| (X) | ANNUAL                    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                    ACT OF                    1934 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (                     ) | TRANSITION                    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                    ACT OF                    1934  |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| For                    the fiscal year ended                    December 31, 2007 | Commission                    file number                    2-28286 |
|-----------------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                                              |                                                                 |
| The                    Bureau of National Affairs,                    Inc.        |                                                                 |
|                                                                                   |                                                                 |
| A                    Delaware                    Corporation                      | 53-0040540(I.R.S.                    Employer Identification No.)    |
|                                                                              |                                                                 |
| 1801                    South                    Bell Street                      | (703)                    341-3000                                    |
| Arlington,                    Virginia 22202                                      | (telephone                    number)                                |

| Large                accelerated                filer o  | Accelerated filer                  o  | Non-accelerated                  filer x  | Smaller                  reporting                  company o  |
|---------------------------------------------------------------|-------------------------------------------------|------------------------------------------------|---------------------------------------------------------------------|

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| TABLE OF                  CONTENTS |
|-----------------------------------------|
|                                    |   |   |
| .                                       |   | Page                  No. |
|                                    | PART                  I. |   |
| Item                  1.                | Business | 3 |
| Item                1A.                 | Risk                Factors |  12 |
| Item                1B.            | Unresolved Staff                Comments |  13 |
| Item                  2.                | Properties | 13 |
| Item                  3.                | Legal                  Proceedings | 13 |
| Item                  4.                | Submission                  of Matters to a Vote                  of Security Holders  | 13 |
|                                    |   |   |
|                                    | PART                  II. |   |
| Item                  5.                | Market                  for the Registrant's Common Equity and                  Related Stockholder |   |
|                                    | Matters and                  Issuer                  Purchases of Equity Securities | 14 |
| Item                  6.           | Selected                  Financial Data and Selected                  Quarterly Data. | 16 |
| Item                  7.           | Management's                  Discussion and Analysis of Financial Condition                  and |   |
|                                    | Results                  of Operations | 17 |
| Item7A.                                 | Quantitative                  and Qualitative                  Disclosures About Market Risk | 23 |
| Item                  8.           | Financial                  Statements and Supplementary                  Data | 24 |
| Item                  9.           | Changes                  in and Disagreements with                  Accountants on Accounting |   |
|                                    | and                  Financial Disclosure | 55 |
| Item                  9A(T).       | Controls                  and Procedures | 55 |
| Item 9B.                      | Other                  Information | 56 |
|                                    |   |   |
|                                    | PART                  III. |   |
| Item                  10.          | Directors                  and Executive Officers, and                  Corporate Governance | 56 |
| Item                  11.          | Executive                  Compensation | 57 |
| Item                  12.          | Security                  Ownership of Certain Beneficial Owners                  and Management |   |
|                                    | and                Related Stockholder Matters  | 58 |
| Item                  13.          | Certain                  Relationships and Related                  Transactions, |   |
|                                    | and                Director Independence  |  58 |
| Item                  14.          | Principal                  Accountant Fees and                  Services | 58 |
|                                    |   |   |
|                                    | PART                  IV. |   |
| Item                  15.          | Exhibits                  and Financial Statement                  Schedules | 58 |
|                                    |   |   |
| SIGNATURES                              |   | 60 |
|                                    |   |   |
| EXHIBIT                  INDEX          |    | 61 |

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Business

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Risk        Factors

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Unresolved        Staff        Comments

Properties

Legal        Proceedings

Submission        of Matters to a Vote of        Security Holders

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Market        for the Registrant's Common Stock and Related        Security Holder Matters

| Stock                      Price                                                                                    |   |   |   |
|---------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|         January                      1, 2006 - March 19, 2006               |   | $      | 13.00  |   |
|         March                      20, 2006 - December 23, 2006             |   |   | 13.75  |   |
|         December                      24, 2006 - March 17, 2007   |   |   | 14.00  |   |
|         March                      18, 2007- September 15, 2007             |   |   | 14.75  |   |
|         Septebmer                      15, 2007- December 31, 2007          |   |   | 15.00  |   |

| Record                  Date and Dividend Amount                                    |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|
|         March                  18, 2006     |   | $      | .17    |   |
|         September                  16, 2006 |   |   | .17    |   |
|         March                  17, 2007     |   |   | .18    |   |
|         September                  15, 2007 |   |   | .18    |   |

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|                                                                        |   |  Total                  Number    |    |  Average                         |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------|---------|---------------------------------------|--------|
|                                                                        |   |  of                   Shares |    |  Price                           |   |
|  Four-Week                Period                                       |   | Purchased                              |    |  Paid                  per Share |   |
|     September                9, 2007 - October 6, 2007  |   |                                   | 546,856 |                                  | $      | 14.99 |   |
|     October                7, 2007 - November 3, 2007   |   |                                   | 139,405 |                                  | $      | 15.00 |   |
|     November                4, 2007 - December 1, 2007  |   |                                   | 109,398 |                                  | $      | 15.00 |   |
|     December                2, 2007 - December 31, 2007 |   |                                   | 131,268 |                                  | $      | 15.00 |   |

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Selected      Financial Data

|                                                           |   | 2007   |    |   | 2006                            |   |    | 2005                                    |   |   | 2004                                    |   |   | 2003                                    |    |
|----------------------------------------------------------------|--------|--------|---------|--------|---------------------------------|--------|---------|-----------------------------------------|--------|--------|-----------------------------------------|--------|--------|-----------------------------------------|---------|
|                                                           |   |   |    |   |  Adjusted              (c) |   |    |   Adjusted                (c) |   |   |   Adjusted                (c) |   |   |   Adjusted                (c) |    |
| Operating                Revenues                              |   | $      | 352,224 |   |                            | $      | 344,862 |                                    |   | $      | 329,036                                 |   |   | $                                       | 322,604 |   |   | $ | 311,962 |   |
| Operating                Expenses (a)                          |   |   | 303,669 |   |                            |   | 313,747 |                                    |   |   | 287,960                                 |   |   |                                    | 281,908 |   |   |   | 285,256 |   |
| Gain                (Loss) on Dispositions (b)                 |   |   | 92,133  |   |                            |   | (19     | )                                       |   |   | (28                                     | )      |   |                                    | (44     | ) |   |   | 724 |   |
| Operating                Profit                                |   |   | 140,688 |   |                            |   | 31,096  |                                    |   |   | 41,048                                  |   |   |                                    | 40,652  |   |   |   | 27,430 |   |
| Investment                Income                               |   |   | 5,566   |   |                            |   | 5,883   |                                    |   |   | 4,132                                   |   |   |                                    | 3,713   |   |   |   | 4,644 |   |
| Interest                Expense                                |   |   | (4,472  | )      |                            |   | (5,604  | )                                       |   |   | (5,907                                  | )      |   |                                    | (5,620  | ) |   |   | (5,710 | ) |
| Income                Before Income Taxes                      |   |   | 141,782 |   |                            |   | 31,375  |                                    |   |   | 39,273                                  |   |   |                                    | 38,745  |   |   |   | 26,364 |   |
| Income                Taxes                                    |   |   | 53,744  |   |                            |   | 11,922  |                                    |   |   | 15,696                                  |   |   |                                    | 14,586  |   |   |   | 9,581 |   |
| Net                Income                                      |   | $      | 88,038  |   |                            | $      | 19,453  |                                    |   | $      | 23,577                                  |   |   | $                                       | 24,159  |   |   | $ | 16,783 |   |
| Profit                Margins (% of revenues):                 |   |   |    |   |                            |   |    |                                    |   |   |                                    |   |   |                                    |    |   |   |   |   |   |
|   Operating                Profit                    |   |   | 39.9    |   |                            |   | 9.0     |                                    |   |   | 12.5                                    |   |   |                                    | 12.6    |   |   |   | 8.8 |   |
|   Earnings                                           |   |   | 25.0    |   |                            |   | 5.6     |                                    |   |   | 7.2                                     |   |   |                                    | 7.5     |   |   |   | 5.4 |   |
| Earnings                Per Share                              |   | $      | 2.99    |   |                            | $      | .65     |                                    |   | $      | .75                                     |   |   | $                                       | .74     |   |   | $ | .48 |   |
| Dividends                Per Share                             |   | $      | .36     |   |                            | $      | .34     |                                    |   | $      | .32                                     |   |   | $                                       | .31     |   |   | $ | .30 |   |
| Balance                Sheet Data:                             |   |   |    |   |                            |   |    |                                    |   |   |                                    |   |   |                                    |    |   |   |   |   |   |
|   Total                Assets                        |   | $      | 399,528 |   |                            | $      | 334,426 |                                    |   | $      | 318,882                                 |   |   | $                                       | 322,163 |   |   | $ | 333,811 |   |
|   Long-Term                Debt-less current portion |   |   | 34,000  |   |                            |   | 44,500  |                                    |   |   | 55,000                                  |   |   |                                    | 62,500  |   |   |   | 70,000 |   |
| Employee                Data:                                  |   |   |    |   |                            |   |    |                                    |   |   |                                    |   |   |                                    |    |   |   |   |   |   |
|   Number                of Employees                 |   |   | 1,719   |   |                            |   | 1,728   |                                    |   |   | 1,729                                   |   |   |                                    | 1,802   |   |   |   | 1,878 |   |
|   Total                Employment Costs              |   | $      | 179,482 |   |                            | $      | 182,008 |                                    |   | $      | 177,138                                 |   |   | $                                       | 172,595 |   |   | $ | 174,363 |   |
| Stockholder                Data at Year-End:                   |   |   |    |   |                            |   |    |                                    |   |   |                                    |   |   |                                    |    |   |   |   |   |   |
|   Number                of Stockholders              |   |   | 1,557   |   |                            |   | 1,655   |                                    |   |   | 1,673                                   |   |   |                                    | 1,711   |   |   |   | 1,786 |   |
|  Common                Shares Outstanding (in thousands)  |   |   | 28,734  |   |                            |   | 30,155  |                                    |   |   | 30,204                                  |   |   |                                    | 31,719  |   |   |   | 33,653 |   |

| (a)  | Includes                  goodwill impairment charge of $11,576 in 2006                                                                  |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| (b)       | Includes                    a $92,524 gain ($56,433 net of tax) on the sale of the Company’s                    headquarters buildings. |

| (c) | The                    selected consolidated                    financial data presented above is derived from our audited consolidated                    financial statements, with the years 2006 and prior adjusted                    to give                    retrospective effect to the adoption of an accounting change                    as further                    described in Note 16 to the Consolidated Financial                    Statements.                    Adjustments for this accounting change resulted in changes to                    net income                    and (earnings per share) for 2004 and 2003 as follows: 2004,                    increased                    $681 ($0.02); 2003, increased $708 ($0.02). The effect of the                    change on                    assets was as follows: 2004, decreased $2,250; 2003, decreased                    $2,930.                    In addition, as of January 1, 2003, this adjustment reduced                    retained earnings by $3,638. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Management's      Discussion and Analysis of Financial Condition and      Results of Operations

