----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**FOR      THE QUARTERLY PERIOD ENDED APRIL 1, 2007**

**Commission      file number 1-8572**

**TRIBUNE      COMPANY**

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

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**TRIBUNE      COMPANY**

**INDEX        TO 2007 FIRST QUARTER FORM 10-Q**

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

| 1.  Financial                Statements                                                                                                                         |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Condensed                Consolidated Statements of Operations for the First Quarters Ended                April                1, 2007 and March 26, 2006                | 1      |
| Condensed                Consolidated Balance Sheets at April 1, 2007 and Dec. 31, 2006                                                                              | 2      |
| Condensed                Consolidated Statements of Cash Flows for the First Quarters                EndedApril                1, 2007 and March 26, 2006                 | 4      |
| Notes                to Condensed Consolidated Financial Statements                                                                                                       |   |
| Note                1:   Basis                of Preparation                                                                                                    | 5      |
| Note                2:   Earnings                Per Share                                                                                                      | 6      |
| Note                3:   Discontinued                Operations                                                                                                 | 7      |
| Note                4:   Income                Taxes                                                                                                            | 8      |
| Note                5:   *Newsday*                and *Hoy*,                New York Charge                                                                     | 11     |
| Note                6:   Stock-Based                Compensation                                                                                                | 12     |
| Note                7:   Pension                and Postretirement Benefits                                                                                     | 13     |
| Note                8:    Non-Operating                Items                                                                                               | 14     |
| Note                9:    Inventories                                                                                                                      | 14     |
| Note                10:  Goodwill                and Other Intangible Assets                                                                                         | 15     |
| Note                11:  Debt                                                                                                                                        | 16     |
| Note                12:  Comprehensive                Income                                                                                                         | 18     |
| Note                13:  Leveraged                ESOP Transactions                                                                                                  | 19     |
| Note                14:                 Other                Matters                                                                                                 | 20     |
| Note                15:                 Segment                Information                                                                                           | 21     |
| 2.                    Management’s                Discussion and Analysis of Financial Condition and Results of                Operations  | 22     |
| 3.                    Quantitative                and Qualitative Disclosures About Market Risk                                                  | 35     |
| 4.                    Controls                and Procedures                                                                                     | 36     |
|                                                                                                                                                                      |   |
| **PART                II.  OTHER INFORMATION**                                                                                                                       |
| 1.                    Legal                Proceedings                                                                                           | 37     |
| 1A. Risk                Factors                                                                                                                                 | 37     |
| 2.                    Unregistered                Sales of Equity Securities and Use of Proceeds                                                 | 40     |
| 6.                    Exhibits                                                                                                                   | 40     |

----

**PART      I. FINANCIAL INFORMATION**

**ITEM      1.  FINANCIAL STATEMENTS.**

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

|                                                                                                   | **First                Quarter Ended** |      |
|--------------------------------------------------------------------------------------------------------|----------------------------------------|-----------|
|                                                                                                   | **April                1, 2007**       |      |   | **March                26, 2006** |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Operating                Revenues**                                                             | $                                      | 1,214,502 |   |   | $ | 1,269,421 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Operating                Expenses**                                                                  |                                   |      |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)                                     |                                   | 617,032   |   |   |   | 631,369 |   |
| Selling,                general and administrative                                                |                                   | 358,976   |   |   |   | 366,591 |   |
| Depreciation                                                                                      |                                   | 52,025    |   |   |   | 49,870 |   |
| Amortization                of intangible assets                                                  |                                   | 5,007     |   |   |   | 4,690 |   |
| Total                operating expenses                                                           |                                   | 1,033,040 |   |   |   | 1,052,520 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Operating                Profit**                                                               |                                   | 181,462   |   |   |   | 216,901 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| Net                income on equity investments                                                   |                                   | 12,684    |   |   |   | 6,548 |   |
| Interest                and dividend income                                                       |                                   | 3,154     |   |   |   | 2,180 |   |
| Interest                expense                                                                   |                                   | (83,249   | ) |   |   | (48,772 | ) |
| Loss                on change in fair values of derivatives and                related investments     |                                   | (69,780   | ) |   |   | (10,317 | ) |
| Gain                on sales of investments, net                                                  |                                   | 73        |   |   |   | 3,466 |   |
| Other                non-operating loss, net                                                      |                                   | (14,008   | ) |   |   | (6,846 | ) |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Income                from Continuing Operations Before Income Taxes**                          |                                   | 30,336    |   |   |   | 163,160 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| Income                taxes                                                                       |                                   | (19,257   | ) |   |   | (64,004 | ) |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Income                from Continuing Operations**                                              |                                   | 11,079    |   |   |   | 99,156 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Income                (Loss) from Discontinued Operations, net of tax**(Note                3)  |                                   | (34,374   | ) |   |   | 3,608 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Net                Income (Loss)**                                                              |                                   | (23,295   | ) |   |   | 102,764 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| Preferred                dividends                                                                |                                   | –   |   |   |   | (2,103 | ) |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Net                Income (Loss) Attributable to Common Shares**                                | $                                      | (23,295   | ) |   | $ | 100,661 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| **Earnings                (Loss) Per Share**(Note                2):                                   |                                   |      |   |   |   |   |   |
| Basic:                                                                                                 |                                   |      |   |   |   |   |   |
| Continuing                operations                                                                   | $                                      | .05       |   |   | $ | .32 |   |
| Discontinued                operations                                                                 |                                   | (.14      | ) |   |   | .01 |   |
|                        Net income (loss)                       | $                                      | (.10      | ) |   | $ | .33 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| Diluted:                                                                                               |                                   |      |   |   |   |   |   |
| Continuing                operations                                                                   | $                                      | .05       |   |   | $ | .32 |   |
| Discontinued                operations                                                                 |                                   | (.14      | ) |   |   | .01 |   |
|                        Net income (loss)                       | $                                      | (.10      | ) |   | $ | .33 |   |
|                                                                                                   |                                   |      |   |   |   |   |   |
| Dividends                per common share                                                         | $                                      | .18       |   |   | $ | .18 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                    | **April                1, 2007** |       |   | **Dec.                31, 2006** |   |
|---------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                    |                             |       |   |                             |   |   |   |
| **Assets**                                              |                             |       |   |                             |   |   |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Current                Assets**                       |                             |       |   |                             |   |   |   |
| Cash                and cash equivalents                | $                                | 182,109    |   |                             | $      | 174,686 |   |
| Accounts                receivable, net                 |                             | 676,973    |   |                             |   | 765,871 |   |
| Inventories                                             |                             | 50,146     |   |                             |   | 40,962 |   |
| Broadcast                rights                         |                             | 243,061    |   |                             |   | 271,995 |   |
| Deferred                income taxes                    |                             | 79,374     |   |                             |   | 74,450 |   |
| Assets                held for sale                     |                             | 4,535      |   |                             |   | – |   |
| Prepaid                expenses and other               |                             | 69,588     |   |                             |   | 49,466 |   |
| Total                current assets                     |                             | 1,305,786  |   |                             |   | 1,377,430 |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Properties**                                          |                             |       |   |                             |   |   |   |
| Property,                plant and equipment            |                             | 3,586,372  |   |                             |   | 3,592,477 |   |
| Accumulated                depreciation                 |                             | (1,940,230 | )      |                             |   | (1,907,365 | ) |
| Net                properties                           |                             | 1,646,142  |   |                             |   | 1,685,112 |   |
|                                                    |                             |       |   |                             |   |   |   |
| **Other                Assets**                         |                             |       |   |                             |   |   |   |
| Broadcast                rights                         |                             | 250,984    |   |                             |   | 295,186 |   |
| Goodwill                                                |                             | 5,780,251  |   |                             |   | 5,837,208 |   |
| Other                intangible assets, net             |                             | 2,807,545  |   |                             |   | 2,846,057 |   |
| Time                Warner stock related to PHONES debt |                             | 315,520    |   |                             |   | 348,480 |   |
| Other                investments                        |                             | 536,526    |   |                             |   | 564,750 |   |
| Prepaid                pension costs                    |                             | 307,207    |   |                             |   | 293,455 |   |
| Assets                held for sale                     |                             | 84,681     |   |                             |   | 9,172 |   |
| Other                                                   |                             | 149,282    |   |                             |   | 143,922 |   |
| Total                other assets                       |                             | 10,231,996 |   |                             |   | 10,338,230 |   |
| Total                assets                             | $                                | 13,183,924 |   |                             | $      | 13,400,772 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                         | **April                1, 2007** |       |   | **Dec.                31, 2006** |   |
|------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                                                         |                             |       |   |                             |   |   |   |
| **Liabilities                and Shareholders’ Equity**                                                                |                             |       |   |                             |   |   |   |
|                                                                                                                         |                             |       |   |                             |   |   |   |
| **Current                Liabilities**                                                                                       |                             |       |   |                             |   |   |   |
| Borrowings                under bridge credit facility                                                                       | $                                | 1,325,000  |   |                             | $      | 1,310,000 |   |
| Other                debt due within one year                                                                                |                             | 22,664     |   |                             |   | 119,007 |   |
| Contracts                payable for broadcast rights                                                                        |                             | 290,927    |   |                             |   | 317,945 |   |
| Deferred                income                                                                                               |                             | 205,837    |   |                             |   | 108,607 |   |
| Accounts                payable, accrued expenses and other current liabilities                                              |                             | 610,281    |   |                             |   | 691,155 |   |
| Total                current liabilities                                                                                     |                             | 2,454,709  |   |                             |   | 2,546,714 |   |
|                                                                                                                         |                             |       |   |                             |   |   |   |
| **Long-Term                Debt**                                                                                            |                             |       |   |                             |   |   |   |
| PHONES                debt related to Time Warner stock                                                                      |                             | 612,080    |   |                             |   | 572,960 |   |
| Other                long-term debt (less portions due within one year)                                                      |                             | 2,996,490  |   |                             |   | 3,003,251 |   |
| Total                long-term debt                                                                                          |                             | 3,608,570  |   |                             |   | 3,576,211 |   |
|                                                                                                                         |                             |       |   |                             |   |   |   |
| **Other                Non-Current Liabilities**                                                                             |                             |       |   |                             |   |   |   |
| Deferred                income taxes                                                                                         |                             | 1,897,399  |   |                             |   | 1,974,672 |   |
| Contracts                payable for broadcast rights                                                                        |                             | 377,785    |   |                             |   | 425,927 |   |
| Deferred                compensation and benefits                                                                            |                             | 341,006    |   |                             |   | 392,187 |   |
| Other                obligations                                                                                             |                             | 200,035    |   |                             |   | 165,445 |   |
| Total                other non-current liabilities                                                                           |                             | 2,816,225  |   |                             |   | 2,958,231 |   |
|                                                                                                                         |                             |       |   |                             |   |   |   |
| **Shareholders’                Equity**                                                                                |                             |       |   |                             |   |   |   |
| Common                stock and additional paid-in capital                                                                   |                             | 6,870,377  |   |                             |   | 6,837,029 |   |
| Retained                earnings                                                                                             |                             | 3,016,452  |   |                             |   | 3,138,313 |   |
| Treasury                common stock (at cost)                                                                               |                             | (4,972,072 | )      |                             |   | (5,288,341 | ) |
|                            Unearned ESOP shares (Note 13)   |                             | (250,000   | )      |                             |   | – |   |
| Accumulated                other comprehensive income (loss)                                                                 |                             | (360,337   | )      |                             |   | (367,385 | ) |
| Total                shareholders’ equity                                                                              |                             | 4,312,120  |   |                             |   | 4,319,616 |   |
| Total                liabilities and shareholders’ equity                                                              | $                                | 13,183,924 |   |                             | $      | 13,400,772 |   |

