JOURNAL COMMUNICATIONS, INC.
                        MANAGEMENT ANNUAL INCENTIVE PLAN


                                  Plan Purpose

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The purpose of the Journal Communications Inc. Management Annual Incentive Plan
is to:

o    Reward key individuals for achieving pre-established financial and
     non-financial goals that support Journals annual business
     objectives/mission that will enhance the employee-owners' investment.

o    Encourage and reinforce effective teamwork and individual contributions
     toward Journal's stated goals.

o    Provide an incentive opportunity incorporating an appropriate level of risk
     that will enable the Company to attract, motivate and retain outstanding
     executives.

                                   Definitions

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The following words and phrases have the respective meanings indicated below
unless a different meaning is plainly implied by the context:

o    "Plan" means the plan set forth in this Journal Communications Inc.
     Management Annual Incentive Plan, as it may be amended from time to time,
     and known as the "Management Annual Incentive Plan."

o    "Journal" means Journal Communications Inc., a multifaceted media
     communications company based in Milwaukee, Wisconsin, involved in newspaper
     publishing, commercial printing, broadcast operations, telecommunications,
     direct marketing and disk/CD-ROM and DVD duplication and fulfillment.

o    "Subsidiary" means any subsidiary that is part of Journal Communications
     Inc.

o    "Compensation Committee" or "Committee" means a committee of non-employee
     individuals who have been appointed by the Board of Directors and
     authorized to assume designated responsibilities and perform designated
     functions in regard to executive compensation decisions.

o    "Eligible employee" or "employee" or "participant" means any management
     employee of Journal Communications Inc. who is in a position designated by
     the CEO and approved by the Compensation Committee as eligible to receive
     an incentive award under the plan.

o    "Performance Levels" refers to the corporate, subsidiary and individual
     level of a participant's performance measures.

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o    "Incentive Opportunity Ranges" means the midpoint and the percentage above
     and below the midpoint which awards may be paid based on the degree to
     which the performance goals are achieved in a given plan year. The
     incentive ranges are fixed from a minimum of 5O% to a maximum of 2OO% of
     the midpoint incentive opportunity.

o    "CEO" means Chief Executive Officer.

o    "Incentive award" or "award" or "incentive" means the amount to be paid, in
     the form of cash, to an eligible employee pursuant to this Plan.

o    "Plan Year" means one 12-month period beginning each January 1 and ending
     each December 31.

o    "Compensation" is defined as the annualized base salary as of February 1st
     of each Plan Year.

                               Plan Administration

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o    The Plan shall be administered by the Compensation Committee appointed by
     the Board of Directors of Journal. A majority of the Compensation Committee
     shall constitute a quorum and the acts of a majority of the members present
     at any meeting at which a quorum is present, or actions approved in writing
     by all members of the Compensation Committee, shall constitute the acts of
     the Compensation Committee.

o    The Compensation Committee shall have sole authority and discretion,
     consistent with the provisions of this Plan, to:

     o    Approve participants eligible to participate in the Plan

     o    Approve at the beginning of each Plan Year

          o    Incentive Opportunity Ranges (Minimum midpoint and maximum)

          o    Performance Levels (corporate, subsidiary and individual) and
               their respective weightings

          o    Corporate, subsidiary and individual performance measures, goals
               and their respective weightings for each eligible participant

     Establish and approve the incentive opportunity ranges, performance levels,
     performance measures, goals and weightings for Journal's CEO.

     o    Approve Incentive Planning Calendar

     o    Approve at the end of each Plan Year

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          o    Incentive awards and individual payments for all Plan
               participants

o    The Compensation Committee shall have full authority and discretion to
     adopt rules and regulations to carry out the purposes and provisions of
     this Plan within the parameters defined by the Board of Directors. The
     Compensation Committee interpretation and construction of any provision of
     this Plan shall be binding and conclusive.

o    The Committee will make decisions according to a majority vote and maintain
     a written record of its decisions and actions, but no member of the
     Committee shall act on any matter that has particular reference to such
     member's own interests under the Plan.

o    All decisions and actions of the Compensation Committee shall be binding
     and conclusive.

o    All expenses of administering the Plan shall be borne by Journal.