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|                                                   |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Operating                Profit                        |   |   |   |   |   |   |   |   |   |
| Publishing                                        |   | $      | 568    |   |   | $      | 124    |   |   | $ | (885 | )  |
| Software                                          |   |   | 20     |   |   |   | 16     |   |   |   | (83 | )  |
| Total                                             |   | $      | 588    |   |   | $      | 140    |   |   | $ | (968 | )  |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Income                         |   | $      | 353    |   |   | $      | 82     |   |   | $ | (579 | )  |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                Per                Share  |   | $      | 0.01   |   |   | $      | 0.01   |   |   | $ | (0.02 | )  |

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|                                                                    |   | Payments                      Due by Period |   |
|-------------------------------------------------------------------------|--------|---------------------------------------------|--------|
|  Contractual                      Obligations:                     |   |  Total                                 |   | Less                      than1                      Year |   | 1-3Years |   | 3-5Years |   | After                      5Years |   |
| Term                      Debt (includes                      interest) |   | $                                           | 52,291 |   | $ | 13,737 |   | $ | 25,070 |   | $ | 13,454 |   | $ | --- |   |
| Operating                      Leases                                   |   |                                        | 10,660 |   |   | 2,861 |   |   | 4,370 |   |   | 2,031 |   |   | 1,398 |   |
| Planned                      Pension                      Contributions |   |                                        | 14,000 |   |   | 14,000 |   |   | --- |   |   | --- |   |   | --- |   |
| Total                                                                   |   | $                                           | 76,951 |   | $ | 30,628 |   | $ | 29,440 |   | $ | 15,485 |   | $ | 1,398 |   |

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Item          7A.     Quantitative          and Qualitative          Disclosures about Market Risk

|                                              |   |   |       |   |   |       |   |   |   |   |   |       |   |
|---------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|--------|------------|--------|
|  Expected                      Maturity Date |   | 2008   |       | 2009   |   | 2010       |   | 2011   |   | 2012   |   | Thereafter |   |
|                                              |   |   |       |   |   |       |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Municipal                        Bonds            |   | $      | 10,378     |   | $      | 7,283      |   | $      | 17,819 |   | $      | 10,924     |   | $ | 5,838 |   | $ | 50,801 |   |
|                                              |   |   |       |   |   |       |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Average                      Interest Yield  |   |   |  4.8% |   |   |  5.2% |   |   | 4.9%   |   |   |  4.9% |   |   | 4.8% |   |   | 4.9% |   |

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Financial      Statements and Supplementary      Data

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|                                                                               |   | 2007   |    | 2006Adjusted* |   | 2005Adjusted* |   |
|------------------------------------------------------------------------------------|--------|--------|---------|---------------|--------|---------------|--------|
|                                                                               |   |   |    |          |   |          |   |
| Operating                  Revenues (Note                  3)                      |   | $      | 352,224 |          | $      | 344,862       |   | $ | 329,036 |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Operating                  Expenses                                                |   |   |    |          |   |          |   |   |   |   |
|    (Notes                  3,4, 7, 9,  and 11):           |   |   |    |          |   |          |   |   |   |   |
|   Editorial,                  production, and distribution               |   |   | 184,301 |          |   | 184,477       |   |   | 175,753 |   |
|   Selling                                                                |   |   | 57,478  |          |   | 58,184        |   |   | 53,357 |   |
|   General                  and administrative                            |   |   | 61,890  |          |   | 59,510        |   |   | 58,850 |   |
|   Goodwill                  impairment                                   |   |   | ---     |          |   | 11,576        |   |   | --- |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
|     Total                  Operating Expenses                  |   |   | 303,669 |          |   | 313,747       |   |   | 287,960 |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Gain                  (Loss) on Dispositions (Notes 2                  and 6) |   |   | 92,133  |          |   | (19           | )      |   | (28 | ) |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Operating                  Profit                                                  |   |   | 140,688 |          |   | 31,096        |   |   | 41,048 |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Investment                  income (Note                  5)                       |   |   | 5,566   |          |   | 5,883         |   |   | 4,132 |   |
| Interest                  expense (Note                  10)                       |   |   | (4,472  | )             |   | (5,604        | )      |   | (5,907 | ) |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Income                  Before Income Taxes                                        |   |   | 141,782 |          |   | 31,375        |   |   | 39,273 |   |
| Provision                  for income taxes (Note                  8)              |   |   | 53,744  |          |   | 11,922        |   |   | 15,696 |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Net                  Income                                                        |   | $      | 88,038  |          | $      | 19,453        |   | $ | 23,577 |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
|                                                                               |   |   |    |          |   |          |   |   |   |   |
| Earnings                  Per Share (Note                  12)                |   | $      | 2.99    |          | $      | .65           |   | $ | .75 |   |

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|                                                                                                    |   | December                31, |    |
|---------------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                                    |   | 2007                        |    | 2006Adjusted* |   |
| Current                Assets:                                                                          |   |                        |    |   |   |
|   Cash                and cash                equivalents (Note                5)             |   | $                           | 11,789  |   | $ | 24,001 |   |
|   Short-term                investments                (Note                5)                |   |                        | 10,378  |   |   | 23,877 |   |
|   Receivables,                net (Note                9)                                |   |                        | 42,432  |   |   | 44,282 |   |
|   Inventories,                net (Note                9)                                |   |                        | 3,143   |   |   | 3,699 |   |
|   Prepaid                expenses                                                             |   |                        | 4,589   |   |   | 5,106 |   |
|   Deferred                income taxes                (Note                8)                 |   |                        | 6,250   |   |   | 3,773 |   |
|                                                                                                    |   |                        |    |   |   |   |   |
| Total                Current                Assets                                                      |   |                        | 78,581  |   |   | 104,738 |   |
|                                                                                                    |   |                        |    |   |   |   |   |
| Marketable                Securities (Note                5)                                            |   |                        | 109,801 |   |   | 94,063 |   |
| Property                and                Equipment, net (Note                9)                  |   |                        | 125,628 |   |   | 25,836 |   |
| Deferred                Income                Taxes (Note                8)                             |   |                        | 13,864  |   |   | 29,548 |   |
| Goodwill                (Note                7)                                                         |   |                        | 61,790  |   |   | 61,790 |   |
| Intangible                and                Other Amortizable Assets, net (Note                9) |   |                        | 9,741   |   |   | 13,720 |   |
| Other                Assets                (Note                9)                                      |   |                        | 123     |   |   | 4,731 |   |
|                                                                                                    |   |                        |    |   |   |   |   |
| Total                Assets                                                                             |   | $                           | 399,528 |   | $ | 334,426 |   |

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|                                                                                                                  |   | December                31, |     |
|-----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|
|                                                                                                                  |   |                        |     |   |   |
|                                                                                                                  |   | 2007                        |     | 2006Adjusted* |   |
| Current                Liabilities:                                                                                   |   |                        |     |   |   |
|   Current                portion of                long-term debt (Note                10)                  |   | $                           | 10,500   |   | $ | 10,500 |   |
|   Payables                and accrued                liabilities (Note                9)                    |   |                        | 52,363   |   |   | 63,278 |   |
|   Deferred                revenues                (Note                3)                                   |   |                        | 140,044  |   |   | 135,660 |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Total                Current                Liabilities                                                               |   |                        | 202,907  |   |   | 209,438 |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Long-Term                Debt,                less current                portion  (Note                10) |   |                        | 34,000   |   |   | 44,500 |   |
| Postretirement                Benefits, less                current portion (Note                4)                   |   |                        | 127,538  |   |   | 77,279 |   |
| Other                Liabilities                                                                                      |   |                        | 1,703    |   |   | 1,360 |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Total                Liabilities                                                                                      |   |                        | 366,148  |   |   | 332,577 |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Commitments                and                Contingencies (Notes                2, 11, and                12)  |   |                        |     |   |   |   |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Stockholders’                Equity (Note                12):                                              |   |                        |     |   |   |   |   |
|   Common                stock issued,                $1.00 par value --                                     |   |                        |     |   |   |   |   |
|     Class                A –                30,000,000 shares                               |   |                        | 30,000   |   |   | 30,000 |   |
|     Class                B –                24,634,865 shares                               |   |                        | 24,635   |   |   | 24,635 |   |
|     Class                C –                2,531,680 shares                                |   |                        | 2,532    |   |   | 2,532 |   |
|   Additional                paid-in                capital                                                  |   |                        | 35,772   |   |   | 23,876 |   |
|   Retained                earnings                                                                          |   |                        | 198,003  |   |   | 120,685 |   |
|   Treasury                stock, at                cost – 28,432,880                shares            |   |                        |     |   |   |   |   |
|     in                2007 and                27,011,236in                2006                    |   |                        | (227,202 | ) |   | (201,034 | ) |
|   Accumulatedother                comprehensive income                (loss):                               |   |                        |     |   |   |   |   |
|     Net                unrealized gain on marketable securities                                   |   |                        | 1,822    |   |   | 1,492 |   |
|     Foreign                currency translation adjustment                                        |   |                        | (287     | ) |   | (241 | ) |
|     Postretirement                benefits                liability                adjustment     |   |                        | (31,895  | ) |   | (96 | ) |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Total                Stockholders’                Equity                                                        |   |                        | 33,380   |   |   | 1,849 |   |
|                                                                                                                  |   |                        |     |   |   |   |   |
| Total                Liabilities and                Stockholders’ Equity                                        |   | $                           | 399,528  |   | $ | 334,426 |   |

