----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C. 20549**

**FORM      10-Q**

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

**OF      THE SECURITIES EXCHANGE ACT OF 1934**

**FOR      THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2007**

**Commission      file number 1-8572**

**TRIBUNE      COMPANY**

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

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**TRIBUNE      COMPANY**

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

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

| 1.  Financial                Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Condensed                Consolidated Statements of Operations for the Third Quartersand                First Three Quarters Ended                Sept. 30, 2007 and Sept. 24, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  1 |
| Condensed                Consolidated Balance                Sheets at Sept. 30, 2007 and Dec. 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2       |
| Condensed                Consolidated                Statements of Cash Flows for the First Three Quarters EndedSept.                30, 2007 and Sept. 24,                2006                                                                                                                                 | 4       |
| Notes                to Condensed Consolidated                Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |    |
| Note                1:                    Basis of Preparation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 5       |
| Note                2:                    Earnings Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 6       |
| Note                3:     Leveraged ESOP                Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 7       |
| Note                4:     Discontinued Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 9       |
|  Note                5:     Income                Taxes                                                                                                                                      | 11      |
| Note                6:     *Newsday* and *Hoy*, New                York Charge                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 13      |
| Note                7:     Stock-Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 14      |
| Note                8:     Pension and Postretirement                Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 16      |
| Note                9:     Non-Operating Items                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 16      |
| Note                10:   Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 17      |
| Note                11:   Goodwill and Other Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 18      |
| Note                12:   Debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 19      |
| Note                13:   Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 23      |
| Note                14:   Other                Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 24      |
| Note                15:   Segment Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | 26      |
| 2.      Management’s                Discussion and Analysis of Financial Condition and Results of                Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 27      |
| 3.      Quantitative                and Qualitative Disclosures About Market                Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 47      |
| 4.      Controls                and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 49      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    |
| **PART                II.  OTHER INFORMATION**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 1.      Legal                Proceedings                                                                                                                                                                                   | 50      |
| 1A.   Risk                Factors                                                                                                                                                                                                                                  | 51      |
| 2.      Unregistered                Sales of Equity Securities and Use of                Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 54      |
| 4.      Submission                of Matters to a Vote of Security                Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 54      |
| 6.                     Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 55      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |    |

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**PART      I.   FINANCIAL INFORMATION**

**ITEM      1.  FINANCIAL STATEMENTS.**

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF OPERATIONS**

|                                                                                                                                                                                                                                                                                                                                                                                                                |   | **Third                Quarter Ended** |      |   | **Three                Quarters Ended** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|--------|-----------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                |   | **Sept.                30, 2007**      |      |   | **Sept.                24, 2006**       |   |   | **Sept.                30, 2007** |   |   | **Sept.                24, 2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |
| **Operating                Revenues                                                             ** |   | $                                      | 1,276,899 |   |                                    | $      | 1,332,169 |   |   | $ | 3,794,289 |   |   | $ | 3,995,350 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Expenses**                                                                                                                                                                                                                                                                                                                                                                               |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)                                                                                                                                                                                                                                                                                                                                                       |   |                                   | 655,823   |   |                                    |   | 690,144 |   |   |   | 1,932,555 |   |   |   | 2,011,902 |   |
| Selling,                general and administrative                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 335,993   |   |                                    |   | 347,408 |   |   |   | 1,083,571 |   |   |   | 1,057,787 |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                         |   |                                   | 50,842    |   |                                    |   | 51,600 |   |   |   | 155,526 |   |   |   | 151,015 |   |
| Amortization                of intangible assets                                                                                                                                                                                                                                                                                                                                           |   |                                   | 5,240     |   |                                    |   | 5,161 |   |   |   | 15,462 |   |   |   | 14,602 |   |
| Total                operating expenses                                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 1,047,898 |   |                                    |   | 1,094,313 |   |   |   | 3,187,114 |   |   |   | 3,235,306 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                Profit     **                                                                                                                                                                                                                                                                                                                                                   |   |                                   | 229,001   |   |                                    |   | 237,856 |   |   |   | 607,175 |   |   |   | 760,044 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                                                                                                                                                                                                                                                                                                                                 |   |                                   | 26,559    |   |                                    |   | 18,743 |   |   |   | 67,953 |   |   |   | 51,308 |   |
| Interest                and dividend income                                                                                                                                                                                                                                                                                                                                                |   |                                   | 4,924     |   |                                    |   | 4,678 |   |   |   | 11,908 |   |   |   | 9,330 |   |
| Interest                expense                                                                                                                                                                                                                                                                                                                                                       |   |                                   | (186,771  | )      |                                    |   | (84,324 | ) |   |   | (385,925 | ) |   |   | (180,375 | ) |
| Loss                on change in fair values of derivatives andrelated                investments                                                                                                                                                                                                                                                                                     |   |                                   | (84,969   | )      |                                    |   | (17,746 | ) |   |   | (182,144 | ) |   |   | (34,184 | ) |
| Gain                on TMCT transactions                                                                                                                                                                                                                                                                                                                                              |   |                                   | 8,329     |   |                                    |   | 59,596 |   |   |   | 8,329 |   |   |   | 59,596 |   |
| Other                non-operating gain (loss), net                                                                                                                                                                                                                                                                                                                                                                 |   |                                   | (1,224    | )      |                                    |   | 21,675 |   |   |   | (30,107 | ) |   |   | 17,692 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Income                (Loss) from Continuing Operations****     Before                Income Taxes**                                                                                                                                                                                                                                                                                     |   |                                   | (4,151    | )      |                                    |   | 240,478 |   |   |   | 97,189 |   |   |   | 683,411 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                taxes (Note 5)                                                                                                                                                                                                                                                                                                                                                  |   |                                   | 89,966    |   |                                    |   | (75,179 | ) |   |   | 35,761 |   |   |   | (255,616 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Income                from Continuing Operations**                                                                                                                                                                                                                                                                                                                                                                |   |                                   | 85,815    |   |                                    |   | 165,299 |   |   |   | 132,950 |   |   |   | 427,795 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Income                (Loss) from Discontinued Operations,****net                of tax**(Note 4)                                                                                                                                                                                                                                                                                        |   |                                   | 66,950    |   |                                    |   | (959 | ) |   |   | 32,796 |   |   |   | (72,857 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income  **                                                                                                                                                                                                                                                                                                                                                                           |   |                                   | 152,765   |   |                                    |   | 164,340 |   |   |   | 165,746 |   |   |   | 354,938 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Preferred                dividends                                                                                                                                                                                                                                                                                                                           |   |                                   | –   |   |                                    |   | (2,103 | ) |   |   | – |   |   |   | (6,309 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Net                Income Attributable to Common****Shares   **                                                                                                                                                                                                                                                                                                                                    |   | $                                      | 152,765   |   |                                    | $      | 162,237 |   |   | $ | 165,746 |   |   | $ | 348,629 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings                Per Share**(Note 2):                                                                                                                                                                                                                                                                                                                                                                      |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Basic:                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|  Continuing                operations                                                                                                                                                                                                                                                                                                              |   | $                                      | .72       |   |                                    | $      | .66 |   |   | $ | .71 |   |   | $ | 1.48 |   |
|  Discontinued                operations                                                                                                                                                                                                                                                                                                                                                         |   |                                   | .57       |   |                                    |   | – |   |   |   | .17 |   |   |   | (.26 | ) |
|  Net                income                                                                                                                                                                                                                                                                                                                                                                 |   | $                                      | 1.29      |   |                                    | $      | .66 |   |   | $ | .88 |   |   | $ | 1.22 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|  Continuing                operations                                                                                                                                                                                                                                                                                                                                                 |   | $                                      | .69       |   |                                    | $      | .65 |   |   | $ | .70 |   |   | $ | 1.47 |   |
|  Discontinued                operations                                                                                                                                                                                                                                                                                                                                                    |   |                                   | .53       |   |                                    |   | – |   |   |   | .17 |   |   |   | (.25 | ) |
|  Net                income                                                                                                                                                                                                                                                                                                                                                                      |   | $                                      | 1.22      |   |                                    | $      | .65 |   |   | $ | .88 |   |   | $ | 1.22 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                   |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Dividends                per common share                                                                                                                                                                                                                                                                                                                                                       |   | $                                      | –   |   |                                    | $      | .18 |   |   | $ | .18 |   |   | $ | .54 |   |

