----

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

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

| 1.          Financial      Statements (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed      Consolidated Statements of Operations for the First Quarters      EndedMarch      30, 2008 and April 1,      2007                                                                                                                                                                 | 1      |
| Condensed      Consolidated Balance Sheets at March 30, 2008 and Dec. 30,      2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 2      |
| Condensed      Consolidated Statements of Cash Flows for the First Quarters      EndedMarch      30, 2008 and April 1,      2007                                                                                                                                                                 | 4      |
| Notes      to Condensed Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
| Note      1:  Basis of      Preparation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 5      |
| Note      2:  Discontinued Operations and      Assets Held for Sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 6      |
| Note      3:  Income      Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7      |
| Note      4:  Stock-Based      Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 8      |
| Note      5:  Employee      Stock Ownership Plan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 9      |
| Note      6:  Pension and      Other Postretirement Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 10     |
| Note      7:  Non-Operating      Items                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 10     |
| Note      8:  Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 11     |
| Note      9:  Goodwill      and Other Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 12     |
| Note      10:    Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 13     |
| Note      11:    Fair Value of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 19     |
| Note      12:    Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 20     |
| Note      13:    Other Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 21     |
| Note      14:    Segment Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 24     |
| 2.         Management’s      Discussion and Analysis of Financial Condition and Results of      Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 25     |
| 3.         Quantitative      and Qualitative Disclosures About Market      Risk                                                                                                                             | 42     |
| 4.         Controls      and      Procedures                                                                                                                                                                | 45     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| PART      II.  OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 1.         Legal      Proceedings                                                                                                                                                                           | 46     |
| 1A.      Risk      Factors                                                                                                                                                                                                 | 48     |
| 6.         Exhibits                                                                                                                                                                                         | 48     |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | First      Quarter Ended |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | March      30, 2008      |      |   | April      1, 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Operating      Revenues                                                                                                                                                       | $                        | 1,114,648 |   |   | $ | 1,209,379 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Operating      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                     |      |   |   |   |   |   |
| Cost      of sales (exclusive of items shown      below)                                                                                                                      |                     | 599,657   |   |   |   | 614,751 |   |
| Selling,      general and      administrative                                                                                                                                 |                     | 315,006   |   |   |   | 355,881 |   |
| Depreciation                                                                                                                                                                  |                     | 51,648    |   |   |   | 51,823 |   |
| Amortization      of intangible      assets                                                                                                                                   |                     | 4,985     |   |   |   | 5,007 |   |
| Total      operating      expenses                                                                                                                                            |                     | 971,296   |   |   |   | 1,027,462 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Operating      Profit                                                                                                                                                         |                     | 143,352   |   |   |   | 181,917 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Net      income on equity      investments                                                                                                                                    |                     | 16,757    |   |   |   | 12,684 |   |
| Interest      and dividend      income                                                                                                                                        |                     | 3,931     |   |   |   | 3,154 |   |
| Interest      expense                                                                                                                                                         |                     | (263,275  | ) |   |   | (83,249 | ) |
| Gain      (loss) on change in fair values of PHONES and related         investment                                                                                            |                     | 69,880    |   |   |   | (69,780 | ) |
| Strategic      transaction      expenses                                                                                                                                      |                     | —   |   |   |   | (14,473 | ) |
| Other      non-operating gain (loss),      net                                                                                                                                |                     | (859      | ) |   |   | 538 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Income      (Loss) from Continuing Operations Before Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                     | (30,214   | ) |   |   | 30,791 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Income      taxes (Note      3)                                                                                                                                               |                     | 1,854,224 |   |   |   | (19,441 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Income      from Continuing      Operations                                                                                                                                   |                     | 1,824,010 |   |   |   | 11,350 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Loss from Discontinued      Operations, net of tax (Note 2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                     | (548      | ) |   |   | (34,645 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |      |   |   |   |   |   |
| Net      Income      (Loss)                                                                                                                                                   | $                        | 1,823,462 |   |   | $ | (23,295 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | March      30, 2008 |       |   | Dec.      30, 2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |       |   |               |   |   |   |
| Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                |       |   |               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |       |   |               |   |   |   |
| Current      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                |       |   |               |   |   |   |
| Cash and cash      equivalents                                                                                                           | $                   | 246,801    |   |               | $      | 233,284 |   |
| Accounts receivable,      net                                                                                                            |                | 661,708    |   |               |   | 732,853 |   |
| Inventories                                                                                                                              |                | 44,284     |   |               |   | 40,675 |   |
| Broadcast      rights                                                                                                                    |                | 261,762    |   |               |   | 287,045 |   |
| Deferred      income      taxes                                                                                                          |                | 24,771     |   |               |   | — |   |
| Prepaid expenses and      other                                                                                                          |                | 109,230    |   |               |   | 91,166 |   |
| Total current      assets                                                                                                                |                | 1,348,556  |   |               |   | 1,385,023 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |       |   |               |   |   |   |
| Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |       |   |               |   |   |   |
| Property, plant and      equipment                                                                                                       |                | 3,573,327  |   |               |   | 3,564,436 |   |
| Accumulated      depreciation                                                                                                            |                | (2,034,597 | )      |               |   | (1,998,741 | ) |
| Net      properties                                                                                                                      |                | 1,538,730  |   |               |   | 1,565,695 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                |       |   |               |   |   |   |
| Other      Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Broadcast      rights                                                                                                                    |                | 248,273    |   |               |   | 301,263 |   |
| Goodwill                                                                                                                                 |                | 5,579,926  |   |               |   | 5,579,926 |   |
| Other intangible assets,      net                                                                                                        |                | 2,658,225  |   |               |   | 2,663,152 |   |
| Time Warner stock related to      PHONES      debt                                                                                       |                | 221,920    |   |               |   | 266,400 |   |
| Other      investments                                                                                                                   |                | 460,619    |   |               |   | 508,205 |   |
| Prepaid pension      costs                                                                                                               |                | 488,425    |   |               |   | 514,429 |   |
| Assets held for      sale                                                                                                                |                | 10,432     |   |               |   | 33,780 |   |
| Other                                                                                                                                    |                | 419,276    |   |               |   | 331,846 |   |
| Total other      assets                                                                                                                  |                | 10,087,096 |   |               |   | 10,199,001 |   |
| Total      assets                                                                                                                        | $                   | 12,974,382 |   |               | $      | 13,149,719 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | March      30, 2008 |       |   | Dec.      30, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Liabilities      and Shareholders’ Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                |       |   |               |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Current      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                |       |   |               |   |   |   |
| PHONES      debt related to Time Warner stock (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | $                   | 210,824    |   |               | $      | 253,080 |   |
| Other debt due within one      year                                                                                                                                                                                         |                | 752,138    |   |               |   | 750,239 |   |
| Contracts payable for broadcast      rights                                                                                                                                                                                 |                | 320,706    |   |               |   | 339,909 |   |
| Deferred      income      taxes                                                                                                                                                                                             |                | —    |   |               |   | 100,324 |   |
| Deferred      income                                                                                                                                                                                                        |                | 260,307    |   |               |   | 121,239 |   |
| Accounts payable, accrued      expenses and other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                | 534,567    |   |               |   | 625,175 |   |
