 6% |   |   | 1,802 |   |   | 1,922 |   | - | 6% |
| Write-downs      of intangible assets(1)                                                                                                                                                                                                                                                                                                                                                                  |                | 3,843  |            |   | — |   |   | * |   |   | 3,843 |   |   | — |   |   | * |
| Total      operating      expenses                                                                      | $                   | 4,784  |            | $ | 1,001 |   |   | * |   | $ | 5,645 |   | $ | 1,922 |   |   | * |

| (1)   | Write-downs      of intangible assets included a $3,007 million non-cash write-down of the      Company’s newspaper reporting unit goodwill and an $836 million non-cash      write-down of newspaper masthead intangible  assets. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                | Second      Quarter |   | First      Half |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                  | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                           | $                   | 701    |            | $ | 784 |   | - | 11% |   | $ | 1,415 |   | $ | 1,588 |   | - | 11% |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses:                                                                                                                                                                                                                                                                                                                                                            |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before write-downs of      intangible assets                                                                                                                                                                                                                                                                                                                                        | $                   | 625    |            | $ | 702 |   | - | 11% |   | $ | 1,301 |   | $ | 1,381 |   | - | 6% |
|     Write-downs      of intangible assets(1)                                                                                                                                                                                                                                                                                                                    |                | 3,843  |            |   | — |   |   | * |   |   | 3,843 |   |   | — |   |   | * |
|     After      write-downs of intangible assets                                                                                                                                                                                                                                                                                                                 | $                   | 4,468  |            | $ | 702 |   |   | * |   | $ | 5,144 |   | $ | 1,381 |   |   | * |
|                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit (loss):                                                                                                                                                                                                                                                                                                                                                       |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Before write-downs of      intangible assets                                                                                                                                                                                                                                                                                                                                        | $                   | 75     |            | $ | 81 |   | - | 8% |   | $ | 113 |   | $ | 207 |   | - | 45% |
|     Write-downs      of intangible assets(1)                                                                                                                                                                                                                                                                                                                    |                | (3,843 | )               |   | — |   |   | * |   |   | (3,843 | ) |   | — |   |   | * |
| After      write-downs of intangible assets                                                                                                                                                                                                                                                                                                                                         | $                   | (3,768 | )               | $ | 81 |   |   | * |   | $ | (3,730 | ) | $ | 207 |   |   | * |

| (1)   | Write-downs      of intangible assets included a $3,007 million non-cash write-down of the      Company’s newspaper reporting unit goodwill and an $836 million non-cash      write-down of newspaper mastheads. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                               | Second      Quarter |   | First      Half |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                 | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                               |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Advertising                                                                                                                                                                                                                                                                                                                                                                        |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                                     | $                   | 243    |            | $ | 263 |   | - | 8% |   | $ | 473 |   | $ | 514 |   | - | 8% |
| National                                                                                   |                | 120    |            |   | 136 |   | - | 12% |   |   | 264 |   |   | 294 |   | - | 10% |
| Classified                                                                                 |                | 152    |            |   | 207 |   | - | 26% |   |   | 308 |   |   | 425 |   | - | 28% |
| Total      advertising                                                           |                | 516    |            |   | 607 |   | - | 15% |   |   | 1,044 |   |   | 1,233 |   | - | 15% |
| Circulation                                                                      |                | 109    |            |   | 112 |   | - | 2% |   |   | 221 |   |   | 227 |   | - | 3% |
| Other                                                                            |                | 75     |            |   | 65 |   | + | 16% |   |   | 150 |   |   | 128 |   | + | 17% |
| Total      revenues                                                              | $                   | 701    |            | $ | 784 |   | - | 11% |   | $ | 1,415 |   | $ | 1,588 |   | - | 11% |

