----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

**OF        THE SECURITIES EXCHANGE ACT OF 1934**

**FOR      THE QUARTERLY PERIOD ENDED SEPTEMBER 24, 2006**

**Commission      file number 1-8572**

**TRIBUNE      COMPANY**

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

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**TRIBUNE      COMPANY**

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

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

| 1.  Financial                Statements                                                                                                                                                       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|     Condensed                Consolidated Statements of Income for the Third Quartersand                First Three Quarters Ended Sept. 24, 2006 and Sept. 25,                2005 | 1      |
| Condensed                Consolidated Balance Sheets at Sept. 24, 2006 and Dec. 25,                2005                                                                                            | 2      |
|                    Condensed Consolidated Statements of Cash Flows for the First Three                Quarters EndedSept.                24, 2006 and Sept. 25, 2005                     | 4      |
| Notes                to Condensed Consolidated Financial Statements                                                                                                                                     |   |
| Note                1:    Basis                of Preparation                                                                                                                            | 5      |
| Note                2:    Earnings                Per Share                                                                                                                              | 6      |
| Note                3:    Discontinued                Operations and Assets Held for Sale                                                                                                     | 7      |
| Note                4:    TMCT                Transactions                                                                                                                                    | 9      |
| Note                5:    Income                Taxes                                                                                                                                         | 10     |
| Note                6:    *Newsday*                and *Hoy*,                New York Charge                                                                                                  | 11     |
| Note                7:    Stock-Based                Compensation                                                                                                                             | 13     |
| Note                8:    Pension                and Postretirement Benefits                                                                                                                  | 20     |
| Note                9:    Non-Operating                Items                                                                                                                                  | 21     |
| Note                10:  Inventories                                                                                                                                                               | 22     |
| Note                11:  Goodwill                and Other Intangible Assets                                                                                                                       | 22     |
| Note                12:  Debt                                                                                                                                                                      | 23     |
| Note                13:  Comprehensive                Income                                                                                                                                       | 25     |
| Note                14:  Other                Matters                                                                                                                                              | 26     |
| Note                15:  Subsequent                Events                                                                                                                                          | 28     |
| Note                16:  Segment                Information                                                                                                                                        | 29     |
| 2.  Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                            | 30     |
| 3. Quantitative                and Qualitative Disclosures About Market Risk                                                                                                                  | 46     |
| 4.  Controls                and Procedures                                                                                                                                               | 47     |
|                                                                                                                                                                                                    |   |
| **PART                II.  OTHER INFORMATION**                                                                                                                                                     |
| 1.  Legal                Proceedings                                                                                                                                                     | 48     |
| 1A.  Risk                Factors                                                                                                                                                         | 48     |
| 2.                     Unregistered                Sales of Equity Securities and Use of Proceeds                                                                         | 48     |
| 6.  Exhibits                                                                                                                                                                             | 50     |

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**PART      I.   FINANCIAL INFORMATION**

**ITEM      1.   FINANCIAL STATEMENTS.**

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF INCOME**

|                                                                                                         |   | **Third                Quarter Ended** |      | **Three                Quarters Ended** |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|-----------------------------------------|--------|
|                                                                                                         |   | **Sept.                24, 2006**      |      | **Sept.                25, 2005**       |   | **Sept.                24, 2006** |   | **Sept.                25, 2005** |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Operating                Revenues**                                                                   |   | $                                      | 1,349,035 |                                    | $      | 1,383,703 |   | $ | 4,050,855 |   | $ | 4,119,287 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Operating                Expenses**                                                                        |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)                                           |   |                                   | 696,502   |                                    |   | 697,164 |   |   | 2,033,425 |   |   | 2,041,394 |   |
| Selling,                general and administrative                                                      |   |                                   | 359,850   |                                    |   | 348,108 |   |   | 1,088,252 |   |   | 1,044,842 |   |
| Depreciation                                                                                            |   |                                   | 52,195    |                                    |   | 50,217 |   |   | 152,881 |   |   | 155,405 |   |
| Amortization                of intangible assets                                                        |   |                                   | 5,174     |                                    |   | 4,726 |   |   | 14,640 |   |   | 14,165 |   |
| Total                operating expenses                                                                 |   |                                   | 1,113,721 |                                    |   | 1,100,215 |   |   | 3,289,198 |   |   | 3,255,806 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Operating                Profit**                                                                     |   |                                   | 235,314   |                                    |   | 283,488 |   |   | 761,657 |   |   | 863,481 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                                         |   |                                   | 18,743    |                                    |   | 8,051 |   |   | 51,308 |   |   | 20,419 |   |
| Interest                and dividend income                                                             |   |                                   | 4,678     |                                    |   | 2,888 |   |   | 9,330 |   |   | 5,135 |   |
| Interest                expense                                                                         |   |                                   | (84,324   | )                                       |   | (38,617 | ) |   | (180,375 | ) |   | (109,075 | ) |
| (Loss)                gain on change in fair values of derivativesand                related investments     |   |                                   | (17,746   | )                                       |   | 27,120 |   |   | (34,184 | ) |   | 86,671 |   |
| Gain                on TMCT transactions                                                                |   |                                   | 59,596    |                                    |   | – |   |   | 59,596 |   |   | – |   |
| Gain                on sales of investments, net                                                        |   |                                   | 17,507    |                                    |   | 487 |   |   | 20,811 |   |   | 2,894 |   |
| Other,                net                                                                               |   |                                   | 4,168     |                                    |   | (432 | ) |   | (3,119 | ) |   | 662 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Income                from Continuing Operations Before**                                                  |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **                     Income Taxes**                                          |   |                                   | 237,936   |                                    |   | 282,985 |   |   | 685,024 |   |   | 870,187 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Income                taxes (Note 5)                                                                    |   |                                   | (74,154   | )                                       |   | (261,298 | ) |   | (256,257 | ) |   | (478,583 | ) |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Income                from Continuing Operations**                                                    |   |                                   | 163,782   |                                    |   | 21,687 |   |   | 428,767 |   |   | 391,604 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Income                (Loss) from**                                                                        |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **                    Discontinued Operations, net of tax**(Note                3)  |   |                                   | 558       |                                    |   | 2,324 |   |   | (73,829 | ) |   | 8,644 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Net                Income**                                                                           |   |                                   | 164,340   |                                    |   | 24,011 |   |   | 354,938 |   |   | 400,248 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Preferred                dividends                                                                      |   |                                   | (2,103    | )                                       |   | (2,090 | ) |   | (6,309 | ) |   | (6,270 | ) |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Net                Income Attributable to Common Shares**                                             |   | $                                      | 162,237   |                                    | $      | 21,921 |   | $ | 348,629 |   | $ | 393,978 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| **Earnings                Per Share**(Note                2):                                                |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                                       |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                         |   | $                                      | .65       |                                    | $      | .06 |   | $ | 1.48 |   | $ | 1.22 |   |
| Discontinued                operations                                                                       |   |                                   | –   |                                    |   | .01 |   |   | (.26 | ) |   | .03 |   |
|                        Net income                                    |   | $                                      | .66       |                                    | $      | .07 |   | $ | 1.22 |   | $ | 1.25 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                                     |   |                                   |      |                                    |   |   |   |   |  |   |   |   |   |
| Continuing                operations                                                                         |   | $                                      | .65       |                                    | $      | .06 |   | $ | 1.47 |   | $ | 1.21 |   |
| Discontinued                operations                                                                       |   |                                   | –   |                                    |   | .01 |   |   | (.26 | ) |   | .03 |   |
|         Net                income                               |   | $                                      | .65       |                                    | $      | .07 |   | $ | 1.22 |   | $ | 1.24 |   |
|                                                                                                         |   |                                   |      |                                    |   |   |   |   |   |   |   |   |   |
| Dividends                per common share                                                               |   | $                                      | .18       |                                    | $      | .18 |   | $ | .54 |   | $ | .54 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                    | **Sept.                24, 2006** |       |   | **Dec. 25,                2005** |   |
|---------------------------------------------------------|-----------------------------------|------------|--------|---------------------------------------|--------|
|                                                    |                              |       |   |                                  |   |   |   |
| **Assets**                                              |                              |       |   |                                  |   |   |   |
|                                                    |                              |       |   |                                  |   |   |   |
| **Current                Assets**                       |                              |       |   |                                  |   |   |   |
| Cash                and cash equivalents                | $                                 | 238,487    |   |                                  | $      | 151,110 |   |
| Accounts                receivable, net                 |                              | 767,476    |   |                                  |   | 798,441 |   |
| Inventories                                             |                              | 46,475     |   |                                  |   | 44,103 |   |
| Broadcast                rights, net                    |                              | 288,186    |   |                                  |   | 308,011 |   |
| Deferred                income taxes                    |                              | 91,384     |   |                                  |   | 114,274 |   |
| Assets                held for sale                     |                              | 18,761     |   |                                  |   | – |   |
| Prepaid                expenses and other               |                              | 49,553     |   |                                  |   | 52,458 |   |
| Total                current assets                     |                              | 1,500,322  |   |                                  |   | 1,468,397 |   |
|                                                    |                              |       |   |                                  |   |   |   |
| **Properties**                                          |                              |       |   |                                  |   |   |   |
| Property,                plant and equipment            |                              | 3,593,776  |   |                                  |   | 3,585,841 |   |
| Accumulated                depreciation                 |                              | (1,944,277 | )      |                                  |   | (1,853,914 | ) |
| Net                properties                           |                              | 1,649,499  |   |                                  |   | 1,731,927 |   |
|                                                    |                              |       |   |                                  |   |   |   |
| **Other                Assets**                         |                              |       |   |                                  |   |   |   |
| Broadcast                rights, net                    |                              | 333,134    |   |                                  |   | 361,376 |   |
| Goodwill                                                |                              | 5,853,954  |   |                                  |   | 5,947,142 |   |
| Other                intangible assets, net             |                              | 2,855,258  |   |                                  |   | 3,087,723 |   |
| Time                Warner stock related to PHONES debt |                              | 283,680    |   |                                  |   | 282,880 |   |
| Other                investments                        |                              | 538,268    |   |                                  |   | 632,663 |   |
| Prepaid                pension costs                    |                              | 855,966    |   |                                  |   | 871,382 |   |
| Assets                held for sale                     |                              | 180,480    |   |                                  |   | 24,436 |   |
| Other                                                   |                              | 132,020    |   |                                  |   | 138,316 |   |
| Total                other assets                       |                              | 11,032,760 |   |                                  |   | 11,345,918 |   |
| Total                assets                             | $                                 | 14,182,581 |   |                                  | $      | 14,546,242 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                            | **Sept.                24, 2006** |       |   | **Dec.                25, 2005** |   |
|---------------------------------------------------------------------------------|-----------------------------------|------------|--------|----------------------------------|--------|
|                                                                            |                              |       |   |                             |   |   |   |
| **Liabilities                and Shareholders’ Equity**                   |                              |       |   |                             |   |   |   |
|                                                                            |                              |       |   |                             |   |   |   |
| **Current                Liabilities**                                          |                              |       |   |                             |   |   |   |
| Borrowings                under bridge credit facility                          | $                                 | 1,600,000  |   |                             | $      | – |   |
| Commercial                paper                                                 |                              | 97,019     |   |                             |   | 285,268 |   |
| Long-term                debt due within one year                               |                              | 20,832     |   |                             |   | 17,192 |   |
| Contracts                payable for broadcast rights                           |                              | 327,564    |   |                             |   | 329,930 |   |
| Deferred                income                                                  |                              | 89,859     |   |                             |   | 101,065 |   |
| Liabilities                associated with assets held for sale                 |                              | 18,744     |   |                             |   | – |   |
| Accounts                payable, accrued expenses and other current liabilities |                              | 672,927    |   |                             |   | 713,203 |   |
| Total                current liabilities                                        |                              | 2,826,945  |   |                             |   | 1,446,658 |   |
|                                                                            |                              |       |   |                             |   |   |   |
| **Long-Term                Debt**                                               |                              |       |   |                             |   |   |   |
| PHONES                debt related to Time Warner stock                         |                              | 551,200    |   |                             |   | 509,701 |   |
| Other                long-term debt (less portions due within one year)         |                              | 3,005,910  |   |                             |   | 2,449,561 |   |
| Total                long-term debt                                             |                              | 3,557,110  |   |                             |   | 2,959,262 |   |
|                                                                            |                              |       |   |                             |   |   |   |
| **Other                Non-Current Liabilities**                                |                              |       |   |                             |   |   |   |
| Deferred                income taxes                                            |                              | 2,330,448  |   |                             |   | 2,352,633 |   |
| Contracts                payable for broadcast rights                           |                              | 462,114    |   |                             |   | 528,878 |   |
| Liabilities                associated with assets held for sale                 |                              | 37,105     |   |                             |   | – |   |
| Compensation                and other obligations                               |                              | 517,624    |   |                             |   | 533,260 |   |
| Total                other non-current liabilities                              |                              | 3,347,291  |   |                             |   | 3,414,771 |   |
|                                                                            |                              |       |   |                             |   |   |   |
| **Shareholders’                Equity**                                   |                              |       |   |                             |   |   |   |
| Series                C convertible preferred stock, net of treasury stock      |                              | –    |   |                             |   | 44,260 |   |
| Series                D-1 convertible preferred stock, net of treasury stock    |                              | –    |   |                             |   | 38,097 |   |
| Series                D-2 convertible preferred stock, net of treasury stock    |                              | –    |   |                             |   | 24,510 |   |
| Common                stock and additional paid-in capital                      |                              | 6,820,516  |   |                             |   | 6,820,803 |   |
| Retained                earnings                                                |                              | 2,942,296  |   |                             |   | 2,824,762 |   |
| Treasury                common stock (at cost)                                  |                              | (5,287,420 | )      |                             |   | (3,015,581 | ) |
| Accumulated                other comprehensive income (loss)                    |                              | (24,157    | )      |                             |   | (11,300 | ) |
| Total                shareholders’ equity                                 |                              | 4,451,235  |   |                             |   | 6,725,551 |   |
| Total                liabilities and shareholders’ equity                 | $                                 | 14,182,581 |   |                             | $      | 14,546,242 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                        | **Three                Quarters Ended** |       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|------------|
|                                                                                                                                                                        | **Sept.                24, 2006**       |       |   | **Sept.                25, 2005** |   |
|                                                                                                                                                                        |                                    |       |   |   |   |   |   |
| **Operations**                                                                                                                                                              |                                    |       |   |   |   |   |   |
| Net                income                                                                                                                                              | $                                       | 354,938    |   |   | $ | 400,248 |   |
| Adjustments                to reconcile net income to net cash provided by                operations:                                                                       |                                    |       |   |   |   |   |   |
| Stock-based                compensation                                                                                                                                |                                    | 27,105     |   |   |   | – |   |
| Loss                (gain) on change in fair values of derivatives        and                related investments               |                                    | 34,184     |   |   |   | (86,671 | ) |
| Gain                on TMCT transactions                                                                                                                               |                                    | (59,596    | ) |   |   | – |   |
| Gain                on sales of investments, net                                                                                                                       |                                    | (20,811    | ) |   |   | (2,894 | ) |
|                        Income tax adjustments (Note 9)                                                                              |                                    | (225       | ) |   |   | 138,664 |   |
| Other                non-operating items, net                                                                                                                          |                                    | 3,119      |   |   |   | (662 | ) |
| Depreciation                                                                                                                                                           |                                    | 154,716    |   |   |   | 157,224 |   |
| Amortization                of intangible assets                                                                                                                       |                                    | 14,829     |   |   |   | 14,395 |   |
|        Loss                on sales of discontinued operations                                                                 |                                    | 89,256     |   |   |   | – |   |
| Net                income on equity investments                                                                                                                        |                                    | (51,308    | ) |   |   | (20,419 | ) |
| Distributions                from equity investments                                                                                                                   |                                    | 58,209     |   |   |   | 38,008 |   |
| Deferred                income taxes                                                                                                                                   |                                    | 6,806      |   |   |   | 99,177 |   |
| Decrease                in accounts receivable                                                                                                                         |                                    | 18,360     |   |   |   | 72,807 |   |
| Decrease                in employee compensation and         benefits,                deferred income and accrued liabilities  |                                    | (51,052    | ) |   |   | (79,615 | ) |
| Decrease                in accounts payable                                                                                                                            |                                    | (17,084    | ) |   |   | (16,690 | ) |
| Increase                (decrease) in income taxes payable                                                                                                             |                                    | 7,559      |   |   |   | (8,378 | ) |
| Tax                benefit on stock options exercised                                                                                                                  |                                    | –    |   |   |   | 3,910 |   |
| Other,                net                                                                                                                                              |                                    | 51,725     |   |   |   | 13,977 |   |
| Net                cash provided by operations                                                                                                                         |                                    | 620,730    |   |   |   | 723,081 |   |
|                                                                                                                                                                        |                                    |       |   |   |   |   |   |
| **Investments**                                                                                                                                                             |                                    |       |   |   |   |   |   |
| Capital                expenditures                                                                                                                                    |                                    | (119,073   | ) |   |   | (115,097 | ) |
| Acquisitions                and investments                                                                                                                            |                                    | (214,938   | ) |   |   | (75,661 | ) |
| Proceeds                from sales of subsidiaries, investments, and real estate                                                                                       |                                    | 243,990    |   |   |   | 5,166 |   |
| Net                cash used for investments                                                                                                                           |                                    | (90,021    | ) |   |   | (185,592 | ) |
|                                                                                                                                                                        |                                    |       |   |   |   |   |   |
| **Financing**                                                                                                                                                               |                                    |       |   |   |   |   |   |
| Borrowings                under bridge credit facility                                                                                                                 |                                    | 1,600,000  |   |   |   | – |   |
| Long-term                borrowings                                                                                                                                    |                                    | 1,250,829  |   |   |   | 777,660 |   |
| Repayments                of commercial paper, net                                                                                                                     |                                    | (826,513   | ) |   |   | (760,010 | ) |
| Repayments                of long-term debt                                                                                                                            |                                    | (61,766    | ) |   |   | (66,388 | ) |
| Long-term                debt issuance costs                                                                                                                           |                                    | (15,368    | ) |   |   | (4,762 | ) |
| Additional                tax benefits from stock-based compensation                                                                                                   |                                    | 2,804      |   |   |   | - |   |
| Sales                of common stock to employees, net                                                                                                                 |                                    | 26,857     |   |   |   | 33,028 |   |
| Purchases                of Tribune common stock                                                                                                                       |                                    | (2,262,268 | ) |   |   | (334,318 | ) |
| Dividends                                                                                                                                                              |                                    | (157,907   | ) |   |   | (176,203 | ) |
| Net                cash used for financing                                                                                                                             |                                    | (443,332   | ) |   |   | (530,993 | ) |
| **Net                increase in cash and cash equivalents**                                                                                                           |                                    | 87,377     |   |   |   | 6,496 |   |
|                                                                                                                                                                        |                                    |       |   |   |   |   |   |
| Cash                and cash equivalents, beginning of year                                                                                                            |                                    | 151,110    |   |   |   | 124,411 |   |
|                                                                                                                                                                        |                                    |       |   |   |   |   |   |
| Cash                and cash equivalents, end of quarter                                                                                                               | $                                       | 238,487    |   |   | $ | 130,907 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1:  BASIS OF PREPARATION**