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**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                              |   | **Sept.                30, 2007** |       |   | **Dec.                31, 2006** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|----------------------------------|--------|
| **Assets**                                                                                                                                                                                                                                        |   |                              |       |   |                             |   |
|                                                                                                                                                                                                                                              |   |                              |       |   |                             |   |
| **Current                Assets**                                                                                                                                                                                                                 |   |                              |       |   |                             |   |
| Cash                and cash                equivalents                                                                                                                                                                       |   | $                                 | 446,181    |   |                             | $      | 174,686 |   |
| Accounts                receivable,                net                                                                                                                                     |   |                              | 715,544    |   |                             |   | 734,871 |   |
|         Income                taxes receivable (Note 5)                                                                                                                          |   |                              | 370,736    |   |                             |   | – |   |
| Inventories                                                                                                                                                                                     |   |                              | 41,397     |   |                             |   | 40,962 |   |
| Broadcast                rights                                                                                                                                                                           |   |                              | 310,278    |   |                             |   | 271,995 |   |
| Deferred                income                taxes                                                                                                                                                       |   |                              | 12,076     |   |                             |   | 74,450 |   |
| Assets                held for                sale                                                                                                                                                        |   |                              | 5,230      |   |                             |   | – |   |
| Prepaid                expenses and                other                                                                                                                                                                 |   |                              | 60,953     |   |                             |   | 49,466 |   |
| Total                current                assets                                                                                                                                                                                 |   |                              | 1,962,395  |   |                             |   | 1,346,430 |   |
|                                                                                                                                                                                                                                              |   |                              |       |   |                             |   |   |   |
| **Properties**                                                                                                                                                                                                                                    |   |                              |       |   |                             |   |   |   |
| Property,                plant and                equipment                                                                                                                                                                        |   |                              | 3,521,804  |   |                             |   | 3,592,477 |   |
| Accumulated                depreciation                                                                                                                                                                                  |   |                              | (1,968,084 | )      |                             |   | (1,907,365 | ) |
| Net                properties                                                                                                                                                                                       |   |                              | 1,553,720  |   |                             |   | 1,685,112 |   |
|                                                                                                                                                                                                                                              |   |                              |       |   |                             |   |   |   |
| **Other                Assets**                                                                                                                                                                                                                   |   |                              |       |   |                             |   |   |   |
| Broadcast                rights                                                                                                                                                                      |   |                              | 353,645    |   |                             |   | 295,186 |   |
| Goodwill                                                                                                                                                                                                       |   |                              | 5,579,692  |   |                             |   | 5,837,208 |   |
| Other                intangible assets,                net                                                                                                                                 |   |                              | 2,797,500  |   |                             |   | 2,846,057 |   |
| Time                Warner stock related to                PHONES                debt                           |   |                              | 293,760    |   |                             |   | 348,480 |   |
| Other                investments                                                                                                                                                      |   |                              | 489,054    |   |                             |   | 564,750 |   |
| Prepaid                pension                costs                                                                                                                                                            |   |                              | 383,233    |   |                             |   | 293,455 |   |
| Assets                held for                sale                                                                                                                |   |                              | 93,364     |   |                             |   | 9,172 |   |
| Other                                                                                                                                              |   |                              | 268,126    |   |                             |   | 174,922 |   |
| Total                other                assets                                                                                                                                                          |   |                              | 10,258,374 |   |                             |   | 10,369,230 |   |
| Total                assets                                                                                                                                                                               |   | $                                 | 13,774,489 |   |                             | $      | 13,400,772 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED BALANCE SHEETS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | **Sept.                30, 2007** |       |   | **Dec.                31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|------------|--------|----------------------------------|--------|
| **Liabilities                and Shareholders’ Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              |       |   |                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |   |                             |   |
| **Current                Liabilities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              |       |   |                             |   |
| Borrowings                under bridge credit                facility                                                                                       |   | $                                 | –    |   |                             | $      | 1,310,000 |   |
| PHONES                debt related to Time                Warner stock (Note 12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              | 279,072    |   |                             |   | – |   |
| Other                debt due within one                year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              | 78,885     |   |                             |   | 119,007 |   |
| Contracts                payable for broadcast                rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 341,094    |   |                             |   | 317,945 |   |
| Deferred                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | 105,099    |   |                             |   | 108,607 |   |
| Accounts                payable, accrued                expenses and other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              | 840,053    |   |                             |   | 691,155 |   |
| Total                current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | 1,644,203  |   |                             |   | 2,546,714 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |   |                             |   |   |   |
| **Long-Term                Debt**(Note 12)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                              |       |   |                             |   |   |   |
| PHONES                debt related to Time                Warner stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                              | 428,288    |   |                             |   | 572,960 |   |
| Other                long-term debt (less                portions due within one year)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              | 8,581,752  |   |                             |   | 3,003,251 |   |
| Total                long-term                debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              | 9,010,040  |   |                             |   | 3,576,211 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |   |                             |   |   |   |
| **Other                Non-Current Liabilities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                              |       |   |                             |   |   |   |
| Deferred                income                taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 1,739,231  |   |                             |   | 1,974,672 |   |
| Contracts                payable for broadcast                rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 495,319    |   |                             |   | 425,927 |   |
| Deferred                compensation and                benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | 339,988    |   |                             |   | 392,187 |   |
| Other                obligations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | 200,018    |   |                             |   | 165,445 |   |
| Total                other non-current                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                              | 2,774,556  |   |                             |   | 2,958,231 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |       |   |                             |   |   |   |
| **Shareholders’                Equity**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              |       |   |                             |   |   |   |
| Common                stock and additional                paid-in capital (Note 3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 5,151,389  |   |                             |   | 6,837,029 |   |
| Retained                earnings (Note                3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              | 712,009    |   |                             |   | 3,138,313 |   |
| Treasury                common stock (at                cost)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              | (4,914,664 | )      |                             |   | (5,288,341 | ) |
| Unearned                ESOP shares (Note                3)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | (250,000   | )      |                             |   | – |   |
| Accumulated                other comprehensive                income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | (353,044   | )      |                             |   | (367,385 | ) |
| Total                shareholders’                equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | 345,690    |   |                             |   | 4,319,616 |   |
| Total                liabilities and                shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                 | 13,774,489 |   |                             | $      | 13,400,772 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **Three                Quarters Ended** |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | **Sept.                30, 2007**       |       |   | **Sept.                24, 2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |       |   |   |   |
| **Operations**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                    |       |   |   |   |
| Net                income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                       | 165,746    |   |   | $ | 354,938 |   |
| Adjustments                to reconcile net income to net cash provided by                operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                    |       |   |   |   |   |   |
| Stock-based                compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                    | 33,561     |   |   |   | 27,105 |   |
| Loss                on change in fair values of                derivatives and related investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                    | 182,144    |   |   |   | 34,184 |   |
| Gain                on TMCT transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                    | (8,329     | ) |   |   | (59,596 | ) |
| Gain                on sale of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                    | (1,028     | ) |   |   | (20,811 | ) |
| Matthew                Bender and Mosby income tax                settlement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                    | (90,704    | ) |   |   | – |   |
| Write-off                of *Los Angeles                Times* plant equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                    | 24,216     |   |   |   | – |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    | 157,194    |   |   |   | 154,716 |   |
| Amortization                of intangible                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                    | 15,500     |   |   |   | 14,829 |   |
| Loss                on sales of discontinued                operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    | 20,025     |   |   |   | 89,256 |   |
| Net                income on equity                investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                    | (67,953    | ) |   |   | (51,308 | ) |
| Distributions                from equity                investments                                                                                       |   |                                    | 77,848     |   |   |   | 58,209 |   |
| Deferred                income                taxes                                                                                                       |   |                                    | (99,191    | ) |   |   | 6,806 |   |
| Tax                benefit on stock awards                exercised                                                                                       |   |                                    | 11,933     |   |   |   | 2,804 |   |
|  Changes                in working                capital items, excluding effects from acquisitionsand                dispositions:                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                    |       |   |   |   |   |   |
| Accounts                receivable                                                                                                                                                                                                                                                                                                                                |   |                                    | 14,003     |   |   |   | 18,360 |   |
| Inventories,                prepaid expenses                and other current                assets                                                                                                                                                                                                                                                                                                                                                              |   |                                    | (12,423    | ) |   |   | (369 | ) |
| Deferred                income, accounts                payable, accrued expenses and other current               liabilities                                                                                                                                                                                                                                                                                                 |   |                                    | 83,720     |   |   |   | (59,917 | ) |
| Income                taxes                                                                                                                                                                                                                                                                                                                                                                               |   |                                    | (48,083    | ) |   |   | 7,559 |   |
| Deferred                compensation                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                    | (49,031    | ) |   |   | (9,841 | ) |
| Other,                net                                                                                                                                                                                                                                                                                                                                         |   |                                    | 38,149     |   |   |   | 56,610 |   |
| Net                cash provided by                operations                                                                                                                                                                                                                                                                                                                                             |   |                                    | 447,297    |   |   |   | 623,534 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |       |   |   |   |   |   |
| **Investments**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                    |       |   |   |   |   |   |
| Capital                expenditures                                                                                                                                                                                                                                                                                                                                                                            |   |                                    | (85,132    | ) |   |   | (119,073 | ) |
| Acquisitions                and                investments                                                                                                                                                                                                                                                                                                                                                |   |                                    | (21,942    | ) |   |   | (214,938 | ) |
| Proceeds                from sales of subsidiaries, intangibles, investments and real                estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                    | 95,848     |   |   |   | 243,990 |   |
| Net                cash used for                investments                                                                                                                                                                                                                                                                                                                                                                   |   |                                    | (11,226    | ) |   |   | (90,021 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |       |   |   |   |   |   |
| **Financing**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                    |       |   |   |   |   |   |
| Long-term                borrowings                                                                                                                                                                                                                                                                                                                |   |                                    | 7,015,000  |   |   |   | 1,250,829 |   |
| Issuance                of exchangeable promissory                note                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                    | 204,243    |   |   |   | – |   |
| Borrowings                under former bridge credit                facility                                                                                                                                                                                                                                                                                                                                                                                               |   |                                    | 100,000    |   |   |   | 1,600,000 |   |
| Repayments                of former bridge credit                facility                                                                                                                                                                                                                                                                                                                                           |   |                                    | (1,410,000 | ) |   |   | – |   |
| Repayments                of long-term                debt                                                                                                                                                                                                                                                                                                                                                          |   |                                    | (1,633,655 | ) |   |   | (61,766 | ) |
| Repayments                of commercial paper,                net                                                                                                                                                                                                                                                                                                                                                   |   |                                    | (97,019    | ) |   |   | (826,513 | ) |
| Long-term                debt issuance                costs                                                                                                                                                                                                                                                                                             |   |                                    | (134,085   | ) |   |   | (15,368 | ) |
| Sales                of common stock to employees,                net                                                                                                                                                                                                                                                                                                       |   |                                    | 73,354     |   |   |   | 26,857 |   |
| Sale                of common stock to Zell Entity (Note                3)                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                    | 50,000     |   |   |   | – |   |
| Purchases                of Tribune common                stock                                                                                                                                                                                                                                                                                                                                                                              |   |                                    | (4,289,192 | ) |   |   | (2,262,268 | ) |
| Dividends                                                                                                                                                                                                                                                                                             |   |                                    | (43,247    | ) |   |   | (157,907 | ) |
| Other                                                                                                                                                                                                                                                                                                                                                   |   |                                    | 25         |   |   |   | – |   |
| Net                cash used for                financing                                                                                                                                                                                                                                                                                                                                       |   |                                    | (164,576   | ) |   |   | (446,136 | ) |
| **Net                increase in cash and cash                equivalents                           **                                                                                                                                                                                                                                                                                                                                                           |   |                                    | 271,495    |   |   |   | 87,377 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |       |   |   |   |   |   |
| Cash                and cash equivalents, beginning of                year                                                                                                                                                                                                                                                                                                                                                                             |   |                                    | 174,686    |   |   |   | 151,110 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |       |   |   |   |   |   |
| Cash                and cash equivalents, end of                quarter                                                                                                                                                                                                                                                                                                                                             |   | $                                       | 446,181    |   |   | $ | 238,487 |   |