----

**TRIBUNE        COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                                                                                                  | **First                Quarter Ended** |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|----------|
|                                                                                                                                                                                                                                                  | **April                1, 2007**       |     |   | **March                26, 2006** |   |
|                                                                                                                                                                                                                                                  |                                   |     |   |   |   |   |   |
| **Operations**                                                                                                                                                                                                                                        |                                   |     |   |   |   |   |   |
| Net                income (loss)                                                                                                                                                                                                                 | $                                      | (23,295  | ) |   | $ | 102,764 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by                operations:                                                                                                                                          |                                   |     |   |   |   |   |   |
|     Stock-based                compensation                                                                                                                                                                                  |                                   | 18,338   |   |   |   | 17,675 |   |
|     Loss                on                change in fair values of derivatives and related investments                                                                                                                       |                                   | 69,780   |   |   |   | 10,317 |   |
|     Gain                on                sales of investments, net                                                                                                                                                          |                                   | (73      | ) |   |   | (3,466 | ) |
|     Depreciation                                                                                                                                                                                                             |                                   | 52,424   |   |   |   | 50,993 |   |
|     Amortization                of                intangible assets                                                                                                                                                          |                                   | 5,020    |   |   |   | 4,780 |   |
|     Expected                loss                on sale of discontinued operations                                                                                                                                      |                                   | 19,442   |   |   |   | – |   |
|     Net                income on equity investments                                                                                                                                                                          |                                   | (12,684  | ) |   |   | (6,548 | ) |
|     Distributions                from equity investments                                                                                                                                                                     |                                   | 45,202   |   |   |   | 6,708 |   |
|     Deferred                income                taxes                                                                                                                                                                      |                                   | (10,504  | ) |   |   | 24,547 |   |
|     Tax                benefit on stock awards exercised                                                                                                                                                                     |                                   | 3,462    |   |   |   | 898 |   |
|     Decrease                in                accounts receivable                                                                                                                                                            |                                   | 84,604   |   |   |   | 77,092 |   |
|                            Decrease in inventory, prepaid expenses and other current                assets                                                                                |                                   | (29,547  | ) |   |   | (14,183 | ) |
|                            Increase in employee compensation and benefits,                          deferred income and accrued liabilities  |                                   | 1,537    |   |   |   | 5,030 |   |
|     Decrease                in                accounts payable                                                                                                                                                               |                                   | (10,498  | ) |   |   | (22,591 | ) |
|     Decrease                in                income taxes payable                                                                                                                                                           |                                   | (21,570  | ) |   |   | (42,793 | ) |
|     Decrease                in                deferred compensation                                                                                                                                                          |                                   | (47,896  | ) |   |   | (12,102 | ) |
|     Other,                net                                                                                                                                                                                                |                                   | (8,544   | ) |   |   | 20,498 |   |
| Net                cash provided by operations                                                                                                                                                                                                   |                                   | 135,198  |   |   |   | 219,619 |   |
|                                                                                                                                                                                                                                                  |                                   |     |   |   |   |   |   |
| **Investments**                                                                                                                                                                                                                                       |                                   |     |   |   |   |   |   |
| Capital                expenditures                                                                                                                                                                                                              |                                   | (21,369  | ) |   |   | (21,852 | ) |
| Acquisitions                and investments                                                                                                                                                                                                      |                                   | (4,579   | ) |   |   | (7,500 | ) |
| Proceeds                from sale of intangibles                                                                                                                                                                                                 |                                   | 10,400   |   |   |   | – |   |
| Net                cash used for investments                                                                                                                                                                                                     |                                   | (15,548  | ) |   |   | (29,352 | ) |
|                                                                                                                                                                                                                                                  |                                   |     |   |   |   |   |   |
| **Financing**                                                                                                                                                                                                                                         |                                   |     |   |   |   |   |   |
| Borrowings                under bridge credit facility                                                                                                                                                                                           |                                   | 100,000  |   |   |   | – |   |
| Repayments                under bridge credit facility                                                                                                                                                                                           |                                   | (85,000  | ) |   |   | – |   |
| Repayments                of long-term debt                                                                                                                                                                                                      |                                   | (6,280   | ) |   |   | (49,478 | ) |
| (Repayments)                issuances of commercial paper, net                                                                                                                                                                                   |                                   | (97,019  | ) |   |   | 50,188 |   |
| Sales                of common stock to employees, net                                                                                                                                                                                           |                                   | 19,294   |   |   |   | 8,564 |   |
| Purchases                of Tribune common stock                                                                                                                                                                                                 |                                   | –  |   |   |   | (138,644 | ) |
| Dividends                                                                                                                                                                                                                                        |                                   | (43,247  | ) |   |   | (56,522 | ) |
| Other                                                                                                                                                                                                                                            |                                   | 25       |   |   |   | (17,472 | ) |
| Net                cash used for financing                                                                                                                                                                                                       |                                   | (112,227 | ) |   |   | (203,364 | ) |
| **Net                increase (decrease) in cash and cash equivalents**                                                                                                                                                                          |                                   | 7,423    |   |   |   | (13,097 | ) |
|                                                                                                                                                                                                                                                  |                                   |     |   |   |   |   |   |
| Cash                and cash equivalents, beginning of year                                                                                                                                                                                      |                                   | 174,686  |   |   |   | 151,110 |   |
|                                                                                                                                                                                                                                                  |                                   |     |   |   |   |   |   |
| Cash                and cash equivalents, end of quarter                                                                                                                                                                                         | $                                      | 182,109  |   |   | $ | 138,013 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1:  BASIS OF PREPARATION**