----

**NOTE      2:  EARNINGS PER SHARE**

|                                                                                                                                                        | **Third                Quarter Ended** |    |   | **Three                Quarters Ended** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                                                                        | **Sept.                24, 2006**      |    |   | **Sept.                25, 2005**       |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                EPS:**                                                                                                                               |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                       | $                                      | 163,782 |   |                                    | $      | 21,687 |   |   | $ | 428,767 |   |   | $ | 391,604 |   |
| Income                (loss) from discontinued operations,     net                of                tax                            |                                   | 558     |   |                                    |   | 2,324 |   |   |   | (73,829 | ) |   |   | 8,644 |   |
| Net                income                                                                                                                              |                                   | 164,340 |   |                                    |   | 24,011 |   |   |   | 354,938 |   |   |   | 400,248 |   |
| Preferred                dividends                                                                                                                     |                                   | (2,103  | )      |                                    |   | (2,090 | ) |   |   | (6,309 | ) |   |   | (6,270 | ) |
| Net                income attributable to common shares                                                                                                | $                                      | 162,237 |   |                                    | $      | 21,921 |   |   | $ | 348,629 |   |   | $ | 393,978 |   |
|                                                                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                                                              |                                   | 247,389 |   |                                    |   | 311,345 |   |   |   | 284,764 |   |   |   | 314,706 |   |
| Basic                EPS:                                                                                                                                   |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                                                        | $                                      | .65     |   |                                    | $      | .06 |   |   | $ | 1.48 |   |   | $ | 1.22 |   |
| Discontinued                operations                                                                                                                      |                                   | – |   |                                    |   | .01 |   |   |   | (.26 | ) |   |   | .03 |   |
|                        Net income                                                                                   | $                                      | .66     |   |                                    | $      | .07 |   |   | $ | 1.22 |   |   | $ | 1.25 |   |
|                                                                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS:**                                                                                                                             |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                                                                       | $                                      | 163,782 |   |                                    | $      | 21,687 |   |   | $ | 428,767 |   |   | $ | 391,604 |   |
| Income                (loss) from discontinued operations,     net                of                tax                            |                                   | 558     |   |                                    |   | 2,324 |   |   |   | (73,829 | ) |   |   | 8,644 |   |
| Net                income                                                                                                                              |                                   | 164,340 |   |                                    |   | 24,011 |   |   |   | 354,938 |   |   |   | 400,248 |   |
| Preferred                dividends                                                                                                                     |                                   | – |   |                                    |   | (2,090 | ) |   |   | (6,309 | ) |   |   | (6,270 | ) |
| Adjusted                net income                                                                                                                     | $                                      | 164,340 |   |                                    | $      | 21,921 |   |   | $ | 348,629 |   |   | $ | 393,978 |   |
|                                                                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                                                              |                                   | 247,389 |   |                                    |   | 311,345 |   |   |   | 284,764 |   |   |   | 314,706 |   |
| Adjustment                for stock-based awards, net                                                                                                  |                                   | 2,116   |   |                                    |   | 2,452 |   |   |   | 1,671 |   |   |   | 2,672 |   |
| Adjustment                for assumed conversion of Series C, D-1     and                D-2                preferred stock   |                                   | 3,303   |   |                                    |   | – |   |   |   | – |   |   |   | – |   |
| Adjusted                weighted average common shares                   outstanding                                                         |                                   | 252,808 |   |                                    |   | 313,797 |   |   |   | 286,435 |   |   |   | 317,378 |   |
|                                                                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                EPS:                                                                                                                                 |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                                                        | $                                      | .65     |   |                                    | $      | .06 |   |   | $ | 1.47 |   |   | $ | 1.21 |   |
| Discontinued                operations                                                                                                                      |                                   | – |   |                                    |   | .01 |   |   |   | (.26 | ) |   |   | .03 |   |
|                        Net income                                                                                   | $                                      | .65     |   |                                    | $      | .07 |   |   | $ | 1.22 |   |   | $ | 1.24 |   |