----

**TRIBUNE      COMPANY AND SUBSIDIARIES**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE      1:  BASIS OF PREPARATION**

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

----

**NOTE      2:  EARNINGS PER SHARE**

|                                                                                                                                                                                                                |   | **Third                Quarter** |    |   | **First                Three Quarters** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                                                                                                                                |   | **2007**                         |    |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                                |   |                             |    |   |                                    |   |   |   |   |   |   |   |
| **Basic                EPS:**                                                                                                                                                                                       |   |                             |    |   |                                    |   |   |   |   |   |   |   |
| Income                from continuing                operations                                                                                              |   | $                                | 85,815  |   |                                    | $      | 165,299 |   |   | $ | 132,950 |   |   | $ | 427,795 |   |
| Income                (loss) from discontinued operations, net of tax                                                                                                                                               |   |                             | 66,950  |   |                                    |   | (959 | ) |   |   | 32,796 |   |   |   | (72,857 | ) |
| Net                income                                                                                                 |   |                             | 152,765 |   |                                    |   | 164,340 |   |   |   | 165,746 |   |   |   | 354,938 |   |
| Preferred                dividends                                                               |   |                             | -       |   |                                    |   | (2,103 | ) |   |   | - |   |   |   | (6,309 | ) |
| Net                income attributable to common                shares                                                                                                                |   | $                                | 152,765 |   |                                    | $      | 162,237 |   |   | $ | 165,746 |   |   | $ | 348,629 |   |
|                                                                                                                                                                                                                |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                                                                                                                           |   |                             | 118,428 |   |                                    |   | 247,389 |   |   |   | 187,604 |   |   |   | 284,764 |   |
| Basic                EPS:                                                                                                                                                                                           |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                      |   | $                                | .72     |   |                                    | $      | .66 |   |   | $ | .71 |   |   | $ | 1.48 |   |
| Discontinued                operations                                                                                                                  |   |                             | .57     |   |                                    |   | – |   |   |   | .17 |   |   |   | (.26 | ) |
|     Net                income                            |   | $                                | 1.29    |   |                                    | $      | .66 |   |   | $ | .88 |   |   | $ | 1.22 |   |
|                                                                                                                                                                                                                |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Diluted                EPS:**                                                                                                                                                                                     |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing                operations                                                                               |   | $                                | 85,815  |   |                                    | $      | 165,299 |   |   | $ | 132,950 |   |   | $ | 427,795 |   |
| Income                (loss) from discontinued operations, net of tax                                                                                                                                               |   |                             | 66,950  |   |                                    |   | (959 | ) |   |   | 32,796 |   |   |   | (72,857 | ) |
| Net                income                                               |   |                             | 152,765 |   |                                    |   | 164,340 |   |   |   | 165,746 |   |   |   | 354,938 |   |
| Add                back:  Exchangeable promissory note interest expense,                net                of tax                                                                                         |   |                             | 1,463   |   |                                    |   | – |   |   |   | – |   |   |   | – |   |
| Preferred                dividends                                                                                        |   |                             | – |   |                                    |   | – |   |   |   | – |   |   |   | (6,309 | ) |
| Adjusted                net                income                                                                                                  |   | $                                | 154,228 |   |                                    | $      | 164,340 |   |   | $ | 165,746 |   |   | $ | 348,629 |   |
|                                                                                                                                                                                                                |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average common shares outstanding                                                                                                                                                           |   |                             | 118,428 |   |                                    |   | 247,389 |   |   |   | 187,604 |   |   |   | 284,764 |   |
| Adjustment                for stock-based awards,                net                                                                                         |   |                             | 2,024   |   |                                    |   | 2,116 |   |   |   | 1,787 |   |   |   | 1,671 |   |
| Adjustment                for assumed conversion of exchangeable        promissory                note                                                                      |   |                             | 5,882   |   |                                    |   | – |   |   |   | – |   |   |   | – |   |
| Adjustment                for assumed conversion of series C, D-1 and D-2preferred                stock                                                                                                             |   |                             | – |   |                                    |   | 3,303 |   |   |   | – |   |   |   | – |   |
| Adjusted                weighted average common sharesoutstanding                                          |   |                             | 126,334 |   |                                    |   | 252,808 |   |   |   | 189,391 |   |   |   | 286,435 |   |
|                                                                                                                                                                                                                |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                EPS:                                                                                                                                                                                         |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                                      |   | $                                | .69     |   |                                    | $      | .65 |   |   | $ | .70 |   |   | $ | 1.47 |   |
| Discontinued                operations                                                                |   |                             | .53     |   |                                    |   | – |   |   |   | .17 |   |   |   | (.25 | ) |
|     Net                income                                                                                                                                                                   |   | $                                | 1.22    |   |                                    | $      | .65 |   |   | $ | .88 |   |   | $ | 1.22 |   |

----

**NOTE      3:  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 Sept. 30, 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 a price of $34.00 per share and                (2) an unsecured subordinated exchangeable promissory note of the                Company                in the principal amount of $200 million, which the Company must repay                immediately prior to the Merger (as defined below).  The                promissory note is exchangeable at the Company’s option, or automatically                upon termination of the Merger Agreement (as defined below), 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.  Pursuant to the                Zell Entity Purchase Agreement, on May 9, 2007, Mr. Zell was appointed                as                a member of the Board. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 25, 2007, the Company commenced a tender offer to repurchase                up to                126 million shares of the Company’s common stock that were then                outstanding at a price of $34.00 per share in cash (the “Share                Repurchase”).   The tender offer expired on May 24, 2007                and 126 million shares of the Company’s common stock were repurchased and                subsequently retired on June 4, 2007 utilizing proceeds from the                First                Step Credit Facilities (as defined in Note 12).  The retirement of                these shares resulted in a $1.794 billion reduction in common stock                and                additional paid-in capital and a $2.495 billion reduction in retained                earnings during the second quarter of                2007. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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, each outstanding                  share of the Company’s common stock (other than those held by the ESOP and                  other than dissenting shares) will be converted into the right                  to receive                  $34.00 per share in cash.  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 closing of the Merger is subject to the                  satisfaction or waiver of various conditions set forth in the Merger                  Agreement, including approval by the Company’s stockholders, which was                  obtained at a special meeting of the stockholders held on August                  21,                  2007. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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, for an aggregate of $315 million,                a                $225 million subordinated promissory note and a 15-year                warrant.  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.  However, the                Zell Entity will not be able to exercise its registration rights                prior to                April 23, 2010 and, in the event the Merger does not close, will                be                prohibited from selling or assigning its shares of the Company’s common                stock, exchangeable promissory note or underlying shares acquired                upon                exchange until April 23, 2010, other than to certain permitted                transferees.  In addition, the ESOP will not be able to exercise                its registration rights prior to April 1,                2008. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | On                June 4, 2007, the Chandler Trusts entered into an underwriting agreement                with Goldman, Sachs & Co. (“Goldman Sachs”) and the Company, pursuant                to which the Chandler Trusts agreed to sell an aggregate of 20,351,954                shares of the Company’s common stock, which represented the remainder of                the shares of the Company’s common stock owned by them following the Share                Repurchase, through a block trade underwritten by Goldman                Sachs.  The shares were offered pursuant to the shelf                registration statement filed by the Company on April 25,                2007.  Following the closing of this transaction on June 7,                2007, the Company believes that the Chandler Trusts no longer owned                any                shares of the Company’s common stock.  On June 4, 2007, Jeffrey                Chandler, Roger Goodan and William Stinehart, Jr. resigned as members                of                the Board. Messrs. Chandler, Goodan and Stinehart served on the Board                as                representatives of the Chandler Trusts, which agreed to cause the                resignations of Messrs. Chandler, Goodan and Stinehart effective                upon the                consummation of the Share                Repurchase. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                May 17, 2007, the Company entered into a credit agreement and on                June 4,                2007, the Company entered into an amendment to such credit agreement,                with                respect to new $8.028 billion of                senior |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | secured                  credit facilities 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. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**NOTE      4:  DISCONTINUED OPERATIONS**

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

**Broadcasting      and Entertainment Discontinued Operations **
** **

----

**Summarized      Financial Information **
** **

|                                                                                                                                                    |   | **Third                Quarter** |   |   | **First                Three Quarters** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                                                                    |   | **2007**                         |   |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                    |   |                             |   |   |                                    |   |   |   |   |   |   |   |
| Operating                revenues                                                                                    |   | $                                | 13,838 |   |                                    | $      | 30,741 |   |   | $ | 45,422 |   |   | $ | 108,898 |   |
|                                                                                                                                                    |   |                             |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (loss)                                                                                    |   | $                                | 220    |   |                                    | $      | (2,456 | ) |   | $ | (1,618 | ) |   | $ | 7,761 |   |
| Gain                (loss) on sales of discontinued operations                                                                                          |   |                             | (3,021 | )      |                                    |   | 799 |   |   |   | (20,025 | ) |   |   | (89,256 | ) |
| Income                (loss) from discontinued operations before     income                taxes      |   |                             | (2,801 | )      |                                    |   | (1,657 | ) |   |   | (21,643 | ) |   |   | (81,495 | ) |
| Income                taxes                (1)                                                   |   |                             | 69,751 |   |                                    |   | 698 |   |   |   | 54,439 |   |   |   | 8,638 |   |
| Income                (loss) from discontinued operations, net of tax                                                                                   |   | $                                | 66,950 |   |                                    | $      | (959 | ) |   | $ | 32,796 |   |   | $ | (72,857 | ) |
|                                                                                                                                                    |   |                             |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations per share:                                                                                    |   |                             |   |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                                  |   | $                                | .57    |   |                                    | $      | – |   |   | $ | .17 |   |   | $ | (.26 | ) |
|      Diluted                                                                                          |   | $                                | .53    |   |                                    | $      | – |   |   | $ | .17 |   |   | $ | (.25 | ) |