                                  Plan Overview

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o    Incentive opportunity ranges (minimum, midpoint and maximum) and the
     weighting between corporate, subsidiary and individual performance levels
     will be established by the CEO and approved by the Compensation Committee
     for each eligible participant. The Committee also has the discretion to
     adjust the ranges of the incentive opportunity and the weighting of the
     performance levels as well as to add or to delete performance levels to
     reflect the strategic direction of Journal and/or its subsidiaries.

o    Corporate, subsidiary and individual performance measures, goals and their
     respective weightings will be recommended by the CEO and approved by the
     Compensation Committee. The Committee also has the discretion to adjust the
     measures, goals and/or weightings to reflect the strategic direction of
     Journal or its subsidiaries.

o    Each participant's incentive award will be determined based on the degree
     to which pre-determined corporate, subsidiary and individual performance
     measures were accomplished by the participant by the conclusion of the Plan
     Year. These performance measures are converted to a percentage of the
     incentive opportunity and multiplied by the respective base salary of each
     participant for the calculation of the incentive award.

o    Participants incentive awards will be calculated after the end of the Plan
     Year.

                          Eligibility and Participation

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o    The Compensation Committee is responsible for reviewing and approving the
     recommendations of the CEO regarding the eligibility and participation of
     employees in the Plan.

o    Participation in the Plan is limited to key employees of Journal whose job
     responsibilities have a direct impact on the strategic goals of Journal.

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o    Initial Plan participants include the following

     o    Chairman of the Board & CEO-- Journal Communications Inc.

     o    President -- Journal Communications Inc.

     o    Senior Vice President & CFO-- Journal Communications Inc.

     o    President -- Journal Sentinel Inc.

     o    President-- Journal Broadcast Group Inc. (Radio)

     o    President-- Journal Broadcast Group Inc. (Television)

     o    President-- Add Inc.

     o    President -- Norlight Telecommunications Inc.

     o    President -- IPC Communication Services Inc.

     o    President -- NorthStar Print Group Inc.

     o    President -- PrimeNet Marketing Services

     o    Senior Officers (as determined by the CEO)

     o    Other Key Executives (as determined by the CEO)

                  Modification of Incentive Opportunity Ranges
                             And Performance Levels

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o    Incentive opportunity ranges and performance levels for eligible employees
     may be adjusted as those employees move in and out of positions. Generally,
     the following conventions will apply when these changes occur:

     o    Eligible participants who are assigned to different eligible positions
          will he considered for purposes of this Plan to have become eligible
          for that position's incentive opportunity ranges, performance levels,
          measures, goals and weightings at the start of the first lull calendar
          month of their assignment. Their incentive award for the year will be
          pro-rated proportionately between the number of months in each
          position.

     o    Non-eligible employees who are promoted and/or newly-hired to
          incentive eligible positions must be in the position prior to July 1st
          of the Plan Year to become immediately eligible for the new position's
          incentive opportunity ranges, performance levels, measures, goals and
          weightings. Non-eligible employees who are promoted and/or newly-hired
          on July 1st or after will be eligible starting at the beginning of the
          next Plan Year.

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                Establishment of Performance Measures, Goals and
                             Weightings for the CEO

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o    Incentive awards are based on the incentive opportunity percentage achieved
     multiplied by the respective base salary of each eligible participant. The
     amount of the incentive award may vary from the participant's midpoint
     incentive opportunity up to the maximum or down to the minimum of the
     incentive opportunity range if the performance of a particular component
     has exceeded or has not met its midpoint goal. Incentive opportunity ranges
     between the minimum and the maximum will he interpolated for incentive
     award determination.

                        Determination of Incentive Awards

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o    Incentive awards are based on the incentive opportunity percentage achieved
     multiplied by the respective base salary of each eligible participant. The
     amount of the incentive award may vary from the participant's midpoint
     incentive opportunity up to the maximum or down to the minimum of the
     incentive opportunity range if the performance of a particular component
     has exceeded or has not met its midpoint goal. Incentive opportunity ranges
     between the minimum and the maximum will be interpolated for incentive
     award determination.

o    The Compensation Committee will approve the incentive awards and individual
     payments for all Plan participants.