----

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

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

----

|                                                                                                                       | **Third                Quarter Ended** |    |   | **Three                Quarters Ended** |   |
|----------------------------------------------------------------------------------------------------------------------------|----------------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                                       | **Sept.                24, 2006**      |    |   | **Sept.                25, 2005**       |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                                                                                       |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                                     | $                                      | 13,874  |   |                                    | $      | 19,107 |   |   | $ | 53,390 |   |   | $ | 61,335 |   |
|                                                                                                                       |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit                                                                                       | $                                      | 149     |   |                                    | $      | 3,823 |   |   | $ | 6,148 |   |   | $ | 14,187 |   |
| Loss                on sales of discontinued     operations                                       |                                   | 799     |   |                                    |   |  – |   |   |   |  (89,256 |  ) |   |   |  – |   |
| Income                (loss) from discontinued operations    before                income taxes   |                                   | 948     |   |                                    |   |  3,823 |   |   |   |  (83,108 |  ) |   |   |  14,187 |   |
| Income                taxes (1)                                                                                       |                                   | (390    | )      |                                    |   | (1,499 | ) |   |   | 9,279 |   |   |   | (5,543 | ) |
| Income              (loss) from              discontinued operations, net                                                  |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|     of                tax                                                                              | $                                      | 558     |   |                                    | $      | 2,324 |   |   | $ | (73,829 | ) |   | $ | 8,644 |   |
|                                                                                                                       |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued     operations                per                share: |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|                        Basic                                                       | $                                      | – |   |                                    | $      | .01 |   |   | $ | (.26 | ) |   | $ | .03 |   |
|                        Diluted                                                     | $                                      | – |   |                                    | $      | .01 |   |   | $ | (.26 | ) |   | $ | .03 |   |

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

**Sale      of Corporate Airplane **

----

**NOTE      4:  TMCT TRANSACTIONS**

----

**NOTE      5:  INCOME TAXES**

**Matthew      Bender and Mosby Tax Liability **

----

| Liability                at Dec. 25, 2005                                                                        |   | $      | 87     |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                   After-tax interest ($3 million pretax)                                               |   |   | 2      |   |
|                       California tax and interest paid in February 2006:                     |   |   |   |   |
|     State                tax ($55 million pretax)                                                 |   |   | (36    | )      |
|                         After-tax interest ($31 million pretax)          |   |   | (19    | )      |
| Liability                at Sept. 24, 2006 (included in “other current                liabilities”)  |   | $      | 34     |   |

**PHONES      Interest **

**Other      – **

**NOTE      6:  **
***NEWSDAY***
**      AND **
***HOY***
**,      NEW YORK CHARGE**

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

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

*Newsday*
*Hoy*

----

*Newsday*
*Hoy*

| Advertiser                settlement accrual balance at Dec. 28, 2003   |   | $      | – |   |
|------------------------------------------------------------------------------|--------|--------|---------|--------|
| 2004                provision                                                |   |   | 90      |   |
|     2004                payments                    |   |   | (41     | )      |
| Advertiser                settlement accrual balance at Dec. 26, 2004   |   |   | 49      |   |
| 2005                payments                                                 |   |   | (34     | )      |
| Advertiser                settlement accrual balance at Dec. 25, 2005   |   |   | 15      |   |
| Three                quarters of 2006 payments                               |   |   | (3      | )      |
| Advertiser                settlement accrual balance at Sept. 24, 2006  |   | $      | 12      |   |

*Newsday*
*Hoy*

*Newsday      *
*Hoy*

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

----

**NOTE      7:  STOCK-BASED COMPENSATION**

|                                                      | **Third                Quarter Ended** |   |   | **Three                Quarters Ended** |   |
|-----------------------------------------------------------|----------------------------------------|--------|--------|-----------------------------------------|--------|
| (in                thousands)                             | **Sept.                24, 2006**      |   |   | **Sept.                24, 2006**       |   |
|                                                      |                                   |   |   |                                    |   |   |   |
| Stock-based                compensation costs:            |                                   |   |   |                                    |   |   |   |
| Options                                                   | $                                      | 652    |   |                                    | $      | 8,191 |   |
| Restricted                stock units                     |                                   | 3,029  |   |                                    |   | 16,749 |   |
| Employee                stock purchase plan               |                                   | 658    |   |                                    |   | 2,165 |   |
| Total                stock-based compensation costs  | $                                      | 4,339  |   |                                    | $      | 27,105 |   |

----

|                                                                                      | **Pro                Forma****Third                Quarter Ended** |   |   | **Pro                Forma****Three                Quarters Ended** |   |
|-------------------------------------------------------------------------------------------|--------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|
| (in                thousands, except per share data)                                      | **Sept.                25, 2005**                                  |   |   | **Sept.                25, 2005**                                   |   |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
| Net                income, as reported                                               | $                                                                  | 24,011 |   |                                                                | $      | 400,248 |   |
| Less:                Pro forma stock-basedcompensation                expense, net of tax |                                                               |   |   |                                                                |   |   |   |
| General                options                                                            |                                                               | (4,571 | )      |                                                                |   | (63,533 | ) |
| Replacement                options                                                        |                                                               | (55    | )      |                                                                |   | (1,209 | ) |
| Employee                stock purchase plan                                               |                                                               | (830   | )      |                                                                |   | (2,631 | ) |
| Total                stock-based compensation expense, net of tax                    |                                                               | (5,456 | )      |                                                                |   | (67,373 | ) |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
| Pro                forma net income                                                  |                                                               | 18,555 |   |                                                                |   | 332,875 |   |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
| Preferred                dividends                                                   |                                                               | (2,090 | )      |                                                                |   | (6,270 | ) |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
| Pro                forma net income attributable to common shares                    | $                                                                  | 16,465 |   |                                                                | $      | 326,605 |   |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
| Net                income per share:                                                      |                                                               |   |   |                                                                |   |   |   |
|     Basic:                                                            |                                                               |   |   |                                                                |   |   |   |
|     As                reported                                   | $                                                                  | .07    |   |                                                                | $      | 1.25 |   |
|     Pro                forma                                     | $                                                                  | .05    |   |                                                                | $      | 1.04 |   |
|                                                                                      |                                                               |   |   |                                                                |   |   |   |
|     Diluted:                                                          |                                                               |   |   |                                                                |   |   |   |
|     As                reported                                   | $                                                                  | .07    |   |                                                                | $      | 1.24 |   |
|     Pro                forma                                     | $                                                                  | .05    |   |                                                                | $      | 1.03 |   |

----

|                                  | **Sept.                24, 2006** |
|---------------------------------------|-----------------------------------|
|                                  | **Non-vested**                    |   | **Remaining** |
| (in                thousands)         | **Compensation**                  |   | **Recognition                Period** |
|                                  |                              |   |   |   |
| Options                               | $                                 | 6,110 |   | 2.39                years |
| Restricted                stock units |                              | 26,503 |   | 2.39                years |
| Total                                 | $                                 | 32,613 |   |   |

|                                           | **Third                Quarter Ended** |
|------------------------------------------------|----------------------------------------|
|                                           | **Sept.                24, 2006**      |   | **Sept.                25, 2005** |
|                                           | **General**                            |   | **Replacement** |   | **General** |   | **Replacement** |
|                                           | **Awards**                             |   | **Awards** |   | **Awards** |   | **Awards** |
|                                           |                                   |   |   |   |   |   |   |
| Risk-free                interest rate         | 4.8%                                   |   | * |   | 3.7% |   | * |
| Expected                dividend yield         | 2.5%                                   |   | * |   | 1.8% |   | * |
| Expected                stock price volatility | 20.9%                                  |   | * |   | 24.6% |   | * |
| Expected                life (in years)        | 4                                      |   | * |   | 5 |   | * |
|                                           |                                   |   |   |   |   |   |   |
| Weighted                average fair value     |  $                5.92            |   |                           $    * |   | $                8.52 |   |                          $    * |

|                                           | **Three                Quarters Ended** |
|------------------------------------------------|-----------------------------------------|
|                                           | **Sept.                24, 2006**       |   | **Sept.                25, 2005** |
|                                           | **General**                             |   | **Replacement** |   | **General** |   | **Replacement** |
|                                           | **Awards**                              |   | **Awards** |   | **Awards** |   | **Awards** |
|                                           |                                    |   |   |   |   |   |   |
| Risk-free                interest rate         | 4.6%                                    |   | * |   | 3.7% |   | 3.3% |
| Expected                dividend yield         | 2.5%                                    |   | * |   | 1.8% |   | 1.8% |
| Expected                stock price volatility | 22.0%                                   |   | * |   | 28.1% |   | 22.8% |
| Expected                life (in years)        | 4                                       |   | * |   | 5 |   | 3 |
|                                           |                                    |   |   |   |   |   |   |
| Weighted                average fair value     | $                5.96                   |   |                          $     * |   | $10.49 |   | $                6.96 |