*Hoy*
*Hoy*
*The      Advocate*
*Greenwich      Time*

----

**NOTE      2:  EARNINGS PER SHARE**

|                                                                              | **First                Quarter** |    |
|-----------------------------------------------------------------------------------|----------------------------------|---------|
| (in                thousands, except per share data)                              | **2007**                         |    |   | **2006** |   |
|                                                                              |                             |    |   |   |   |   |   |
| **Basic                earnings (loss) per share:**                               |                             |    |   |   |   |   |   |
| Income                from continuing operations                             | $                                | 11,079  |   |   | $ | 99,156 |   |
| Income                (loss) from discontinued operations, net of tax        |                             | (34,374 | ) |   |   | 3,608 |   |
| Net                income (loss)                                             |                             | (23,295 | ) |   |   | 102,764 |   |
| Preferred                dividends                                           |                             | – |   |   |   | (2,103 | ) |
| Net                income (loss) attributable to common shares               | $                                | (23,295 | ) |   | $ | 100,661 |   |
|                                                                              |                             |    |   |   |   |   |   |
| Weighted                average common shares outstanding                    |                             | 239,959 |   |   |   | 304,219 |   |
| Basic                earnings (loss) per share:                                   |                             |    |   |   |   |   |   |
| Continuing                operations                                              | $                                | .05     |   |   | $ | .32 |   |
| Discontinued                operations                                            |                             | (.14    | ) |   |   | .01 |   |
|                        Net income (loss)  | $                                | (.10    | ) |   | $ | .33 |   |
|                                                                              |                             |    |   |   |   |   |   |
| **Diluted                earnings (loss) per share:**                             |                             |    |   |   |   |   |   |
| Income                from continuing operations                             | $                                | 11,079  |   |   | $ | 99,156 |   |
| Income                (loss) from discontinued operations, net of tax        |                             | (34,374 | ) |   |   | 3,608 |   |
| Net                income (loss)                                             |                             | (23,295 | ) |   |   | 102,764 |   |
| Preferred                dividends                                           |                             | – |   |   |   | (2,103 | ) |
| Net                income (loss) attributable to common shares               | $                                | (23,295 | ) |   | $ | 100,661 |   |
|                                                                              |                             |    |   |   |   |   |   |
| Weighted                average common shares outstanding                    |                             | 239,959 |   |   |   | 304,219 |   |
| Adjustment                for stock-based awards, net                        |                             | 2,093   |   |   |   | 1,740 |   |
| Adjusted                weighted average common sharesoutstanding                 |                             | 242,052 |   |   |   | 305,959 |   |
|                                                                              |                             |    |   |   |   |   |   |
| Diluted                earnings (loss) per share:                                 |                             |    |   |   |   |   |   |
| Continuing                operations                                              | $                                | .05     |   |   | $ | .32 |   |
| Discontinued                operations                                            |                             | (.14    | ) |   |   | .01 |   |
|                        Net income (loss)  | $                                | (.10    | ) |   | $ | .33 |   |

----

**NOTE      3:  DISCONTINUED OPERATIONS**

**Publishing      Discontinued Operations **
*Hoy,      *
*Hoy*

*The      Advocate*

*Hoy*

**Broadcasting      and Entertainment Discontinued Operations **

----

**Summarized      Financial Information **
** **

|                                                                                | **First                Quarter** |    |
|-------------------------------------------------------------------------------------|----------------------------------|---------|
| (in                thousands, except per share data)                                | **2007**                         |    |   | **2006** |   |
|                                                                                |                             |    |   |   |   |   |   |
| Operating                revenues                                              | $                                | 10,534  |   |   | $ | 29,663 |   |
|                                                                                |                             |    |   |   |   |   |   |
| Operating                profit (loss)                                         | $                                | (2,005  | ) |   | $ | 5,956 |   |
| Expected                pretax loss on sale of SCNI                            |                             | (19,442 |  ) |   |   |  – |   |
| Income                (loss) from discontinued operations before income taxes  |                             | (21,447 | ) |   |   |  5,956 |   |
| Income                taxes (1)                                                |                             | (12,927 | ) |   |   | (2,348 | ) |
| Income                (loss) from discontinued operations, net of tax          | $                                | (34,374 | ) |   | $ | 3,608 |   |
|                                                                                |                             |    |   |   |   |   |   |
| Income                (loss) from discontinued operations per share:                |                             |    |   |   |   |   |   |
|     Basic                                                  | $                                | (.14    | ) |   | $ | .01 |   |
|     Diluted                                                | $                                | (.14    | ) |   | $ | .01 |   |

**NOTE      4:  INCOME TAXES**

**Matthew      Bender and Mosby Income Tax Liability –**

----

| Liability                  at Dec. 31, 2006                                                                          | $                    35 |
|--------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
| First                  quarter 2007 after-tax interest                                                                    | 1                                 |
| Liability                  at April 1, 2007 (included in “other current                  liabilities”)   | $                    36 |

**PHONES      Interest **

**Adoption      of New Income Tax Accounting Standard **

----

**Other      **

----

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

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

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

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

*Newsday*
*Hoy*

*Newsday      *
*Hoy*

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

----

**NOTE      6:  STOCK-BASED COMPENSATION**

|                                                        | **First                Quarter** |   |
|-------------------------------------------------------------|----------------------------------|--------|
| (in                thousands)                               | **2007**                         |   | **2006** |   |
|                                                        |                             |   |   |   |   |   |
| Stock-based                compensation expense:            |                             |   |   |   |   |   |
| Options                                                | $                                | 726    |   | $ | 6,641 |   |
| Restricted                stock units                  |                             | 16,951 |   |   | 9,973 |   |
| Employee                stock purchase plan            |                             | 587    |   |   | 770 |   |
| Total                stock-based compensation expense  | $                                | 18,264 |   | $ | 17,384 |   |

----

|                                                                              | **First                  Quarter 2007** |    | **First                  Quarter 2006** |
|-----------------------------------------------------------------------------------|-----------------------------------------|---------|-----------------------------------------|
|                                                                              |                                    |    | **Weighted**                            |   |   |   | **Weighted** |
|                                                                              |                                    |    | **Avg.                  Fair**          |   |   |   | **Avg.                  Fair** |
| (units                  in thousands)                                             | **Units**                               |    | **Value***                              |   | **Units** |   | **Value*** |
|                                                                              |                                    |    |                                    |   |   |   |   |
| Outstanding                  and nonvested, beginning                  of quarter | 1,524                                   |    | $                  31.18                |   | – |   | $                        – |
| Restricted                  stock units granted                                   | 1,831                                   |    | 30.40                                   |   | 1,491 |   | 31.16 |
| Dividend                  equivalent units granted                                | 11                                      |    | –                                 |   | 8 |   | – |
| Forefeited                                                                        | (52                                     | )  | 30.60                                   |   | (6 | )  | 31.16 |
| Vested                  and issued                                                | (343                                    | )       | 30.48                                   |   | – |   | – |
| Outstanding,                  end of quarter                                      | 2,971                                   |    | $                  30.67                |   | 1,493 |   | $31.16 |