| Total current      liabilities                                                                                                                                                                                              |                | 2,078,542  |   |               |   | 2,189,966 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Long-Term      Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                |       |   |               |   |   |   |
| PHONES debt related to Time      Warner stock (Note 10)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                | 93,816     |   |               |   | 343,960 |   |
| Other long-term debt (less      portions due within one year)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                | 11,547,383 |   |               |   | 11,496,246 |   |
| Total long-term      debt                                                                                                                                                                                                   |                | 11,641,199 |   |               |   | 11,840,206 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Other      Non-Current Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                |       |   |               |   |   |   |
| Deferred income      taxes                                                                                                                                                                                                  |                | 73,737     |   |               |   | 1,771,845 |   |
| Contracts payable for broadcast      rights                                                                                                                                                                                 |                | 374,793    |   |               |   | 432,393 |   |
| Deferred compensation and      benefits                                                                                                                                                                                     |                | 251,610    |   |               |   | 264,480 |   |
| Other      obligations                                                                                                                                                                                                      |                | 212,527    |   |               |   | 164,769 |   |
| Total other non-current      liabilities                                                                                                                                                                                    |                | 912,667    |   |               |   | 2,633,487 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Common      Shares Held by ESOP, net of Unearned    Compensation      (Note      5)                                                                                            |                | 10,688     |   |               |   | — |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                |       |   |               |   |   |   |
| Shareholders’      Equity (Deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                |       |   |               |   |   |   |
|              Stock purchase      warrants                                                                                                                       |                | 255,000    |   |               |   | 255,000 |   |
| Retained earnings      (deficit)                                                                                                                                                                                            |                | (1,554,069 | )      |               |   | (3,474,311 | ) |
| Accumulated other comprehensive      income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                | (369,645   | )      |               |   | (294,629 | ) |
| Total shareholders’ equity      (deficit)                                                                                                                                                                             |                | (1,668,714 | )      |               |   | (3,513,940 | ) |
| Total liabilities and      shareholders’ equity (deficit)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $                   | 12,974,382 |   |               | $      | 13,149,719 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | First      Quarter Ended |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | March      30, 2008      |   | April      1, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     |   |   |   |   |   |   |
| Operating      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                     |   |   |   |   |   |   |
| Net      income      (loss)                                                                                                                                                           | $                        | 1,823,462 |   |   | $ | (23,295 | ) |
| Adjustments      to reconcile net income (loss) to net cash provided by operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                     |   |   |   |   |   |   |
| Stock-based      compensation related to equity-classified      awards                                                                                                                               |                     | — |   |   |   | 18,338 |   |
| ESOP      compensation                                                                                                                                                                               |                     | 10,688 |   |   |   | — |   |
| Pension      costs, net of      contributions                                                                                                                                                        |                     | 20,536 |   |   |   | (865 | ) |
| Depreciation                                                                                                                                                                                         |                     | 51,648 |   |   |   | 52,424 |   |
| Amortization      of intangible      assets                                                                                                                                                          |                     | 4,982 |   |   |   | 5,020 |   |
| Net      income on equity      investments                                                                                                                                                           |                     | (16,757 | ) |   |   | (12,684 | ) |
| Distributions      from equity      investments                                                                                                                                                      |                     | 58,717 |   |   |   | 45,202 |   |
| Amortization      of debt issuance      costs                                                                                                                                                        |                     | 18,448 |   |   |   | 4,219 |   |
| (Gain)      loss on change in fair values of PHONES and related    investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                     | (69,880 | ) |   |   | 69,780 |   |
| Gain      on sale of studio production      lot                                                                                                                                                      |                     | (82,587 | ) |   |   | — |   |
| Loss      on sales of discontinued      operations                                                                                                                                                   |                     | 516 |   |   |   | 19,442 |   |
| Subchapter      S corporation election deferred income taxes adjustment (Note      3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                     | (1,859,358 | ) |   |   | — |   |
| Changes      in working capital items, excluding effects from acquisitions and      dispositions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                     |   |   |   |   |   |   |
| Accounts      receivable                                                                                                                                                                                            |                     | 71,145 |   |   |   | 84,604 |   |
| Inventories,      prepaid expenses and other current      assets                                                                                                                                                    |                     | (24,098 | ) |   |   | (29,547 | ) |
| Deferred      income, accounts payable, accrued expenses and other current      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                     | (11,286 | ) |   |   | (8,961 | ) |
| Income      taxes                                                                                                                                                                                                   |                     | 53,140 |   |   |   | (21,570 | ) |
| Deferred      compensation                                                                                                                                                                           |                     | (12,688 | ) |   |   | (47,896 | ) |
| Deferred      income taxes, excluding subchapter S corporation election      adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                     | (10,444 | ) |   |   | (10,504 | ) |
| Tax      benefit on stock options      exercised                                                                                                                                                     |                     | — |   |   |   | 3,462 |   |
| Other,      net                                                                                                                                                                                      |                     | 25,139 |   |   |   | (11,971 | ) |
| Net      cash provided by operating      activities                                                                                                                                   |                     | 51,323 |   |   |   | 135,198 |   |
| Investing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                     |   |   |   |   |   |   |
| Capital      expenditures                                                                                                                                                             |                     | (23,082 | ) |   |   | (21,369 | ) |
| Acquisitions      and      investments                                                                                                                                                |                     | (1,810 | ) |   |   | (4,579 | ) |
| Proceeds      from sales of intangibles, investments and real      estate                                                                                                             |                     | 131,001 |   |   |   | 10,400 |   |
| Investment      in escrow fund related to real      estate                                                                                                                            |                     | (118,610 | ) |   |   | — |   |
| Net      cash used for investing      activities                                                                                                                                      |                     | (12,501 | ) |   |   | (15,548 | ) |
| Financing      Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                     |   |   |   |   |   |   |
| Long-term      borrowings                                                                                                                                                             |                     | 25,327 |   |   |   | 25 |   |
| Borrowings      under former bridge credit      facility                                                                                                                              |                     | — |   |   |   | 100,000 |   |
| Repayments      under former bridge credit      facility                                                                                                                              |                     | — |   |   |   | (85,000 | ) |
| Repayments      of long-term      debt                                                                                                                                                |                     | (50,632 | ) |   |   | (6,280 | ) |
| Repayments      of commercial paper,      net                                                                                                                                         |                     | — |   |   |   | (97,019 | ) |
| Sales      of common stock to employees,      net                                                                                                                                     |                     | — |   |   |   | 19,294 |   |
| Dividends                                                                                                                                                                             |                     | — |   |   |   | (43,247 | ) |
| Net      cash used for financing      activities                                                                                                                                      |                     | (25,305 | ) |   |   | (112,227 | ) |
| Net      Increase in Cash and Cash      Equivalents                                                                                                                                   |                     | 13,517 |   |   |   | 7,423 |   |
| Cash      and cash equivalents, beginning of      year                                                                                                                                |                     | 233,284 |   |   |   | 174,686 |   |
| Cash      and cash equivalents, end of      quarter                                                                                                                                   | $                        | 246,801 |   |   | $ | 182,109 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | First      Quarter |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2008               |    |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |    |   |   |   |   |   |
| Operating      revenues                                                                                                                          | $                  | — |   |   | $ | 15,657 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |    |   |   |   |   |   |
| Operating      loss                                                                                                                              | $                  | (63     | ) |   | $ | (2,460 | ) |
| Loss      on sales of discontinued      operations                                                                                               |               | (516    | ) |   |   | (19,442 | ) |
| Loss      from discontinued operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |               | (579    | ) |   |   | (21,902 | ) |
| Income      taxes(1)                                                                                                                             |               | 31      |   |   |   | (12,743 | ) |
| Loss      from discontinued operations, net of      tax                                                                                          | $                  | (548    | ) |   | $ | (34,645 | ) |