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|                                                                                   |   | 2007   |     | 2006Adjusted* |   | 2005Adjusted* |   |
|----------------------------------------------------------------------------------------|--------|--------|----------|---------------|--------|---------------|--------|
|                                                                                   |   |   |     |          |   |          |   |
| Cash                  Flows from Operating                  Activities:                |   |   |     |          |   |          |   |
|   Net                  income                                                |   | $      | 88,038   |          | $      | 19,453        |   | $ | 23,577 |   |
|                                                                                   |   |   |     |          |   |          |   |   |   |   |
|   Adjustments                  to reconcile net income to net                |   |   |     |          |   |          |   |   |   |   |
|     cash                  provided by operating activities – |   |   |     |          |   |          |   |   |   |   |
|     Goodwill                  impairment                           |   |   | ---      |          |   | 11,576        |   |   | --- |   |
|     Depreciation                  and amortization                 |   |   | 8,319    |          |   | 8,534         |   |   | 9,762 |   |
|     Deferred                  income taxes                         |   |   | 35,040   |          |   | 184           |   |   | 3,704 |   |
|     Gain                  on sales of securities                   |   |   | (450     | )             |   | (1,347        | )      |   | (347 | ) |
|     Gain                  on sale of buildings                     |   |   | (92,524  | )             |   | ---           |   |   | --- |   |
|     Others                                                         |   |   | 1,545    |          |   | 1,125         |   |   | 1,965 |   |
|                                                                                   |   |   |     |          |   |          |   |   |   |   |
|   Changes                  in operating assets and liabilities –       |   |   |     |          |   |          |   |   |   |   |
|     Receivables                                                    |   |   | 1,918    |          |   | (5,963        | )      |   | (7,981 | ) |
|     Deferred                  revenues                             |   |   | 4,384    |          |   | 4,067         |   |   | 5,988 |   |
|     Payables                  and accrued liabilities              |   |   | (6,284   | )             |   | 3,435         |   |   | (161 | ) |
|     Postretirement                  benefits                       |   |   | 1,090    |          |   | 5,106         |   |   | 3,649 |   |
|     Inventories                                                    |   |   | 556      |          |   | (493          | )      |   | 329 |   |
|     Other                  assets and liabilities – net      |   |   | 650      |          |   | (985          | )      |   | (1,069 | ) |
|                                                                                   |   |   |     |          |   |          |   |   |   |   |
| Net                  cash provided by operating activities                             |   |   | 42,282   |          |   | 44,684        |   |   | 39,416 |   |
|                                                                                   |   |   |     |          |   |          |   |   |   |   |
| Cash                  Flows from Investing Activities:                                 |   |   |     |          |   |          |   |   |   |   |
|     Proceeds                  from sale of buildings               |   |   | 106,090  |          |   | ---           |   |   | --- |   |
|     Purchase                  of building and improvements         |   |   | (103,955 | )             |   | (403          | )      |   | --- |   |
|     Purchase                  of equipment and furnishings         |   |   | (10,209  | )             |   | (4,570        | )      |   | (1,776 | ) |
|     Capitalized                  software                          |   |   | (343     | )             |   | (1,032        | )      |   | (1,160 | ) |
|     Purchase                  of publishing assets                 |   |   | (155     | )             |   | (50           | )      |   | --- |   |
|     Business                  purchase price adjustments           |   |   | ---      |          |   | ---           |   |   | 86 |   |
|     Proceeds                  from sale of assets                  |   |   | ---      |          |   | 26            |   |   | --- |   |
|     Investment                  security sales and maturities      |   |   | 89,303   |          |   | 66,821        |   |   | 57,282 |   |
|     Investment                  securities purchases               |   |   | (93,651  | )             |   | (71,424       | )      |   | (55,971 | ) |
| Net                  cash used for investing activities                                |   |   | (12,920  | )             |   | (10,632       | )      |   | (1,539 | ) |

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|                                                                                                                                |   | 2007   |                  | 2006Adjusted* |   | 2005Adjusted* |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------------|---------------|--------|---------------|--------|
|                                                                                                                                |   |   |                  |          |   |          |   |
| Cash                  Flows from Financing                  Activities:                                                             |   |   |                  |          |   |          |   |
|   Receipts                  for capital                  stock sales to employees                                         |   |   | 9,626                 |          |   | 12,617        |   |   | 11,479 |   |
|   Purchases                  of treasury                  stock                                                           |   |   | (29,980               | )             |   | (13,954       | )      |   | (31,115 | ) |
|   Payment                  of long-term                  debt                                                             |   |   | (10,500               | )             |   | (7,500        | )      |   | (7,500 | ) |
|   Dividends                  paid                                                                                         |   |   | (10,720               | )             |   | (10,270       | )      |   | (10,127 | ) |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
| Net                  cash used for financing                  activities                                                            |   |   | (41,574               | )             |   | (19,107       | )      |   | (37,263 | ) |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
| Net                  Increase (Decrease) in                  Cash  and                  Cash                  Equivalents |   |   | (12,212               | )             |   | 14,945        |   |   | 614 |   |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
| Cash                  and Cash                  Equivalents, beginning                  of                  year               |   |   | 24,001                |          |   | 9,056         |   |   | 8,442 |   |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
| Cash                  and Cash                  Equivalents, end                  of                  year                          |   | $      | 11,789                |          | $      | 24,001        |   | $ | 9,056 |   |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
|                                                                                                                                |   |   |                  |          |   |          |   |   |   |   |
| Supplemental                  Cash Flow                  Information:                                                               |   |   |                  |          |   |          |   |   |   |   |
|   Interest                  paid                                                                                          |   | $      | 4,                146 |          | $      | 4,840         |   | $ | 5,480 |   |
|   Income                  taxes                  paid                                                                     |   |   | 17,230                |          |   | 11,761        |   |   | 12,229 |   |

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Table          of Contents

|                                                                                                             | Comprehensive                          |                   | Capital     |   | Additional     |   |                  |            |               |    |                |   |
|------------------------------------------------------------------------------------------------------------------|----------------------------------------|------------------------|-------------|--------|----------------|--------|------------------|-----------------|---------------|---------|---------------------|--------|
|                                                                                                             | Income (Note                  13) |                   | StockIssued |   | Paid-InCapital |   | RetainedEarnings |            | TreasuryStock |    | ComprehensiveIncome |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |
|  Balance,                  January 1,                  2005                                                 |                                   |                   | $           | 57,167 |           | $      | 15,910           |            | $             | 100,301 |                | $      | (166,154 | ) | $ | 421 |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |
|   Accounting                change adjustment                                                          |                                   |                   |        |   |           |   |             |            |          |    | (2,249         | )      |   |   |   |   |   |   |
|   Net                  Income, as                  adjusted (Note 16)                                  | $                                      | 23,577                 |        |   | ---            |   |             | ---             |          |    | 23,577              |   |   | --- |   |   | --- |   |
|   Other                  Comprehensive                  Income, net of tax:                            |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|     Unrealized                  (loss) on marketable securities                              |                                   | (60                    | )      |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | (60 | ) |
|     Currency                  translation adjustment                                         |                                   | 143                    |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | 143 |   |
|     Minimum                  pension liability adjustment                                    |                                   | (597                   | )           |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | (597 | ) |
|   Comprehensive                  Income                                                                | $                                      | 23,063                 |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|   Sales                  of Class A                  treasury shares to employees                      |                                   |                   |        |   | ---            |   |             | 6,820           |          |    | ---                 |   |   | 4,659 |   |   | --- |   |
|   Repurchases                  of                  shares                                              |                                   |                   |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | (31,115 | ) |   | --- |   |
|   Cash                  dividends--$.32                  per share, class A, B, and C                  |                                   |                   |        |   | ---            |   |             | ---             |          |    | (10,127             | )      |   | --- |   |   | --- |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|  Balance,                  December 31,                  2005, as                  adjusted (Note 16)       |                                   |                   |        |   | 57,167         |   |             | 22,730          |          |    | 111,502             |   |   | (192,610 | ) |   | (93 | ) |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|   Net                  Income, as                  adjusted (Note 16)                                  | $                                      | 19,                453 |        |   | ---            |   |             | ---             |          |    | 19,453              |   |   | --- |   |   | --- |   |
|   Other                  Comprehensive                  Income, net of tax:                            |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|     Unrealized                  gain on marketable securities                                |                                   |   923        |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   |   923 | ) |
|     Currency                  translation adjustment                                         |                                   | (176                   | )           |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | (176 | ) |
|     Minimum                  pension liability adjustment                                    |                                   | 501                    |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | 501 |   |
|   Comprehensive                  Income                                                                | $                                      | 20,                701 |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|   Sales                  of Class A                  treasury shares to employees                      |                                   |                   |        |   | ---            |   |             | 7,011           |          |    | ---                 |   |   | 5,530 |   |   | --- |   |
|   Repurchases                  of                  shares                                              |                                   |                   |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | (13,954 | ) |   | --- |   |
|   Share-based                  liabilities                                                             |                                   |                   |        |   | ---            |   |             | (6,310          | )             |    | ---                 |   |   | --- |   |   | --- |   |
|   Stock-based                  compensation expense                                                    |                                   |                   |        |   | ---            |   |             | 445             |          |    | ---                 |   |   | --- |   |   | --- |   |
|   Cash                  dividends--$.34                  per share, class A, B, and C                  |                                   |                   |        |   | ---            |   |             | ---             |          |    | (10,270             | )      |   | --- |   |   | --- |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
| Balance,                  December 31, 2006, as                  adjusted (Note16)                               |                                   |                   |        | $      | 57,167         |   | $                | 23,876          |          | $       | 120,685             |   | $ | (201,034 | ) | $ | 1,155 |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|   Net                  Income                                                                          | $                                      | 88,038                 |        |   | ---            |   |             | ---             |          |    | 88,038              |   |   | --- |   |   | --- |   |
|   Other                  Comprehensive                  Income, net of tax:                            |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|     Unrealized                  gain on marketable                  securities               |                                   | 330                    |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | 330 |   |
|     Currency                  translation adjustment                                         |                                   | (46                    | )           |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | (46 | ) |
|    Minimum                  pension liability                  adjustment                         |                                   |   96         |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | 96 |   |
|   Comprehensive                  Income                                                                | $                                      | 88,418                 |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|   Adoption                  of FAS 158 (net of                                                         |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
|     $22,049                  tax benefit)                                                    |                                   |                   |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | --- |   |   | (31,895 | ) |
|   Sales                  of Class A treasury shares to employees                                       |                                   |                   |        |   | ---            |   |             | 5,328           |          |    | ---                 |   |   | 3,812 |   |   | --- |   |
|   Repurchases                  of shares                                                               |                                   |                   |        |   | ---            |   |             | ---             |          |    | ---                 |   |   | (29,980 | ) |   | --- |   |
|   Share-based                  liabilities                                                             |                                   |                   |        |   | ---            |   |             | 6,310           |          |    | ---                 |   |   | --- |   |   | --- |   |
|   Stock-based                  compensation expense                                                    |                                   |                   |        |   | ---            |   |             | 258             |          |    | ---                 |   |   | --- |   |   | --- |   |
|   Cash                  dividends--$.36 per                  share, class A, B, and                  C |                                   |                   |        |   | ---            |   |             |   --- |          |    | (10,720             | )      |   | --- |   |   | --- |   |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |
| Balance,                  December 31,                  2007                                                     |                                   |                   |        | $      | 57,167         |   | $                | 35,772          |          | $       | 198,003             |   | $ | (227,202 | ) | $ | (30,                360 | ) |
|                                                                                                             |                                   |                   |        |   |           |   |             |            |          |    |                |   |   |   |   |   |   |   |