----

**NOTE      5:  INCOME TAXES**

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

----

**PHONES      Interest –**

**Adoption      of New Income Tax Accounting Standard –**

----

**Other      **
**–**

**NOTE      6:  *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, *

**NOTE      7:  STOCK-BASED COMPENSATION**

|                                                                                                                                                                                                                                                                         |   | **Third                Quarter** |    |   | **First                Three Quarters** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands)                                                                                                                                                                                                                                                |   | **2007**                         |    |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                         |   |                             |    |   |                                    |   |   |   |   |   |   |   |
| Options                                                                        |   | $                                | 566     |   |                                    | $      | 646 |   |   | $ | 1,915 |   |   | $ | 8,086 |   |
| Restricted                stock                units                                                    |   |                             | 6,572   |   |                                    |   | 2,993 |   |   |   | 30,707 |   |   |   | 16,452 |   |
| Employee                stock purchase                plan                                    |   |                             | – |   |                                    |   | 640 |   |   |   | 801 |   |   |   | 2,107 |   |
| Total                stock-based compensation                expense                                                                                                               |   | $                                | 7,138   |   |                                    | $      | 4,279 |   |   | $ | 33,423 |   |   | $ | 26,645 |   |

----

|                                                                                                                                                                                                                                                   |   | **Third                Quarter 2007** |    |   | **Third                Quarter 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|---------|--------|---------------------------------------|--------|
|                                                                                                                                                                                                                                                   |   |                                  |    |   | **Weighted**                          |   |   |   |   |   | **Weighted** |   |
|                                                                                                                                                                                                                                                   |   |                                  |    |   | **Avg.                Fair**          |   |   |   |   |   | **Avg.                Fair** |   |
| (units                in thousands)                                                                                                                                                                                                                    |   | **Units**                             |    |   | **Value***                            |   |   | **Units** |   |   | **Value*** |   |
|                                                                                                                                                                                                                                                   |   |                                  |    |   |                                  |   |   |   |   |   |   |   |
| Outstanding                and nonvested, beginning of quarter                                                                                                                                                                                         |   |                                  | 2,930   |   |                                  | $      | 30.68 |   |   |   | 1,495 |   |   | $ | 30.90 |   |
| Restricted                stock units                granted                                |   |                                  | – |   |                                  |   | – |   |   |   | 17 |   |   |   | 32.16 |   |
| Dividend                equivalent units                granted                                                                                              |   |                                  | – |   |                                  |   | – |   |   |   | 7 |   |   |   | – |   |
| Forfeited                                                                                                                 |   |                                  | (17     | )      |                                  |   | 30.04 |   |   |   | (15 | ) |   |   | 30.82 |   |
| Vested                and                issued                                                                      |   |                                  | (16     | )      |                                  |   | 35.47 |   |   |   | – |   |   |   | – |   |
| Outstanding                and nonvested, end of quarter                                                                                                                                                                                               |   |                                  | 2,897   |   |                                  | $      | 30.66 |   |   |   | 1,504 |   |   | $ | 30.74 |   |

|                                                                                                                                                                                                                                 |   | **First                Three Quarters 2007** |   |   | **First                Three Quarters 2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|--------|--------|----------------------------------------------|--------|
|                                                                                                                                                                                                                                 |   |                                         |   |   | **Weighted**                                 |   |   |   |   |   | **Weighted** |   |
|                                                                                                                                                                                                                                 |   |                                         |   |   | **Avg.                Fair**                 |   |   |   |   |   | **Avg.                Fair** |   |
| (units                in thousands)                                                                                                                                                                                                  |   | **Units**                                    |   |   | **Value***                                   |   |   | **Units** |   |   | **Value*** |   |
|                                                                                                                                                                                                                                 |   |                                         |   |   |                                         |   |   |   |   |   |   |   |
| Outstanding                and nonvested, beginning of year                                                                                                                                                                          |   |                                         | 1,524  |   |                                         | $      | 31.18 |   |   |   | – |   |   | $ | – |   |
| Restricted                stock units                granted                             |   |                                         | 1,837  |   |                                         |   | 30.41 |   |   |   | 1,510 |   |   |   | 31.17 |   |
| Dividend                equivalent units                granted                                                        |   |                                         | 11     |   |                                         |   | – |   |   |   | 23 |   |   |   | – |   |
| Forfeited                                                                                     |   |                                         | (95    | )      |                                         |   | 30.35 |   |   |   | (29 | ) |   |   | 31.53 |   |
| Vested                and                issued                                                                                  |   |                                         | (380   | )      |                                         |   | 30.70 |   |   |   | – |   |   |   | – |   |
| Outstanding                and nonvested, end of quarter                                                                                                                                                                             |   |                                         | 2,897  |   |                                         | $      | 30.66 |   |   |   | 1,504 |   |   | $ | 30.74 |   |

**Employee      Stock Purchase Plan**

----

**NOTE      8:  PENSION AND POSTRETIREMENT BENEFITS**

|                                                                                                                                                                         |   | **Pension                Benefits** |    |   | **Other                Postretirement Benefits** |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|---------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                         |   | **Third                Quarter**    |    |   | **Third                Quarter**                 |   |
| (in                thousands)                                                                                                                                                |   | **2007**                            |    |   | **2006**                                         |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                         |   |                                |    |   |                                             |   |   |   |   |   |   |   |
| Service                cost                                                   |   | $                                   | 611     |   |                                             | $      | 944 |   |   | $ | 322 |   |   | $ | 334 |   |
| Interest                cost                                        |   |                                | 21,232  |   |                                             |   | 20,680 |   |   |   | 2,125 |   |   |   | 1,842 |   |
| Expected                return on plans’                assets                                                  |   |                                | (35,198 | )      |                                             |   | (31,568 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss                (gain)                                                        |   |                                | 11,844  |   |                                             |   | 16,437 |   |   |   | 127 |   |   |   | (32 | ) |
| Amortization                of prior service costs (credits)                                                                                                                 |   |                                | 96      |   |                                             |   | 54 |   |   |   | (362 | ) |   |   | (361 | ) |
| Net                periodic benefit cost                (credit)                   |   | $                                   | (1,415  | )      |                                             | $      | 6,547 |   |   | $ | 2,212 |   |   | $ | 1,783 |   |

|                                                                                                                                                                  |   | **Pension                Benefits**     |     |   | **Other                Postretirement Benefits** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|----------|--------|--------------------------------------------------|--------|
|                                                                                                                                                                  |   | **First                Three Quarters** |     |   | **First                Three Quarters**          |   |
| (in                thousands)                                                                                                                                         |   | **2007**                                |     |   | **2006**                                         |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                  |   |                                    |     |   |                                             |   |   |   |   |   |   |   |
| Service                cost                        |   | $                                       | 1,484    |   |                                             | $      | 2,833 |   |   | $ | 968 |   |   | $ | 1,001 |   |
| Interest                cost                                 |   |                                    | 63,000   |   |                                             |   | 62,092 |   |   |   | 5,869 |   |   |   | 5,525 |   |
| Expected                return on plans’                assets                                                     |   |                                    | (104,524 | )      |                                             |   | (94,781 | ) |   |   | – |   |   |   | – |   |
| Recognized                actuarial loss                (gain)                   |   |                                    | 35,326   |   |                                             |   | 49,352 |   |   |   | 135 |   |   |   | (95 | ) |
| Amortization                of prior service costs (credits)                                                                                                          |   |                                    | 165      |   |                                             |   | 163 |   |   |   | (1,084 | ) |   |   | (1,083 | ) |
| Special                termination benefits                (1)                                                      |   |                                    | –  |   |                                             |   | 1,381 |   |   |   | – |   |   |   | – |   |
| Net                periodic benefit cost                (credit)                                                              |   | $                                       | (4,549   | )      |                                             | $      | 21,040 |   |   | $ | 5,888 |   |   | $ | 5,348 |   |

**NOTE      9:  NON-OPERATING ITEMS**

|                                                                                                                                              |   | **Third                Quarter 2007**    |    |   | **First                Three Quarters 2007** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|----------------------------------------------|--------|
| (in                thousands)                                                                                                                     |   | **Pretax****Gain                (Loss)** |    |   | **After-tax****Gain                (Loss)**  |   |   | **Pretax****Gain                (Loss)** |   |   | **After-tax****Gain                (Loss)** |   |
|                                                                                                                                              |   |                                     |    |   |                                         |   |   |   |   |   |   |   |
| Loss                on change in fair values of derivatives and   related                investments                               |   | $                                        | (84,969 | )      |                                         | $      | (51,831 | ) |   | $ | (182,144 | ) |   | $ | (111,108 | ) |
| Strategic                transaction                expenses                                              |   |                                     | (3,160  | )      |                                         |   | (3,160 | ) |   |   | (38,557 | ) |   |   | (32,588 | ) |
| Gain                on TMCT                transactions                |   |                                     | 8,329   |   |                                         |   | 5,081 |   |   |   | 8,329 |   |   |   | 5,081 |   |
| Other,                net                                                                       |   |                                     | 1,936   |   |                                         |   | 1,180 |   |   |   | 8,450 |   |   |   | 3,205 |   |
| Income                tax                adjustment                                                  |   |                                     | – |   |                                         |   | 90,704 |   |   |   | – |   |   |   | 90,704 |   |
| Total                non-operating                items                                                   |   | $                                        | (77,864 | )      |                                         | $      | 41,974 |   |   | $ | (203,922 | ) |   | $ | (44,706 | ) |

----

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

**NOTE      10:  INVENTORIES**

| (in                thousands)                                                                                                                       |   | **Sept.                30, 2007** |   |   | **Dec.                31, 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|
|                                                                                                                                                |   |                              |   |   |                             |   |
| Newsprint                        |   | $                                 | 29,478 |   |                             | $      | 28,629 |   |
| Supplies                and                other                         |   |                              | 11,919 |   |                             |   | 12,333 |   |
| Total                inventories                                              |   | $                                 | 41,397 |   |                             | $      | 40,962 |   |