| (1)   | Income      taxes for the first quarter of 2007 included tax expense of $14 million      related to the $19 million pretax loss on sale of SCNI.  The      pretax loss included $54 million of allocated newspaper group goodwill,      most of which is not deductible for income tax  purposes. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | First      Quarter |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2008               |    | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               |    |   |   |   |   |
| Management      equity incentive      plan                                                                                                     | $                  | 7,994   |   | $ | — |   |
| Options(1)                                                                                                                                     |               | — |   |   | 726 |   |
| Restricted      stock      units(1)                                                                                                            |               | — |   |   | 16,951 |   |
| Employee      stock purchase      plan(2)                                                                                                      |               | — |   |   | 586 |   |
| Total      stock-based compensation      expense                                                                                               | $                  | 7,994   |   | $ | 18,263 |   |

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

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

----

|                                                          |   | March      30, 2008 |     | Dec.      30, 2007 |   |
|---------------------------------------------------------------|--------|---------------------|----------|--------------------|--------|
| Allocated      ESOP shares (at fair value)(1)                 |   | $                   | 10,688   |               | $      | — |   |
| Unallocated      ESOP shares (at book value)                  |   |                | 245,498  |               |   | 250,000 |   |
| Unearned      compensation related to ESOP                    |   |                | (245,498 | )                  |   | (250,000 | ) |
| Common      shares held by ESOP, net of unearned compensation |   | $                   | 10,688   |               | $      | — |   |

| (1)   | Represents      1,017,891 shares committed to bereleased. |
|-----------------|-----------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                             | Pension      Benefits |    |   | Other      Postretirement Benefits |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|---------|--------|------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             | First      Quarter    |    |   | First      Quarter                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2008                  |    |   | 2007                               |   |   | 2008 |   |   | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |                  |    |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                                                                                                | $                     | 6,046   |   |                               | $ | 570 |   |   | $ | 307 |   |   | $ | 323 |   |
| Interest      cost                                                                                               |                  | 21,938  |   |                               |   | 21,675 |   |   |   | 1,888 |   |   |   | 1,872 |   |
| Expected      return on plans’      assets                                                                 |                  | (36,727 | )      |                               |   | (34,849 | ) |   |   | — |   |   |   | — |   |
| Recognized      actuarial      loss                                                                              |                  | 6,385   |   |                               |   | 12,832 |   |   |   | 44 |   |   |   | 4 |   |
| Amortization      of prior service costs (credits)                                                                                                                                                                                                                                                                                                                                                                                               |                  | 360     |   |                               |   | 55 |   |   |   | (362 | ) |   |   | (361 | ) |
| Special      termination      benefits(1)                                                                        |                  | 24,153  |   |                               |   | — |   |   |   | — |   |   |   | — |   |
| Net      periodic benefit      cost                                                                              | $                     | 22,155  |   |                               | $ | 283 |   |   | $ | 1,877 |   |   | $ | 1,838 |   |