**Employee      Stock Purchase Plan **

**NOTE      7:  PENSION AND POSTRETIREMENT BENEFITS**

|                                                          | **Pension                  Benefits** |    |   | **Other                  Postretirement Benefits** |
|---------------------------------------------------------------|---------------------------------------|---------|--------|----------------------------------------------------|
|                                                          | **First                  Quarter**    |    |   | **First                  Quarter**                 |
| (in                  thousands)                               | **2007**                              |    |   | **2006**                                           |   |   | **2007** |   |   | **2006** |
|                                                          |                                  |    |   |                                               |   |   |   |   |   |   |   |   |   |   |   |
| Service                  cost                            | $                                     | 570     |   |                                               | $ | 1,113 |   |   | $ | 323 |   |   | $ | 345 |   |
| Interest                  cost                           |                                  | 21,675  |   |                                               |   | 20,452 |   |   |   | 1,872 |   |   |   | 1,794 |   |
| Expected                  return on plans’ assets  |                                  | (34,849 | )      |                                               |   | (31,125 | ) |   |   | – |   |   |   | – |   |
| Recognized                  actuarial loss               |                                  | 12,832  |   |                                               |   | 15,698 |   |   |   | 4 |   |   |   | – |   |
| Amortization                  of prior service costs     |                                  | 55      |   |                                               |   | 34 |   |   |   | (361 | ) |   |   | (361 | ) |
| Amortization                  of transition asset        |                                  | – |   |                                               |   | – |   |   |   | – |   |   |   | 12 |   |
| Special                  termination benefits (1)        |                                  | – |   |                                               |   | 962 |   |   |   | – |   |   |   | – |   |
| Net                  periodic benefit cost               | $                                     | 283     |   |                                               | $ | 7,134 |   |   | $ | 1,838 |   |   | $ | 1,790 |   |

----

**NOTE      **
**8:       NON-OPERATING ITEMS**

|                                                                                                    | **First                Quarter 2007**    |    |   | **First                Quarter 2006**       |   |
|---------------------------------------------------------------------------------------------------------|------------------------------------------|---------|--------|---------------------------------------------|--------|
| (in                thousands)                                                                           | **Pretax****Gain                (Loss)** |    |   | **After-tax****Gain                (Loss)** |   |   | **Pretax****Gain                (Loss)** |   |   | **After-tax****Gain                (Loss)** |   |
|                                                                                                    |                                     |    |   |                                        |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                        | (69,780 | )      |                                        | $      | (42,566 | ) |   | $ | (10,317 | ) |   | $ | (6,293 | ) |
| Gain                on sales of investments, net                                                   |                                     | 73      |   |                                        |   | 45 |   |   |   | 3,466 |   |   |   | 2,114 |   |
| Other,                net                                                                          |                                     | (14,008 | )      |                                        |   | (14,658 | ) |   |   | (6,846 | ) |   |   | (4,176 | ) |
| Total                non-operating items                                                           | $                                        | (83,715 | )      |                                        | $      | (57,179 | ) |   | $ | (13,697 | ) |   | $ | (8,355 | ) |

**NOTE      9:  INVENTORIES**

| (in                thousands)     | **April                1, 2007** |   |   | **Dec.                31, 2006** |   |
|-----------------------------------|----------------------------------|--------|--------|----------------------------------|--------|
|                              |                             |   |   |                             |   |   |   |
| Newsprint                         | $                                | 35,440 |   |                             | $      | 28,629 |   |
| Supplies                and other |                             | 14,706 |   |                             |   | 12,333 |   |
| Total                inventories  | $                                | 50,146 |   |                             | $      | 40,962 |   |

----

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

|                                                                                                       | **April                  1, 2007**           |   | **Dec.                  31, 2006**            |
|------------------------------------------------------------------------------------------------------------|----------------------------------------------|--------|-----------------------------------------------|
|                                                                                                       | **Gross**                                    |   | **Accumulated**                               |   | **Net** |   | **Gross** |   | **Accumulated** |   | **Net** |
| (in                  thousands)                                                                            | **Amount**                                   |   | **Amortization**                              |   | **Amount** |   | **Amount** |   | **Amortization** |   | **Amount** |
|                                                                                                       |                                         |   |                                          |   |   |   |   |   |   |   |   |
| **Intangible                  assets subject to****amortization:**                                         |                                         |   |                                          |   |   |   |   |   |   |   |   |
| Subscribers                  (useful life of 15to                  20 years)                               | $                     189,707 |   | $                     (74,333) |   | $                    115,374 |   | $                      190,660 |   | $                      (72,126) |   | $                    118,534 |
| Network                  affiliation agreements(useful                  life of 40 years) (1)              | 278,034                                      |   | (24,348)                                      |   | 253,686 |   | 278,034 |   | (22,614) |   | 255,420 |
| Other                  (useful life of 3 to 40 years)                                                 | 25,124                                       |   | (9,442)                                       |   | 15,682 |   | 25,128 |   | (8,717) |   | 16,411 |
| Total                                                                                                 | $                     492,865 |   | $                   (108,123)            |   | 384,742 |   | $                      493,822 |   | $                    (103,457) |   | 390,365 |
|                                                                                                       |                                         |   |                                          |   |   |   |   |   |   |   |   |
| **Goodwill                  and other intangible assets****not                  subject to amortization:** |                                         |   |                                          |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                   |                                         |   |                                          |   |   |   |   |   |   |   |   |
| Publishing                                                                                                 |                                         |   |                                          |   | 4,339,010 |   |   |   |   |   | 4,395,967 |
| Broadcasting                  and entertainment                                                            |                                         |   |                                          |   | 1,441,241 |   |   |   |   |   | 1,441,241 |
| Total                  goodwill                                                                       |                                         |   |                                          |   | 5,780,251 |   |   |   |   |   | 5,837,208 |
| Newspaper                  mastheads                                                                  |                                         |   |                                          |   | 1,542,925 |   |   |   |   |   | 1,575,814 |
| FCC                  licenses                                                                         |                                         |   |                                          |   | 871,946 |   |   |   |   |   | 871,946 |
| Tradename                                                                                             |                                         |   |                                          |   | 7,932 |   |   |   |   |   | 7,932 |
| Total                                                                                                 |                                         |   |                                          |   | 8,203,054 |   |   |   |   |   | 8,292,900 |
|                                                                                                       |                                         |   |                                          |   |   |   |   |   |   |   |   |
| Total                  goodwill and other intangibleassets                                                 |                                         |   |                                          |   | $                   8,587,796 |   |   |   |   |   | $                  8,683,265 |

| (1)   | Network                affiliation agreements, net of accumulated amortization, included                $178                million related to FOX affiliations, $73                million related to CW affiliations and $3 million related to MyNetwork-TV                affiliations, each as of April 1,                2007. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE      11:  DEBT**