----

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

|                                                                                                                  |   | **Sept.                30, 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)           |   | $                                 | 189,880 |   |                             | $      | (79,774 | ) |   | $ | 110,106 |   |   | $ | 190,660 |   |   | $ | (72,126 | ) |   | $ | 118,534 |   |
| Network                affiliation agreements(useful                life of 40 years)                (1)              |   |                              | 278,034 |   |                             |   | (27,817 | ) |   |   | 250,217 |   |   |   | 278,034 |   |   |   | (22,614 | ) |   |   | 255,420 |   |
| Other                (useful life of 3 to 40 years)                                                                   |   |                              | 25,354  |   |                             |   | (10,982 | ) |   |   | 14,372 |   |   |   | 25,128 |   |   |   | (8,717 | ) |   |   | 16,411 |   |
| Total                                                                              |   | $                                 | 493,268 |   |                             | $      | (118,573 | ) |   |   | 374,695 |   |   | $ | 493,822 |   |   | $ | (103,457 | ) |   |   | 390,365 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Goodwill                and other intangible assets****not                subject to                amortization:** |   |                              |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                              |   |                              |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                (2)                                                                                    |   |                              |    |   |                             |   |   |   |   |   | 4,138,453 |   |   |   |   |   |   |   |   |   |   |   | 4,395,967 |   |
| Broadcasting                and                entertainment                                                          |   |                              |    |   |                             |   |   |   |   |   | 1,441,241 |   |   |   |   |   |   |   |   |   |   |   | 1,441,241 |   |
| Total                goodwill                                                                                    |   |                              |    |   |                             |   |   |   |   |   | 5,579,694 |   |   |   |   |   |   |   |   |   |   |   | 5,837,208 |   |
| Newspaper                mastheads                                                                               |   |                              |    |   |                             |   |   |   |   |   | 1,542,925 |   |   |   |   |   |   |   |   |   |   |   | 1,575,814 |   |
| FCC                licenses                                                                            |   |                              |    |   |                             |   |   |   |   |   | 871,946 |   |   |   |   |   |   |   |   |   |   |   | 871,946 |   |
| Tradename                                                                                         |   |                              |    |   |                             |   |   |   |   |   | 7,932 |   |   |   |   |   |   |   |   |   |   |   | 7,932 |   |
| Total                                                                                                            |   |                              |    |   |                             |   |   |   |   |   | 8,002,497 |   |   |   |   |   |   |   |   |   |   |   | 8,292,900 |   |
|                                                                                                                  |   |                              |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                goodwill and other intangibleassets                                                              |   |                              |    |   |                             |   |   |   |   | $ | 8,377,192 |   |   |   |   |   |   |   |   |   |   | $ | 8,683,265 |   |

| (1)   | As                of Sept. 30, 2007, network affiliation agreements, net of accumulated                amortization, included $175 million related to FOX affiliations,                $72                million related to CW affiliations and $3 million related to MyNetwork-TV                affiliations. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | In                the third quarter of 2007, the Company recorded a $224 million reduction                in publishing goodwill as a result of the settlement of the Company’s                Matthew Bender and Mosby income tax appeal (see Note                5). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**NOTE      12:  DEBT**

| (in                thousands)                                                                                                                                                       |   | **Sept.                30, 2007** |      |   | **Dec.                31, 2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|----------------------------------|--------|
|                                                                                                                                                                                |   |                              |      |   |                             |   |
| Tranche                B Facility due 2014, interest rate of 8.36%                                                                                                        |   | $                                 | 5,501,213 |   |                             | $      | – |   |
| Tranche                X Facility due 2008-2009, interest rate of                7.86%                                                                                    |   |                              | 1,400,000 |   |                             |   | – |   |
| Exchangeable                promissory note, interest rate of 4.81%                                                                                                            |   |                              | 204,243   |   |                             |   | – |   |
| Borrowings                under former bridge credit facility due June 19, 2007, interest                rate       of                6.2%  |   |                              | –   |   |                             |   | 1,310,000 |   |
| Former                term loan due June 20, 2011, interest rate of 6.2%                                                                                                       |   |                              | –   |   |                             |   | 1,500,000 |   |
| Commercial                paper, weighted average interest rate of                5.9%                                                                     |   |                              | –   |   |                             |   | 97,019 |   |
| Medium-term                notes due 2008, weighted average interest rate of 5.6% in 2007                and2006                                                               |   |                              | 262,585   |   |                             |   | 262,585 |   |
| Property                financing obligation, effective interest rate of 7.7%,                expiring2009                                                                     |   |                              | 40,986    |   |                             |   | 55,711 |   |
| 4.875%                notes due 2010, net of unamortized discount of $449and                $564,                respectively                                                  |   |                              | 449,551   |   |                             |   | 449,436 |   |
| 7.25%                debentures due 2013, net of unamortized discount of $1,880and                $2,137,                respectively                                          |   |                              | 80,203    |   |                             |   | 79,946 |   |
| 5.25%                notes due 2015, net of unamortized discount of $1,244and                $1,362,                respectively                                               |   |                              | 328,756   |   |                             |   | 328,638 |   |
| 7.5%                debentures due 2023, net of unamortized discount of $3,793and                $3,969,                respectively                                           |   |                              | 94,957    |   |                             |   | 94,781 |   |
| 6.61%                debentures due 2027, net of unamortized discount of $2,122and                $2,200,                respectively                                          |   |                              | 82,838    |   |                             |   | 82,760 |   |
| 7.25%                debentures due 2096, net of unamortized discount of $17,974and                $18,116,                respectively                                        |   |                              | 130,026   |   |                             |   | 129,884 |   |
| Other                notes and obligations                                                                                                                                     |   |                              | 85,279    |   |                             |   | 41,498 |   |
| Total                debt excluding PHONES                                                                                                                                |   |                              | 8,660,637 |   |                             |   | 4,432,258 |   |
| 2%                PHONES debt related to Time Warner stock, due 2029                                                                                                                |   |                              | 707,360   |   |                             |   | 572,960 |   |
| Total                debt                                                                                                                                                      |   | $                                 | 9,367,997 |   |                             | $      | 5,005,218 |   |

| (in                thousands)                                                                     |   | **Sept.                30, 2007** |      |   | **Dec.                31, 2006** |   |
|---------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|----------------------------------|--------|
|                                                                                              |   |                              |      |   |                             |   |
| Current                Liabilities:                                                               |   |                              |      |   |                             |   |
|     PHONES                debt related to Time Warner Stock              |   | $                                 | 279,072   |   |                             | $      | – |   |
|     Other                debt due within one year                        |   |                              | 78,885    |   |                             |   | 1,429,007 |   |
|     Total                current debt                                    |   |                              | 357,957   |   |                             |   | 1,429,007 |   |
| Long-Term                Debt:                                                                    |   |                              |      |   |                             |   |   |   |
|     PHONES                debt related to Time Warner Stock    |   |                              | 428,288   |   |                             |   | 572,960 |   |
|     Other                long-term debt                             |   |                              | 8,581,752 |   |                             |   | 3,003,251 |   |
|     Total                long-term debt                                  |   |                              | 9,010,040 |   |                             |   | 3,576,211 |   |
| Total                Debt                                                                    |   | $                                 | 9,367,997 |   |                             | $      | 5,005,218 |   |

**Debt      due within one year – **

----

**Former      Credit Agreements **

**New      Credit Agreement**
** **

----

----

**Exchangeable      Promissory Note **

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

----

| (in                thousands)                                                       |   | **Sept.                30, 2007** |    |   | **Dec.                31, 2006** |   |
|-------------------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|----------------------------------|--------|
|                                                                                |   |                              |    |   |                             |   |
| PHONES                Debt:                                                         |   |                              |    |   |                             |   |
| Discounted                debt component (at                book value)   |   | $                                 | 474,320 |   |                             | $      | 465,280 |   |
| Derivative                component (at fair                value)             |   |                              | 233,040 |   |                             |   | 107,680 |   |
| Total                                                                          |   | $                                 | 707,360 |   |                             | $      | 572,960 |   |
|                                                                                |   |                              |    |   |                             |   |   |   |
| Time                Warner stock related to PHONES (at fair value)                  |   | $                                 | 293,760 |   |                             | $      | 348,480 |   |

**NOTE      13:  COMPREHENSIVE INCOME**

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **Third                Quarter** |    |   | **First                Three Quarters** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|-----------------------------------------|--------|
| (in                thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | **2007**                         |    |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |
| Net                income                                                                            |   | $                                | 152,765 |   |                                    | $      | 164,340 |   |   | $ | 165,746 |   |   | $ | 354,938 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Adjustment                for previously unrecognized benefit cost (gains)and                losses included in net                income, net of taxes                                                                                                                                                                                                                                                                                                                                     |   |                             | 7,072   |   |                                    |   | – |   |   |   | 21,071 |   |   |   | – |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gain (loss) on marketablesecurities                classified as                available-for-sale:                                                                                                                                                                                                                                                                                                                                                       |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
|   Unrealized                holding gain (loss) arising during the period,  net                of taxes                                                                                                                                                                                                                                                                                                                                                                 |   |                             | (2,109  | )      |                                    |   | (616 | ) |   |   | (4,440 | ) |   |   | (1,721 | ) |
|   Adjustment                for gain on sale of investments included in income,                net of taxes                                                                                                                                                                                                                                                                                                                                                                       |   |                             | – |   |                                    |   | (11,325 | ) |   |   | – |   |   |   | (11,325 | ) |
| Unrealized                gain (loss) on marketable securities classified as available-for-sale,                net of taxes                                                                                                                                                                                                                                                                                                                                                                |   |                             | (2,109  | )      |                                    |   | (11,941 | ) |   |   | (4,440 | ) |   |   | (13,046 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized                losses on cash flow hedging instruments, net of taxes                                                                                                                                                                                                                                                                                                                                                                                                           |   |                             | (29,251 | )      |                                    |   | – |   |   |   | (29,251 | ) |   |   | – |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Change                in foreign currency translation adjustments,net                of                taxes                                                                                                                                                                                                                                                                                                                                                                           |   |                             | 272     |   |                                    |   | 40 |   |   |   | 476 |   |   |   | 189 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Other                comprehensive income (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                             | (24,016 | )      |                                    |   | (11,901 | ) |   |   | (12,144 | ) |   |   | (12,857 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive                income                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                                | 128,749 |   |                                    | $      | 152,439 |   |   | $ | 153,602 |   |   | $ | 342,081 |   |