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Table                      of Contents

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Table                    of Contents

|                                                                                 |   | Before Application of                           FAS 158 |        |   | Adjustment |   |          | After Application                          of FAS                          158 |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------|-------------|--------|------------|--------|---------------|-------------------------------------------------------------------------------------|--------|
|                                                                                 |   |                                                                   |        |   |       |   |          |                                                                                |   |
| Prepaid                          expenses                                            |   | $                                                                      | 8,317       |   |       | $      | (3,728        | )                                                                                   |   | $ | 4,589 |   |
| Deferred                          income taxes                                       |   |                                                                   | (1,935      | )      |       |   | 22,049        |                                                                                |   |   | 20,114 |   |
| Total                          assets                                                |   |                                                                   | 381,207     |   |       |   | 18,321        |                                                                                |   |   | 399,528 |   |
| Payables                          and accrued liabilities                            |   |                                                                   | 42,926      |   |       |   | 9,437         |                                                                                |   |   | 52,363 |   |
| Postretirement                          benefits                                     |   |                                                                   | 86,759      |   |       |   | 40,779        |                                                                                |   |   | 127,538 |   |
| Total                          liabilities                                           |   |                                                                   | 315,932     |   |       |   | 50,216        |                                                                                |   |   | 366,148 |   |
| Accumulated                          other comprehensive                             |   |                                                                   |        |   |       |   |          |                                                                                |   |   |   |   |
| income                          (loss)                                               |   |                                                                   | 1,535  |   |       |   | (31,895  | )                                                                              |   |   | (30,360  | )  |
| Total                          stockholders’ equity                            |   |                                                                   | 65,275      |   |       |   | (31,895       | )                                                                                   |   |   | 33,380 |   |
| Total  Liabilities                          and Stockholders’ equity |   | $                                                                      | 381,207     |   |       | $      | 18,321        |                                                                                |   | $ | 399,528 |   |

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Table          of Contents

|                                                                                                                     |   | Pension                  Benefits |    | Other                  Postretirement Benefits |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|---------|------------------------------------------------|--------|
|                                                                                                                     |   | 2007                              |    | 2006                                           |   | 2007 |   | 2006 |   |
| Change                  in projected benefit obligation:                                                                 |   |                              |    |                                           |   |   |   |   |   |
| Benefit                  obligation -- January 1                                                                         |   | $                                 | 197,595 |                                           | $      | 190,889 |   | $ | 140,332 |   | $ | 139,923 |   |
| Service                  cost                                                                                            |   |                              | 7,997   |                                           |   | 8,160 |   |   | 5,672 |   |   | 5,610 |   |
| Interest                  cost                                                                                           |   |                              | 11,250  |                                           |   | 10,404 |   |   | 8,203 |   |   | 7,835 |   |
| Actuarial                  (gain) loss                                                                                   |   |                              | (12,397 | )                                              |   | (4,768 | ) |   | 4,524 |   |   | (9,895 | ) |
| Benefits                  paid                                                                                           |   |                              | (7,824  | )                                              |   | (7,090 | ) |   | (3,653 | ) |   | (3,141 | ) |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Benefit                  obligation -- December 31                                                                       |   |                              | 196,621 |                                           |   | 197,595 |   |   | 155,078 |   |   | 140,332 |   |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Change                  in plan assets:                                                                                  |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Fair                  value of plan assets -- January 1                                                                  |   |                              | 167,958 |                                           |   | 139,666 |   |   | 26,520 |   |   | 25,050 |   |
| Actual                  return on plan assets                                                                            |   |                              | 10,744  |                                           |   | 21,190 |   |   | (524 | ) |   | 1,470 |   |
| Employer                  contribution                                                                                   |   |                              | 14,000  |                                           |   | 14,000 |   |   | --- |   |   | --- |   |
| Benefits                  paid                                                                                           |   |                              | (7,736  | )                                              |   | (6,898 | ) |   | --- |   |   | --- |   |
| Fair                  value of plan assets -- December 31                                                                |   |                              | 184,966 |                                           |   | 167,958 |   |   | 25,996 |   |   | 26,520 |   |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Funded                  status                                                                                           |   |                              | (11,655 | )                                              |   | (29,637 | ) |   | (129,082 | ) |   | (113,812 | ) |
| Unrecognized                  net loss                                                                                   |   |                              | ---     |                                           |   | 22,144 |   |   | --- |   |   | 35,063 |   |
| Unrecognized                  prior service cost                                                                         |   |                              | ---     |                                           |   | 557 |   |   | --- |   |   | (17 | ) |
| Net                  amount recognized                                                                                   |   | $                                 | (11,655 | )                                              | $      | (6,936 | ) | $ | (129,082 | ) | $ | (78,766 | ) |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Amounts                  recognized in the balance sheet                                                                 |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
|   Payable                  and accrued liabilities                                                             |   |                              | (9,558  | )                                              |   | (5,448 | ) |   | (3,641 | ) |   | (3,132 | ) |
|   Postretirement                  Benefits                                                                     |   |                              | (2,097  | )                                              |   | (1,645 | ) |   | (125,441 | ) |   | (75,634 | ) |
|   Minimum                  pension liability                                                                   |   |                              | ---     |                                           |   | 157 |   |   | --- |   |   | --- |   |
| Net                  amount recognized                                                                                   |   | $                                 | (11,655 | )                                              | $      | (6,936 | ) | $ | (129,082 | ) | $ | (78,766 | ) |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Amounts                  included in accumulated other  comprehensive                  income (loss) (pre-tax) |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
|   Net                  actuarial loss                                                                          |   |                              | (13,153 | )                                              |   |   |   |   | (40,296 | ) |   |   |   |
|   Prior                  service cost                                                                          |   |                              | (495    | )                                              |   |   |   |   | --- |   |   |   |   |
| Total                                                                                                                    |   | $                                 | (13,648 | )                                              |   |   |   | $ | (40,296 | ) |   |   |   |
|                                                                                                                     |   |                              |    |                                           |   |   |   |   |   |   |   |   |   |
| Assumed                  discount rate                                                                                   |   |                              | 6.35    | %                                              |   | 5.8 | % |   | 6.35 | % |   | 5.8 | % |
| Assumed                  rate of compensation increase                                                                   |   |                              | 4.75    | %                                              |   | 4.75 | % |   | --- |   |   | --- |   |

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Table              of Contents

|                                     |   |     |   |   | Other          |   |
|------------------------------------------|--------|----------|--------|--------|----------------|--------|
|                                     |   | Pension  |   |   | Postretirement |   |
|                                     |   | Benefits |   |   | Benefits       |   |
|                                     |   |     |   |   |           |   |
| 2008                                     |   | $        | 9,740  |   |           | $      | 4,206 |   |
| 2009                                     |   |     | 10,463 |   |           |   | 4,883 |   |
| 2010                                     |   |     | 11,329 |   |           |   | 5,610 |   |
| 2011                                     |   |     | 12,462 |   |           |   | 6,313 |   |
| 2012                                     |   |     | 13,535 |   |           |   | 7,064 |   |
| Years                  2013 – 2017 |   |     | 81,035 |   |           |   | 45,673 |   |

|                                                    |   |                Pension                Benefits |        |
|---------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|-------------|
|                                                    |   | 2007                                                                                                                      |        | 2006 |   |
| Projected                benefit obligation             |   | $                                                                                                                         | 196,621     |   | $ | 197,595 |   |
| Accumulated                benefit obligation           |   |                                                                                                                      |        |   |   |   |   |
| Qualified                plan                           |   |                                                                                                                      | 161,878     |   |   |  160,172 |   |
| Supplemental                plan                        |   |                                                                                                                      |  1,696 |   |   | 1,732 |   |
| Fair                value of plan assets-qualified plan |   |                                                                                                                      | 184,966     |   |   | 167,958 |   |

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Table          of Contents

|                                                           |   | 2007   |    | 2006   |   | 2005    |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Service                cost -- benefits earned during the year |   | $      | 7,997   |   | $      | 8,160   |   | $ | 7,814 |   |
| Interest                cost                                   |   |   | 11,250  |   |   | 10,404  |   |   | 9,961 |   |
| Expected                return on plan assets                  |   |   | (14,467 | )      |   | (12,051 | )      |   | (10,960 | ) |
| Amortization                of net actuarial loss              |   |   | 317     |   |   | 1,9571  |   |   | 1,343 |   |
| Amortization                of prior service cost              |   |   | 62      |   |   | 62      |   |   | 62 |   |
| Pension                expense                                 |   | $      | 5,159   |   | $      | 8,532   |   | $ | 8,220 |   |
| Assumed                discount rate                           |   |   | 5.8%    |   |   | 5.5%    |   |   | 5.7% |   |
| Assumed                rate of compensation increase           |   |   | 4.75%   |   |   | 4.75%   |   |   | 5.0% |   |
| Expected                long-term return on plan assets        |   |   | 8.5%    |   |   | 8.5%    |   |   | 8.5% |   |

|                                                           |   | 2007   |   | 2006   |   | 2005   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Service                cost -- benefits earned during the year |   | $      | 5,672  |   | $      | 5,610  |   | $ | 4,936 |   |
| Interest                cost                                   |   |   | 8,203  |   |   | 7,835  |   |   | 7,361 |   |
| Expected                return on plan assets                  |   |   | (2,254 | )      |   | (2,129 | )      |   | (2,047 | ) |
| Amortization                of net actuarial loss              |   |   | 2,068  |   |   | 2,636  |   |   | 2,473 |   |
| Amortization                of prior service cost              |   |   | (17    | )      |   | (54    | )      |   | (54 | ) |
| Other                postretirement benefits expense           |   | $      | 13,672 |   | $      | 13,898 |   | $ | 12,669 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| Assumed                discount rate                           |   |   | 5.8%   |   |   | 5.5%   |   |   | 5.7% |   |
| Expected                long-term return on plan assets        |   |   | 8.5%   |   |   | 8.5%   |   |   | 8.5% |   |