----

|                                                                                                                                                                                                                                                                                                                                                                                                | Second      Quarter |   | First      Half |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| Inches      (in thousands)                                                                                                                                                                                                                                                                                                                                                                          | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full      run                                                                                                                                                                                                                                                                                                                                                                                       |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                                                      |                | 1,226  |            |   | 1,211 |   | + | 1% |   |   | 2,288 |   |   | 2,321 |   | - | 1% |
| National                                                                                                    |                | 615    |            |   | 598 |   | + | 3% |   |   | 1,262 |   |   | 1,252 |   | + | 1% |
| Classified                                                                                                  |                | 1,643  |            |   | 1,864 |   | - | 12% |   |   | 3,215 |   |   | 3,756 |   | - | 14% |
| Total      full      run                                                                          |                | 3,484  |            |   | 3,673 |   | - | 5% |   |   | 6,765 |   |   | 7,329 |   | - | 8% |
| Part      run                                                                                     |                | 3,558  |            |   | 4,337 |   | - | 18% |   |   | 6,999 |   |   | 8,696 |   | - | 20% |
| Total      inches                                                                                 |                | 7,042  |            |   | 8,010 |   | - | 12% |   |   | 13,764 |   |   | 16,025 |   | - | 14% |
|                                                                                                                                                                                                                                                                                                                                                                                                |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preprint      pieces (in      millions)                                                           |                | 2,699  |            |   | 3,101 |   | - | 13% |   |   | 5,360 |   |   | 6,059 |   | - | 12% |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                            | Second      Quarter |   | First      Half |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                              | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                            |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                                                                                                                  | $                   | 265    |            | $ | 285 |   | - | 7% |   | $ | 560 |   | $ | 566 |   | - | 1% |
| Newsprint      and      ink                                                                                                   |                | 86     |            |   | 90 |   | - | 5% |   |   | 169 |   |   | 191 |   | - | 11% |
| Circulation      distribution                                                                                                 |                | 108    |            |   | 103 |   | + | 5% |   |   | 215 |   |   | 207 |   | + | 4% |
| Outside      services                                                                                                         |                | 61     |            |   | 65 |   | - | 6% |   |   | 121 |   |   | 127 |   | - | 5% |
| Promotion                                                                                                                     |                | 18     |            |   | 23 |   | - | 20% |   |   | 37 |   |   | 42 |   | - | 13% |
| Depreciation      and      amortization                                                                                       |                | 39     |            |   | 38 |   |   | 3% |   |   | 78 |   |   | 77 |   | + | 1% |
| Other                                                                                                                         |                | 48     |            |   | 98 |   | - | 51% |   |   | 121 |   |   | 172 |   | - | 30% |
| Total      operating expenses before write-downs of intangible      assets                                                         |                | 625    |            |   | 702 |   | - | 11% |   |   | 1,301 |   |   | 1,381 |   | - | 6% |
| Write-downs      of intangible assets(1)                                                                                                                                                                                                                                                                                                                                                                                        |                | 3,843  |            |   | — |   |   | * |   |   | 3,843 |   |   | — |   |   | * |
| Total      operating      expenses                                                                                            | $                   | 4,468  |            | $ | 702 |   |   | * |   | $ | 5,144 |   | $ | 1,381 |   |   | * |

| (1)   | Write-downs      of intangible assets included a $3,007 million non-cash write-down of the      Company’s newspaper reporting unit goodwill and an $836 million non-cash      write-down of newspaper masthead intangible  assets. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                           | Second      Quarter |   | First      Half |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                             | 2008                |   | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                           |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                                                                                                                                                                                                                                                                                        |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                                                                             | $                   | 292    |            | $ | 287 |   | + | 2% |   | $ | 570 |   | $ | 551 |   | + | 3% |
| Radio/entertainment                                                                                    |                | 118    |            |   | 106 |   | + | 11% |   |   | 131 |   |   | 125 |   | + | 5% |
| Total      operating      revenues                                                           | $                   | 409    |            | $ | 393 |   | + | 4% |   | $ | 701 |   | $ | 676 |   | + | 4% |
|                                                                                                                                                                                                                                                                                                                                                                                           |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      expenses                                                                                                                                                                                                                                                                                                                                                                        |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                                                                             | $                   | 211    |            | $ | 198 |   | + | 7% |   | $ | 426 |   | $ | 395 |   | + | 8% |
| Radio/entertainment(1)                                                                                 |                | 95     |            |   | 87 |   | + | 8% |   |   | 36 |   |   | 112 |   | - | 68% |
| Total      operating      expenses                                                           | $                   | 306    |            | $ | 285 |   | + | 7% |   | $ | 462 |   | $ | 507 |   | - | 9% |
|                                                                                                                                                                                                                                                                                                                                                                                           |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit                                                                                                                                                                                                                                                                                                                                                                          |                |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                                                                             | $                   | 81     |            | $ | 89 |   | - | 10% |   | $ | 144 |   | $ | 156 |   | - | 8% |
| Radio/entertainment(1)                                                                                 |                | 23     |            |   | 19 |   | + | 22% |   |   | 95 |   |   | 13 |   |   | * |
| Total      operating      profit                                                             | $                   | 103    |            | $ | 108 |   | - | 4% |   | $ | 239 |   | $ | 169 |   | + | 41% |