| (in                thousands)                                                                                                                        | **April                1, 2007** |       |   | **Dec.                31, 2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                                                                                 |                             |       |   |                             |   |   |   |
| Borrowings                under bridge credit facility due June 19, 2007, interest rate of                6.2%                                  | $                                | 1,325,000  |   |                             | $      | 1,310,000 |   |
| Term                loan due June 20, 2011, interest rate of 6.2%                                                                               |                             | 1,500,000  |   |                             |   | 1,500,000 |   |
| Commercial                paper, weighted average interest rate of 5.9% in 2006                                                                 |                             | –    |   |                             |   | 97,019 |   |
| Medium-term                notes, weighted average interest rate of 5.6% in 2007 and    2006,                due 2007-2008  |                             | 262,585    |   |                             |   | 262,585 |   |
| Property                financing obligation, effective interest rate of 7.7%, expiring                2009                                          |                             | 51,000     |   |                             |   | 55,711 |   |
| 4.875%                notes due 2010, net of unamortized discount of $526and                $564, respectively                                       |                             | 449,474    |   |                             |   | 449,436 |   |
| 7.25%                debentures due 2013, net of unamortized discount of $2,051and                $2,137, respectively                               |                             | 80,032     |   |                             |   | 79,946 |   |
| 5.25%                debentures due 2015, net of unamortized discount of $1,323and                $1,362, respectively                               |                             | 328,677    |   |                             |   | 328,638 |   |
| 7.5%                debentures due 2023, net of unamortized discount of $3,911and                $3,969, respectively                                |                             | 94,839     |   |                             |   | 94,781 |   |
| 6.61%                debentures due 2027, net of unamortized discount of $2,175and                $2,200, respectively                               |                             | 82,785     |   |                             |   | 82,760 |   |
| 7.25%                debentures due 2096, net of unamortized discount of $18,068and                $18,116, respectively                             |                             | 129,932    |   |                             |   | 129,884 |   |
| Interest                rate swap                                                                                                               |                             | 23,472     |   |                             |   | 24,600 |   |
| Other                notes and obligations                                                                                                      |                             | 16,358     |   |                             |   | 16,898 |   |
| Total                debt excluding PHONES                                                                                                      |                             | 4,344,154  |   |                             |   | 4,432,258 |   |
| Less                debt due within one year                                                                                                    |                             | (1,347,664 | )      |                             |   | (1,429,007 | ) |
| Long-term                debt excluding PHONES                                                                                                  |                             | 2,996,490  |   |                             |   | 3,003,251 |   |
| 2%                PHONES debt related to Time Warner stock, due 2029                                                                            |                             | 612,080    |   |                             |   | 572,960 |   |
| Total                long-term debt                                                                                                             | $                                | 3,608,570  |   |                             | $      | 3,576,211 |   |

**Debt      due within one year –**

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

----

| (in                thousands)                                            | **April                1, 2007** |    |   | **Dec.                31, 2006** |   |
|--------------------------------------------------------------------------|----------------------------------|---------|--------|----------------------------------|--------|
|                                                                     |                             |    |   |                             |   |   |   |
| PHONES                Debt:                                              |                             |    |   |                             |   |   |   |
| Discounted                debt component (at book value)                 | $                                | 468,240 |   |                             | $      | 465,280 |   |
| Derivative                component (at fair value)                      |                             | 143,840 |   |                             |   | 107,680 |   |
| Total                                                                    | $                                | 612,080 |   |                             | $      | 572,960 |   |
|                                                                     |                             |    |   |                             |   |   |   |
| Time                Warner stock related to PHONES (at fair value)  | $                                | 315,520 |   |                             | $      | 348,480 |   |

**Credit      Agreements **

----

**NOTE      1**
**2:       COMPREHENSIVE INCOME**

|                                                                                                                                           | **First                Quarter** |
|------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|
| (in                thousands)                                                                                                                  | **2007**                         |   |   | **2006** |
|                                                                                                                                           |                             |   |   |   |   |   |
| Net                income (loss)                                                                                                          | $                                | (23,295 | ) |   | $ | 102,764 |
|                                                                                                                                           |                             |   |   |   |   |   |
| Adjustment                for previously unrecognized benefit cost (gains) and lossesincluded                in net income, net of taxes  |                             | 7,642 |   |   |   | – |
|                                                                                                                                           |                             |   |   |   |   |   |
| Unrealized                holding gain (loss) on marketablesecurities                classified as available-for-sale, net of taxes       |                             | (611 | ) |   |   | 1,010 |
|                                                                                                                                           |                             |   |   |   |   |   |
| Change                in foreign currency translation adjustments,net                of taxes                                             |                             | 17 |   |   |   | 12 |
|                                                                                                                                           |                             |   |   |   |   |   |
| Other                comprehensive income                                                                                                 |                             | 7,048 |   |   |   | 1,022 |
|                                                                                                                                           |                             |   |   |   |   |   |
| Comprehensive                income (loss)                                                                                                | $                                | (16,247 | ) |   | $ | 103,786 |

----

**NOTE      13:  LEVERAGED ESOP TRANSACTIONS**

| **·**       | 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. None of the shares held by the                ESOP have been committed for release or allocated to employees.                Accordingly, the $250 million of unearned ESOP shares have been classified                as a reduction of shareholders’ equity in the Company’s April 1, 2007                unaudited condensed consolidated balance                sheet. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | 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 $34.00 per share and (2) an                unsecured subordinated exchangeable promissory note of the Company                in the                principal amount of $200 million, which the Company must repay immediately                prior to the Merger (as defined below). The promissory note will                be                exchangeable at the Company’s option, or automatically under certain                circumstances, into an aggregate of 5,882,353 shares of the Company’s                common stock, subject to antidilution adjustments. The shares of                the                Company’s common stock, the exchangeable promissory note and any                underlying shares acquired upon exchange that are held by the Zell                Entity                are subject to certain transfer restrictions until April 23, 2010. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | On                April 25, 2007, the Company commenced a tender offer to repurchase                up to                126 million shares of the Company’s common stock that are currently                outstanding at a price of $34.00 per share (the “Share Repurchase”). The                Company’s obligations to consummate the Share Repurchase are subject to                various conditions, including the receipt of necessary financing                for the                Share Repurchase. |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | 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”). In                connection with the Merger, all outstanding shares of the Company’s common                stock (other than those held by the ESOP and other than dissenting                shares)                will receive consideration of $34.00 per share. If the Merger does                not                close by Jan. 1, 2008, stockholders will receive an additional 8%                annualized “ticking fee,” calculated from Jan. 1, 2008 through the date of                closing of the Merger. The Merger is subject to various conditions                set                forth in the Merger Agreement. Completion of the Share Repurchase                is not a                condition to the Merger. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | In                the Merger, the Zell Entity will receive cash for the shares of the                Company’s common stock it owns and, immediately prior to the Merger, the                Company will repay the exchangeable promissory note held by the Zell                Entity. Following the consummation of the Merger, the Zell Entity                will                purchase from the |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|      | Company                  a $225 million subordinated promissory note and a 15-year warrant                  for $90                  million. The warrant will entitle the Zell Entity** **to                  purchase 43,478,261 shares of the Company’s common stock (subject to                  adjustment), which will represent 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 to be granted                  under a                  management equity incentive plan to be established). The warrant                  will have                  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). |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Company has agreed to grant registration rights to the Zell Entity                and the                ESOP, in the event the Merger does not close, with respect to the                shares                of the Company’s common stock that the Zell Entity and the ESOP purchased                from the Company in their initial investments. The Company has granted                registration rights to Chandler Trust No. 1 and Chandler Trust No.                2                (together, the “Chandler Trusts”), which are significant shareholders of                the Company. On April 25, 2007, the Company filed a shelf registration                statement in connection with the registration rights granted to the                Chandler Trusts. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Company has secured financing commitments from certain lenders to                provide                the Company with the ability to borrow the amounts required for purposes                of financing the Leveraged ESOP Transactions, to refinance certain                indebtedness of the Company, including indebtedness under its existing                credit facilities, and for working capital and general corporate                purposes                of the Company. The financing commitments are subject to certain                conditions, and definitive financing agreements have not yet been                executed. |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Chandler Trusts have entered into agreements whereby they have committed                to tender in the Share Repurchase all shares of the Company’s common stock                held by them as of the expiration of the Share Repurchase and to                vote all                of the shares held by them as of the record date in favor of the                Merger                Agreement and the transactions contemplated                thereby. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**NOTE      14:  OTHER MATTERS**