**Incentive      Compensation**
* *

----

|                                               |   | **Third                  Quarter Ended****Sept.                  24, 2006** |   | **Third                  Quarter Ended****Sept.                  25, 2005** |   |
|----------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                               |   |                                                                        |   | **Weighted**                                                                |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |   |
|                                               |   |                                                                        |   | **Avg.                  Exercise**                                          |   | **Avg.                  Fair** |   |   |   | **Avg.                  Exercise** |   | **Avg.                  Fair** |   |
| (shares                  in thousands)             |   | **Shares**                                                                  |   | **Price**                                                                   |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |   |
|                                               |   |                                                                        |   |                                                                        |   |   |   |   |   |   |   |   |   |
| Outstanding,                  beginning of quarter |   |                                                                        | 34,903 |                                                                        | $      | 38.15 |   | $ | 14.46 |   |   | 35,688 |   | $ | 38.20 |   | $ | 15.07 |   |
| Granted                                            |   |                                                                        | 13     |                                                                        |   | 31.53 |   |   | 5.92 |   |   | 10 |   |   | 36.54 |   |   | 8.52 |   |
| Exercised                                          |   |                                                                        | (247   | )                                                                           |   | 21.46 |   |   | 18.22 |   |   | (198 | ) |   | 20.35 |   |   | 18.68 |   |
| Canceled/forfeited                                 |   |                                                                        | (482   | )                                                                           |   | 42.78 |   |   | 13.48 |   |   | (310 | ) |   | 43.28 |   |   | 13.46 |   |
| Outstanding,                  end of quarter       |   |                                                                        | 34,187 |                                                                        | $      | 38.15 |   | $ | 14.46 |   |   | 35,190 |   | $ | 38.25 |   | $ | 15.07 |   |
|                                               |   |                                                                        |   |                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                  end of quarter       |   |                                                                        | 32,191 |                                                                        | $      | 38.56 |   | $ | 14.97 |   |   | 29,265 |   | $ | 37.58 |   | $ | 15.70 |   |

|                                                |   | **Three                  Quarters Ended****Sept.                  24, 2006** |   | **Three                  Quarters Ended****Sept.                  25, 2005** |   |
|-----------------------------------------------------|--------|------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                                |   |                                                                         |   | **Weighted**                                                                 |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |   |
|                                                |   |                                                                         |   | **Avg.                  Exercise**                                           |   | **Avg.                  Fair** |   |   |   | **Avg.                  Exercise** |   | **Avg.                  Fair** |   |
| (shares                  in thousands)              |   | **Shares**                                                                   |   | **Price**                                                                    |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |   |
|                                                |   |                                                                         |   |                                                                         |   |   |   |   |   |   |   |   |   |
| Outstanding,                  beginning of year     |   |                                                                         | 34,489 |                                                                         | $      | 38.38 |   | $ | 15.02 |   |   | 33,051 |   | $ | 37.87 |   | $ | 15.59 |   |
| Granted                                             |   |                                                                         | 1,938  |                                                                         |   | 31.16 |   |   | 5.96 |   |   | 3,792 |   |   | 40.57 |   |   | 10.49 |   |
| Exercised                                           |   |                                                                         | (803   | )                                                                            |   | 20.81 |   |   | 20.03 |   |   | (760 | ) |   | 25.68 |   |   | 17.13 |   |
| Canceled/forfeited                                  |   |                                                                         | (1,437 | )                                                                            |   | 42.60 |   |   | 13.66 |   |   | (893 | ) |   | 43.96 |   |   | 13.76 |   |
| Outstanding,                  end of three quarters |   |                                                                         | 34,187 |                                                                         | $      | 38.15 |   | $ | 14.46 |   |   | 35,190 |   | $ | 38.25 |   | $ | 15.07 |   |
|                                                |   |                                                                         |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                  end of three quarters |   |                                                                         | 32,191 |                                                                         | $      | 38.56 |   | $ | 14.97 |   |   | 29,265 |   | $ | 37.58 |   | $ | 15.70 |   |

----

|                                           |   | **Third                Quarter Ended****Sept.                24, 2006** |   | **Third                Quarter Ended****Sept.                25, 2005** |   |
|------------------------------------------------|--------|-------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|
|                                           |   |                                                                    |   | **Weighted                Avg.**                                        |   |   |   | **Weighted                Avg.** |   |
| (shares                in thousands)           |   | **Shares**                                                              |   | **Fair                Value***                                          |   | **Shares** |   | **Fair                Value*** |   |
|                                           |   |                                                                    |   |                                                                    |   |   |   |   |   |
| Nonvested,                beginning of quarter |   |                                                                    | 1,994  |                                                                    |   | $                 6.12 |   |   | 6,004 |   |   | $                11.95 |   |
| Granted                                        |   |                                                                    | 13     |                                                                    |   | 5.92 |   |   | 10 |   |   | 8.52 |   |
| Vested                                         |   |                                                                    | (3     | )                                                                       |   | 14.93 |   |   | (29 | ) |   | 11.95 |   |
| Forfeited                                      |   |                                                                    | (8     | )                                                                       |   | 6.87 |   |   | (60 | ) |   | 11.40 |   |
| Nonvested,                end of quarter       |   |                                                                    | 1,996  |                                                                    |   | $                 6.09 |   |   | 5,925 |   |   | $                11.99 |   |

|                                            |   | **Three                Quarters Ended****Sept.                24, 2006** |   | **Three                Quarters Ended****Sept.                25, 2005** |   |
|-------------------------------------------------|--------|--------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|--------|
|                                            |   |                                                                     |   | **Weighted                Avg.**                                         |   |   |   | **Weighted                Avg.** |   |
| (shares                in thousands)            |   | **Shares**                                                               |   | **Fair                Value***                                           |   | **Shares** |   | **Fair                Value*** |   |
|                                            |   |                                                                     |   |                                                                     |   |   |   |   |   |
| Nonvested,                beginning of year     |   |                                                                     | 1,496  |                                                                     |   | $                13.63 |   |   | 12,536 |   |   | $                14.34 |   |
| Granted                                         |   |                                                                     | 1,938  |                                                                     |   | 5.96 |   |   | 3,792 |   |   | 10.49 |   |
| Vested                                          |   |                                                                     | (1,423 | )                                                                        |   | 13.81 |   |   | (10,051 | ) |   | 14.34 |   |
| Forfeited                                       |   |                                                                     | (15    | )                                                                        |   | 10.17 |   |   | (352 | ) |   | 13.51 |   |
| Nonvested,                end of three quarters |   |                                                                     | 1,996  |                                                                     |   |  $                  6.09 |   |   | 5,925 |   |   | $                11.99 |   |

|                                             |   | **Third                Quarter Ended****Sept.                24, 2006** |    | **Third                Quarter Ended****Sept.                25, 2005** |   |
|--------------------------------------------------|--------|-------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|
|                                             |   |                                                                    |    | **Weighted**                                                            |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |   |
|                                             |   |                                                                    |    | **Avg.                Exercise**                                        |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |   |
| (shares                in thousands)             |   | **Shares**                                                              |    | **Price**                                                               |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |   |
|                                             |   |                                                                    |    |                                                                    |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of quarter |   |                                                                    | 9,022   |                                                                    |   | $                 47.78 |   |   | $                 8.06 |   |   | 10,409 |   |   | $                 47.79 |   |   | $                 8.08 |   |
| Granted                                          |   |                                                                    | – |                                                                    |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Exercised                                        |   |                                                                    | – |                                                                    |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Canceled/forfeited                               |   |                                                                    | (871    | )                                                                       |   | 47.57 |   |   | 8.37 |   |   | (636 | ) |   | 47.27 |   |   | 8.31 |   |
| Outstanding,                end of quarter       |   |                                                                    | 8,151   |                                                                    |   | $                 47.78 |   |   | $                 8.03 |   |   | 9,773 |   |   | $                 47.82 |   |   | $                 8.06 |   |
|                                             |   |                                                                    |    |                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of quarter       |   |                                                                    | 8,151   |                                                                    |   | $                 47.78 |   |   | $                 8.03 |   |   | 9,723 |   |   | $                 47.85 |   |   | $                 8.08 |   |

|                                              |   | **Three                Quarters Ended****Sept.                24, 2006** |    | **Three                Quarters Ended****Sept.                25, 2005** |   |
|---------------------------------------------------|--------|--------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
|                                              |   |                                                                     |    | **Weighted**                                                             |   | **Weighted** |   |   |   | **Weighted** |   | **Weighted** |   |
|                                              |   |                                                                     |    | **Avg.                Exercise**                                         |   | **Avg.                Fair** |   |   |   | **Avg.                Exercise** |   | **Avg.                Fair** |   |
| (shares                in thousands)              |   | **Shares**                                                               |    | **Price**                                                                |   | **Value*** |   | **Shares** |   | **Price** |   | **Value*** |   |
|                                              |   |                                                                     |    |                                                                     |   |   |   |   |   |   |   |   |   |
| Outstanding,                beginning of year     |   |                                                                     | 9,520   |                                                                     |   | $                 47.79 |   |   | $                 8.06 |   |   | 10,892 |   |   | $                 47.81 |   |   | $                 8.11 |   |
| Granted                                           |   |                                                                     | – |                                                                     |   | – |   |   | – |   |   | 13 |   |   | 41.83 |   |   | 6.96 |   |
| Exercised                                         |   |                                                                     | – |                                                                     |   | – |   |   | – |   |   | (13 | ) |   | 40.84 |   |   | 8.79 |   |
| Canceled/forfeited                                |   |                                                                     | (1,369  | )                                                                        |   | 47.84 |   |   | 8.22 |   |   | (1,119 | ) |   | 47.67 |   |   | 8.55 |   |
| Outstanding,                end of three quarters |   |                                                                     | 8,151   |                                                                     |   | $                 47.78 |   |   | $                 8.03 |   |   | 9,773 |   |   | $                 47.82 |   |   | $                 8.06 |   |
|                                              |   |                                                                     |    |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Exercisable,                end of three quarters |   |                                                                     | 8,151   |                                                                     |   | $                 47.78 |   |   | $                 8.03 |   |   | 9,723 |   |   | $                 47.85 |   |   | $                 8.08 |   |

----

|                                           |   | **Third                Quarter Ended****Sept.                24, 2006** |    | **Third                Quarter Ended****Sept.                25, 2005** |   |
|------------------------------------------------|--------|-------------------------------------------------------------------------|---------|-------------------------------------------------------------------------|--------|
|                                           |   |                                                                    |    | **Weighted                Avg.**                                        |   |   |   | **Weighted                Avg.** |   |
| (shares                in thousands)           |   | **Shares**                                                              |    | **Fair                Value***                                          |   | **Shares** |   | **Fair                Value*** |   |
|                                           |   |                                                                    |    |                                                                    |   |   |   |   |   |
| Nonvested,                beginning of quarter |   |                                                                    | – |                                                                    |   | $                      – |   |   | 102 |   |   | $                 5.11 |   |
| Granted                                        |   |                                                                    | – |                                                                    |   | – |   |   | – |   |   | – |   |
| Vested                                         |   |                                                                    | – |                                                                    |   | – |   |   | (52 | ) |   | 5.00 |   |
| Forfeited                                      |   |                                                                    | – |                                                                    |   | – |   |   | – |   |   | – |   |
| Nonvested,                end of quarter       |   |                                                                    | – |                                                                    |   | $                      – |   |   | 50 |   |   | $                 5.22 |   |

|                                            |   | **Three                Quarters Ended****Sept.                24, 2006** |    | **Three                Quarters Ended****Sept.                25, 2005** |   |
|-------------------------------------------------|--------|--------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
|                                            |   |                                                                     |    | **Weighted                Avg.**                                         |   |   |   | **Weighted                Avg.** |   |
| (shares                in thousands)            |   | **Shares**                                                               |    | **Fair                Value***                                           |   | **Shares** |   | **Fair                Value*** |   |
|                                            |   |                                                                     |    |                                                                     |   |   |   |   |   |
| Nonvested,                beginning of year     |   |                                                                     | 13      |                                                                     |   | $                 6.96 |   |   | 2,256 |   |   | $                 7.45 |   |
| Granted                                         |   |                                                                     | – |                                                                     |   | – |   |   | 13 |   |   | 6.96 |   |
| Vested                                          |   |                                                                     | (13     | )                                                                        |   | $                 6.96 |   |   | (2,218 | ) |   | 7.39 |   |
| Forfeited                                       |   |                                                                     | – |                                                                     |   | – |   |   | (1 | ) |   | 7.18 |   |
| Nonvested,                end of three quarters |   |                                                                     | – |                                                                     |   |                        $       – |   |   | 50 |   |   | $                 5.22 |   |