| (1)   | Radio/entertainment      operating expenses and operating profit for the first half of 2008      included the gain of $83 million on the sale of the studio production      lot. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                | Second      Quarter |    | First      Half |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------|-----------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                  | 2008                |    | 2007            |   | Change |   | 2008 |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                |                |    |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                                                                                      | $                   | 149     |            | $ | 137 |   | + | 9% |   | $ | 233 |   | $ | 211 |   | + | 10% |
| Programming                                                                                       |                | 83      |            |   | 80 |   | + | 4% |   |   | 172 |   |   | 163 |   | + | 5% |
| Depreciation      and      amortization                                                           |                | 13      |            |   | 13 |   |   | — |   |   | 25 |   |   | 25 |   |   | — |
| Other                                                                                             |                | 61      |            |   | 55 |   | + | 10% |   |   | 114 |   |   | 107 |   | + | 7% |
| Gain      on sale of studio production lot assets                                                                                                                                                                                                                                                                                                                                                   |                | — |            |   | — |   |   | — |   |   | (83 | ) |   | — |   |   | * |
| Total      operating      expenses                                                                | $                   | 306     |            | $ | 285 |   | + | 7% |   | $ | 462 |   | $ | 507 |   | - | 9% |

----

----

|                                                                                        |   | Second      Quarter |     |   | First      Half |   |
|---------------------------------------------------------------------------------------------|--------|---------------------|----------|--------|-----------------|--------|
|                                                                                        |   | 2008                |     |   | 2007            |   |   | 2008 |   |   | 2007 |   |
|                                                                                        |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues                                                                     |   | $                   | 117,229  |   |            | $      | 147,399 |   |   | $ | 226,102 |   |   | $ | 284,738 |   |
|                                                                                        |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
| Operating      profit (loss)                                                                |   | $                   | (3,220   | )      |            | $      | 21,741 |   |   | $ | (4,851 | ) |   | $ | 33,865 |   |
| Interest      income                                                                        |   |                | —  |   |            |   | 2 |   |   |   | 2 |   |   |   | 4 |   |
| Interest      expense                                                                       |   |                | (8,403   | )      |            |   | (3,456 | ) |   |   | (19,732 | ) |   |   | (3,454 | ) |
| Non-operating      loss, net(1)                                                             |   |                | —  |   |            |   | (12,000 | ) |   |   | — |   |   |   | (15,000 | ) |
| Gain      (loss) on dispositions of discontinued                                            |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
|         operations                                                                |   |                | (691,960 | )      |            |   | 2,484 |   |   |   | (692,475 | ) |   |   | (16,958 | ) |
| Income      (loss) from discontinued operations before          income taxes |   |                | (703,583 | )      |            |   | 8,771 |   |   |   | (717,056 | ) |   |   | (1,543 | ) |
| Income      taxes(2)                                                                        |   |                | (1,103   | )      |            |   | (7,765 | ) |   |   | (686 | ) |   |   | (26,410 | ) |
|  Income      (loss) from discontinued operations, net                                  |   |                |     |   |            |   |   |   |   |   |   |   |   |   |   |   |
|     of      tax                                                         |   | $                   | (704,686 | )      |            | $      | 1,006 |   |   | $ | (717,742 | ) |   | $ | (27,953 | ) |