**NOTE      14:  OTHER MATTERS**

***Los      Angeles      Times***

** **
**Plant      Equipment**

**–**
*Los Angeles Times*

**Media      Ownership Rules **
** **

----

**Variable      Interest Entities **
** **

**New      Accounting Standards **

----

**NOTE      15:  SEGMENT INFORMATION**

|                                                         |   | **Third                Quarter** |      |   | **First                Three Quarters** |   |
|--------------------------------------------------------------|--------|----------------------------------|-----------|--------|-----------------------------------------|--------|
| (in                thousands)                                |   | **2007**                         |      |   | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                         |   |                             |      |   |                                    |   |   |   |   |   |   |   |
| **Operating                revenues:**                       |   |                             |      |   |                                    |   |   |   |   |   |   |   |
| Publishing                                         |   | $                                | 870,848   |   |                                    | $      | 939,614 |   |   | $ | 2,712,271 |   |   | $ | 2,925,807 |   |
| Broadcasting                and                entertainment |   |                             | 406,051   |   |                                    |   | 392,555 |   |   |   | 1,082,018 |   |   |   | 1,069,543 |   |
| Total                operating revenues                      |   | $                                | 1,276,899 |   |                                    | $      | 1,332,169 |   |   | $ | 3,794,289 |   |   | $ | 3,995,350 |   |
|                                                         |   |                             |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss)**(1):               |   |                             |      |   |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                              |   | $                                | 122,543   |   |                                    | $      | 143,774 |   |   | $ | 365,174 |   |   | $ | 522,498 |   |
| Broadcasting                and                entertainment |   |                             | 117,787   |   |                                    |   | 107,800 |   |   |   | 286,903 |   |   |   | 285,647 |   |
| Corporate                expenses                       |   |                             | (11,329   | )      |                                    |   | (13,718 | ) |   |   | (44,902 | ) |   |   | (48,101 | ) |
| Total                operating profit                   |   | $                                | 229,001   |   |                                    | $      | 237,856 |   |   | $ | 607,175 |   |   | $ | 760,044 |   |

|                                                               |   | **Sept.                30, 2007** |       |   | **Dec.                31, 2006** |   |
|--------------------------------------------------------------------|--------|-----------------------------------|------------|--------|----------------------------------|--------|
|                                                               |   |                              |       |   |                             |   |
| **Assets:**                                                        |   |                              |       |   |                             |   |
| Publishing                                          |   | $                                 | 8,198,200  |   |                             | $      | 8,503,340 |   |
| Broadcasting                and                entertainment  |   |                              | 4,095,002  |   |                             |   | 3,987,449 |   |
| Corporate                                                     |   |                              | 1,382,693  |   |                             |   | 900,811 |   |
|     Assets                held for sale   |   |                              | 98,594     |   |                             |   | 9,172 |   |
| Total                assets                              |   | $                                 | 13,774,489 |   |                             | $      | 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 Sept. 30, 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 a price of $34.00 per share and                (2) an unsecured subordinated exchangeable promissory note of the                Company                in the principal amount of $200 million, which the Company must repay                immediately prior to the Merger (as defined below).  The                promissory note is exchangeable at the Company’s option, or automatically                upon termination of the Merger Agreement (as defined below), 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.  Pursuant to the                Zell Entity Purchase Agreement, on May 9, 2007, Mr. Zell was appointed                as                a member of the Board. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                April 25, 2007, the Company commenced a tender offer to repurchase                up to                126 million shares of the Company’s common stock that were then                outstanding at a price of $34.00 per share in cash (the “Share                Repurchase”).   The tender offer expired on May 24, 2007                and 126 million shares of the Company’s common stock were repurchased and                subsequently retired on June 4, 2007 utilizing proceeds from the                First                Step Credit Facilities as defined below.  The retirement of                these shares resulted in a $1.794 billion reduction in common stock                and                additional paid-in capital and a $2.495 billion reduction in retained                earnings during the second quarter of                2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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, each outstanding                share of the Company’s common stock (other than those held by the ESOP and                other than dissenting shares) will be converted into the right to                receive                $34.00 per share in cash.  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 closing of the Merger is subject to the                satisfaction or waiver of various conditions set forth in the Merger                Agreement, including approval by the Company’s stockholders, which was                obtained at a special meeting of the stockholders held on August                21,                2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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, for an aggregate of $315 million,                a                $225 million subordinated promissory note and a 15-year                warrant.  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.  However, the                Zell Entity will not be able to exercise its registration rights                prior to                April 23, 2010 and, in the event the Merger does not close, will                be                prohibited from selling or assigning its shares of the Company’s common                stock, exchangeable promissory note or underlying shares acquired                upon                exchange until April 23, 2010, other |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|    | than                  to certain permitted transferees.  In addition, the ESOP will                  not be able to exercise its registration rights prior to April                  1,                  2008. |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| ·   | On                June 4, 2007, the Chandler Trusts entered into an underwriting agreement                with Goldman, Sachs & Co. (“Goldman Sachs”)                and the                Company, pursuant to which the Chandler Trusts agreed to sell an                aggregate                of 20,351,954 shares of the Company’s common stock, which represented the                remainder of the shares of the Company’s common stock owned by them                following the Share Repurchase, through a block trade underwritten                by                Goldman Sachs.  The shares were offered pursuant to the shelf                registration statement filed by the Company on April 25,                2007.  Following the closing of this transaction on June 7,                2007, the Company believes that the Chandler Trusts no longer owned                any                shares of the Company’s common stock.  On June 4, 2007, Jeffrey                Chandler, Roger Goodan and William Stinehart, Jr. resigned as members                of                the Board. Messrs. Chandler, Goodan and Stinehart served on the Board                as                representatives of the Chandler Trusts, which agreed to cause the                resignations of Messrs. Chandler, Goodan and Stinehart effective                upon the                consummation of the Share                Repurchase. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On                May 17, 2007, the Company entered into a credit agreement and on                June 4,                2007, the Company entered into an amendment to such credit agreement,                with                respect to new $8.028 billion of senior secured credit facilities                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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**New      Credit Agreement**
** **

----

----

----

**Exchangeable      Promissory Note **

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

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

----

**Broadcasting      and Entertainment Discontinued Operations **
** **

**Critical      Accounting Policies –**

----

**NON-OPERATING      ITEMS**

|                                                                                                             |   | **Third                Quarter 2007**    |    |   | **First                Three Quarters 2007** |   |
|------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|--------|----------------------------------------------|--------|
| (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 |   | $                                        | (85.0   | )      |                                         | $      | (51.8 | ) |   | $ | (.41 | ) |   | $ | (182.1 | ) |   | $ | (111.1 | ) |   | $ | (.59 | ) |
| Strategic                transaction expenses                                                                    |   |                                     | (3.2    | )      |                                         |   | (3.2 | ) |   |   | (.03 | ) |   |   | (38.6 | ) |   |   | (32.6 | ) |   |   | (.17 | ) |
| Gain                on TMCT transactions                                                                    |   |                                     | 8.3     |   |                                         |   | 5.1 |   |   |   | .04 |   |   |   | 8.3 |   |   |   | 5.1 |   |   |   | .03 |   |
| Other,                net                                                                                        |   |                                     | 2.0     |   |                                         |   | 1.2 |   |   |   | .01 |   |   |   | 8.5 |   |   |   | 3.2 |   |   |   | .02 |   |
| Income                tax adjustment                                                                        |   |                                     | – |   |                                         |   | 90.7 |   |   |   | .72 |   |   |   | – |   |   |   | 90.7 |   |   |   | .48 |   |
| Total                non-operating items                                                                    |   | $                                        | (77.9   | )      |                                         | $      | 42.0 |   |   | $ | .33 |   |   | $ | (203.9 | ) |   | $ | (44.7 | ) |   | $ | (.24 | ) |

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

----

**RESULTS      OF OPERATIONS**

*Hoy*

**CONSOLIDATED**

|                                                                                                     | **Third                Quarter** |   | **First                Three Quarters** |
|----------------------------------------------------------------------------------------------------------|----------------------------------|--------|-----------------------------------------|
| (in                millions, except per share data)                                                      | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                   | $                                | 1,277  |                                    | $ | 1,332 |   | - | 4% |   | $ | 3,794 |   | $ | 3,995 |   | - | 5% |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)                                                                 | $                                | 229    |                                    | $ | 238 |   | - | 4% |   | $ | 607 |   | $ | 760 |   | - | 20% |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income on equity investments                                                          | $                                | 27     |                                    | $ | 19 |   | + | 42% |   | $ | 68 |   | $ | 51 |   | + | 32% |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                from continuing operations                                                         | $                                | 86     |                                    | $ | 165 |   | - | 48% |   | $ | 133 |   | $ | 428 |   | - | 69% |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations,net                of                tax  | $                                | 67     |                                    | $ | (1 | ) |   | * |   | $ | 33 |   | $ | (73 | ) |   | * |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                income                                                                           | $                                | 153    |                                    | $ | 164 |   | - | 7% |   | $ | 166 |   | $ | 355 |   | - | 53% |
|                                                                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                earnings per share:                                                               |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Continuing                operations                                                                | $                                | .69    |                                    | $ | .65 |   | + | 6% |   | $ | .70 |   | $ | 1.47 |   | - | 52% |
| Discontinued                operations                                                              |                             | .53    |                                    |   | – |   |   | * |   |   | .17 |   |   | (.25 | ) |   | * |
|     Net                income                                                   | $                                | 1.22   |                                    | $ | .65 |   | + | 88% |   | $ | .88 |   | $ | 1.22 |   | - | 28% |

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

----

**Earnings      Per Share (“EPS”) – **
*Los Angeles      Times*

**Operating      Revenues and Profit – **

|                                                         | **Third                Quarter** |    | **First                Three Quarters** |
|--------------------------------------------------------------|----------------------------------|---------|-----------------------------------------|
| (in                millions)                                 | **2007**                         |    |                                    | **2006** |   |   | **Change** |   | **2007** |   |   | **2006** |   | **Change** |
|                                                         |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**                        |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                    | $                                | 871     |                                    |   | $ | 940 |   |   | - | 7% |   | $ | 2,712 |   |   | $ | 2,926 |   | - | 7% |
| Broadcasting                and                entertainment |                             | 406     |                                    |   |   | 392 |   |   | + |     3% |   |   | 1,082 |   |   |   | 1,069 |   | + |     1% |
| Total                operating revenues                 | $                                | 1,277   |                                    |   | $ | 1,332 |   |   | - |     4% |   | $ | 3,794 |   |   | $ | 3,995 |   | - |     5% |
|                                                         |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Depreciation                and amortization expense**     |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                              | $                                | 43      |                                    |   | $ | 43 |   |   |   | - |   | $ | 132 |   |   | $ | 127 |   | + | 4% |
| Broadcasting                and                entertainment |                             | 13      |                                    |   |   | 14 |   |   | - | 6% |   |   | 38 |   |   |   | 38 |   | + | 1% |
| Corporate                                               |                             | – |                                    |   |   | – |   |   | - | 23% |   |   | 1 |   |   |   | 1 |   | - | 20% |
| Total                depreciation and amortization expense   | $                                | 56      |                                    |   | $ | 57 |   |   | - | 1% |   | $ | 171 |   |   | $ | 166 |   | + | 3% |
|                                                         |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (loss) (1)**               |                             |    |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Publishing                                              | $                                | 123     |                                    |   | $ | 144 |   |   | - | 15% |   | $ | 365 |   |   | $ | 522 |   | - | 30% |
| Broadcasting                and                entertainment |                             | 118     |                                    |   |   | 108 |   |   | + | 9% |   |   | 287 |   |   |   | 286 |   |   | - |
| Corporate                expenses                       |                             | (12     | )                                       |   |   | (14 | ) |   | + | 17% |   |   | (45 | ) |   |   | (48 | ) | + | 7% |
| Total                operating profit                        | $                                | 229     |                                    |   | $ | 238 |   |   | - | 4% |   | $ | 607 |   |   | $ | 760 |   | - | 20% |