                           Payment of Incentive Awards

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o    Incentive awards will be paid before the close of the first quarter, if
     practical, following the year to which the incentive relates.

o    The incentive awards will be paid in the form of cash or deferred at the
     request of each respective participant into Journal's Non-Qualified
     Deferred Compensation Plan. Eligibility for deferment is limited to
     employees who are participants in Journal's Management Long Term Incentive
     Plan.

                            Termination of Employment

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o    The Compensation Committee shall have the sole authority and discretion to
     make decisions regarding the payment of incentives for participants who
     terminate employment voluntarily or involuntarily during the Plan Year due
     to retirement, disability or for other reasons.

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                        No Enlargement of Employee Rights

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o    Nothing contained in the Plan shall be deemed to give any Plan participant
     the right to be retained in the service of Journal or to interfere with the
     right of Journal to discharge, discipline or retire any participant at any
     time.

                      Modification and Changes to the Plan
                              And Incentive Awards

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o    The Compensation Committee may, at any time prior to the approval of the
     incentive awards, approve a change to the performance measures, goals and
     weightings for any participant or participants. Such a change may be
     desirable in the interests of equitable treatment of the participants and
     Journal as a result of extraordinary or non-recurring events, changes in
     applicable accounting rules or principles, changes in Journal's method of
     accounting, changes in applicable law, changes due to consolidation,
     acquisition, divestiture, reorganization or other changes in Journal's
     structure, major changes in business strategy or any other change or a
     similar nature to any of the foregoing.

o    The Committee has the right to modify the incentive awards based on the
     presence of extraordinary occurrences during the Plan Year. Extraordinary
     occurrences are those events which are outside the significant influence of
     Plan participants and would, by their inclusion, cause a significant
     unintended effect, positive or negative, on the corporate, subsidiary or
     individual performance results.

                         Relationship to Other Benefits

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o    Payments under the Plan shall be taken into account in determining any
     benefit under the Journal Communications Inc. Employee Pension Trust
     Agreement.

o    Payments under the Plan will not be taken into account in determining any
     benefits under any other benefit plan of Journal or its subsidiaries except
     as otherwise specifically provided in the respective benefits plan
     agreement.

                          Limitation on Vested Interest

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o    The earning of incentive awards by eligible employees under this Plan is
     within the sole discretion of Journal in accordance with the terms of this
     Plan, and no eligible employee or other person has any legal right or
     vested interest in an incentive award under this Plan prior to the actual
     payment to the eligible employee as an incentive award.

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          Indemnification of Board of Directors, Compensation Committee
               Members and Officers of Journal Communications Inc.

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o    Each member of the Board of Directors, Compensation Committee and/or
     Officer of Journal Communications Inc. shall be indemnified by Journal
     against the reasonable expenses, including attorney's fees, actually and
     necessarily incurred in connection with the defense of any action, suit or
     proceeding, or in connection with any appeal therein, to which such person
     may be a party by reason of any action taken or failure to act under or in
     connection with this Plan, and against all amounts paid by such person in
     settlement thereof (provided such settlement is approved by legal counsel
     selected or approved by Journal) or paid by such person in satisfaction of
     a judgment in any such action, suit or proceeding, except in relation to
     matters as to which it shall be adjudged in such action, suit or
     proceeding. that such Committee member is liable for gross misconduct;
     provided that within sixty (60) days after the institution of such action,
     suit or proceeding, such Committee member shall, in writing, offer Journal
     the opportunity, at its own expense. to handle and defend the same.

                       Plan Amendment and Discontinuation

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o    The Compensation Committee of Journal Communications Inc. may modify,
     suspend or terminate this Plan at any time.

                           Effective Date of the Plan

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o    This Plan shall be effective with the Plan Year beginning January 1, 1994.

                               Plan Communication

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o    Each participant will be given a written description of the Management
     Annual Incentive Plan. The description will provide details of the Plan
     including incentive opportunity ranges, performance levels, specific
     performance measures, goals and weightings, and the incentive opportunity
     associated with each performance level and measure.

o    Participants will receive quarterly reports during the Plan Year with
     respect to the performance measures of the Plan. A final report regarding
     actual performance versus the Plan goals will he communicated within the
     first quarter of the fiscal year following the close of the year to which
     the Plan relates.

JOURNAL COMMUNICATIONS INC.

By:_______________________________

Date:_____________________________


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