| (1)   | Discontinued      operations for the second quarter and first half of 2007 included pretax      non-operating charges of $12 million and $15 million, respectively, for a      civil forfeiture payment related to the inquiry by the United States      Attorney’s Office for the Eastern District of New York into the      circulation practices of Newsday and Hoy, New      York.  See Note 5 to the consolidated financial statements in      the Company’s Annual Report on Form 10-K for the fiscal year ended Dec.      30, 2007, for further information. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Income      taxes for the second quarter and first half of 2008 included tax expense      of $1 million related to the $692 million pretax loss on the NMG      transaction.  The pretax loss included $830 million of allocated      newspaper reporting unit goodwill, most of which is not deductible for      income tax purposes.  Income taxes for the first half of 2007      included tax expense of $16 million related to the $17 million pretax loss      on dispositions of discontinued operations.  The pretax loss      included $58 million of allocated newspaper reporting unit goodwill, most      of which is not deductible for income tax  purposes. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Maturities                          | Fixed RateDebt |      | Weighted AvgInterest Rate |   | Variable Rate      Debt |   | Weighted AvgInterest Rate |   | Total      Debt |
|-------------------------------------|---------------------|-----------|-------------------------------------|--------|------------------------------|--------|-------------------------------------|--------|-----------------|
| 2008(1)                             | $                   | 219,882   |                                |   | 2.0                          | %      |                                | $      | 688,820         |   |   | 5.5 | % |   | $ | 908,702 |
| 2009(2)                             |                | 1,535     |                                |   | 9.6                          | %      |                                |   | 849,907         |   |   | 5.5 | % |   |   | 851,442 |
| 2010(3)                             |                | 451,362   |                                |   | 4.9                          | %      |                                |   | 120,025         |   |   | 5.5 | % |   |   | 571,387 |
| 2011                                |                | 1,845     |                                |   | 9.6                          | %      |                                |   | 78,830          |   |   | 5.5 | % |   |   | 80,675 |
| 2012(4)                             |                | 2,026     |                                |   | 9.6                          | %      |                                |   | 120,617         |   |   | 5.5 | % |   |   | 122,643 |
| Thereafter(5)                       |                | 1,111,508 |                                |   | 4.1                          | %      |                                |   | 8,819,798       |   |   | 5.9 | % |   |   | 9,931,306 |
| Total      at June 29, 2008         | $                   | 1,788,158 |                                |   |                         |   |                                | $      | 10,677,997      |   |   |   |   |   | $ | 12,466,155 |
| Fair      value at June 29, 2008(6) | $                   | 1,226,245 |                                |   |                         |   |                                | $      | 8,669,539       |   |   |   |   |   | $ | 9,895,784 |