*Los*

----

*Angeles      Times*

**Operating      Expenses – **

|                                                                 | **Third                Quarter** |   | **First                Three Quarters** |
|----------------------------------------------------------------------|----------------------------------|--------|-----------------------------------------|
| (in                millions)                                         | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |
|                                                                 |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of sales (exclusive of items shown below)        | $                                | 656    |                                    | $ | 690 |   | - | 5% |   | $ | 1,933 |   | $ | 2,012 |   | - | 4% |
| Selling,                general and administrative    |                             | 336    |                                    |   | 347 |   | - | 3% |   |   | 1,083 |   |   | 1,057 |   | + | 2% |
| Depreciation                and amortization     |                             | 56     |                                    |   | 57 |   | - | 1% |   |   | 171 |   |   | 166 |   | + | 3% |
| Total                operating expenses                    | $                                | 1,048  |                                    | $ | 1,094 |   | - | 4% |   | $ | 3,187 |   | $ | 3,235 |   | - | 1% |

*Los Angeles Times*

----

**PUBLISHING**

**Operating      Revenues and Profit – **

|                                                | **Third                Quarter** |   | **First                Three Quarters** |   |
|-----------------------------------------------------|----------------------------------|--------|-----------------------------------------|--------|
| (in                millions)                        | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues    | $                                | 871    |                                    | $      | 940 |   | - | 7% |   | $ | 2,712 |   | $ | 2,926 |   | - | 7% |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                expenses    |                             | 748    |                                    |   | 796 |   | - | 6% |   |   | 2,347 |   |   | 2,404 |   | - | 2% |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (1)       | $                                | 123    |                                    | $      | 144 |   | - | 15% |   | $ | 365 |   | $ | 522 |   | - | 30% |   |

*Los Angeles Times*

|                                | **Third                Quarter** |   | **First                Three Quarters** |
|-------------------------------------|----------------------------------|--------|-----------------------------------------|
| (in                millions)        | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |
| Advertising                         |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                    | $                                | 284    |                                    | $ | 303 |   | - | 6% |   | $ | 889 |   | $ | 927 |   | - | 4% |
| National                            |                             | 160    |                                    |   | 156 |   | + | 2% |   |   | 494 |   |   | 513 |   | - | 4% |
| Classified                |                             | 230    |                                    |   | 282 |   | - | 18% |   |   | 733 |   |   | 878 |   | - | 17% |
| Total                advertising    |                             | 674    |                                    |   | 741 |   | - | 9% |   |   | 2,116 |   |   | 2,318 |   | - | 9% |
| Circulation                         |                             | 129    |                                    |   | 136 |   | - | 5% |   |   | 396 |   |   | 419 |   | - | 6% |
| Other                     |                             | 68     |                                    |   | 63 |   | + | 8% |   |   | 200 |   |   | 189 |   | + | 6% |
| Total                revenues  | $                                | 871    |                                    | $ | 940 |   | - | 7% |   | $ | 2,712 |   | $ | 2,926 |   | - | 7% |

----

|                                                                                 | **Third                Quarter** |   | **First                Three Quarters** |   |
|--------------------------------------------------------------------------------------|----------------------------------|--------|-----------------------------------------|--------|
| **Inches**(in thousands)                                                             | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |   |
|                                                                                 |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Full                run                                                              |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail                                                                     |                             | 1,209  |                                    |   | 1,261 |   | - | 4% |   |   | 3,752 |   |   | 3,811 |   | - | 2% |   |
| National                                                                        |                             | 668    |                                    |   | 692 |   | - | 3% |   |   | 2,013 |   |   | 2,252 |   | - | 11% |   |
| Classified                                                                 |                             | 1,978  |                                    |   | 2,282 |   | - | 13% |   |   | 6,085 |   |   | 7,239 |   | - | 16% |   |
| Total                full run                                         |                             | 3,855  |                                    |   | 4,235 |   | ­- | 9% |   |   | 11,850 |   |   | 13,302 |   | ­- | 11% |   |
| Part                run                                                    |                             | 4,467  |                                    |   | 5,218 |   | - | 14% |   |   | 13,913 |   |   | 15,767 |   | - | 12% |   |
| Total                inches                                                |                             | 8,322  |                                    |   | 9,453 |   | - | 12% |   |   | 25,763 |   |   | 29,069 |   | - | 11% |   |
|                                                                                 |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Preprint                pieces**** **(in                millions)   |                             | 3,364  |                                    |   | 3,441 |   | - | 2% |   |   | 10,408 |   |   | 10,365 |   |   | – |   |

----

**Operating      Expenses**

|                                                      | **Third                Quarter** |   | **First                Three Quarters** |
|-----------------------------------------------------------|----------------------------------|--------|-----------------------------------------|
| (in                millions)                              | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |
|                                                      |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                (1)                 | $                                | 305    |                                    | $ | 325 |   | - | 6% |   | $ | 965 |   | $ | 1,001 |   | - | 4% |
| Newsprint                and ink                |                             | 96     |                                    |   | 120 |   | - | 20% |   |   | 314 |   |   | 369 |   | - | 15% |
| Circulation                distribution         |                             | 116    |                                    |   | 116 |   |   | - |   |   | 352 |   |   | 346 |   | + | 2% |
| Outside                Services                 |                             | 77     |                                    |   | 77 |   |   | - |   |   | 231 |   |   | 226 |   | + | 2% |
| Promotion                             |                             | 28     |                                    |   | 25 |   | + | 11% |   |   | 74 |   |   | 74 |   |   | - |
| Depreciation                and amortization    |                             | 43     |                                    |   | 43 |   |   | - |   |   | 132 |   |   | 127 |   | + | 4% |
| Other                (2)                             |                             | 83     |                                    |   | 90 |   | - | 7% |   |   | 279 |   |   | 261 |   | + | 7% |
| Total                operating expenses    | $                                | 748    |                                    | $ | 796 |   | - | 6% |   | $ | 2,347 |   | $ | 2,404 |   | - | 2% |

| (1) | Compensation                for the third quarter and first three quarters of 2007 included severance                charges of $3 million and $30 million,                respectively.  Compensation for the first three quarters of 2006                included a $20 million charge related to new union                contracts at Newsday and $2 million of other severance                charges. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Other                expenses for the first three quarters of 2007 included a charge of                $24                million for the write-off of *Los Angeles**Times*                plant equipment related to the previously closed San Fernando Valley                facility. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Los Angeles      Times*

----

**BROADCASTING      AND ENTERTAINMENT**

**Operating      Revenues and Profit – **

|                                                | **Third                Quarter** |   | **First                Three Quarters** |   |
|-----------------------------------------------------|----------------------------------|--------|-----------------------------------------|--------|
| (in                millions)                        | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                revenues**               |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                     | $                                | 288    |                                    | $      | 277 |   | + | 4% |   | $ | 840 |   | $ | 852 |   | - | 2% |   |
| Radio/entertainment                            |                             | 118    |                                    |   | 115 |   | + | 2% |   |   | 242 |   |   | 217 |   | + | 12% |   |
| Total                operating revenues   | $                                | 406    |                                    | $      | 392 |   | + | 3% |   | $ | 1,082 |   | $ | 1,069 |   | + | 1% |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                expenses**               |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                | $                                | 201    |                                    | $      | 203 |   | - | 1% |   | $ | 597 |   | $ | 602 |   | - | 1% |   |
| Radio/entertainment                       |                             | 87     |                                    |   | 81 |   | + | 7% |   |   | 198 |   |   | 181 |   | + | 9% |   |
| Total                operating expenses        | $                                | 288    |                                    | $      | 284 |   | + | 1% |   | $ | 795 |   | $ | 783 |   | + | 1% |   |
|                                                |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                profit (1)**             |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Television                                     | $                                | 87     |                                    | $      | 74 |   | + | 18% |   | $ | 243 |   | $ | 250 |   | - | 3% |   |
| Radio/entertainment                            |                             | 31     |                                    |   | 34 |   | - | 9% |   |   | 44 |   |   | 36 |   | + | 25% |   |
| Total                operating profit          | $                                | 118    |                                    | $      | 108 |   | + | 9% |   | $ | 287 |   | $ | 286 |   |   | – |   |

----

**Operating      Expenses **

|                                                     | **Third                Quarter** |   | **First                Three Quarters** |   |
|----------------------------------------------------------|----------------------------------|--------|-----------------------------------------|--------|
| (in                millions)                             | **2007**                         |   | **2006**                                |   | **Change** |   | **2007** |   | **2006** |   | **Change** |   |
|                                                     |                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Compensation                                   | $                                | 135    |                                    | $      | 133 |   | + | 2% |   | $ | 346 |   | $ | 330 |   | + | 5% |   |
| Programming                                    |                             | 83     |                                    |   | 85 |   | - | 3% |   |   | 247 |   |   | 257 |   | - | 4% |   |
| Depreciation                and amortization   |                             | 13     |                                    |   | 14 |   | - | 6% |   |   | 38 |   |   | 38 |   | + | 1% |   |
| Other                                          |                             | 57     |                                    |   | 52 |   | + | 9% |   |   | 164 |   |   | 158 |   | + | 3% |   |
| Total                operating expenses        | $                                | 288    |                                    | $      | 284 |   | + | 1% |   | $ | 795 |   | $ | 783 |   | + | 1% |   |