| (1)   | One-time      pension benefits related to position the elimination of approximately 600      positions. |
|-----------------|---------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                     | First      Quarter 2008 |    |   | First      Quarter 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------|--------|---------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                     | PretaxGain      (Loss)  |    |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gain      (loss) on change in fair valuesof PHONES and related      investment                                                                                                                                                                                                                                                                                                                                                           | $                       | 69,880  |   |                      | $      | 69,055 |   |   | $ | (69,780 | ) |   | $ | (42,566 | ) |
| Strategic      transaction      expenses                                                                 |                    | — |   |                      |   | — |   |   |   | (14,473 | ) |   |   | (13,771 | ) |
| Other,      net                                                                                          |                    | (859    | )      |                      |   | (1,075 | ) |   |   | 538 |   |   |   | (842 | ) |
| Income      tax      adjustment                                                                          |                    | — |   |                      |   | 1,859,358 |   |   |   | — |   |   |   | — |   |
| Total      non-operating      items                                                                      | $                       | 69,021  |   |                      | $      | 1,927,338 |   |   | $ | (83,715 | ) |   | $ | (57,179 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | March      30, 2008 |   | Dec.      30, 2007 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|--------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |   |               |   |   |
| Newsprint                                                                                                               | $                   | 31,722 |               | $ | 28,664 |
| Supplies      and      other                                                                                            |                | 12,562 |               |   | 12,011 |
| Total      inventories                                                                                                  | $                   | 44,284 |               | $ | 40,675 |

----

|                                                                  |   | March      30, 2008 |    | Dec.      30, 2007 |
|-----------------------------------------------------------------------|--------|---------------------|---------|--------------------|
|                                                                  |   | GrossAmount         |    |               | AccumulatedAmortization |   |   | NetAmount |   | GrossAmount |   | AccumulatedAmortization |   |   | NetAmount |
| Intangible      assets subject to amortization                        |   |                |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subscribers      (useful life of 15 to 20 years)                 |   | $                   | 189,879 |               |   | $ | (84,210 | ) |   | $ | 105,669 |   | $ | 189,879 |   | $ | (81,698 | ) | $ | 108,181 |
| Network      affiliation agreements (useful life of 40 years)(1) |   |                | 278,034 |               |   |   | (31,293 | ) |   |   | 246,741 |   |   | 278,034 |   |   | (29,552 | ) |   | 248,482 |
| Other      (useful life of 3 to 40 years)                        |   |                | 25,436  |               |   |   | (12,436 | ) |   |   | 13,000 |   |   | 25,381 |   |   | (11,707 | ) |   | 13,674 |
| Total                                                                 |   | $                   | 493,349 |               |   | $ | (127,939 | ) |   |   | 365,410 |   | $ | 493,294 |   | $ | (122,957 | ) |   | 370,337 |
| Goodwill      and other intangible assets not subject to amortization |   |                |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                              |   |                |    |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                                            |   |                |    |               |   |   |   |   |   |   | 4,138,685 |   |   |   |   |   |   |   |   | 4,138,685 |
| Broadcasting      and entertainment                                   |   |                |    |               |   |   |   |   |   |   | 1,441,241 |   |   |   |   |   |   |   |   | 1,441,241 |
| Total      goodwill                                                   |   |                |    |               |   |   |   |   |   |   | 5,579,926 |   |   |   |   |   |   |   |   | 5,579,926 |
| Newspaper      mastheads                                              |   |                |    |               |   |   |   |   |   |   | 1,412,937 |   |   |   |   |   |   |   |   | 1,412,937 |
| FCC      licenses                                                     |   |                |    |               |   |   |   |   |   |   | 871,946 |   |   |   |   |   |   |   |   | 871,946 |
| Tradename                                                             |   |                |    |               |   |   |   |   |   |   | 7,932 |   |   |   |   |   |   |   |   | 7,932 |
| Total                                                                 |   |                |    |               |   |   |   |   |   |   | 7,872,741 |   |   |   |   |   |   |   |   | 7,872,741 |
| Total      goodwill and other intangible assets                       |   |                |    |               |   |   |   |   |   | $ | 8,238,151 |   |   |   |   |   |   |   | $ | 8,243,078 |

| (1)   | Network      affiliation agreements, net of accumulated amortization, included $173      million related to FOX affiliations, $71 million related to CW      affiliations and $3 million related to MyNetworkTV affiliations as of      March 30, 2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                        |   | March      30, 2008 |       | Dec. 30, 2007 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|-------------------------|
| Tranche      B Facility due 2014, interest rate of 5.54% and 7.91%,      respectively                                                                                       |   | $                   | 7,593,050  |                    | $ | 7,587,163 |
| Tranche      X Facility due 2008-2009, interest rate of 7.40% and 7.99%,      respectively                                                                                  |   |                | 1,400,000  |                    |   | 1,400,000 |
| Bridge      Facility due 2008, interest rate of 7.54% and 9.43%,      respectively                                                                                          |   |                | 1,600,000  |                    |   | 1,600,000 |
| Medium-term      notes due 2008, weighted average interest rate of 5.6% in 2008 and      2007                                                                               |   |                | 237,585    |                    |   | 262,585 |
| Property      financing obligation, effective interest rate of 7.7%, expiring      2009                                                                                     |   |                | 30,267     |                    |   | 35,676 |
| 4.875%      notes due 2010, net of unamortized discount of $372 and $410,      respectively                                                                                 |   |                | 449,628    |                    |   | 449,589 |
| 7.25%      debentures due 2013, net of unamortized discount of $1,708 and $1,794,      respectively                                                                         |   |                | 80,375     |                    |   | 80,289 |
| 5.25%      notes due 2015, net of unamortized discount of $1,166 and $1,205,      respectively                                                                              |   |                | 328,835    |                    |   | 328,795 |
| 7.5%      debentures due 2023, net of unamortized discount of $3,673 and $3,732,      respectively                                                                          |   |                | 95,075     |                    |   | 95,016 |
| 6.61%      debentures due 2027, net of unamortized discount of $2,069 and $2,095,      respectively                                                                         |   |                | 82,891     |                    |   | 82,864 |
| 7.25%      debentures due 2096, net of unamortized discount of $17,879 and $17,926,      respectively                                                                       |   |                | 130,120    |                    |   | 130,073 |
| Subordinated      promissory notes due 2018, effective interest rate of 17%,         net of unamortized discount of $165,063 and $165,000,      respectively |   |                | 62,859     |                    |   |                60,315 |
| Interest      rate swaps                                                                                                                                                    |   |                | 193,872    |                    |   | 119,029 |
| Other      notes and obligations                                                                                                                                            |   |                | 14,964     |                    |   | 15,091 |
| Total      debt excluding PHONES                                                                                                                                            |   |                | 12,299,521 |                    |   | 12,246,485 |
| 2%      PHONES debt related to Time Warner stock, due 2029                                                                                                                  |   |                | 304,640    |                    |   | 597,040 |
| Total      debt                                                                                                                                                             |   | $                   | 12,604,161 |                    | $ | 12,843,525 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | March      30, 2008 |       | Dec.      30, 2007 |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------------------|
| Current      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                |       |               |   |   |
|     PHONES      debt related to Time Warner      stock                                                                                                  |   | $                   | 210,824    |               | $ | 253,080 |
|     Other      debt due within one      year                                                                                                            |   |                | 752,138    |               |   | 750,239 |
|     Total      current      debt                                                                                                                        |   |                | 962,962    |               |   | 1,003,319 |
| Long-Term      Debt:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                |       |               |   |   |
|     PHONES      debt related to Time Warner      stock                                                                                                  |   |                | 93,816     |               |   | 343,960 |
|     Other      long-term      debt                                                                                                                      |   |                | 11,547,383 |               |   | 11,496,246 |
|     Total      long-term      debt                                                                                                                      |   |                | 11,641,199 |               |   | 11,840,206 |
| Total      Debt                                                                                                                                                             |   | $                   | 12,604,161 |               | $ | 12,843,525 |