----

| (1) | Fixed      rate debt includes $219 million of the Company’s 2% PHONES which      represents the cash exchange value of the PHONES at June 29,      2008.  Variable rate debt      includes a      $650      million principal payment due      under the      Tranche X facility on Dec. 4, 2008      and $39 million related to the Tranche B facility, which is payable in      quarterly increments of approximately $19 million until maturity in 2014      when the remaining principal balance is due in full (see Note 10 to the      Company’s unaudited condensed consolidated financial statements in Part I, Item 1,      hereof). |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Variable      rate debt includes a $750 million principal payment due under the Tranche      X facility on June 4, 2009 and $21 million related to an interest rate      swap agreement through 2009 on $750 million of the variable rate      borrowings under the Tranche B facility effectively converting the      variable rate to a fixed rate of 5.25% plus a margin of 300 basis      points. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Variable      rate debt includes $41 million related to an interest rate swap agreement      through 2010 on $1 billion of the variable rate borrowings under the      Tranche B facility effectively converting the variable rate to a fixed      rate of 5.29% plus a margin of 300 basispoints. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Variable      rate debt includes $42 million related to an interest rate swap agreement      through 2012 on $750 million of the variable rate borrowings under the      Tranche B facility effectively converting the variable rate to a fixed      rate of 5.39% plus a margin of 300 basispoints. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Fixed      rate debt includes the remaining $57 million of book value related to      the Company’s 2% PHONES, due 2029.  The Company may redeem the      PHONES at any time for the greater of the principal value of the PHONES      ($155.77 per PHONES at June 29, 2008) or the then market value of two      shares of Time Warner common stock, subject to certain adjustments.      Quarterly interest payments are made to the PHONES holders at an annual      rate of 2% of the initial principal. Fixed rate debt also includes      $29 million related to the interest rate swap agreement on the      $100 million 7.5% debentures due in 2023 effectively converting the      fixed 7.5% rate to a variable rate based on LIBOR.  Fixed rate      debt also includes $238 million related to the Company’s medium-term notes      that the Company intends to refinance using the Delayed Draw Facility as      they mature during 2008.  Accordingly, the Company has      classified its medium-term notes as long-term at June 29,      2008.  Variable rate debt includes the $1.6 billion Bridge      Facility, which has been classified as long-term because the borrowings      under the Bridge Facility will be exchanged for long-term senior exchange      notes or similar instruments prior to the Bridge Facility’s initial      maturity date of Dec. 20, 2008 (see Note 10 to the Company’s unaudited      consolidated financial statements in Part I, Item 1,      hereof).  Variable rate debt also includes $7.2 billion      related to the amount due in 2014 on the Tranche B facility after all |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | quarterly      payments have been made (see Note 10 to the Company’s unaudited condensed      consolidated financial statements in Part I, Item 1,      hereof).                                                                                                                                                                                                                               |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6)    | Fair      value of the Company’s variable rate borrowings, senior notes and      debentures was estimated based on quoted market prices for similar issues      or on current rates available to the Company for debt of the same      remaining maturities and similar terms.  The carrying value of      all other components of the Company’s debt approximates fair      value. |

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|                                                  | Valuation      of InvestmentsAssuming      Indicated Decreasein      Stock’s Price  |   |  June 29,      2008 |   | Valuation      of InvestmentsAssuming      Indicated Increasein      Stock’s Price  |
|-------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|--------------------------|--------|------------------------------------------------------------------------------------------------|
| (in      thousands)                                   | -30%                                                                                      |   | -20%                |   | -10%                                                                                      |   |  Fair      Value |   | +10%  |   | +20%  |   | +30%  |
| Common      stock investments inpublic      companies | $2,229                                                                                         |   | $2,548                   |   | $2,866                                                                                         |   | $3,184(1) |   | $3,503 |   | $3,821 |   | $4,140 |

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

|                         | Valuation      of InvestmentsAssuming      Indicated Decreasein      Stock’s Price  |   |  June 29,      2008 |   | Valuation      of InvestmentsAssuming      Indicated Increasein      Stock’s Price  |
|------------------------------|------------------------------------------------------------------------------------------------|--------|--------------------------|--------|------------------------------------------------------------------------------------------------|
| (in      thousands)          | -30%                                                                                      |   | -20%                |   | -10%                                                                                      |   |  Fair      Value |   | +10%  |   | +20%  |   | +30%  |
| Time      Warner commonstock | $161,504                                                                                       |   | $184,576                 |   | $207,648                                                                                       |   | $230,720 |   | $253,792 |   | $276,864 |   | $299,936 |