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Table                  of Contents

|                                   |   |  Pension                Benefits  |      | Other                Postretirement Benefits |   |
|----------------------------------------|--------|---------------------------------------------|-----------|---------------------------------------------------|--------|
|                                   |   | 2007                                        |      | 2006                                              |   | 2007 |   | 2006 |   |
| Equity                securities       |   |                                        |  65% |                                              |   | 65% |   |   | 67% |   |   | 70% |   |
| Fixed                income securities |   |                                        |  28  |                                              |   | 27 |   |   | 32 |   |   | 28 |   |
| Cash                equivalents        |   |                                        |  7   |                                              |   | 8 |   |   | 1 |   |   | 2 |   |
| Total                                  |   |                                        | 100%      |                                              |   | 100% |   |   | 100% |   |   | 100% |   |

|                                     |   |  December                31, |    |
|------------------------------------------|--------|-----------------------------------|---------|
|                                     |   | 2007                              |    | 2006 |   |
| Cash                and cash equivalents |   | $                                 | 11,789  |   | $ | 24,001 |   |
| Short-term                investments    |   |                              | 10,378  |   |   | 23,877 |   |
| Marketable                securities     |   |                              | 109,801 |   |   | 94,063 |   |
| Total                                    |   | $                                 | 131,968 |   | $ | 141,941 |   |

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Table            of Contents

|                                           |   | 2007   |      | 2006   |   | 2005  |   |
|------------------------------------------------|--------|--------|-----------|--------|--------|-------|--------|
| Interest                income                 |   | $      | 4,735     |   | $      | 4,091 |   | $ | 3,284 |   |
| Dividend                income                 |   |   | 381       |   |   | 445   |   |   | 501 |   |
| Net                gain on sales of securities |   |   | 450  |   |   | 1,347 |   |   | 347 |   |
| Total                                          |   | $      | 5,566     |   | $      | 5,883 |   | $ | 4,132 |   |

| December                  31, 2007 |   | AmortizedCost |    | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | FairValue |   |
|------------------------------------|--------|---------------|---------|----------------------|--------|-----------------------|--------|-----------|--------|
| Equity                securities   |   | $             | 15,509  |                 | $      | 1,621                 |   | $         | (36    | ) | $ | 17,094 |   |
| Municipal                bonds     |   |          | 101,826 |                 |   | 1,358                 |   |      | (141   | ) |   | 103,043 |   |
| Corporate                debt      |   |          | 41      |                 |   | 1                     |   |      | ---    |   |   | 42 |   |
| Total                              |   | $             | 117,376 |                 | $      | 2,980                 |   | $         | (177   | ) | $ | 120,179 |   |

| December                31, 2006 |   | AmortizedCost |    | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | FairValue |   |
|----------------------------------|--------|---------------|---------|----------------------|--------|-----------------------|--------|-----------|--------|
| Equity                securities |   | $             | 15,913  |                 | $      | 1,565                 |   | $         | (99    | ) | $ | 17,379 |   |
| Municipal                bonds   |   |          | 94,611  |                 |   | 1,077                 |   |      | (302   | ) |   | 95,386 |   |
| Corporate                debt    |   |          | 5,121   |                 |   | 73                    |   |      | (19    | ) |   | 5,175 |   |
| Total                            |   | $             | 115,645 |                 | $      | 2,715                 |   | $         | (420   | ) | $ | 117,940 |   |

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Table          of Contents

|                                 |   |            |   |  Gross                Unrealized Losses            |   |
|--------------------------------------|--------|-----------------|--------|---------------------------------------------------------|--------|
| December              31, 2007       |   | FairValue  |   | Less                than 12                Months  |   | More                than 12                Months |   |
|  Equity              Securities |   | $               | 4,064  |                                                    | $      | (36 | )  | $ | --- |   |
|  Municipal              bonds   |   |            | 16,645 |                                                    |   | (92 | ) |   | (49 | ) |
|  Total                          |   | $               | 20,709 |                                                    | $      | (128 | ) | $ | (49 | ) |

|                                   |   |      |   |  Gross                  Unrealized Losses        |   |
|----------------------------------------|--------|-----------|--------|-------------------------------------------------------|--------|
|  December                31, 2006 |   | FairValue |   | Less                  than 12                  Months |   | More                  than 12                  Months |   |
|  Equity                Securities |   | $         | 2,935  |                                                  | $      | (99 | )  | $ | --- |   |
|  Municipal                bonds   |   |      | 33,160 |                                                  |   | (28 | ) |   | (274 | ) |
|  Corporate                Debt    |   |      | 3,514  |                                                  |   | --- |   |   | (19 | ) |
|  Total                            |   | $         | 39,609 |                                                  | $      | (127 | ) | $ | (293 | ) |

|                                      |   |  Amortized     |    |  Fair  |    |
|-------------------------------------------|--------|-----------------------------------------|---------|-------------|---------|
|                                      |   |  Cost                              |    |  Value |    |
|  Within              one year        |   | $                                       | 10,378  |        | $       | 10,378 |   |
|  One              through five years |   |                                    | 41,302  |        |    | 41,864 |   |
|  Five              through ten years |   |                                    | 20,554  |        |    | 20,875 |   |
|  Over              ten years         |   |                                    | 29,592  |        |    | 29,926 |   |
|  No              fixed maturity date |   |                                    | 41      |        |    | 42 |   |
| Total                                     |   | $                                       | 101,867 |        | $  | 103,085 |   |

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Table          of Contents

|                                          |   | 2007    |         | 2006   |    | 2005      |   |
|-----------------------------------------------|--------|---------|--------------|--------|---------|-----------|--------|
| Gain              on sale of building (Note2) |   | $  | 92,524  |   | $  | ---  |   | $  | ---  |   |
| Loss                on disposals of assets    |   |    | (391         | )      |    | (19       | )      |   | (28 | ) |
| Total                                         |   | $       | 92,133       |   | $       | (19       | )      | $ | (28 | ) |

|                                                       |   | Publishing |    | Printing |   | Software |   | Total  |   |
|------------------------------------------------------------|--------|------------|---------|----------|--------|----------|--------|--------|--------|
|                                                       |   |       |    |     |   |     |   |   |   |
| Balance,                          January 1, 2005          |   | $          | 49,998  |     | $      | 917      |   | $      | 22,537 |   | $ | 73,452 |   |
|  Business                        acquisition purchase |   |       |    |     |   |     |   |   |   |   |   |   |   |
|   price                          adjustments     |   |       | ---     |     |   | ---      |   |   | (86    | ) |   | (86 | ) |
|                                                       |   |       |    |     |   |     |   |   |   |   |   |   |   |
| Balance,                          December 31, 2005        |   |       | 49,998  |     |   | 917      |   |   | 22,451 |   |   | 73,366 |   |
| Goodwill                          impairment               |   |       | (11,576 | )        |   | ---      |   |   | ---    |   |   | (11,576 | ) |
| Balance,                          December 31, 2006        |   |       | 38,422  |     |   | 917      |   |   | 22,451 |   |   | 61,790 |   |
| Balance,                          December 31, 2007        |   | $          | 38,422  |     | $      | 917      |   | $      | 22,451 |   | $ | 61,790 |   |

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Table          of Contents

| Unrecognized                  tax benefits, January 1, 2007                             | $      | 1,724 |
|-----------------------------------------------------------------------------------------|--------|-------|
|   Increases                  resulting from tax positions taken prior to 2007 |   | 1,269 |
| Unrecognized                  tax benefits, December 31, 2007                           | $      | 2,993 |

|                                               |   |   |   |   |   |   |   |
|----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                               |   | 2007   |   | 2006   |   | 2005   |   |
| Taxes                  currently payable:          |   |   |   |   |   |   |
|    Federal                          |   | $      | 14,363 |   | $      | 8,051  |   | $ | 9,828 |   |
|    State                  and local |   |   | 4,341  |   |   | 3,687  |   |   | 2,164 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   | 18,704 |   |   | 11,738 |   |   | 11,992 |   |
| Deferred                  tax provision:           |   |   |   |   |   |   |   |   |   |   |
|    Federal                          |   |   | 30,580 |   |   | 539    |   |   | 1,236 |   |
|    State                  and local |   |   | 4,460  |   |   | (355   | )      |   | 2,468 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
|                                               |   |   | 35,040 |   |   | 184    |   |   | 3,704 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |
| Total                                              |   | $      | 53,744 |   | $      | 11,922 |   | $ | 15,696 |   |

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Table            of Contents

|                                                      | Percent                    of Pretax Income |   |
|-----------------------------------------------------------|---------------------------------------------|--------|
|                                                      | 2007                                        |   | 2006 |   | 2005 |   |
|                                                      |                                        |   |   |   |   |   |
| Federal                    statutory rate                 | 35.0                                        | %      | 35.0 | % | 35.0 | % |
| State                    and local income taxes, net of   |                                        |   |   |   |   |   |
|   federal                    income tax benefit | 4.0                                         |   | 6.9 |   | 4.7 |   |
| Change                    in net deferred tax assets | ---                                         |   | --- |   | 2.9 |   |
| Tax                    exempt interest exclusion          | (0.9                                        | )      | (3.5 | ) | (2.4 | ) |
| Dividends                    received exclusion           | (0.1                                        | )      | (0.2 | ) | (0.2 | ) |
| Others                                                    | (0.1                                        | )      | (0.2 | ) | --- |   |
|                                                      |                                        |   |   |   |   |   |
| Total                                                     | 37.9                                        | %      | 38.0 | % | 40.0 | % |

|                                                                            | December                    31, |    |
|---------------------------------------------------------------------------------|---------------------------------|---------|
|                                                                            | 2007                            |    | 2006 |   |
| Deferred                    tax assets:                                         |                            |    |   |   |
|    Postretirement                    benefits liability          | $                               | 51,514  |   | $ | 28,416 |   |
|    Inventories                                                   |                            | 1,474   |   |   | 1,506 |   |
|    Annual                    leave                               |                            | 2,270   |   |   | 2,215 |   |
|    Accounts                    receivable allowances             |                            | 585     |   |   | 658 |   |
|    Medical                    claims                             |                            | 1,409   |   |   | 1,270 |   |
|    Depreciation                                                  |                            | 41      |   |   | 1,225 |   |
|    Amortization                    of acquired intangible assets |                            | 778     |   |   | 2,313 |   |
|    Others                                                        |                            | 2,117   |   |   | 1,862 |   |
|    Valuation                    allowance                        |                            | (601    | ) |   | (658 | ) |
| Total                    deferred tax assets                                    |                            | 59,587  |   |   | 38,807 |   |
| Deferred                    tax (liabilities):                                  |                            |    |   |   |   |   |
|    Capitalized                    software                       |                            | (2,100  | ) |   | (2,815 | ) |
|    Deferred                    gain on real estate transactions  |                            | (36,101 | ) |   | (1,029 | ) |
|    Others                                                        |                            | (1,272  | ) |   | (1,642 | ) |
| Total                    deferred tax (liabilities)                             |                            | (39,473 | ) |   | (5,486 | ) |
| Net                    deferred tax assets                                      | $                               | 20,114  |   | $ | 33,321 |   |