----

----

----

----

----

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

----

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

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

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

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | March      30, 2008 |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Level      1        |    |   | Level      2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                |    |   |   |   |   |   |
| Financial      Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                |    |   |   |   |   |   |
|    Time      Warner stock related to      PHONES                                                                                                                     | $                   | 221,920 |   |   | $ | — |   |
|    Other      investments in securities of public      companies                                                                                                     |                | 3,923   |   |   |   | — |   |
|    Interest      rate      swaps                                                                                                                                     |                | — |   |   |   | 38,658 |   |
| Total                                                                                                                                                                               | $                   | 225,843 |   |   | $ | 38,658 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                |    |   |   |   |   |   |
| Financial      Liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                |    |   |   |   |   |   |
|    PHONES      debt related to Time Warner      stock                                                                                                                | $                   | 304,640 |   |   | $ | — |   |
|    Interest      rate      swaps                                                                                                                                     |                | — |   |   |   | 193,872 |   |
| Total                                                                                                                                                                               | $                   | 304,640 |   |   | $ | 193,872 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | First      Quarter |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 2008               |      |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               |      |   |   |   |   |   |
| Net      income      (loss)                                                                                                                                          | $                  | 1,823,462 |   |   | $ | (23,295 | ) |
| Change      in unrecognized benefit cost loss, net of      taxes                                                                                                     |               | (11,565   | ) |   |   | — |   |
| Adjustment      for previously unrecognized benefit cost (gains) and losses         included in net income, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               | 6,351     |   |   |   | 7,642 |   |
| Unrealized      loss on marketable securities, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |               | (1,369    | ) |   |   | (611 | ) |
| Unrecognized      losses on cash flow hedging instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |               |      |   |   |   |   |   |
| Change      in losses on cash flow hedging instruments, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |               | (68,455   | ) |   |   | — |   |
| Adjustment      for losses on cash flow hedging instruments included in net        income, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               | 28        |   |   |   | — |   |
|     Unrecognized      losses on cash flow hedging instruments, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               | (68,427   | ) |   |   | — |   |
| Change      in foreign currency translation adjustments, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |               | (6        | ) |   |   | 17 |   |
| Other      comprehensive income      (loss)                                                                                                                          |               | (75,016   | ) |   |   | 7,048 |   |
| Comprehensive      income      (loss)                                                                                                                                | $                  | 1,748,446 |   |   | $ | (16,247 | ) |

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | First      Quarter |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2008               |      |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               |      |   |   |   |   |   |
| Operating      revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |      |   |   |   |   |   |
| Publishing                                                                                                                              | $                  | 822,966   |   |   | $ | 926,371 |   |
| Broadcasting and      entertainment                                                                                                     |               | 291,682   |   |   |   | 283,008 |   |
| Total      operating      revenues                                                                                            | $                  | 1,114,648 |   |   | $ | 1,209,379 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               |      |   |   |   |   |   |
| Operating      profit(1):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |               |      |   |   |   |   |   |
| Publishing                                                                                                                              | $                  | 36,654    |   |   | $ | 140,176 |   |
| Broadcasting and      entertainment                                                                                                     |               | 135,195   |   |   |   | 61,382 |   |
| Corporate      expenses                                                                                                                 |               | (28,497   | ) |   |   | (19,641 | ) |
| Total      operating      profit                                                                                              | $                  | 143,352   |   |   | $ | 181,917 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | March      30, 2008 |       |   | Dec.      30, 2007 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                |       |   |               |   |   |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                |       |   |               |   |   |   |
| Publishing                                                                                                                                                        | $                   | 8,057,468  |   |               | $      | 8,121,133 |   |
| Broadcasting and      entertainment                                                                                                                               |                | 4,029,688  |   |               |   | 3,993,933 |   |
| Corporate                                                                                                                                                         |                | 876,794    |   |               |   | 1,000,873 |   |
|     Assets      held for      sale                                                                                             |                | 10,432     |   |               |   | 33,780 |   |
| Total      assets                                                                                                                                  | $                   | 12,974,382 |   |               | $      | 13,149,719 |   |

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

----

| ITEM      2.  |  MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS      OF OPERATIONS. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