**Media      Ownership Rules **
** **

----

**Variable      Interest Entities **
** **

**New      Accounting Standards **

**NOTE      **
**15:       SEGMENT INFORMATION**

|                                                | **First                Quarter** |      |
|-----------------------------------------------------|----------------------------------|-----------|
| (in                thousands)                       | **2007**                         |      |   | **2006** |   |
|                                                |                             |      |   |   |   |   |   |
| **Operating                revenues:**              |                             |      |   |   |   |   |   |
| Publishing                                     | $                                | 931,494   |   |   | $ | 985,319 |   |
| Broadcasting                and entertainment  |                             | 283,008   |   |   |   | 284,102 |   |
| Total                operating revenues        | $                                | 1,214,502 |   |   | $ | 1,269,421 |   |
|                                                |                             |      |   |   |   |   |   |
| **Operating                profit (loss)**(1):      |                             |      |   |   |   |   |   |
| Publishing                                     | $                                | 139,721   |   |   | $ | 169,813 |   |
| Broadcasting                and entertainment  |                             | 61,382    |   |   |   | 67,451 |   |
| Corporate                expenses              |                             | (19,641   | ) |   |   | (20,363 | ) |
| Total                operating profit          | $                                | 181,462   |   |   | $ | 216,901 |   |

|                                                                                 | **April                1, 2007** |       |   | **Dec.                31, 2006** |   |
|--------------------------------------------------------------------------------------|----------------------------------|------------|--------|----------------------------------|--------|
|                                                                                 |                             |       |   |                             |   |   |   |
| **Assets:**                                                                          |                             |       |   |                             |   |   |   |
| Publishing                                                                           | $                                | 8,332,650  |   |                             | $      | 8,503,340 |   |
| Broadcasting                and entertainment                                        |                             | 3,877,510  |   |                             |   | 3,987,449 |   |
| Corporate                                                                            |                             | 884,548    |   |                             |   | 900,811 |   |
|                        Assets held for sale  |                             | 89,216     |   |                             |   | 9,172 |   |
| Total                assets                                                     | $                                | 13,183,924 |   |                             | $      | 13,400,772 |   |

----

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

**FORWARD-LOOKING      STATEMENTS**

**SIGNIFICANT      EVENTS**

**Leveraged      ESOP Transactions**
** **
** **

| **·**       | 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. None of the shares held by the                ESOP have been committed for release or allocated to employees.                Accordingly, the $250 million of unearned ESOP shares have been classified                as a reduction of shareholders’ equity in the Company’s April 1, 2007                unaudited condensed consolidated balance sheet, included in Item                1, Part                1, hereof. |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **·**       | On                April 23, 2007, pursuant to a purchase agreement dated April 1, 2007,                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 $34.00                per share and (2) an unsecured subordinated exchangeable promissory                note                of the Company in the principal amount of $200 million, which the                Company                must repay immediately prior to the Merger (as defined below). The                promissory note will be exchangeable at the Company’s option, or                automatically under certain circumstances, into an aggregate of 5,882,353                shares of the Company’s common stock, subject to antidilution adjustments.                The shares of the Company’s common stock, the exchangeable promissory note                and any underlying shares acquired upon exchange that are held by                the Zell                Entity are subject to certain transfer restrictions until April 23,                2010. |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | On                April 25, 2007, the Company commenced a tender offer to repurchase                up to                126 million shares of the Company’s common stock that are currently                outstanding at a price of $34.00 per share (the “Share Repurchase”). The                Company’s obligations to consummate the Share Repurchase are subject to                various conditions, including the receipt of necessary financing                for the                Share Repurchase. |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | 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”). In                connection with the Merger, all outstanding shares of the Company’s common                stock (other than those held by the ESOP and other than dissenting                shares)                will receive consideration of $34.00 per share. If the Merger does                not                close by Jan. 1, 2008, stockholders will receive an additional 8%                annualized “ticking fee,” calculated from Jan. 1, 2008 through the date of                closing of the Merger. The Merger is subject to various conditions                set                forth in the Merger Agreement. Completion of the Share Repurchase                is not a                condition to the Merger. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | In                the Merger, the Zell Entity will receive cash for the shares of the                Company’s common stock it owns and, immediately prior to the Merger, the                Company will repay the exchangeable promissory note held by the Zell                Entity. Following the consummation of the Merger, the Zell Entity                will                purchase from the Company a $225 million subordinated promissory                note and                a 15-year warrant for $90 million. The warrant will entitle the Zell                Entity** **to                purchase 43,478,261 shares of the Company’s common stock (subject to                adjustment), which will represent 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 to be granted                under a                management equity incentive plan to be established). The warrant                will have                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). |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Company has agreed to grant registration rights to the Zell Entity                and the                ESOP, in the event the Merger does not close, with respect to the                shares                of the Company’s common stock that the Zell Entity and the ESOP purchased                from the Company in their initial investments. The Company has granted                registration rights to Chandler Trust No. 1 and Chandler Trust No.                2                (together, the “Chandler Trusts”), which are significant shareholders of                the Company. On April 25, 2007, the Company filed a shelf registration                statement in connection with the registration rights granted to the                Chandler Trusts. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Company has secured financing commitments from certain lenders to                provide                the Company with the ability to borrow the amounts required for purposes                of financing the Leveraged ESOP Transactions, to refinance certain                indebtedness of the Company, including indebtedness under its existing                credit facilities, and for working capital and general corporate                purposes                of the Company. The financing  |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|        | commitments                  are subject to certain conditions, and definitive financing agreements                  have not yet been executed. |
|--------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | The                Chandler Trusts have entered into agreements whereby they have committed                to tender in the Share Repurchase all shares of the Company’s common stock                held by them as of the expiration of the Share Repurchase and to                vote all                of the shares held by them as of the record date in favor of the                Merger                Agreement and the transactions contemplated                thereby. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**Publishing      Discontinued Operations **
*Hoy*
*)*
*Hoy*
*The      Advocate*
*Greenwich      Time*

*The      Advocate*

*Hoy*

**Broadcasting      and Entertainment Discontinued Operations  **

----

**Critical      Accounting Policies –**

**NON-OPERATING      ITEMS**

|                                                                                                    | **First                Quarter 2007**    |   | **First                Quarter 2006**       |   |
|---------------------------------------------------------------------------------------------------------|------------------------------------------|--------|---------------------------------------------|--------|
| (in                millions, except per share data)                                                     | **Pretax****Gain                (Loss)** |   | **After-tax****Gain                (Loss)** |   | **Diluted****EPS** |   | **Pretax****Gain                (Loss)** |   | **After-tax****Gain                (Loss)** |   | **Diluted****EPS** |   |
|                                                                                                    |                                     |   |                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss                on change in fair valuesof                derivatives and related investments  | $                                        | (69.8  | )                                           | $      | (42.6 | ) | $ | (.18 | ) | $ | (10.3 | ) | $ | (6.3 | ) | $ | (.02 | ) |
| Gain                on sales of investments, net                                                   |                                     | .1     |                                        |   | .1 |   |   | – |   |   | 3.5 |   |   | 2.1 |   |   | .01 |   |
| Other,                net                                                                          |                                     | (14.0  | )                                           |   | (14.7 | ) |   | (.06 | ) |   | (6.9 | ) |   | (4.2 | ) |   | (.01 | ) |
| Total                non-operating items                                                           | $                                        | (83.7  | )                                           | $      | (57.2 | ) | $ | (.23 | ) | $ | (13.7 | ) | $ | (8.4 | ) | $ | (.02 | ) |

**RESULTS      OF OPERATIONS**

*Hoy*

----

**CONSOLIDATED**

|                                                                                       | **First                Quarter** |
|--------------------------------------------------------------------------------------------|----------------------------------|
| (in                millions, except per share data)                                        | **2007**                         |   | **2006** |   | **Change** |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Operating                revenues                                                     | $                                | 1,215 |   | $ | 1,269 |   | - | 4% |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Operating                profit (1)                                                   | $                                | 181 |   | $ | 217 |   | - | 16% |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Net                income on equity investments                                       | $                                | 13 |   | $ | 7 |   | + | 94% |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Income                from continuing operations                                      | $                                | 11 |   | $ | 99 |   | - | 89% |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations, net                of tax  | $                                | (34 | ) | $ | 4 |   |   | * |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Net                income (loss)                                                      | $                                | (23 | ) | $ | 103 |   | - | 123% |
|                                                                                       |                             |   |   |   |   |   |   |   |
| Diluted                earnings (loss) per share:                                          |                             |   |   |   |   |   |   |   |
| Continuing                operations                                                  | $                                | .05 |   | $ | .32 |   | - | 84% |
| Discontinued                operations                                                |                             | (.14 | ) |   | .01 |   |   | * |
|                        Net income (loss)           | $                                | (.10 | ) | $ | .33 |   |   | * |