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Table              of Contents

|                                                                       |   |  2007 |   | 2006   |   |
|----------------------------------------------------------------------------|--------|------------|--------|--------|--------|
|  Receivables:                                                         |   |       |        |   |   |   |   |
|      Customers                                    |   | $          | 40,908 |   | $      | 43,187 |   |
|      Others                                       |   |       | 3,558  |   |   | 3,197 |   |
|      Allowance              for doubtful accounts |   |       | (2,034 | )      |   | (2,102 | ) |
|  Total                                                                |   | $          | 42,432 |   | $      | 44,282 |   |

|                                                          |   | 2007   |   | 2006   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|
| Inventories:                                                  |   |   |   |   |   |
|    Materials                      and supplies |   | $      | 1,528  |   | $      | 1,969 |   |
|    Work                      in process        |   |   | 476    |   |   | 539 |   |
|    Finished                      goods         |   |   | 1,139  |   |   | 1,191 |   |
|                                                          |   |   |   |   |   |   |   |
| Total                                                         |   | $      | 3,143  |   | $      | 3,699 |   |

|                                                              |   | 2007   |    | 2006   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Property                and equipment, at cost:                   |   |   |    |   |   |
|     Land                                      |   | $      | 23,642  |   | $      | 4,250 |   |
|     Buildings                and improvements |   |   | 96,059  |   |   | 52,162 |   |
|     Furniture                and equipment    |   |   | 46,302  |   |   | 48,507 |   |
|     Accumulated                depreciation   |   |   | (40,375 | )      |   | (79,083 | ) |
| Total                                                             |   | $      | 125,628 |   | $      | 25,836 |   |

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Table          of Contents

| Intangible                  and other amortizable assets:                                 |   | 2007   |    | 2006   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
|     Gross                  carrying amount--                          |   |   |    |   |   |   |   |
|         Software                                  |   | $      | 25,970  |   | $      | 25,627 |   |
|         Customer                  lists           |   |   | 4,751   |   |   | 6,996 |   |
|         Copyrights                                |   |   | 9,145   |   |   | 9,145 |   |
|        Other                  amortizable assets       |   |   | 130     |   |   | 1,171 |   |
|                                                                                      |   |   | 39,996  |   |   | 42,939 |   |
| Accumulated                  amortization--                                               |   |   |    |   |   |   |   |
|         Software                                  |   |   | (19,299 | )      |   | (16,995 | ) |
|         Customer                  lists           |   |   | (4,316  | )      |   | (6,276 | ) |
|         Copyrights                                |   |   | (6,545  | )      |   | (5,630 | ) |
|         Other                  amortizable assets |   |   | (95     | )      |   | (318 | ) |
|                                                                                      |   |   | (30,255 | )      |   | (29,219 | ) |
| Net                  intangible and other amortizable assets                              |   | $      | 9,741   |   | $      | 13,720 |   |

|                                                                            |   | 2006   |   | 2005   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Payables                and accrued liabilities:                                |   |   |   |   |   |   |   |
|     Accounts                payable and accrued liabilities |   | $      | 17,543 |   | $      | 28,952 |   |
|     Employee                compensation and benefits       |   |   | 18,438 |   |   | 17,725 |   |
|     Postretirement                benefits, current portion |   |   | 13,199 |   |   | 8,580 |   |
|     Income                taxes                             |   |   | 3,183  |   |   | 1,711 |   |
| Share-based                liabilities (Note 12)                                |   |   | ---    |   |   | 6,310 |   |
| Total                                                                           |   | $      | 52,363 |   | $      | 63,278 |   |

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Table          of Contents

|                                                            |   | 2007   |   | 2006   |   |
|-----------------------------------------------------------------|--------|--------|--------|--------|--------|
| Notes                  payable, unsecured, 8.15%, due 2008-2010 |   | $      | 22,500 |   | $      | 30,000 |   |
| Notes                  payable, unsecured, 6.99%, due 2008-2011 |   |   | 22,000 |   |   | 25,000 |   |
| Total                  term debt                                |   |   | 44,500 |   |   | 55,000 |   |
| Current                  portion                                |   |   | 10,500 |   |   | 10,500 |   |
| Long-term                  debt                                 |   | $      | 34,000 |   | $      | 44,500 |   |

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Table              of Contents

|                                                       | Treasury                          Stock Shares |
|------------------------------------------------------------|------------------------------------------------|
|                                                       |                                           |   |   |   |   |   |
|                                                       | Class                          A               |   | Class                          B |   | Class                          C |   |
|                                                       |                                           |   |   |   |   |   |
| Balance,                          January 1, 2005          | 16,345,261                                     |   | 6,583,531 |   |     2,519,240 |   |
|                                                       |                                           |   |   |   |   |   |
| Sales                          to employees                | (910,735                                       | )  | --- |   | --- |   |
| Repurchases                                                | 592,751                                        |   |      1,832,846 |   | --- |   |
| Conversions                          of Class A to Class B |    1,021,449                    |   |     (1,021,449 | )  | --- |   |
|                                                       |                                           |   |   |   |   |   |
| Balance,                          December 31, 2005        | 17,048,726                                     |   |      7,394,928 |   |     2,519,240 |   |
|                                                       |                                           |   |   |   |   |   |
| Sales                          to employees                | (972,101                                       | )  | --- |   | --- |   |
| Repurchases                                                | 520,467                                        |   | 499,976 |   | --- |   |
| Conversions                          of Class A to Class B | 538,253                                        |   | (538,253 | )  | --- |   |
|                                                       |                                           |   |   |   |   |   |
| Balance,                          December 31, 2006        | 17,135,345                                     |   | 7,356,651 |   |     2,519,240 |   |
|                                                       |                                           |   |   |   |   |   |
| Sales                          to employees                | (613,571                                       | )  | --- |   | --- |   |
| Repurchases                                                | 812,430                                        |   | 1,222,785 |   | --- |   |
| Conversions                          of Class A to Class B | 771,655                                        |   | (771,655 | )  | --- |   |
|                                                       |                                           |   |   |   |   |   |
| Balance,                          December 31, 2007        | 18,105,859                                     |   | 7,807,781 |   |     2,519,240 |   |

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Table                    of Contents

|                                                      |   | 2007   |   | 2006   |   | 2005   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                                                      |   |   |   |   |   |   |   |
| Holding                  gains on securities              |   |   |   |   |   |   |   |
|   arising                  during the year      |   | $      | 958    |   | $      | 2,769  |   | $ | 254 |   |
| Less                  net gains included in net income    |   |   | 450    |   |   | 1,347  |   |   | 347 |   |
| Changes                  in unrealized gains              |   |   | 508    |   |   | 1,422  |   |   | (93 | ) |
| Less                  income taxes                        |   |   | 178    |   |   | 499    |   |   | (33 | ) |
| Net                  unrealized gains (losses)            |   |   | 330    |   |   | 923    |   |   | (60 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |   |
| Currency                  translation gains (losses)      |   |   | (71    | )      |   | (271   | )      |   | 220 |   |
| Less                  income taxes                        |   |   | (25    | )      |   | (95    | )      |   | 77 |   |
| Net                  currency translation gains (losses)  |   |   | (46    | )      |   | (176   | )      |   | 143 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |
| Minimum                  pension liability adjustment     |   |   | 157    |   |   | 852    |   |   | (1,009 | ) |
| Less                  income taxes                        |   |   | 61     |   |   | 351    |   |   | (412 | ) |
| Net                  minimum pension liability adjustment |   |   | 96     |   |   | 501    |   |   | (597 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income (loss)        |   | $      | 380    |   | $      | 1,248  |   | $ | (514 | ) |

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Table          of Contents

|  Year                Ended December                31, 2007 |   |   | Publishing  |   |    | Printing  |   |    | Software  |   |    | Total    |   |
|------------------------------------------------------------------|--------|--------|------------------|--------|---------|----------------|--------|---------|----------------|--------|---------|---------------|--------|
| Revenues                  from external customers                |   | $      | 289,539          |   | $       | 35,673         |   | $       | 27,012         |   | $       | 352,224       |   |
| Intersegment                  revenues                           |   |   | ---              |   |    | 10,059         |   |    | 2,414          |   |    | 12,473        |   |
| Gain                on sale of building                          |   |   | 92,524      |   |    |  ---      |   |    | ---            |   |    | 92,524        |   |
| Operating                  profit                                |   |   | 130,364          |   |    | 2,608          |   |    | 7,716          |   |    | 140,688       |   |
| Interest                  expense                                |   |   | 4,467            |   |    | 204            |   |    | ---            |   |    | 4,671         |   |
| Identifiable                  assets                             |   |   | 389,839          |   |    | 21,224         |   |    | 32,181         |   |    | 443,244       |   |
| Depreciation                  and amortization                   |   |   | 7,227            |   |    | 1,058          |   |    | 34             |   |    | 8,319         |   |
| Capital                  expenditures                            |   |   | 112,774          |   |    | 1,710          |   |    | 23             |   |    | 114,507       |   |
|                                                             |   |   |             |   |    |           |   |    |           |   |    |          |   |
| Year                Ended December 31, 2006                      |   |   | Publishing  |   |    | Printing  |   |    | Software  |   |    | Total    |   |
|  Revenues                from external customers            |   |   | 279,209          |   |  $ | 37,886         |   |  $ | 27,767         |   |  $ | 344,862  |   |
| Intersegment                  revenues                           |   |   | ---              |   |    | 10,680         |   |    | 3,084          |   |    | 13,764   |   |
| Operating                  profit                                |   |   | 18,948           |   |    | 3,086          |   |    | 9,062          |   |    | 31,096   |   |
| Interest                  expense                                |   |   | 5,706            |   |    | 8              |   |    | 1              |   |    | 5,715    |   |
| Identifiable                  assets                             |   |   | 287,296          |   |    | 22,260         |   |    | 43,518         |   |    | 353,074  |   |
| Depreciation                  and amortization                   |   |   | 7,119            |   |    | 995            |   |    | 420            |   |    | 8,534    |   |
| Goodwill                  impairment                             |   |   | 11,576           |   |    | ---            |   |    | ---            |   |    | 11,576   |   |
| Capital                  expenditures                            |   |   | 2,418            |   |    | 3,566          |   |    | 21             |   |    | 6,005    |   |
|                                                             |   |