----

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

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

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

| ●   | On      April 25, 2007, the Company commenced a tender offer to repurchase up to      126 million shares of the Company’s common stock that were then      outstanding at a price of $34.00 per share in cash (the “Share      Repurchase”). The tender offer expired on May 24, 2007 and 126 million      shares of the |
|---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | Company’s      common stock were repurchased and subsequently retired on June 4, 2007      utilizing proceeds from the Credit Agreement (as defined in the “New      Credit Agreements” section below). |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

| ·   | On      Dec. 20, 2007, the Company completed its merger with Merger Sub, with the      Company surviving the Merger. Pursuant to the terms of the Merger      Agreement, each share of common stock of the Company, par value $0.01 per      share, issued and outstanding immediately prior to the Merger, other than      shares held by the Company, the ESOP or Merger Sub immediately prior to      the Merger (in each case, other than shares held on behalf of third      parties) and shares held by shareholders who validly exercised appraisal      rights, was cancelled and automatically converted into the right to      receive $34.00, without interest and less any applicable withholding      taxes, and the Company became wholly owned by the  ESOP. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

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|                                                                                                                                                                                                                                                                                                                                                                                                                                     | First      Quarter 2008 |    |   | First      Quarter 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|---------|--------|---------------------------|--------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                       | PretaxGain      (Loss)  |    |   | After-taxGain      (Loss) |   |   | PretaxGain      (Loss) |   |   | After-taxGain      (Loss) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                     |                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gain      (loss) on change in fair valuesof PHONES and related      investment                                                                                                                                                                                                                                                                                                                                                           | $                       | 69.9    |   |                      | $      | 69.1 |   |   | $ | (69.8 | ) |   | $ | (42.6 | ) |
| Strategic      transaction      expenses                                                                 |                    | — |   |                      |   | — |   |   |   | (14.4 | ) |   |   | (13.8 | ) |
| Other,      net                                                                                          |                    | (.9     | )      |                      |   | (1.1 | ) |   |   | .5 |   |   |   | (.8 | ) |
| Income      tax      adjustment                                                                          |                    | — |   |                      |   | 1,859.3 |   |   |   | — |   |   |   | — |   |
| Total      non-operating      items                                                                      | $                       | 69.0    |   |                      | $      | 1,927.3 |   |   | $ | (83.7 | ) |   | $ | (57.2 | ) |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | First      Quarter |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |               |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                       | $                  | 1,115 |   | $ | 1,209 |   | - | 8% |
| Operating      profit(1)                                                                                                      | $                  | 143 |   | $ | 182 |   | - | 21% |
| Net      income on equity      investments                                                                                    | $                  | 17 |   | $ | 13 |   | + | 32% |
| Net      income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |   |   |   |   |   |   |   |
| Income      from continuing      operations(2)                                                                                               | $                  | 1,824 |   | $ | 11 |   |   | * |
| Loss      from discontinued operations, net of tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |               | (1 | ) |   | (34 | ) |   | * |
| Net      income      (loss)                                                                                                                  | $                  | 1,823 |   | $ | (23 | ) |   | * |

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

| (2)   | Due      to the Company’s election to be treated as a subchapter S corporation      beginning in 2008, essentially all of its net deferred tax liabilities      have been eliminated as of Dec. 31, 2007.  This resulted in a      $1,859 million reduction in income tax expense in the first quarter of      2008. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | First      Quarter |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |               |   |   |   |   |   |   |   |
| Publishing                                                                                                                           | $                  | 823 |   | $ | 926 |   | - | 11% |
| Broadcasting and      entertainment                                                                                                  |               | 292 |   |   | 283 |   | + | 3% |
| Total      operating      revenues                                                                                    | $                  | 1,115 |   | $ | 1,209 |   | - | 8% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |               |   |   |   |   |   |   |   |
| Operating      profit(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |   |   |   |   |   |   |   |
| Publishing                                                                                                                           | $                  | 37 |   | $ | 140 |   | - | 74% |
| Broadcasting and      entertainment(2)                                                                                               |               | 135 |   |   | 61 |   | + | 120% |
| Corporate      expenses                                                                                                              |               | (28 | ) |   | (20 | ) | - | 45% |
| Total      operating      profit                                                                                      | $                  | 143 |   | $ | 182 |   | - | 21% |

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

| (2)   | Includes      a gain of $83 million on the sale of the real estate and related assets of      the Company’s studio production lot located in Hollywood,      California. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | First      Quarter |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |               |   |   |   |   |   |   |   |
| Cost      of sales (exclusive of items shown      below)                                                                                            | $                  | 599 |   | $ | 614 |   | - | 2% |
| Selling,      general and      administrative                                                                                                       |               | 315 |   |   | 356 |   | - | 12% |
| Depreciation      and      amortization                                                                                                             |               | 57 |   |   | 57 |   |   | — |
| Total      operating      expenses                                                                                                                  | $                  | 971 |   | $ | 1,027 |   | - | 5% |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | First      Quarter |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |               |   |   |   |   |   |   |   |
| Operating      revenues                                                                                             | $                  | 823 |   | $ | 926 |   | - | 11% |
| Operating      expenses                                                                                             |               | 786 |   |   | 786 |   |   | — |
| Operating      profit(1)                                                                                            | $                  | 37 |   | $ | 140 |   | - | 74% |