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

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

----

**Operating      Revenues and Profit –**

|                                                             | **First                Quarter** |
|------------------------------------------------------------------|----------------------------------|
| (in                millions)                                     | **2007**                         |   |   | **2006** |   |   | **Change** |
|                                                             |                             |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**                            |                             |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 931 |   |   | $ | 985 |   |   | - | 5% |
| Broadcasting                and entertainment               |                             | 283 |   |   |   | 284 |   |   |   | – |
| Total                operating revenues                     | $                                | 1,215 |   |   | $ | 1,269 |   |   | - | 4% |
|                                                             |                             |   |   |   |   |   |   |   |   |   |
| **Depreciation                and amortization expense**         |                             |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 44 |   |   | $ | 42 |   |   | + | 5% |
| Broadcasting                and entertainment               |                             | 13 |   |   |   | 13 |   |   | + | 6% |
| Corporate                                                   |                             | – |   |   |   | – |   |   | - | 29% |
| Total                depreciation and amortization expense  | $                                | 57 |   |   | $ | 55 |   |   | + | 5% |
|                                                             |                             |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)**                   |                             |   |   |   |   |   |   |   |   |   |
| Publishing                                                  | $                                | 140 |   |   | $ | 170 |   |   | - | 18% |
| Broadcasting                and entertainment               |                             | 61 |   |   |   | 67 |   |   | - | 9% |
| Corporate                expenses                           |                             | (20 | ) |   |   | (20 | ) |   | + | 4% |
| Total                operating profit                       | $                                | 181 |   |   | $ | 217 |   |   | - | 16% |

**Operating      Expenses –**

|                                                                | **First                Quarter** |
|---------------------------------------------------------------------|----------------------------------|
| (in                millions)                                        | **2007**                         |   | **2006** |   | **Change** |
|                                                                |                             |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)  | $                                | 617 |   | $ | 631 |   | - | 2% |
| Selling,                general and administrative             |                             | 359 |   |   | 367 |   | - | 2% |
| Depreciation                and amortization                   |                             | 57 |   |   | 55 |   | + | 5% |
| Total                operating expenses                        | $                                | 1,033 |   | $ | 1,053 |   | - | 2% |

----

**PUBLISHING**

**Operating      Revenues and Profit –**

|                                      | **First                Quarter** |
|-------------------------------------------|----------------------------------|
| (in                millions)              | **2007**                         |   | **2006** |   | **Change** |
|                                      |                             |   |   |   |   |   |   |   |
| Operating                revenues    | $                                | 931 |   | $ | 985 |   | - | 5% |
|                                      |                             |   |   |   |   |   |   |   |
| Operating                expenses    |                             | 791 |   |   | 815 |   | - | 3% |
|                                      |                             |   |   |   |   |   |   |   |
| Operating                profit (1)  | $                                | 140 |   | $ | 170 |   | - | 18% |

|                                   | **First                Quarter** |
|----------------------------------------|----------------------------------|
| (in                millions)           | **2007**                         |   | **2006** |   | **Change** |
| Advertising                            |                             |   |   |   |   |   |   |   |
| Retail                            | $                                | 292 |   | $ | 294 |   | - | 1% |
| National                          |                             | 178 |   |   | 182 |   | - | 2% |
| Classified                        |                             | 261 |   |   | 302 |   | - | 14% |
| Total                advertising  |                             | 731 |   |   | 778 |   | - | 6% |
| Circulation                       |                             | 135 |   |   | 144 |   | - | 7% |
| Other                             |                             | 65 |   |   | 63 |   | + | 5% |
| Total                revenues     | $                                | 931 |   | $ | 985 |   | - | 5% |

----

|                                                                           | **First                Quarter** |
|--------------------------------------------------------------------------------|----------------------------------|
| **Inches**(in                thousands)                                        | **2007**                         |   | **2006** |   | **Change** |
|                                                                           |                             |   |   |   |   |   |   |   |
| Full                run                                                        |                             |   |   |   |   |   |   |   |
| Retail                                                                    |                             | 1,208 |   |   | 1,210 |   |   | – |
| National                                                                  |                             | 699 |   |   | 797 |   | - | 12% |
| Classified                                                                |                             | 2,066 |   |   | 2,411 |   | - | 14% |
| Total                full run                                             |                             | 3,973 |   |   | 4,418 |   | - | 10% |
| Part                run                                                   |                             | 4,735 |   |   | 4,960 |   | - | 5% |
| Total                inches                                               |                             | 8,708 |   |   | 9,378 |   | - | 7% |
|                                                                           |                             |   |   |   |   |   |   |   |
| **Preprint                pieces**** **(in                millions)  |                             | 3,485 |   |   | 3,329 |   | + | 5% |

----

**Operating      Expenses **

|                                               | **First                Quarter** |
|----------------------------------------------------|----------------------------------|
| (in                millions)                       | **2007**                         |   | **2006** |   | **Change** |
|                                               |                             |   |   |   |   |   |   |   |
| Compensation                (1)               | $                                | 331 |   | $ | 353 |   | - | 6% |
| Newsprint                and ink              |                             | 115 |   |   | 124 |   | - | 8% |
| Circulation                distribution       |                             | 119 |   |   | 115 |   | + | 4% |
| Outside                Services               |                             | 76 |   |   | 73 |   | + | 4% |
| Promotion                                     |                             | 22 |   |   | 23 |   | - | 7% |
| Depreciation                and amortization  |                             | 44 |   |   | 42 |   | + | 5% |
| Other                                         |                             | 84 |   |   | 85 |   |   | – |
| Total                operating expenses       | $                                | 791 |   | $ | 815 |   | - | 3% |

**BROADCASTING      AND ENTERTAINMENT**

**Operating      Revenues and Profit –**

|                                           | **First                Quarter** |
|------------------------------------------------|----------------------------------|
| (in                millions)                   | **2007**                         |   | **2006** |   | **Change** |
|                                           |                             |   |   |   |   |   |   |   |
| **Operating                revenues**          |                             |   |   |   |   |   |   |   |
| Television                                | $                                | 264 |   | $ | 266 |   | - | 1% |
| Radio/entertainment                       |                             | 19 |   |   | 18 |   | + | 1% |
| Total                operating revenues   | $                                | 283 |   | $ | 284 |   |   | – |
|                                           |                             |   |   |   |   |   |   |   |
| **Operating                expenses**          |                             |   |   |   |   |   |   |   |
| Television                                | $                                | 198 |   | $ | 193 |   | + | 2% |
| Radio/entertainment                       |                             | 24 |   |   | 24 |   | + | 2% |
| Total                operating expenses   | $                                | 222 |   | $ | 217 |   | + | 2% |
|                                           |                             |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)** |                             |   |   |   |   |   |   |   |
| Television                                | $                                | 67 |   | $ | 73 |   | - | 8% |
| Radio/entertainment                       |                             | (6 | ) |   | (6 | ) | - | 6% |
| Total                operating profit     | $                                | 61 |   | $ | 67 |   | - | 9% |

----

**Operating      Expenses **

|                                               | **First                Quarter** |
|----------------------------------------------------|----------------------------------|
| (in                millions)                       | **2007**                         |   | **2006** |   | **Change** |
|                                               |                             |   |   |   |   |   |   |   |
| Compensation                                  | $                                | 74 |   | $ | 69 |   | + | 7% |
| Programming                                   |                             | 83 |   |   | 84 |   | - | 1% |
| Depreciation                and amortization  |                             | 13 |   |   | 12 |   | + | 6% |
| Other                                         |                             | 52 |   |   | 52 |   | + | 2% |
| Total                operating expenses       | $                                | 222 |   | $ | 217 |   | + | 2% |