** **
** **

----

|                                                           |   | **Third                Quarter Ended****Sept.                24, 2006** |    |
|----------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                           |   |                                                                    |    | **Weighted                Avg.** |   |
| (units                in thousands)                            |   | **Units**                                                               |    | **Fair                Value*** |   |
|                                                           |   |                                                                    |    |   |   |
| Outstanding                and nonvested, beginning of quarter |   |                                                                    | 1,495   |   |   | $                 30.90 |   |
| Restricted                stock units granted                  |   |                                                                    | 17      |   |   | 32.16 |   |
| Dividend                equivalent units granted               |   |                                                                    | 7       |   |   | – |   |
| Forfeited                                                      |   |                                                                    | (15     | ) |   | 30.82 |   |
| Vested                and issued                               |   |                                                                    | – |   |   | – |   |
| Outstanding                and nonvested, end of quarter       |   |                                                                    | 1,504   |   |   | $                 30.74 |   |

|                                                            |   | **Three                Quarters Ended****Sept.                24, 2006** |    |
|-----------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|
|                                                            |   |                                                                     |    | **Weighted                Avg.** |   |
| (units                in thousands)                             |   | **Units**                                                                |    | **Fair                Value*** |   |
|                                                            |   |                                                                     |    |   |   |
| Outstanding                and nonvested, beginning of year     |   |                                                                     | – |   |   | $                        – |   |
| Restricted                stock units granted                   |   |                                                                     | 1,510   |   |   | 31.17 |   |
| Dividend                equivalent units granted                |   |                                                                     | 23      |   |   | – |   |
| Forfeited                                                       |   |                                                                     | (29     | ) |   | 31.53 |   |
| Vested                and issued                                |   |                                                                     | – |   |   | – |   |
| Outstanding                and nonvested, end of three quarters |   |                                                                     | 1,504   |   |   | $30.74 |   |

**Employee      Stock Purchase Plan **

----

**NOTE      8:  PENSION AND POSTRETIREMENT BENEFITS**

|                                                        | **Pension                Benefits**    |    |   | **Other                Postretirement Benefits** |   |
|-------------------------------------------------------------|----------------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                        | **Third                Quarter Ended** |    |   | **Third                Quarter Ended**           |   |
| (in                thousands)                               | **Sept.                24, 2006**      |    |   | **Sept.                25, 2005**                |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                        |                                   |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Service                cost                            | $                                      | 944     |   |                                             | $      | 6,379 |   |   | $ | 334 |   |   | $ | 367 |   |
| Interest                cost                           |                                   | 20,680  |   |                                             |   | 20,588 |   |   |   | 1,842 |   |   |   | 1,944 |   |
| Expected                return on plans’ assets  |                                   | (31,568 | )      |                                             |   | (32,255 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss (gain)        |                                   | 16,437  |   |                                             |   | 15,100 |   |   |   | (32 | ) |   |   | (110 | ) |
| Amortization                of prior service costs     |                                   | 54      |   |                                             |   | (359 | ) |   |   | (361 | ) |   |   | (361 | ) |
| Amortization                of transition asset        |                                   | – |   |                                             |   | (1 | ) |   |   | – |   |   |   | – |   |
| Net                periodic benefit cost               | $                                      | 6,547   |   |                                             | $      | 9,452 |   |   | $ | 1,783 |   |   | $ | 1,840 |   |

|                                                        | **Pension                Benefits**     |    |   | **Other                Postretirement Benefits** |   |
|-------------------------------------------------------------|-----------------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                        | **Three                Quarters Ended** |    |   | **Three                Quarters Ended**          |   |
| (in                thousands)                               | **Sept.                24, 2006**       |    |   | **Sept.                25, 2005**                |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                        |                                    |    |   |                                             |   |   |   |   |   |   |   |   |   |   |   |
| Service                cost                            | $                                       | 2,833   |   |                                             | $      | 18,973 |   |   | $ | 1,001 |   |   | $ | 1,102 |   |
| Interest                cost                           |                                    | 62,092  |   |                                             |   | 61,328 |   |   |   | 5,525 |   |   |   | 5,830 |   |
| Expected                return on plans’ assets  |                                    | (94,781 | )      |                                             |   | (95,936 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss (gain)        |                                    | 49,352  |   |                                             |   | 44,503 |   |   |   | (95 | ) |   |   | (329 | ) |
| Amortization                of prior service costs     |                                    | 163     |   |                                             |   | (1,067 | ) |   |   | (1,083 | ) |   |   | (1,083 | ) |
| Amortization                of transition asset        |                                    | – |   |                                             |   | (3 | ) |   |   | – |   |   |   | – |   |
| Special                termination benefits (1)        |                                    | 1,381   |   |                                             |   | – |   |   |   | – |   |   |   | – |   |
| Net                periodic benefit cost               | $                                       | 21,040  |   |                                             | $      | 27,798 |   |   | $ | 5,348 |   |   | $ | 5,520 |   |

----

**NOTE      9:  NON-OPERATING ITEMS**

|                                                                                                    | **Third                Quarter Ended**   |    |   | **Three                Quarters Ended**     |   |
|---------------------------------------------------------------------------------------------------------|------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                                                                                    | **Sept.                24, 2006**        |    |   | **Sept.                24, 2006**           |   |
| (in                thousands)                                                                           | **Pretax****Gain                (Loss)** |    |   | **After-tax****Gain                (Loss)** |   |   | **Pretax****Gain                (Loss)** |   |   | **After-tax****Gain                (Loss)** |   |
|                                                                                                    |                                     |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                        | (17,746 | )      |                                        | $      | (10,825 | ) |   | $ | (34,184 | ) |   | $ | (20,852 | ) |
| Gain                on TMCT transactions                                                           |                                     | 59,596  |   |                                        |   | 47,988 |   |   |   | 59,596 |   |   |   | 47,988 |   |
| Gain                on sales of investments, net                                                   |                                     | 17,507  |   |                                        |   | 10,679 |   |   |   | 20,811 |   |   |   | 12,695 |   |
| Other,                net                                                                          |                                     | 4,168   |   |                                        |   | 4,618 |   |   |   | (3,119 | ) |   |   | 169 |   |
| Income                tax settlements and adjustments                                              |                                     | – |   |                                        |   | 3,820 |   |   |   | – |   |   |   | 225 |   |
| Total                non-operating items                                                           | $                                        | 63,525  |   |                                        | $      | 56,280 |   |   | $ | 43,104 |   |   | $ | 40,225 |   |

|                                                                                                    | **Third                Quarter Ended**   |    |   | **Three                Quarters Ended**     |   |
|---------------------------------------------------------------------------------------------------------|------------------------------------------|---------|--------|---------------------------------------------|--------|
|                                                                                                    | **Sept.                25, 2005**        |    |   | **Sept.                25, 2005**           |   |
| (in                thousands)                                                                           | **Pretax****Gain                (Loss)** |    |   | **After-tax****Gain                (Loss)** |   |   | **Pretax****Gain** |   |   | **After-tax****Gain                (Loss)** |   |
|                                                                                                    |                                     |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on change in fair valuesof                derivatives and related investments  | $                                        | 27,120  |   |                                        | $      | 16,543 |   |   | $ | 86,671 |   |   | $ | 52,869 |   |
| Gain                on sales of investments, net                                                   |                                     | 487     |   |                                        |   | 297 |   |   |   | 2,894 |   |   |   | 1,765 |   |
| Other,                net                                                                          |                                     | (432    | )      |                                        |   | (263 | ) |   |   | 662 |   |   |   | 404 |   |
| Income                tax settlements and adjustments                                              |                                     | – |   |                                        |   | (150,493 | ) |   |   | – |   |   |   | (138,664 | ) |
| Total                non-operating items                                                           | $                                        | 27,175  |   |                                        | $      | (133,916 | ) |   | $ | 90,227 |   |   | $ | (83,626 | ) |

----

**NOTE      10:  INVENTORIES**

| (in                thousands)     | **Sept.                24, 2006** |   |   | **Dec.                25, 2005** |   |
|-----------------------------------|-----------------------------------|--------|--------|----------------------------------|--------|
|                              |                              |   |   |                             |   |   |   |
| Newsprint                         | $                                 | 34,636 |   |                             | $      | 32,672 |   |
| Supplies                and other |                              | 11,839 |   |                             |   | 11,431 |   |
| Total                inventories  | $                                 | 46,475 |   |                             | $      | 44,103 |   |

**NOTE      11:  GOODWILL AND OTHER INTANGIBLE ASSETS**

|                                                                                                   |   | **Sept.                24, 2006** |    | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|----------------------------------|--------|
|                                                                                                   |   | **Gross**                         |    | **Accumulated**                  |   | **Net** |   | **Gross** |   | **Accumulated** |   | **Net** |   |
| (in                thousands)                                                                          |   | **Amount**                        |    | **Amortization**                 |   | **Amount** |   | **Amount** |   | **Amortization** |   | **Amount** |   |
|                                                                                                   |   |                              |    |                             |   |   |   |   |   |   |   |   |   |
| **Intangible                assets subject to****amortization:**                                       |   |                              |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscribers                (useful life of 15to                20 years)                               |   | $                                 | 190,657 |                             | $      | (69,606 | ) | $ | 121,051 |   | $ | 190,657 |   | $ | (62,110 | ) | $ | 128,547 |   |
| Network                affiliation agreements(useful                life of 40 years) (1)              |   |                              | 278,034 |                             |   | (20,832 | ) |   | 257,202 |   |   | 290,320 |   |   | (16,330 | ) |   | 273,990 |   |
| Other                (useful life of 3 to 40 years)                                               |   |                              | 29,972  |                             |   | (8,657 | ) |   | 21,315 |   |   | 23,482 |   |   | (6,696 | ) |   | 16,786 |   |
| Total                                                                                             |   | $                                 | 498,663 |                             | $      | (99,095 | ) |   | 399,568 |   | $ | 504,459 |   | $ | (85,136 | ) |   | 419,323 |   |
|                                                                                                   |   |                              |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Goodwill                and other intangible assets****not                subject to amortization:** |   |                              |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                               |   |                              |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                                                             |   |                              |    |                             |   |   |   |   | 4,414,120 |   |   |   |   |   |   |   |   | 4,380,483 |   |
| Broadcasting                and entertainment (1)                                                      |   |                              |    |                             |   |   |   |   | 1,439,834 |   |   |   |   |   |   |   |   | 1,566,659 |   |
| Total                goodwill                                                                     |   |                              |    |                             |   |   |   |   | 5,853,954 |   |   |   |   |   |   |   |   | 5,947,142 |   |
| Newspaper                mastheads                                                                |   |                              |    |                             |   |   |   |   | 1,575,814 |   |   |   |   |   |   |   |   | 1,575,814 |   |
| FCC                licenses (1)                                                                   |   |                              |    |                             |   |   |   |   | 871,947 |   |   |   |   |   |   |   |   | 1,084,654 |   |
| Tradename                                                                                         |   |                              |    |                             |   |   |   |   | 7,929 |   |   |   |   |   |   |   |   | 7,932 |   |
| Total                                                                                             |   |                              |    |                             |   |   |   |   | 8,309,644 |   |   |   |   |   |   |   |   | 8,615,542 |   |
|                                                                                                   |   |                              |    |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                goodwill and other intangibleassets                                               |   |                              |    |                             |   |   |   | $ | 8,709,212 |   |   |   |   |   |   |   | $ | 9,034,865 |   |