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Table            of Contents

| Year                Ended December 31, 2005     |   | Publishing |    | Printing |   | Software |   | Total  |   |
|-------------------------------------------------|--------|------------|---------|----------|--------|----------|--------|--------|--------|
| Revenues                from external customers |   | $          | 272,619 |     | $      | 31,024   |   | $      | 25,393 |   | $ | 329,036 |   |
| Intersegment                revenues            |   |       | ---     |     |   | 10,773   |   |   | 2,416  |   |   | 13,189 |   |
| Operating                profit                 |   |       | 31,755  |     |   | 3,012    |   |   | 6,281  |   |   | 41,048 |   |
| Interest                expense                 |   |       | 6,032   |     |   | 9        |   |   | ---    |   |   | 6,041 |   |
| Identifiable                assets              |   |       | 272,961 |     |   | 18,427   |   |   | 47,261 |   |   | 338,649 |   |
| Depreciation                and amortization    |   |       | 7,659   |     |   | 921      |   |   | 1,182  |   |   | 9,762 |   |
| Capital                expenditures             |   |       | 2,025   |     |   | 889      |   |   | 22     |   |   | 2,936 |   |

|                                                          |   | 2007   |    | 2006   |   | 2005    |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Total                interest expense for reportable segments |   | $      | 4,671   |   | $      | 5,715   |   | $ | 6,041 |   |
| Elimination                of intersegment interest expense   |   |   | (199    | )      |   | (111    | )      |   | (134 | ) |
| Consolidated                interest expense                  |   | $      | 4,472   |   | $      | 5,604   |   | $ | 5,907 |   |
|                                                          |   |   |    |   |   |    |   |   |   |   |
| Total                assets for reportable segments           |   | $      | 443,244 |   | $      | 353,074 |   | $ | 338,649 |   |
| Elimination                of intersegment assets             |   |   | (43,716 | )      |   | (18,648 | )      |   | (19,767 | ) |
| Consolidated                assets                            |   | $      | 399,528 |   | $      | 334,426 |   | $ | 318,882 |   |

|                                  | Quarter                    Ended 2007 |
|---------------------------------------|---------------------------------------|
|                                  | March                    24           | June                    16 | September                    8 | December                    31 |
|                                  | Reported                              | Adjusted | Reported | Adjusted | Reported | Adjusted | BeforeChange | Adjusted |
|                                  |                                  |   |   |   |   |   |   |   |
| Revenues                              | $77,871                               | $77,871 | $78,671 | $78,671 | $81,344 | $81,344 | $114,338 | $114,338 |
| Gross                    Profit       | 36,987                                | 36,987 | 37,272 | 37,272 | 39,621 | 39,621 | 54,043 | 54,043 |
| Net                    Income         | 6,267                                 | 6,878 | 7,140 | 7,498 | 63,781 | 63,951 | 10,497 | 9,711 |
|                                  |                                  |   |   |   |   |   |   |   |
| Earnings                    Per Share | $   .21                | $   .23 | $   .24 | $   .25 | $                    2.17 | $  2.18 | $  .36 | $  .33 |

----

Table              of Contents

|                                  | Quarter                    Ended 2006 |
|---------------------------------------|---------------------------------------|
|                                  | March                    25           | June                    17 | September                    9 | December                    31 |
|                                  | Reported                              | Adjusted | Reported | Adjusted | Reported | Adjusted | Reported | Adjusted |
|                                  |                                  |   |   |   |   |   |   |   |
| Revenues                              | $72,074                               | $72,074 | $75,479 | $75,479 | $76,257 | $76,257 | $121,052 | $121,052 |
| Gross                    Profit       | 32,352                                | 32,352 | 34,349 | 34,349 | 34,525 | 34,525 | 59,159 | 59,159 |
| Net                    Income         | 4,165                                 | 4,367 | 5,239 | 5,471 | 5,004 | 5,093 | 4,963 | 4,522 |
|                                  |                                  |   |   |   |   |   |   |   |
| Earnings                    Per Share | $   .14                | $   .14 | $   .17 | $   .18 | $  .17 | $  .17 | $  .17 | $  .15 |

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Table                of Contents

|                                                  |   | 2007                                    |    | 2006                              |   |
|-------------------------------------------------------|--------|-----------------------------------------|---------|-----------------------------------|--------|
|                                                  |   | Commission                      Expense |    |                              |   |   |   |   |   |   |
|                                                  |   | Before                      Change      |    | After                      Change |   |   | Effect                      of                      Change |   | Commission                      ExpenseReported Adjusted |   | Effect                      ofChange |   |
|                                                  |   |                                    |    |                              |   |   |   |   |   |   |   |   |   |   |
| Income                      Statement:                |   |                                    |    |                              |   |   |   |   |   |   |   |   |   |   |
|  Selling                      Expense            |   | $                                       | 56,890  |                              | $      | 57,478 |   |   | $ | (588 | ) | $ | 58,324 |   | $ | 58,184 |   | $ | (140 | ) |
|  Income                      Before Income Taxes |   |                                    | 141,194 |                              |   | 141,782 |   |   |   | 588 |   |   | 31,235 |   |   | 31,375 |   |   | 140 |   |
|  Provision                      for Income Taxes |   |                                    | 53,509  |                              |   | 53,744 |   |   |   | 235 |   |   | 11,864 |   |   | 11,922 |   |   | 58 |   |
|  Net                      Income                 |   |                                    | 87,685  |                              |   | 88,038 |   |   |   | 353 |   |   | 19,371 |   |   | 19,453 |   |   | 82 |   |
|  Earnings                      per Share         |   |                                    | 2.98    |                              |   | 2.99 |   |   |   | .01 |   |   | .64 |   |   | .65 |   |   | .01 |   |
|                                             |   |                                    |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance                      Sheet:                   |   |                                    |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Deferred                      Selling Expenses  |   |                                    | 3,947   |                              |   | --- |   |   | $ | (3,947 | ) |   | 4,535 |   |   | --- |   |   | (4,535 | ) |
|  Deferred                    Income              |   |                                    |    |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Taxes-Current                       |   |                                    | 4,696   |                              |   | 6,250 |   |   |   | 1,554 |   |   | 1,984 |   |   | 3,773 |   |   | 1,789 |   |
|  Retained                      Earnings          |   | $                                       | 200,396 |                              | $      | 198,003 |   |   | $ | (2,393 | ) | $ | 123,431 |   | $ | 120,685 |   | $ | (2,746 | ) |

|                                                  |   | 2005                                                          |   |
|-------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                                  |   | Commission                      ExpenseReported Adjusted |   | Effect                      of |   |
|                                                  | Change |                                                          |
|                                                  |   |                                                          |   |   |   |   |   |
| Income                      Statement:                |   |                                                          |   |   |   |   |   |
|  Selling                      Expense            |   | $                                                             | 52,389 |   | $ | 53,357 |   | $ | 968 |   |
|  Income                      Before Income Taxes |   |                                                          | 40,241 |   |   | 39,273 |   |   | (968 | ) |
|  Provision                      for Income Taxes |   |                                                          | 16,085 |   |   | 15,696 |   |   | (389 | ) |
|  Net                      Income                 |   |                                                          | 24,156 |   |   | 23,577 |   |   | (579 | ) |
|  Earnings                      per Share         |   |                                                          | .77    |   |   | .75 |   |   | (.02 | ) |

----

Table                of                Contents

| Column                  A                                    |   | Column                  B   |   | Column                  C   |   | Column                  D   |    | Column                  E |                          |
|--------------------------------------------------------------|--------|-----------------------------|--------|-----------------------------|--------|-----------------------------|---------|---------------------------|-------------------------------|
|                                                         |   |                        |   | Additions                   |   |                        |    |                      |                          |
|                                                         |   |                        |   | (1)                         |   | (2)                         |    |                      |                          |   |   |
|                                                         |   |                        |   |                        |   | Charged                  to |    |                      |                          |   |   |
|                                                         |   | Balance                  at |   | Charged                  to |   | Other                       |    |                      |                          | Balance                  at |   |
|                                                         |   | Beginning                   |   | Costs                  and  |   | Accounts--                  |    | Deductions--              |                          | End                  of |   |
| Description                                                  |   | of                  Period  |   | Expenses                    |   | Describe                    |    | Describe                  |                          | Period |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                          |   |   |
| VALUATION                  ACCOUNTS DEDUCTED                 |   |                        |   |                        |   |                        |    |                      |                          |   |   |
| FROM                  ASSETS TO WHICH THEY APPLY:            |   |                        |   |                        |   |                        |    |                      |                          |   |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                          |   |   |
| Allowance                  for Doubtful Accounts Receivable: |   |                        |   |                        |   |                        |    |                      |                          |   |   |
| Year                  ended December 31, 2007                |   | $                           | 2,102  |                        | $      | 660                         |    | $                         | 83                  (a        | ) | $ | 811 (b | ) | $ | 2,034 |   |
| Year                  ended December 31, 2006                |   |                        | 2,596  |                        |   | 571                         |    |                      | (440)(a                       | ) |   | 625 (b | ) |   | 2,102 |   |
| Year                  ended December 31, 2005                |   |                        | 2,097  |                        |   | 537                         |    |                      |                    190(a | ) |   | 228 (b | ) |   | 2,596 |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                          |   |   |   |   |   |   |   |
| Allowance                  for Obsolete Inventory:           |   |                        |   |                        |   |                        |    |                      |                          |   |   |   |   |   |   |   |
| Year                  ended December 31, 2007                |   | $                           | 680    |                        | $      | ---                         |    |                      |                          |   |   |   |   | $ | 680 |   |
| Year                  ended December 31, 2006                |   |                        | 588    |                        |   | 92                          |    |                      |                          |   |   |   |   |   | 680 |   |
| Year                  ended December 31, 2005                |   |                        | 561    |                        |   | 27                          |    |                      |                          |   |   |   |   |   | 588 |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                          |   |   |   |   |   |   |   |
| Allowance                  for Deferred Tax Assets:          |   |                        |   |                        |   |                        |    |                      |                          |   |   |   |   |   |   |   |
| Year                  ended December 31, 2007                |   | $                           | 658    |                        | $      | (57                         | )  |                      |                          |   |   |  |   | $ | 601 |   |
| Year                  ended December 31, 2006                |   |                        | 536    |                        |   | 122                         |    |                      |                          |   |   |   |   |   | 658 |   |
| Year                  ended December 31, 2005                |   |                        | 413    |                        |   | 123                         |    |                      |                          |   |   |   |   |   | 536 |   |