**CORPORATE      EXPENSES**

**EQUITY      RESULTS**

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

----

**DISCONTINUED      OPERATIONS**

**Publishing      Discontinued Operations **
*Hoy,      *
*Hoy*

*The      Advocate*

*Hoy*

**Broadcasting      and Entertainment Discontinued Operations **

----

**Summarized      Financial Information **
** **

|                                                                          | **First                Quarter** |    |
|-------------------------------------------------------------------------------|----------------------------------|---------|
| (in                thousands, except per share data)                          | **2007**                         |    |   | **2006** |   |
|                                                                          |                             |    |   |   |   |   |   |
| Operating                revenues                                        | $                                | 10,534  |   |   | $ | 29,663 |   |
|                                                                          |                             |    |   |   |   |   |   |
| Operating                profit                                          | $                                | (2,005  | ) |   | $ | 5,956 |   |
| Expected                pretax loss on sale of SCNI                      |                             | (19,442 | ) |   |   |  – |   |
| Income                (loss) from discontinued operations before income taxes |                             | (21,447 | ) |   |   |  5,956 |   |
| Income                taxes (1)                                          |                             | (12,927 | ) |   |   | (2,348 | ) |
| Income                (loss) from discontinued operations, net of tax    | $                                | (34,374 | ) |   | $ | 3,608 |   |
|                                                                          |                             |    |   |   |   |   |   |
| Income                (loss) from discontinued operations per share:          |                             |    |   |   |   |   |   |
|     Basic                                            | $                                | (.14    | ) |   | $ | .01 |   |
|     Diluted                                          | $                                | (.14    | ) |   | $ | .01 |   |

**LIQUIDITY      AND CAPITAL RESOURCES **

----

**Off-Balance      Sheet Arrangements **

----

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

**INTEREST      RATE RISK**

**Variable      Interest Rate Liabilities**
**–      **

**EQUITY      PRICE RISK**

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

|                                                                          | **Valuation                  of Investments****Assuming                  Indicated Decrease****in                  Stock’s Price** |   |     |   | **Valuation                  of Investments****Assuming                  Indicated Increase****in                  Stock’s Price** |
|-------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|------------------------------------------------------------------------------------------------------------------------------------------|
| (in                  thousands)                                               | **-30%**                                                                                                                                 |   | **-20%** |   | **-10%**                                                                                                                                 |   | **April                  1, 2007****Fair                  Value**  |   | **+10%** |   | **+20%** |    | **+30%** |
| Common                  stock investments inpublic                  companies | $9,024                                                                                                                                   |   | $10,313  |   | $11,602                                                                                                                                  |   | $12,892(1) |   |                  $14,181 |   |                  $15,470 |   |                  $16,759 |

**Derivatives      and Related Trading Securities –**

----

|                                      | **Valuation                  of Investment****Assuming                  Indicated Decrease****in                  Stock’s Price**  |   |     |   | **Valuation                  of Investment****Assuming                  Indicated Increase****in                  Stock’s Price** |
|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|
| (in                  thousands)           | **-30%**                                                                                                                                      |   | **-20%** |   | **-10%**                                                                                                                                |   | **April                  1, 2007****Fair                  Value**  |   | **+10%** |   | **+20%** |   | **+30%** |
| Time                  Warner common stock | $220,864                                                                                                                                      |   | $252,416 |   | $283,968                                                                                                                                |   | $315,520 |   |                  $347,072 |   |                  $378,624 |   |                  $410,176 |

**ITEM      4. CONTROLS AND PROCEDURES.**

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

**Changes      in Internal Control Over Financial Reporting**

----

**PART      II.  OTHER INFORMATION**

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

**ITEM      1A.  RISK FACTORS.**

**Our      businesses may be adversely affected**
*** ***
**by      the Leveraged ESOP Transactions and the failure to consummate the pending      Leveraged ESOP Transactions.**

| **·**       | the                outcome of any litigation and judicial actions or proceedings that                have                been or may be instituted against us and others relating to the proposed                Leveraged ESOP Transactions, including any legislative or regulatory                action; |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | management’s                attention from our day to day business and potential growth opportunities                may be diverted during the pendency of the Leveraged ESOP Transactions; |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | uncertainties                with regards to the Leveraged ESOP Transactions may adversely affect                our                existing relationships with our employees, customers and vendors;                and |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | certain                costs relating to the Merger, such as legal, accounting and financial                advisory fees, are payable by us whether or not the Merger is                completed. |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | the                occurrence of any event, change or other circumstances that could                give                rise to the termination of the Merger Agreement or the Zell Entity                Purchase Agreement; |
|------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | the                inability to complete the Merger due to the failure to obtain stockholder                approval or the failure to satisfy other conditions to consummation                of the                Merger, including the inability to obtain the approval of the Federal                Communications Commission (“FCC”) or other regulatory approvals required                by the Merger Agreement and the Zell Entity Purchase                Agreement; |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | the                failure of the Company to obtain the necessary financing arrangements                set                forth in the debt commitment letters received in connection with                the                Leveraged ESOP Transactions; and |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | the                failure of the Share Repurchase or the Merger to close for any other                reason. |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------|

----

| **·**       | the                current market price of our common stock may reflect a market assumption                that the Leveraged ESOP Transactions will occur and a failure to                complete                the Leveraged ESOP Transactions could result in a decline in the                market                price of our common stock; |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | our                current plans and operations may be disrupted;                and |
|------------------------------------------------|--------------------------------------------------------------------------------------|

| **·**       | the                potential difficulties related to employee retention as a result                of any                delay of the completion of the                Merger. |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**We      currently have substantial debt and other financial obligations, and we expect      to incur significant additional debt in connection with the Leveraged ESOP      Transactions.**

| **·**       | will                require us to dedicate greater amounts of our cash flow to the payment                of                principal and interest on our debt which will reduce the funds we                have                available for other purposes; |
|------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | will                limit our liquidity and operational flexibility in changing economic,                business and competitive conditions which could require us to consider                deferring planned capital expenditures, reducing discretionary spending,                selling additional assets or deferring acquisitions or other strategic                opportunities; |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | will                impose on us additional financial and operational restrictions;                and |
|------------------------------------------------|--------------------------------------------------------------------------------------------------------|

| **·**       | will                expose us to increased interest rate risk because a substantial portion                of                our debt obligations will be at variable interest rates. |
|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Consummation      of the Leveraged ESOP Transactions will require regulatory approval from the      FCC.**

| **·**       | waive                its rule prohibiting the common ownership of daily English language                newspapers and broadcast stations (“the cross-ownership rule”) in the five                markets where we own such combinations (with one waiver being necessary                to                continue a previously “grandfathered” newspaper-broadcast combination in                the Chicago market following the consummation of a transfer of control); |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | address                the Company’s pending license renewal applications; |
|------------------------------------------------|----------------------------------------------------------------------------------|

| **·**       | grant                a “failing station waiver” to permit the continued common ownership of the                Company’s two television stations in Hartford, Connecticut;                and |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **·**       | grant                a “satellite waiver” to permit the continued common ownership and                operation of WTTK, Kokomo, Indiana, as a satellite station of WTTV,                Indianapolis, Indiana. |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

**Issuance      of ESOP Shares – **
** **

**Stock      Repurchase Program –**

**ITEM      6. EXHIBITS.**

----

----

----

**SIGNATURE**

|                                   | TRIBUNE                COMPANY(Registrant)                                                                                                                                                             |
|----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                   |                                                                                                                                                                                         |
| Date:                 May 9, 2007 | /s/                R. Mark MalloryR.                Mark MalloryVice                President and Controller(on                behalf of the registrantand                as Chief Accounting Officer) |