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

|   | Exhibits      marked with an asterisk (*) are incorporated by reference to the documents      previously filed by Tribune Company with the Securities and Exchange      Commission, as indicated. All other documents are filed with this      Report. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.1 | Tripartite      Agreement, dated Aug. 1, 2008, among Tribune Company, Citibank, N.A. and      Deutsche Bank Trust Company Americas, appointing Deutsche Bank Trust      Company Americas as Trustee under the Indenture dated as of March 1, 1992,      as amended and supplemented |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.2 | Tripartite      Agreement, dated Aug. 1, 2008, among Tribune Company, Citibank, N.A. and      Deutsche Bank Trust Company Americas, appointing Deutsche Bank Trust      Company Americas as Trustee under the Indenture dated as of Jan. 1, 1997,      as amended and supplemented |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.3 | Tripartite      Agreement, dated Aug. 1, 2008, among Tribune Company, Citibank, N.A. and      Deutsche Bank Trust Company Americas, appointing Deutsche Bank Trust      Company Americas as Trustee under the Indenture dated as of April 1, 1999,      as amended and supplemented |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.4 | Tripartite      Agreement, dated Aug. 1, 2008, among Tribune Company, Citibank, N.A. and      Deutsche Bank Trust Company Americas, appointing Deutsche Bank Trust      Company Americas as Trustee under the Indenture dated as of Jan. 30, 1995,      as amended and supplemented |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4.5 | Tripartite      Agreement, dated Aug. 1, 2008, among Tribune Company, Citibank, N.A. and      Deutsche Bank Trust Company Americas, appointing Deutsche Bank Trust      Company Americas as Trustee under the Indenture dated as of March 19,      1996, as amended and supplemented |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.1* | Receivables      Purchase Agreement, dated as of July 1, 2008, among Tribune Company, as      Parent and as Servicer, Subsidiaries of Parent party thereto, as      Sub-Originators and Tribune Receivables, LLC, as Buyer, incorporated by      reference to Exhibit 10.1 of the Company's Current Report on Form 8-K, as      filed with the Securities and Exchange Commission on July 8,      2008 |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2* | Receivables      Loan Agreement, dated July 1, 2008, among Tribune Receivables, LLC, as      Borrower, Tribune Company, as Servicer, the persons from time to time      party thereto as Conduit Lenders and Committed Lenders, Barclays Bank PLC,      and the persons from time to time parties thereto as Funding Agents and      Barclays Bank PLC, as Administrative Agent, incorporated by reference to      Exhibit 10.2 of the Company's Current Report on Form 8-K, as filed with      the Securities and Exchange Commission on July 8,  2008 |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 10.3* | Tax      Matters Agreement, dated as of July 29, 2008, by and among CSC Holdings,      Inc., NMG Holdings, Inc., Newsday Holdings, LLC, Tribune Company and      Newsday, Inc., incorporated by reference to Exhibit 10.1 of the Company’s      Current Report on Form 8-K, as filed with the Securities and Exchange      Commission on Aug. 4, 2008 |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.4*                        | Indemnity      Agreement, dated as of July 29, 2008, by and among CSC Holdings, Inc., NMG      Holdings, Inc., Tribune Company, Newsday Holdings LLC and Newsday LLC,      incorporated by reference to Exhibit 10.2 of the Company’s Current Report      on Form 8-K as filed with the Securities and Exchange Commission on Aug.      4, 2008 |
|--------|------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                         |                                                                                                                                                                                                                                                                                                                                                  |
|   |  31.1    | Rule      13a-14 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                             |
|   |                         |                                                                                                                                                                                                                                                                                                                                                  |
|   |  31.2              | Rule      13a-14 Certification of Chief Financial Officer                                                                                                                                                                                                                                                                                             |
|   |                         |                                                                                                                                                                                                                                                                                                                                                  |
|   |  32.1              | Section      1350 Certification of Chief Executive Officer                                                                                                                                                                                                                                                                                            |
|   |                         |                                                                                                                                                                                                                                                                                                                                                  |
|   |  32.2         | Section      1350 Certification of Chief FinancialOfficer                                                                                                                                                                                                                                                                                             |

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| SIGNATURE |
|-----------|

|                             | TRIBUNE      COMPANY(Registrant) |                                                                                                                                                                                                                                                                                                            |
|----------------------------------|----------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |                             |                                                                                                                                                                                                                                                                                                            |   |
| Date:       August 13, 2008 | By:                              | /s/ Brian      Litman                                                                                                                                                                                                                                                                                      |   |
|                             |                             | Name:        Brian Litman                                                                                                                                                                                                                                                                             |   |
|                             |                             | Title:          Vice President and Controller              (on      behalf of the registrant              and      as Chief Accounting Officer) |   |
|                             |                             |                                                                                                                                                                                                                                                                                                            |   |

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