| (1)   | The                declines in network affiliation agreements, broadcasting and entertainment                goodwill and FCC licenses during the first three quarters of 2006                reflect                the sale of WATL-TV, Atlanta, as well as the reclassification of                WCWN-TV,                Albany and WLVI-TV, Boston as assets held for sale (see Note                3). |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE      12:  DEBT**

| (in                thousands)                                                                                                                                        | **Sept.                24, 2006** |       |   | **Dec.                25, 2005** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                                                                                                 |                              |       |   |                             |   |   |   |
| Borrowings                under bridge credit facility, interest rate of 6.2%                                                                                   | $                                 | 1,600,000  |   |                             | $      | – |   |
| Term                loan due June 20, 2011, interest rate of 6.2%                                                                                               |                              | 1,250,000  |   |                             |   | – |   |
| Commercial                paper, weighted average interest rate of 6.0%and                4.4%, respectively                                                         |                              | 97,019     |   |                             |   | 923,532 |   |
| Medium-term                notes, weighted average interest rate of 6.2% in 2006 and 2005,                    due                2006-2008  |                              | 512,585    |   |                             |   | 555,585 |   |
| Property                financing obligation, effective interest rate of7.7%,                expiring 2009                                                           |                              | 60,333     |   |                             |   | 60,372 |   |
| 4.875%                notes due 2010, net of unamortized discount of $603and                $718, respectively                                                       |                              | 449,397    |   |                             |   | 449,282 |   |
| 7.25%                debentures due 2013, net of unamortized discount of $2,222and                $2,478, respectively                                               |                              | 79,861     |   |                             |   | 79,605 |   |
| 5.25%                debentures due 2015, net of unamortized discount of $1,401and                $1,519, respectively                                               |                              | 328,599    |   |                             |   | 328,481 |   |
| 7.5%                debentures due 2023, net of unamortized discount of $4,028and                $4,204, respectively                                                |                              | 94,722     |   |                             |   | 94,546 |   |
| 6.61%                debentures due 2027, net of unamortized discount of $2,227and                $2,305, respectively                                               |                              | 82,733     |   |                             |   | 82,655 |   |
| 7.25%                debentures due 2096, net of unamortized discount of $18,163and                $18,304, respectively                                             |                              | 129,837    |   |                             |   | 129,696 |   |
| Interest                rate swap                                                                                                                               |                              | 21,079     |   |                             |   | 29,714 |   |
| Other                notes and obligations                                                                                                                      |                              | 17,596     |   |                             |   | 18,553 |   |
| Total                debt excluding PHONES                                                                                                                      |                              | 4,723,761  |   |                             |   | 2,752,021 |   |
| Less                debt due within one year                                                                                                                    |                              | (1,717,851 | )      |                             |   | (302,460 | ) |
| Long-term                debt excluding PHONES                                                                                                                  |                              | 3,005,910  |   |                             |   | 2,449,561 |   |
| 2%                PHONES debt related to Time Warner stock, due 2029                                                                                            |                              | 551,200    |   |                             |   | 509,701 |   |
| Total                long-term debt                                                                                                                             | $                                 | 3,557,110  |   |                             | $      | 2,959,262 |   |

**Debt      due within one year –      **

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

----

| (in                thousands)                                            | **Sept.                24, 2006** |    |   | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------|-----------------------------------|---------|--------|----------------------------------|--------|
|                                                                     |                              |    |   |                             |   |   |   |
| PHONES                Debt:                                              |                              |    |   |                             |   |   |   |
| Discounted                debt component (at book value)                 | $                                 | 462,400 |   |                             | $      | 454,038 |   |
| Derivative                component (at fair value)                      |                              | 88,800  |   |                             |   | 55,663 |   |
| Total                                                                    | $                                 | 551,200 |   |                             | $      | 509,701 |   |
|                                                                     |                              |    |   |                             |   |   |   |
| Time                Warner stock related to PHONES (at fair value)  | $                                 | 283,680 |   |                             | $      | 282,880 |   |

**Credit      Agreements**

----

**Medium-Term      Notes –      **

**NOTE      13:  COMPREHENSIVE INCOME**

|                                                                                                                                                                                                                      | **Third                Quarter Ended** |    |   | **Three                Quarters Ended** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands)                                                                                                                                                                                             | **Sept.                24, 2006**      |    |   | **Sept.                25, 2005**       |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                                                                                                                                                                                      |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                                                                                                                                            | $                                      | 164,340 |   |                                    | $      | 24,011 |   |   | $ | 354,938 |   |   | $ | 400,248 |   |
|                                                                                                                                                                                                                      |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gain (loss) on marketablesecurities                classified as available-for-sale:Unrealized                holding gain (loss) arising duringthe                period, before taxes |                                   | (1,010  | )      |                                    |   | 2,711 |   |   |   | (2,821 | ) |   |   | (4,365 | ) |
|        Adjustment                for gain on sale of investments         included                in                income, before taxes   |                                   | (18,566 | )      |                                    |   | – |   |   |   | (18,566 | ) |   |   | – |   |
| Income                taxes                                                                                                                                                                                          |                                   | 7,635   |   |                                    |   | (1,058 | ) |   |   | 8,341 |   |   |   | 1,702 |   |
| Unrealized              gain              (loss) on marketable securities                                                                                                                                                 |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|    classified                as                available-for-sale, net of taxes                                                                                                                       |                                   | (11,941 | )      |                                    |   | 1,653 |   |   |   | (13,046 | ) |   |   | (2,663 | ) |
|                                                                                                                                                                                                                      |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change              in foreign              currency translation adjustments,                                                                                                                                             |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|    net                of                taxes                                                                                                                                                         |                                   | 40      |   |                                    |   | 68 |   |   |   | 189 |   |   |   | (50 | ) |
|                                                                                                                                                                                                                      |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss)                                                                                                                                                                     |                                   | (11,901 | )      |                                    |   | 1,721 |   |   |   | (12,857 | ) |   |   | (2,713 | ) |
|                                                                                                                                                                                                                      |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                                                                                  | $                                      | 152,439 |   |                                    | $      | 25,732 |   |   | $ | 342,081 |   |   | $ | 397,535 |   |

----

**NOTE      14:  OTHER MATTERS**

**Media      Ownership Rules –**
** **

**Common      Stock Repurchases –**
** **

|                                                                                                                         | **Third                  Quarter Ended****Sept.                24, 2006** |    |   | **Three                  Quarters Ended****Sept.                  24, 2006** |   |
|------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------|--------|
| (In                thousands)                                                                                                | **Shares**                                                                |    |   | **Cost**                                                                     |   |   | **Shares** |   |   | **Cost** |   |
|                                                                                                                         |                                                                      |    |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Repurchases                prior to the tender offer                                                                    |                                                                      | – |   |                                                                         | $      | – |   |   |   | 4,604 |   |   | $ | 137,746 |   |
| Tender                offer                                                                                             |                                                                      | 45,027  |   |                                                                         |   | 1,468,270 |   |   |   | 45,027 |   |   |   | 1,468,270 |   |
| Repurchases                from the McCormick Tribune and                     Cantigny Foundations  |                                                                      | 10,000  |   |                                                                         |   | 325,300 |   |   |   | 10,000 |   |   |   | 325,300 |   |
| Repurchases                subsequent to the tender offer                                                               |                                                                      | 11,053  |   |                                                                         |   | 330,952 |   |   |   | 11,053 |   |   |   | 330,952 |   |
| Total                common stock repurchases                                                                           |                                                                      | 66,080  |   |                                                                         | $      | 2,124,522 |   |   |   | 70,684 |   |   | $ | 2,262,268 |   |

**Acquisition      of Additional Equity in CareerBuilder, ShopLocal and Topix**

----

**Variable      Interest Entities –**
** **

**Network      Affiliations –**
** **

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

----

**NOTE      15:  SUBSEQUENT EVENTS**

----

**NOTE      16:  SEGMENT INFORMATION**

|                                                | **Third                Quarter Ended** |      | **Three                Quarters Ended** |                              |
|-----------------------------------------------------|----------------------------------------|-----------|-----------------------------------------|-----------------------------------|
| (in                thousands)                       | **Sept.                24, 2006**      |      |                                    | **Sept.                25, 2005** |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                |                                   |      |                                    |                              |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues:**              |                                   |      |                                    |                              |   |   |   |   |   |   |   |   |   |   |
| Publishing                                     | $                                      | 956,480   |                                    |                              | $ | 980,354 |   | $ | 2,981,312 |   |   | $ | 3,024,490 |   |
| Broadcasting                and entertainment  |                                   | 392,555   |                                    |                              |   | 403,349 |   |   | 1,069,543 |   |   |   | 1,094,797 |   |
| Total                operating revenues        | $                                      | 1,349,035 |                                    |                              | $ | 1,383,703 |   | $ | 4,050,855 |   |   | $ | 4,119,287 |   |
|                                                |                                   |      |                                    |                              |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit**(1):             |                                   |      |                                    |                              |   |   |   |   |   |   |   |   |   |   |
| Publishing                                     | $                                      | 141,232   |                                    |                              | $ | 169,730 |   | $ | 524,111 |   |   | $ | 585,920 |   |
| Broadcasting                and entertainment  |                                   | 107,800   |                                    |                              |   | 126,866 |   |   | 285,647 |   |   |   | 317,589 |   |
| Corporate                expenses              |                                   | (13,718   | )                                       |                              |   | (13,108 | ) |   | (48,101 | ) |   |   | (40,028 | ) |
| Total                operating profit          | $                                      | 235,314   |                                    |                              | $ | 283,488 |   | $ | 761,657 |   |   | $ | 863,481 |   |

|                                                                                 | **Sept.                24, 2006** |       |   | **Dec.                25, 2005** |   |
|--------------------------------------------------------------------------------------|-----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                 |                              |       |   |                             |   |   |   |
| **Assets:**                                                                          |                              |       |   |                             |   |   |   |
| Publishing                                                                           | $                                 | 8,755,197  |   |                             | $      | 8,612,740 |   |
| Broadcasting                and entertainment                                        |                              | 3,940,764  |   |                             |   | 4,425,135 |   |
| Corporate                                                                            |                              | 1,287,379  |   |                             |   | 1,483,931 |   |
|                        Assets held for sale  |                              | 199,241    |   |                             |   | 24,436 |   |
| Total                assets                                                     | $                                 | 14,182,581 |   |                             | $      | 14,546,242 |   |

----

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

**FORWARD-LOOKING      STATEMENTS**

**SIGNIFICANT      EVENTS**

**TMCT      Transactions –      **

----

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

----

**Common      Stock Repurchases –**
** **

|                                                                                                                         | **Third                  Quarter Ended****Sept.                24, 2006** |    |   | **Three                  Quarters Ended****Sept.                  24,                  2006** |   |
|------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------|---------|--------|-----------------------------------------------------------------------------------------------|--------|
| (In                thousands)                                                                                                | **Shares**                                                                |    |   | **Cost**                                                                                      |   |   | **Shares** |   |   | **Cost** |   |
|                                                                                                                         |                                                                      |    |   |                                                                                          |   |   |   |   |   |   |   |   |   |   |   |
| Repurchases                prior to the tender offer                                                                    |                                                                      | – |   |                                                                                          | $      | – |   |   |   | 4,604 |   |   | $ | 137,746 |   |
| Tender                offer                                                                                             |                                                                      | 45,027  |   |                                                                                          |   | 1,468,270 |   |   |   | 45,027 |   |   |   | 1,468,270 |   |
| Repurchases                from the McCormick Tribune and                     Cantigny Foundations  |                                                                      | 10,000  |   |                                                                                          |   | 325,300 |   |   |   | 10,000 |   |   |   | 325,300 |   |
| Repurchases                subsequent to the tender offer                                                               |                                                                      | 11,053  |   |                                                                                          |   | 330,952 |   |   |   | 11,053 |   |   |   | 330,952 |   |
| Total                common stock repurchases                                                                           |                                                                      | 66,080  |   |                                                                                          | $      | 2,124,522 |   |   |   | 70,684 |   |   | $ | 2,262,268 |   |