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

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | First      Quarter |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 2008               |   | 2007 |   | Change |
| Advertising                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |               |   |   |   |   |   |   |   |
| Retail                                                                                                                      | $                  | 269 |   | $ | 292 |   | - | 8% |
| National                                                                                                                    |               | 161 |   |   | 178 |   | - | 10% |
| Classified                                                                                                                  |               | 186 |   |   | 256 |   | - | 27% |
| Total      advertising                                                                                            |               | 616 |   |   | 726 |   | - | 15% |
| Circulation                                                                                                       |               | 130 |   |   | 135 |   | - | 3% |
| Other                                                                                                             |               | 77 |   |   | 65 |   | + | 17% |
| Total      revenues                                                                                               | $                  | 823 |   | $ | 926 |   | - | 11% |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | First      Quarter |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| Inches      (in thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2008               |   | 2007 |   | Change |
| Full      run                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |   |   |   |   |   |   |   |
| Retail                                                                                                                                       |               | 1,156 |   |   | 1,213 |   | - | 5% |
| National                                                                                                                                     |               | 686 |   |   | 701 |   | - | 2% |
| Classified                                                                                                                                   |               | 1,706 |   |   | 2,065 |   | - | 17% |
| Total      full      run                                                                                                           |               | 3,548 |   |   | 3,979 |   | ­- | 11% |
| Part      run                                                                                                                      |               | 3,725 |   |   | 4,715 |   | - | 21% |
| Total      inches                                                                                                                  |               | 7,273 |   |   | 8,694 |   | - | 16% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |               |   |   |   |   |   |   |   |
| Preprint      pieces (in      millions)                                                                                            |               | 3,140 |   |   | 3,435 |   | - | 9% |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | First      Quarter |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |               |   |   |   |   |   |   |   |
| Compensation                                                                                                            | $                  | 348 |   | $ | 328 |   | + | 6% |
| Newsprint      and      ink                                                                                             |               | 94 |   |   | 114 |   | - | 18% |
| Circulation      distribution                                                                                           |               | 124 |   |   | 119 |   | + | 5% |
| Outside      services                                                                                                   |               | 72 |   |   | 75 |   | - | 4% |
| Promotion                                                                                                               |               | 20 |   |   | 22 |   | - | 6% |
| Depreciation      and      amortization                                                                                 |               | 44 |   |   | 44 |   |   | — |
| Other                                                                                                                   |               | 84 |   |   | 84 |   |   | — |
| Total      operating      expenses                                                                                      | $                  | 786 |   | $ | 786 |   |   | — |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | First      Quarter |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |               |   |   |   |   |   |   |   |
| Operating      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |               |   |   |   |   |   |   |   |
| Television                                                                                                                   | $                  | 278 |   | $ | 264 |   | + | 5% |
| Radio/entertainment                                                                                                          |               | 14 |   |   | 19 |   | - | 28% |
| Total      operating      revenues                                                                                 | $                  | 292 |   | $ | 283 |   | + | 3% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |               |   |   |   |   |   |   |   |
| Operating      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |               |   |   |   |   |   |   |   |
| Television                                                                                                                   | $                  | 215 |   | $ | 198 |   | + | 9% |
| Radio/entertainment(2)                                                                                                       |               | (59 | ) |   | 24 |   |   | * |
| Total      operating      expenses                                                                                 | $                  | 156 |   | $ | 222 |   | - | 29% |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |               |   |   |   |   |   |   |   |
| Operating      profit (loss)(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |               |   |   |   |   |   |   |   |
| Television                                                                                                                   | $                  | 63 |   | $ | 67 |   | - | 6% |
| Radio/entertainment(2)                                                                                                       |               | 72 |   |   | (6 | ) |   | * |
| Total      operating      profit                                                                                   | $                  | 135 |   | $ | 61 |   | + | 120% |

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

| (2)   |  Includes      the gain of $83 million on the sale of the studio production      lot. |
|-----------------|--------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | First      Quarter |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|
| (in      millions)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2008               |   | 2007 |   | Change |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               |   |   |   |   |   |   |   |
| Compensation                                                                                                                  | $                  | 83 |   | $ | 74 |   | + | 13% |
| Programming                                                                                                                   |               | 89 |   |   | 83 |   | + | 7% |
| Depreciation      and      amortization                                                                                       |               | 13 |   |   | 13 |   |   | — |
| Other                                                                                                                         |               | 54 |   |   | 52 |   | + | 4% |
| Gain      on sale of      assets(1)                                                                                           |               | (83 | ) |   | — |   |   | * |
| Total      operating      expenses                                                                                            | $                  | 156 |   | $ | 222 |   | - | 29% |

| (1)   | Gain      on sale of assets represents the gain on sale of the studio production      lot. |
|-----------------|--------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | First      Quarter |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|---------|
| (in      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2008               |    |   | 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |    |   |   |   |   |   |
| Operating      revenues                                                                                                                          | $                  | — |   |   | $ | 15,657 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |    |   |   |   |   |   |
| Operating      loss                                                                                                                              | $                  | (63     | ) |   | $ | (2,460 | ) |
| Loss      on sales of discontinued      operations                                                                                               |               | (516    | ) |   |   | (19,442 | ) |
| Loss      from discontinued operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |               | (579    | ) |   |   | (21,902 | ) |
| Income      taxes(1)                                                                                                                             |               | 31      |   |   |   | (12,743 | ) |
| Loss      from discontinued operations, net of      tax                                                                                          | $                  | (548    | ) |   | $ | (34,645 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |               |    |   |   |   |   |   |

| (1)   | Income      taxes for the first quarter of 2007 included tax expense of $14 million      related to the $19 million pretax loss on sale of SCNI.  The      pretax loss included $54 million of allocated newspaper group goodwill,      most of which is not deductible for income tax  purposes. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Maturities                           |   |    | Fixed RateDebt |   | Weighted AvgInterest Rate |   |   | Variable RateDebt |                | Weighted AvgInterest Rate |   |   | TotalDebt |   |
|--------------------------------------|--------|---------|---------------------|--------|-------------------------------------|--------|--------|------------------------|---------------------|-------------------------------------|--------|--------|-----------|--------|
| 2008(1)                              |   | $  | 234,843             |   |                                | 2.6    | %      |                   |        $  |     707,933     |   |   | 7.2       | %      |   | $  |   942,776 |   |
| 2009(2)                              |   |    | 9,534               |   |                                | 8.0    | %      |                   |                | 857,399                             |   |   | 7.2       | %      |   |   | 866,933 |   |
| 2010(3)                              |   |    | 451,772             |   |                                | 4.9    | %      |                   |                | 141,179                             |   |   | 5.5       | %      |   |   | 592,951 |   |
| 2011                                 |   |    | 2,130               |   |                                | 9.2    | %      |                   |                | 78,830                              |   |   | 5.5       | %      |   |   | 80,960 |   |
| 2012(4)                              |   |    | 2,113               |   |                                | 9.5    | %      |                   |                | 148,055                             |   |   | 5.5       | %      |   |   | 150,168 |   |
| Thereafter(5)                        |   |    | 1,150,573           |   |                                | 4.1    | %      |                   |                | 8,819,800                           |   |   | 5.9       | %      |   |   | 9,970,373 |   |
| Total      at March 30, 2008    |   | $  | 1,850,965           |   |                                |   |   |                   | $                   | 10,753,196                          |   |   |      |   |   | $  | 12,604,161 |   |
| Fair      Value at March 30, 2008(6) |   | $  | 1,186,440           |   |                                |   |   |                   | $                   | 8,093,487                           |   |   |      |   |   | $  | 9,279,927 |   |