**CORPORATE      EXPENSES**

**EQUITY      RESULTS**

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

----

**DISCONTINUED      OPERATIONS**

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

**Broadcasting      and Entertainment Discontinued Operations **
** **

----

**Summarized      Financial Information **
** **

|                                                                                                                                  | **Third                Quarter** |   |    | **First                Three Quarters** |   |
|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|--------|---------|-----------------------------------------|--------|
| (in                thousands, except per share data)                                                                                  | **2007**                         |   |    | **2006**                                |   |   | **2007** |   |   | **2006** |   |
|                                                                                                                                  |                             |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                revenues                                                                                 | $                                | 13,838 |    |                                    | $      | 30,741 |   |   | $ | 45,422 |   |   | $ | 108,898 |   |
|                                                                                                                                  |                             |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Operating                profit (loss)                                                                                           | $                                | 220    |    |                                    | $      | (2,456 | ) |   | $ | (1,618 | ) |   | $ | 7,761 |   |
|                                                                                                                                  |                             |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Gain              (loss) on sales of discontinued operations                                                                          |                             | (3,021 | )  |                                    |   | 799  |   |   |   | (20,025 | )  |   |   | (89,256 | )  |
| Income                (loss) from discontinued operations before     income                taxes   |                             | (2,801 | )       |                                    |   |  (1,657 | ) |   |   | (21,643 | ) |   |   |  (81,495 | ) |
| Income                taxes (1)                                                                                                  |                             | 69,751 |    |                                    |   | 698 |   |   |   | 54,439 |   |   |   | 8,638 |   |
| Income                (loss) from discontinued operations, net of tax                                                                 | $                                | 66,950 |    |                                    | $      | (959 | ) |   | $ | 32,796 |   |   | $ | (72,857 | ) |
|                                                                                                                                  |                             |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations per share:                                                                  |                             |   |    |                                    |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                                         | $                                | .57    |    |                                    | $      | – |   |   | $ | .17 |   |   | $ | (.26 | ) |
|      Diluted                                                                                            | $                                | .53    |    |                                    | $      | – |   |   | $ | .17 |   |   | $ | (.25 | ) |

**LIQUIDITY      AND CAPITAL RESOURCES**

----

**Off-Balance      Sheet Arrangements **

**Contractual      Obligations **
** **
** **

----

----

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

**Interest      Rate Risk**
** **

|  **Maturiities**                          |   | **Fixed Rate****Debt** |      |   | **Weighted Avg****Interest Rate** |   | **Variable Rate****Debt** |   |   | **Weighted Avg****Interest Rate** |      | **Total****Debt** |   |
|------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------------------------|--------|--------------------------------|--------|--------|---------------------------------------------|-----------|-------------------|--------|
| 2007(1)                                        |   | $                           | 279,558   |   |                                        |   | 2.0                            | %      |   | $                                           | 13,787    |              |   |   | 8.4 | % |   | $ | 293,345 |   |
| 2008                                           |   |                        | 264,401   |   |                                        |   | 5.6                            | %      |   |                                        | 705,150   |              |   |   | 7.9 | % |   |   | 969,551 |   |
| 2009(2)                                        |   |                        | 43,082    |   |                                        |   | 7.7                            | %      |   |                                        | 813,904   |              |   |   | 7.9 | % |   |   | 856,986 |   |
| 2010(3)                                        |   |                        | 451,358   |   |                                        |   | 4.9                            | %      |   |                                        | 73,563    |              |   |   | 8.4 | % |   |   | 524,921 |   |
| 2011                                           |   |                        | 1,911     |   |                                        |   | 9.3                            | %      |   |                                        | 55,150    |              |   |   | 8.4 | % |   |   | 57,061 |   |
| Thereafter(4),                (5), (6)         |   |                        | 1,378,522 |   |                                        |   | 4.7                            | %      |   |                                        | 5,287,611 |              |   |   | 8.4 | % |   |   | 6,666,133 |   |
| Total                at Sept. 30, 2007         |   | $                           | 2,418,832 |   |                                        |   |                           |   |   | $                                           | 6,949,165 |              |   |   |   |   |   | $ | 9,367,997 |   |
| Fair                Value at Sept. 30, 2007(7) |   | $                           | 2,185,792 |   |                                        |   |                           |   |   | $                                           | 6,949,165 |              |   |   |   |   |   | $ | 9,134,957 |   |

----

| (1) | Fixed                rate debt includes $279 million related to the Company’s 2% PHONES which                represents the cash exchange value of the PHONES on Sept. 30,                2007.  See Note 12 to the Company’s unaudited condensed                consolidated financial statements in Part I, Item 1,                hereof. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Variable                rate debt includes $9 million related to an interest rate swap agreement                through 2009 on $750 million of the variable rate borrowings effectively                converting the variable rate to a fixed rate of                5.25%. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Variable                rate debt includes $18 million related to an interest rate swap agreement                through 2010 on $1.0 billion of the variable rate borrowings effectively                converting the variable rate to a fixed rate of                5.29%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Fixed                rate debt includes $428 million related to the Company’s 2% PHONES,                due 2029.  The Company may redeem the PHONES at any time for the                greater of the principal value of the PHONES ($156.12 per PHONES                at Sept.                30, 2007) or the then market value of two shares of Time Warner common                stock, subject to certain adjustments.  Quarterly interest                payments are made to the PHONES holders at an annual rate of 2% of                the                initial principal. The Company records both cash and non-cash interest                expense on the discounted debt component of the PHONES.  See                Note 12 to the Company’s unaudited condensed consolidated financial                statements in Part I, Item 1,                hereof. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Variable                rate debt includes $21 million related to an interest rate swap agreement                through 2012 on $750 million of the variable rate borrowings effectively                converting the variable rate to a fixed rate of                5.39%. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Fixed                rate debt includes $22 million related to an interest rate swap                agreement on the $100 million 7.5% debentures due in 2023 effectively                converting the fixed 7.5% rate to a variable rate based on                LIBOR. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Fair                value was estimated based on quoted market prices for similar issues                or on                current rates available to the Company for debt of the same remaining                maturities and similar terms. The carrying value of the Company’s                derivative instruments approximates fair value. The fair value of                the                PHONES was determined by reference to the market value resulting                from                trading on a national securities                exchange. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

** **

----

**EQUITY      PRICE RISK**

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

|                                                                      | **Valuation                of Investments****Assuming                Indicated Decrease****in                Stock’s Price**      |   |  **Sept.                30, 2007** |   | **Valuation                of Investments****Assuming                Indicated Increase****in                Stock’s Price**      |
|---------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (in              thousands)                                               | **-30%**                                                                                                                                                    |   | **-20%**                           |   | **-10%**                                                                                                                                                    |   |  **Fair                Value** |   | **+10%**  |   | **+20%**  |   | **+30%**  |
| Common                stock investments inpublic                companies | $4,748                                                                                                                                                           |   | $5,426                                  |   | $6,105                                                                                                                                                           |   | $6,783(1) |   | $7,461 |   | $8,139 |   | $8,818 |

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

**Derivatives      and Related Trading Securities – **

----

|                                   | **Valuation                of Investment****Assuming                Indicated Decrease****in                Stock’s Price**      |   |                **Sept.                30, 2007** |   | **Valuation                of Investment****Assuming                Indicated Increase****in                Stock’s Price**      |
|----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (in                thousands)     | **-30%**                                                                                                                                                   |   | **-20%**                                         |   | **-10%**                                                                                                                                                   |   |  **Fair                Value** |   | **+10%**  |   | **+20%**  |   | **+30%**  |
| Time                Warner commonstock | $205,632                                                                                                                                                        |   | $235,008                                              |   | $264,384                                                                                                                                                        |   | $293,760 |   | $323,136 |   | $352,512 |   | $381,888 |

**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 satisfy conditions                to consummation of the Merger, including the inability to receive                a                satisfactory solvency opinion or 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 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)                pending the outcome of the FCC’s pending review of its broadcast ownership                rules; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | 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.**

**Stock      Repurchase Program – **

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

| (a)   | The                Company held a special shareholders meeting on August 21,                2007. |
|-----------------|---------------------------------------------------------------------------------------------------|

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

| (c)   | Proposal                1 involved (i) the adoption of the Agreement and Plan of Merger (the                “Merger Agreement”) dated as of April 1, 2007, by and among Tribune                Company, GreatBanc Trust Company, not in its individual or corporate                capacity, but solely as trustee of the Tribune Employee Stock Ownership                Trust, which forms a part of the Tribune Employee Stock Ownership                Plan                (the “ESOP”), Tesop Corporation, a Delaware corporation wholly owned by                the ESOP (“Merger Sub”), and, for limited purposes, EGI-TRB, L.L.C., a                Delaware limited liability company wholly owned by a trust established                for                the benefit of Sam Zell and his family, and (ii) the approval of                the                merger of Merger Sub into Tribune Company pursuant to the terms of                the                Merger Agreement.  The voting results were as                follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Votes****“For”** |   | **Votes****“Against”** |   | **Votes****“Abstained”** |   | **Broker****Non-Votes** |
|--------------------------------|--------|------------------------------------|--------|--------------------------------------|--------|-------------------------|
| 82,631,710                     |   | 1,551,729                          |   | 689,452                              |   | 0                       |

----

|   | Proposal                2 involved the approval of the adjournment of the special meeting,                if                necessary or  appropriate, to solicit additional proxies if                there were insufficient votes at the time of the special meeting                to adopt                the Merger Agreement and approve the Merger.  The voting results                were as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Votes****“For”** |   | **Votes****“Against”** |   | **Votes****“Abstained”** |   | **Broker****Non-Votes** |
|--------------------------------|--------|------------------------------------|--------|--------------------------------------|--------|-------------------------|
| 78,115,253                     |   | 5,850,639                          |   | 905,767                              |   | 1,232                   |

**ITEM      6.  EXHIBITS.**

----

**SIGNATURE**

|                                             | TRIBUNE                COMPANY(Registrant)                                                                                                                                                         |
|--------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                             |                                                                                                                                                                                                              |
| Date:  November                2, 2007 | /s/  R.                Mark MalloryR.                Mark MalloryVice                President and Controller(on                behalf of the registrantand                as Chief Accounting Officer) |

----