**Acquisition      of Additional Equity in CareerBuilder, ShopLocal and Topix **

**Credit      Agreements**

----

**Network      Affiliations –**
** **

**Critical      Accounting Policies –      **

----

**NON-OPERATING      ITEMS**

|                                                                                                    | **Third                Quarter Ended****Sept.                24, 2006** |    | **Three                Quarters Ended****Sept.                24, 2006** |   |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
| (in                millions, except per share data)                                                     | **Pretax****Gain                (Loss)**                                |    | **After-tax****Gain                (Loss)**                              |   | **Diluted****EPS** |   | **Pretax****Gain                (Loss)** |   | **After-tax****Gain                (Loss)** |   | **Diluted****EPS** |   |
|                                                                                                    |                                                                    |    |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                                                       | (17.7   | )                                                                        | $      | (10.8 | ) | $ | (.04 | ) | $ | (34.2 | ) | $ | (20.9 | ) | $ | (.07 | ) |
| Gain                on TMCT transactions                                                           |                                                                    | 59.6    |                                                                     |   | 48.0 |   |   | .19 |   |   | 59.6 |   |   | 48.0 |   |   | .17 |   |
| Gain                on sales of investments, net                                                   |                                                                    | 17.5    |                                                                     |   | 10.7 |   |   | .04 |   |   | 20.8 |   |   | 12.7 |   |   | .04 |   |
| Other,                net                                                                          |                                                                    | 4.1     |                                                                     |   | 4.6 |   |   | .02 |   |   | (3.1 | ) |   | .2 |   |   | – |   |
| Income                tax settlements and adjustments                                              |                                                                    | – |                                                                     |   | 3.8 |   |   | .02 |   |   | – |   |   | .2 |   |   | – |   |
| Total                non-operating items                                                           | $                                                                       | 63.5    |                                                                     | $      | 56.3 |   | $ | .22 |   | $ | 43.1 |   | $ | 40.2 |   | $ | .14 |   |

|                                                                                                    | **Third                Quarter Ended****Sept.                25, 2005** |    | **Three                Quarters Ended****Sept.                25, 2005** |   |
|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|---------|--------------------------------------------------------------------------|--------|
| (in                millions, except per share data)                                                     | **Pretax****Gain                (Loss)**                                |    | **After-tax****Gain                (Loss)**                              |   | **Diluted****EPS** |   | **Pretax****Gain** |   | **After-tax****Gain                (Loss)** |   | **Diluted****EPS** |   |
|                                                                                                    |                                                                    |    |                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on change in fair valuesof                derivatives and related investments  | $                                                                       | 27.1    |                                                                     | $      | 16.5 |   | $ | .05 |   | $ | 86.7 |   | $ | 52.9 |   | $ | .17 |   |
| Gain                on sales of investments, net                                                   |                                                                    | .5      |                                                                     |   | .3 |   |   | – |   |   | 2.9 |   |   | 1.8 |   |   | .01 |   |
| Other,                net                                                                          |                                                                    | (.4     | )                                                                        |   | (.3 | ) |   | – |   |   | .6 |   |   | .4 |   |   | – |   |
| Income                tax settlements and adjustments                                              |                                                                    | – |                                                                     |   | (150.4 | ) |   | (.48 | ) |   | – |   |   | (138.7 | ) |   | (.44 | ) |
| Total                non-operating items                                                           | $                                                                       | 27.2    |                                                                     | $      | (133.9 | ) | $ | (.43 | ) | $ | 90.2 |   | $ | (83.6 | ) | $ | (.26 | ) |

----

**RESULTS      OF OPERATIONS**

**CONSOLIDATED**

|                                                                                       | **Third                Quarter** |    | **Three                Quarters** |
|--------------------------------------------------------------------------------------------|----------------------------------|---------|-----------------------------------|
| (in                millions, except per share data)                                        | **2006**                         |    | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                     | $                                | 1,349   |                              | $ | 1,384 |   | - | 3% |   | $ | 4,051 |   | $ | 4,119 |   | - | 2% |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)                                                   | $                                | 235     |                              | $ | 283 |   | - | 17% |   | $ | 762 |   | $ | 863 |   | - | 12% |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                       | $                                | 19      |                              | $ | 8 |   | + | 133% |   | $ | 51 |   | $ | 20 |   | + | 151% |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                      | $                                | 164     |                              | $ | 22 |   |   | * |   | $ | 429 |   | $ | 392 |   | + | 9% |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations, net                of tax  | $                                | 1       |                              | $ | 2 |   | - | 76% |   | $ | (74 | ) | $ | 9 |   |   | * |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                             | $                                | 164     |                              | $ | 24 |   |   | * |   | $ | 355 |   | $ | 400 |   | - | 11% |
|                                                                                       |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                 |                             |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                  | $                                | .65     |                              | $ | .06 |   |   | * |   | $ | 1.47 |   | $ | 1.21 |   | + | 21% |
| Discontinued                operations                                                |                             | – |                              |   | .01 |   |   | * |   |   | (.26 | ) |   | .03 |   |   | * |
|                        Net income                  | $                                | .65     |                              | $ | .07 |   |   | * |   | $ | 1.22 |   | $ | 1.24 |   | - | 2% |

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

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

----

**Operating      Revenues and Profit –      **

|                                                             | **Third                Quarter** |    | **Three                Quarters Ended** |
|------------------------------------------------------------------|----------------------------------|---------|-----------------------------------------|
| (in                millions)                                     | **2006**                         |    |                                    | **2005** |   |   | **Change** |   | **2006** |   |   | **2005** |   |   | **Change** |
|                                                             |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**                            |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 956     |                                    |   | $ | 980 |   |   | - | 2% |   | $ | 2,981 |   |   | $ | 3,025 |   |   | - | 1% |
| Broadcasting                and entertainment               |                             | 393     |                                    |   |   | 404 |   |   | - | 3% |   |   | 1,070 |   |   |   | 1,094 |   |   | - | 2% |
| Total                operating revenues                     | $                                | 1,349   |                                    |   | $ | 1,384 |   |   | - | 3% |   | $ | 4,051 |   |   | $ | 4,119 |   |   | - | 2% |
|                                                             |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation                and amortization expense**         |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 44      |                                    |   | $ | 42 |   |   | + | 3% |   | $ | 129 |   |   | $ | 132 |   |   | - | 3% |
| Broadcasting                and entertainment               |                             | 13      |                                    |   |   | 12 |   |   | + | 10% |   |   | 38 |   |   |   | 37 |   |   | + | 5% |
| Corporate                                                   |                             | – |                                    |   |   | 1 |   |   | - | 14% |   |   | 1 |   |   |   | 1 |   |   | - | 15% |
| Total                depreciation and amortization expense  | $                                | 57      |                                    |   | $ | 55 |   |   | + | 4% |   | $ | 168 |   |   | $ | 170 |   |   | - | 1% |
|                                                             |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)**                   |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 141     |                                    |   | $ | 170 |   |   | - | 17% |   | $ | 524 |   |   | $ | 586 |   |   | - | 11% |
| Broadcasting                and entertainment               |                             | 108     |                                    |   |   | 127 |   |   | - | 15% |   |   | 286 |   |   |   | 318 |   |   | - | 10% |
| Corporate                expenses                           |                             | (14     | )                                       |   |   | (13 | ) |   | - | 5% |   |   | (48 | ) |   |   | (40 | ) |   | - | 20% |
| Total                operating profit                       | $                                | 235     |                                    |   | $ | 283 |   |   | - | 17% |   | $ | 762 |   |   | $ | 863 |   |   | - | 12% |

----

**Operating      Expenses –      **

|                                                                | **Third                Quarter** |   | **Three                Quarters** |
|---------------------------------------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)                                        | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                                |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)  | $                                | 697    |                              | $ | 697 |   |   | – |   | $ | 2,033 |   | $ | 2,041 |   |   | – |
| Selling,                general and administrative             |                             | 360    |                              |   | 348 |   | + | 3% |   |   | 1,088 |   |   | 1,045 |   | + | 4% |
| Depreciation                and amortization                   |                             | 57     |                              |   | 55 |   | + | 4% |   |   | 168 |   |   | 170 |   | - | 1% |
| Total                operating expenses                        | $                                | 1,114  |                              | $ | 1,100 |   | + | 1% |   | $ | 3,289 |   | $ | 3,256 |   | + | 1% |

**PUBLISHING**

**Operating      Revenues and Profit –      **

|                                      | **Third                Quarter** |   | **Three                Quarters** |
|-------------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)              | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                      |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues    | $                                | 956    |                              | $ | 980 |   | - | 2% |   | $ | 2,981 |   | $ | 3,025 |   | - | 1% |
|                                      |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses    |                             | 815    |                              |   | 810 |   | + | 1% |   |   | 2,457 |   |   | 2,439 |   | + | 1% |
|                                      |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)  | $                                | 141    |                              | $ | 170 |   | - | 17% |   | $ | 524 |   | $ | 586 |   | - | 11% |

----

|                                   | **Third                Quarter** |   | **Three                Quarters** |
|----------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)           | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
| Advertising                            |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                            | $                                | 307    |                              | $ | 307 |   |   | – |   | $ | 939 |   | $ | 943 |   |   | – |
| National                          |                             | 157    |                              |   | 172 |   | - | 8% |   |   | 518 |   |   | 563 |   | - | 8% |
| Classified                        |                             | 292    |                              |   | 294 |   | - | 1% |   |   | 910 |   |   | 878 |   | + | 4% |
| Total                advertising  |                             | 756    |                              |   | 773 |   | - | 2% |   |   | 2,367 |   |   | 2,384 |   | - | 1% |
| Circulation                       |                             | 138    |                              |   | 146 |   | - | 6% |   |   | 425 |   |   | 448 |   | - | 5% |
| Other                             |                             | 62     |                              |   | 61 |   | + | 3% |   |   | 189 |   |   | 193 |   | - | 2% |
| Total                revenues     | $                                | 956    |                              | $ | 980 |   | - | 2% |   | $ | 2,981 |   | $ | 3,025 |   | - | 1% |