----

| (1) | Fixed      rate debt includes $211 million related to the Company’s 2% PHONES which      represents the cash exchange value of the PHONES at March 30,      2008.  Also included is $23 million of property financing      obligation (see Note 10 to the Company’s unaudited condensed consolidated financial      statements in Part I, Item 1,      hereof).  Variable      rate debt includes $650 million related to the portion of the Tranche X      facility due on Dec. 4, 2008 and $58 million related to the Tranche      B facility, which is payable in quarterly increments of approximately $19      million until maturity in 2014 when the remaining principal balance is due      in full (see Note 10 to the Company’s unaudited condensed consolidated      financial statements in Part I, Item 1,      hereof). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Variable      rate debt includes $750 million related to the portion of the Tranche X      facility due on June 4, 2009 and $29 million related to an interest rate      swap agreement through 2009 on $750 million of the variable rate      borrowings under the Tranche B facility effectively converting the      variable rate to a fixed rate of 5.25% plus a margin of 300 basis      points. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Variable      rate debt includes $62 million related to an interest rate swap agreement      through 2010 on $1 billion of the variable rate borrowings under the      Tranche B facility effectively converting the variable rate to a fixed      rate of 5.29% plus a margin of 300 basispoints. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Variable      rate debt includes $69 million related to an interest rate swap agreement      through 2012 on $750 million of the variable rate borrowings effectively      converting the variable rate to a fixed rate of 5.39% plus a margin of 300      basis points. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Fixed      rate debt includes the remaining $94 million of book value related to      the Company’s 2% PHONES, due 2029.  The Company may redeem the      PHONES at any time for the greater of the principal value of the PHONES      ($155.86 per PHONES at March 30, 2008) or the then market value of two      shares of Time Warner common stock, subject to certain adjustments.      Quarterly interest payments are made to the PHONES holders at an annual      rate of 2% of the initial principal. Fixed rate debt also includes      $34 million related to the interest rate swap agreement on the      $100 million 7.5% debentures due in 2023 effectively converting the      fixed 7.5% rate to a variable rate based on LIBOR.  Fixed rate      debt also includes $238 million related to the Company’s medium-term notes      that the Company intends to refinance using the Delayed Draw Facility as      they mature during 2008.  Accordingly, the Company has      classified its medium-term notes as long-term at March 30,      2008.  Variable rate debt includes the $1.6 billion Bridge      Facility, which has been classified as long-term because the borrowings      under the Bridge Facility will be converted into long-term senior exchange      notes or similar instruments prior to the Bridge Facility’s initial      maturity date of Dec. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 20,      2008 (see Note 10 to the Company’s unaudited consolidated financial      statements in Part I, Item 1,      hereof).  Variable rate debt also includes $7.2 billion      related to the amount due in 2014 on the Tranche B facility after all      quarterly payments have been made (see Note 10 to the Company’s unaudited      consolidated financial statements in Part I, Item 1,      hereof). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Fair      value of the Company’s variable rate borrowings, senior notes and      debentures was estimated based on quoted market prices for similar issues      or on current rates available to the Company for debt of the same      remaining maturities and similar terms.  The carrying value of      all other components of the Company’s debt approximates fair      value. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                            | Valuation      of InvestmentsAssuming      Indicated Decreasein      Stock’s Price |   | March      30, 2008Fair      Value |   | Valuation      of InvestmentsAssuming      Indicated Increasein      Stock’s Price |
|-------------------------------------------------|------------------------------------------------------------------------------------------|--------|------------------------------------|--------|------------------------------------------------------------------------------------------|
| (in      thousands)                             | -30%                                                                                     |   | -20%                               |   | -10%                                                                                     |   |   | +10% |   | +20% |   | +30% |
| Common      stock investments inpubliccompanies | $2,746                                                                                   |   | $3,139                             |   | $3,531                                                                                   |   | $3,923(1) |   | $4,316 |   | $4,708 |   | $5,100 |

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

----

|                         | Valuation      of InvestmentAssuming      Indicated Decreasein      Stock’s Price |   | March      30, 2008Fair      Value |   | Valuation      of InvestmentAssuming      Indicated Increasein      Stock’s Price |
|------------------------------|-----------------------------------------------------------------------------------------|--------|------------------------------------|--------|-----------------------------------------------------------------------------------------|
| (in      thousands)          | -30%                                                                                    |   | -20%                               |   | -10%                                                                                    |   |   | +10% |   | +20% |   | +30% |
| Time      Warner commonstock | $155,344                                                                                |   | $177,536                           |   | $199,728                                                                                |   | $221,920 |   | $244,112 |   | $266,304 |   | $288,496 |

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----

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|                         | TRIBUNE COMPANY(Registrant) |                                                                                                     |
|------------------------------|-----------------------------|----------------------------------------------------------------------------------------------------------|
|                         |                        |                                                                                 |   |
| Date:       May 8, 2008 | By:                         | /s/ Brian      Litman                                                                               |   |
|                         |                        | Brian      Litman                                                                                        |   |
|                         |                        | Vice      President and Controller(on      behalf of the registrantand      as Chief Accounting Officer) |   |
|                         |                        |                                                                                                     |   |

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