----

|                                                                           | **Third                Quarter** |   | **Three                Quarters** |
|--------------------------------------------------------------------------------|----------------------------------|--------|-----------------------------------|
| **Inches**(in                thousands)                                        | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                                                           |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full                run                                                        |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                    |                             | 1,402  |                              |   | 1,374 |   | + | 2% |   |   | 4,245 |   |   | 4,254 |   |   | – |
| National                                                                  |                             | 770    |                              |   | 856 |   | - | 10% |   |   | 2,496 |   |   | 2,741 |   | - | 9% |
| Classified                                                                |                             | 2,451  |                              |   | 2,582 |   | - | 5% |   |   | 7,789 |   |   | 7,571 |   | + | 3% |
| Total                full run                                             |                             | 4,623  |                              |   | 4,812 |   | - | 4% |   |   | 14,530 |   |   | 14,566 |   |   | – |
| Part                run                                                   |                             | 5,218  |                              |   | 4,917 |   | + | 6% |   |   | 15,767 |   |   | 15,216 |   | + | 4% |
| Total                inches                                               |                             | 9,841  |                              |   | 9,729 |   | + | 1% |   |   | 30,297 |   |   | 29,782 |   | + | 2% |
|                                                                           |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Preprint                pieces**** **(in                millions)  |                             | 3,563  |                              |   | 3,533 |   | + | 1% |   |   | 10,541 |   |   | 10,791 |   | - | 2% |

----

**Operating      Expenses **

|                                               | **Third                Quarter** |   | **Three                Quarters** |
|----------------------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)                       | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                               |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                (1)               | $                                | 333    |                              | $ | 341 |   | - | 2% |   | $ | 1,028 |   | $ | 1,027 |   |   | – |
| Newsprint                and ink              |                             | 122    |                              |   | 121 |   | + | 1% |   |   | 375 |   |   | 360 |   | + | 4% |
| Circulation                distribution       |                             | 118    |                              |   | 114 |   | + | 4% |   |   | 352 |   |   | 342 |   | + | 3% |
| Promotion                                     |                             | 26     |                              |   | 28 |   | - | 4% |   |   | 77 |   |   | 82 |   | - | 6% |
| Depreciation                and amortization  |                             | 44     |                              |   | 42 |   | + | 3% |   |   | 129 |   |   | 132 |   | - | 3% |
| Other                (2)                      |                             | 172    |                              |   | 164 |   | + | 4% |   |   | 496 |   |   | 496 |   |   | - |
| Total                operating expenses       | $                                | 815    |                              | $ | 810 |   | + | 1% |   | $ | 2,457 |   | $ | 2,439 |   | + | 1% |

----

**BROADCASTING      AND ENTERTAINMENT**

**Operating      Revenues and Profit –      **

|                                          | **Third                Quarter** |   | **Three                Quarters** |
|-----------------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)                  | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                          |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**         |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                               | $                                | 278    |                              | $ | 288 |   | - | 3% |   | $ | 853 |   | $ | 869 |   | - | 2% |
| Radio/entertainment                      |                             | 115    |                              |   | 116 |   | - | 1% |   |   | 217 |   |   | 225 |   | - | 4% |
| Total                operating revenues  | $                                | 393    |                              | $ | 404 |   | - | 3% |   | $ | 1,070 |   | $ | 1,094 |   | - | 2% |
|                                          |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses**         |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                               | $                                | 204    |                              | $ | 198 |   | + | 3% |   | $ | 603 |   | $ | 581 |   | + | 4% |
| Radio/entertainment                      |                             | 81     |                              |   | 79 |   | + | 3% |   |   | 181 |   |   | 195 |   | - | 7% |
| Total                operating expenses  | $                                | 285    |                              | $ | 277 |   | + | 3% |   | $ | 784 |   | $ | 776 |   | + | 1% |
|                                          |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (1)**       |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                               | $                                | 74     |                              | $ | 90 |   | - | 18% |   | $ | 250 |   | $ | 288 |   | - | 13% |
| Radio/entertainment                      |                             | 34     |                              |   | 37 |   | - | 9% |   |   | 36 |   |   | 30 |   | + | 19% |
| Total                operating profit    | $                                | 108    |                              | $ | 127 |   | - | 15% |   | $ | 286 |   | $ | 318 |   | - | 10% |

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**Operating      Expenses**

|                                               | **Third                Quarter** |   | **Three                Quarters** |
|----------------------------------------------------|----------------------------------|--------|-----------------------------------|
| (in                millions)                       | **2006**                         |   | **2005**                          |   | **Change** |   | **2006** |   | **2005** |   | **Change** |
|                                               |                             |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                (1)               | $                                | 133    |                              | $ | 127 |   | + | 4% |   | $ | 330 |   | $ | 338 |   | - | 2% |
| Programming                                   |                             | 86     |                              |   | 82 |   | + | 5% |   |   | 257 |   |   | 242 |   | + | 6% |
| Depreciation                and amortization  |                             | 13     |                              |   | 12 |   | + | 10% |   |   | 38 |   |   | 37 |   | + | 5% |
| Other                                         |                             | 53     |                              |   | 56 |   | - | 5% |   |   | 159 |   |   | 159 |   | - | 1% |
| Total                operating expenses       | $                                | 285    |                              | $ | 277 |   | + | 3% |   | $ | 784 |   | $ | 776 |   | + | 1% |

**CORPORATE      EXPENSES**

**EQUITY      RESULTS**

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

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**DISCONTINUED      OPERATIONS**

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|                                                                                                        | **Third                Quarter Ended** |    |   | **Three                Quarters Ended** |   |
|-------------------------------------------------------------------------------------------------------------|----------------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                        | **Sept.                24, 2006**      |    |   | **Sept.                25, 2005**       |   |   | **Sept.                24, 2006** |   |   | **Sept.                25, 2005** |   |
|                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                      | $                                      | 13,874  |   |                                    | $      | 19,107 |   |   | $ | 53,390 |   |   | $ | 61,335 |   |
|                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit                                                                        | $                                      | 149     |   |                                    | $      | 3,823 |   |   | $ | 6,148 |   |   | $ | 14,187 |   |
| Loss                on sales of discontinued                    operations              |                                   | 799     |   |                                    |   |  – |   |   |   |  (89,256 |  ) |   |   |  – |   |
| Income                (loss) from discontinued operations  before                income taxes     |                                   | 948     |   |                                    |   |  3,823 |   |   |   |  (83,108 | ) |   |   |  14,187 |   |
| Income                taxes (1)                                                                        |                                   | (390    | )      |                                    |   | (1,499 | ) |   |   | 9,279 |   |   |   | (5,543 | ) |
| Income              (loss) from              discontinued operations,                                       |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|                     net of tax                                                     | $                                      | 558     |   |                                    | $      | 2,324 |   |   | $ | (73,829 | ) |   | $ | 8,644 |   |
|                                                                                                        |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued     operations                per share: |                                   |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                                                          | $                                      | – |   |                                    | $      | .01 |   |   | $ | (.26 | ) |   | $ | .03 |   |
|     Diluted                                                                        | $                                      | – |   |                                    | $      | .01 |   |   | $ | (.26 | ) |   | $ | .03 |   |

**LIQUIDITY      AND CAPITAL RESOURCES **

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**Off-Balance      Sheet Arrangements **

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

**INTEREST      RATE RISK**

**Variable      Interest Rate Liabilities**

**EQUITY      PRICE RISK**

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

|                                                                      | **Valuation                of Investments****Assuming                Indicated Decrease****in                Stock’s Price**  |   |           |   | **Valuation                of Investments****Assuming                Indicated Increase****in                Stock’s Price**  |
|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
|                (in                thousands)                         | **-30%**                                                                                                                            |   | **-20%**  |   | **-10%**                                                                                                                            |   | **Sept.                24, 2006****Fair                Value** |   | **+10%**  |   | **+20%**  |   | **+30%**  |
| Common                stock investments inpublic                companies | $5,539                                                                                                                                   |   | $6,330         |   | $7,122                                                                                                                                   |   | $7,913(1) |   | $8,704 |   | $9,495 |   | $10,287 |

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

**Derivatives      and Related Trading Securities –      **

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|                                              | **Valuation                of Investment****Assuming                Indicated Decrease****in                Stock’s Price**  |   |           |   | **Valuation                of Investment****Assuming                Indicated Increase****in                Stock’s Price**  |
|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
|                (in                thousands) | **-30%**                                                                                                                           |   | **-20%**  |   | **-10%**                                                                                                                           |   | **Sept.                24, 2006****Fair                Value** |   | **+10%**  |   | **+20%**  |   | **+30%**  |
| Time                Warner common stock           | $198,576                                                                                                                                |   | $226,994       |   | $255,312                                                                                                                                |   | $283,680 |   | $312,048 |   | $340,416 |   | $368,784 |

**ITEM      4.  CONTROLS AND PROCEDURES.**

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

**Changes      in Internal Control Over Financial Reporting**

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**PART      II.  OTHER INFORMATION**

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

**ITEM      1A.  RISK FACTORS.**

**The      effects and results of our exploration of strategic alternatives are      uncertain**

**We      have exposure to interest rate risk**

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

**Stock      Repurchase Program –      **

**Modified      “Dutch-Auction” Tender Offer **

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|                                                   | **Shares****Repurchased** |   | **Average****Cost** |    | **Total                Number of****Shares                Repurchased** |    | **Value                of Shares****that                May Yet be****Repurchased                (1)** |
|--------------------------------------------------------|---------------------------|--------|---------------------|---------|-------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------------------------------|
|                                                   |                      |   |                |    |                                                                    |    |                                                                                                   |   |   |
| Period                1 (5 weeks ended Jan. 29, 2006)  | 1,000                     |   | $                   | 30.46   |                                                                    | 57,426  |                                                                                                   | $ | 969,520 |
| Period                2 (4 weeks ended Feb. 26, 2006)  | 3,604                     |   |                | 29.74   |                                                                    | 61,030  |                                                                                                   |   | 862,254 |
| Period                3 (4 weeks ended March 26, 2006) | –                   |   |                | – |                                                                    | 61,030  |                                                                                                   |   | 862,254 |
| Period                4 (4 weeks ended April 23, 2006) | –                   |   |                | – |                                                                    | 61,030  |                                                                                                   |   | 862,254 |
| Period                5 (4 weeks ended May 21, 2006)   | –                   |   |                | – |                                                                    | 61,030  |                                                                                                   |   | 862,254 |
| Period                6 (5 weeks ended June 25, 2006)  | –                   |   |                | – |                                                                    | 61,030  |                                                                                                   |   | 862,254 |
| Period                7 (5 weeks ended July 30, 2006)  | 61,125                    |   |                | 32.25   |                                                                    | 122,155 |                                                                                                   |   | 862,254 |
| Period                8 (4 weeks ended Aug. 27, 2006)  | 4,956                     |   |                | 29.79   |                                                                    | 127,111 |                                                                                                   |   | 862,254 |
| Period                9 (4 weeks ended Sept. 24, 2006) | –                   |   |                | – |                                                                    | 127,111 |                                                                                                   |   | 862,254 |

| (1)   | Value                of shares that may yet be repurchased at the end of Periods 6, 7,                8 and 9                excludes the value of the additional 12 million shares of the Company’s                common stock that the board of directors authorized for repurchase                in May                2006 and that remained available for repurchase at the end of such                period. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**ITEM      6.  EXHIBITS.**

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**SIGNATURE**

|                                        | TRIBUNE                COMPANY(Registrant)                                                                                                                                                        |
|---------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                        |                                                                                                                                                                                                   |
| Date:                 November 2, 2006 | /s/                R. Mark MalloryR.                Mark MalloryVice                President and Controller(on                behalf of the registrantand                as Chief Accounting Officer) |

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