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Table            of Contents

Changes        in and Disagreements with Accountants on        Accounting and Financial Disclosure

Controls        and        Procedures

----

Table                      of Contents

Directors,        Executive        Officers and Corporate        Governance

| Name                                   | Age    |   | Present                        position and prior experience                                                                 |
|---------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------|
| Cynthia                        J. Bolbach   | 60     |   | Vice                      President and Corporate Secretary                                                                  |
|                                        |   |   | Corporate                        Secretary since 1995                                                                        |
|                                        |   |   | and                        vice president since 2002. Joined                                                                 |
|                                        |   |   | BNA                        in 1972                                                                                           |
|                                        |   |   |                                                                                                                         |
| Eunice                        L. Bumgardner | 47     |   | Vice                        President & General                        Counsel        |
|                                        |   |   | Vice                        president since 1996 and                                                                         |
|                                        |   |   | general                        counsel since 1995. Joined                                                                    |
|                                        |   |   | BNA                        in 1994.                                                                                          |
|                                        |   |   |                                                                                                                         |
| Carol                        A. Clark  | 51     |   | Vice                        President                                                     |
|                                        |   |   | Vice                        president since 2001                                                                             |
|                                        |   |   | Previously                        served as technology director                                                              |
|                                        |   |   | since                        1997. Joined BNA in 1983.                                                                       |

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Table                  of Contents

| Name                                       | Age  |   | Present                      position and prior experience                            |
|-------------------------------------------------|-----------|--------|--------------------------------------------------------------------------------------------|
| Sandra                        C. Degler    | 68        |   | Chairman                        of the Board                                               |
|                                            |      |   | Chairman                        since 2004 and vice chairman                               |
|                                            |      |   | 1998-2004.                        Served as president of                                   |
|                                            |      |   | Tax                        Management Inc. from 1983 to 2000.                              |
|                                            |      |   | Joined                        BNA in 1963.                                                 |
|                                            |      |   |                                                                                       |
| Robert                        P. Ambrosini      | 51        |   | Vice                        President and Chief Financial Officer                          |
|                                            |      |   | Joined                        BNA in 2007.  Served as Senior                          |
|                                            |      |   | Vice                        President of                        Finance and Accounting     |
|                                            |      |   | for                        the National                        Geographic Channel          |
|                                            |      |   | 2004-2006,                        and as                        Cheif Financial Officer    |
|                                            |      |   | of                        Black                        Entertainment Television, Inc.      |
|                                            |      |   | from                        2000 to                        2004.                           |
|                                            |      |   |                                                                                       |
| Gilbert                      S. Lavine          | 56        |   | Treasurer                                                                                  |
|                                            |      |   | Treasurer                      since 1998.  Joined BNA in 1985.                       |
|                                            |      |   |                                                                                       |
| Gregory                      C. McCaffery  | 47        |   | Vice                      President and Chief Operating Officer                            |
|                                            |      |   | Vice                        president since 2000 and chief operating                  |
|                                            |      |   | officer                        since 2003.  Joined BNA in                        1986 |

|                                   |   |   |                                                                    |
|----------------------------------------|--------|--------|-------------------------------------------------------------------------|
| James                      R. Schneble | 53     |   | Controller                                                              |
|                                   |   |   | Controller                      since 1990. Joined BNA in 1985.         |
|                                   |   |   |                                                                    |
| Paul                      N. Wojcik    | 59     |   | Vice                      Chairman, President and Chief                 |
|                                   |   |   | Executive                      Officer                                  |
|                                   |   |   | Vice                      chairman since 2004,                          |
|                                   |   |   | president since                      1995 and CEO since 1997. |
|                                   |   |   | Joined                      BNA in 1972.                                |

Executive        Compensation

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Table              of Contents

Security        Ownership of Beneficial Owners and        Management

Certain        Relationships and Related        Transactions

Principal        Accounting Fees and        Services

Exhibits          and Financial Statement          Schedules

| (a)                    (1)       | Financial                    Statements                                                          | Page   |
|----------------------------------|--------------------------------------------------------------------------------------------------|--------|
|                             | Reports                    of Independent Registered Public Accounting Firm                      | 25     |
|                             |                                                                                             |   |
|                             | Consolidated                    Statements of Income for the years                               | 27     |
|                             |     ended                    December 31, 2007, 2006 , and 2005         |   |
|                             | Balance                    Sheets as of December 31, 2007 and 2006                               | 28     |
|                             | Consolidated                    Statements of Cash Flows and Consolidated                        | 30     |
|                             | Statements                    of Changes in Stockholders' Equity and                             |   |
|                             | Comprehensive                    Income for each of the years                                    |   |
|                             |     ended                    December 31, 2007, 2006 and 2005           |        |
|                             | Notes                    to Consolidated Financial Statements                                    | 33     |
|                             |                                                                                             |   |
|     (2)      | Financial                    Statement Schedule:                                                 |   |
|      II | Valuation                    and Qualifying Accounts and Reserves                                |   |
|                             |     for                    the years ended December 31, 2007, 2006, and 2005 | 54     |

| (a)                    (3) | Exhibits                                                                                                                         |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                             |
| 3.1                        | Certificate                    of Incorporation, as amended*                                                                     |
|                       |                                                                                                                             |
| 3.2                        | By                    laws, as amended.**                                                                                        |
|                       |                                                                                                                             |
| 11                         | Statement                    re: Computation of Per Share Earnings is contained in the                    2007                   |
|                       | Consolidated                    Financial Statements in the Notes to Consolidated  Financial                    Statements, |
|                       | Note                  12, "Stockholders' Equity"                                                                            |

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Table              of Contents

|       |                                                                                                                                   |
|------------|----------------------------------------------------------------------------------------------------------------------------------------|
| 18    | Letter                  re: Change in accounting principle.                                                                       |
|       |                                                                                                                                   |
| 21         | Subsidiaries                    of Registrant.***                                                                                      |
|       |                                                                                                                                   |
| 23.1  | Consent                  of BDO Seidman, LLP,  Independent Registered Public Accounting                  Firm                |
|       |                                                                                                                                   |
| 23.2  | Consent                  of KPMG,                  LLP, Independent Registered Public Accounting Firm                             |
|       |                                                                                                                                   |
| 31.1       | Certification                    of the Chief Executive Officer pursuant to Section 302                                                |
|       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                                          |
|       |                                                                                                                                   |
| 31.2       | Certification                    of the Chief Financial Officer pursuant to Section 302                                                |
|       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                                          |
|       |                                                                                                                                   |
| 32.1       | Certification                    of the Chief Executive Officer pursuant to Section 906                                                |
|       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                                          |
|       |                                                                                                                                   |
| 32.2       | Certification                    of the Chief Financial Officer pursuant to Section 906                                                |
|       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                                          |
|       |                                                                                                                                   |
| 99.1       | Proxy                    Statement for the Annual Meeting of security holders to be held on                    April 19, 2008**** |

| *      | Incorporated                    by                    reference to the Company’s 2001 Form 10-K                                                   |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Commission                    File                    Number 2-28286, filed on March 29, 2002.                                                          |
|   | The                    exhibit number                    indicated above corresponds to the                                                             |
|   | exhibit                    number in                    that filing.                                                                                    |
|   |                                                                                                                                                    |
| **     | Incorporated                    by                    reference to the 8K filed by the Company on                                                       |
|   | September                    8, 2005.                    The exhibit number indicated above corresponds                                                 |
|   | to                    the exhibit                    number in that filing.                                                                             |
|   |                                                                                                                                                    |
| ***    | Filed                    herewith.                                                                                                                      |
|   |                                                                                                                                                    |
| ****   | Incorporated                    by                    reference to the Company’s Definitive Proxy Statement, to be                    filed  |
|   | with                    the SEC within                    120 days of December 31, 2007.                                                                |
|   |                                                                                                                                                    |
|   | Upon                    written or oral                    request to the Company’s General Counsel, a copy                                       |
|   | of                    any of the above                    exhibits will be furnished at cost.                                                           |

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Table              of Contents

SIGNA

| By: /s/Paul                          N. Wojcik                                             | By:  /s/Robert                        P. Ambrosini                                                            |
|-------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|
|          Paul                          N. Wojcik   |          Robert                        P. Ambrosini,                       |
|                                 Chief Executive Officer |          Vice                        President and Chief Financial Officer |
|                                                                   |         (Chief                        Accounting Officer)                       |
|                                                                                            |                                                                                                                    |
|  Date:                         March                        27, 2007                  |  Date:                         March                        27, 2007                                          |

| By: /s/Paul                      N. Wojcik                                                             |
|-------------------------------------------------------------------------------------------------------------|
|          Paul                      N. Wojcik                   |
|          Chairman                    of the Board of Directors |
|          Director                                              |
|                                                                                                        |
|                                                                                                        |
|  Date:                     March                    27, 2007                                      |

|  By: /s/Sandra              Degler                                                    | March                27, 2007     |  By:               /s/George              J. Korphage                                                                  | March                27, 2007     |
|-------------------------------------------------------------------------------------------------|-----------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|
|         Sandra                C. Degler            | Date                              |          George              J. Korphage                                            | Date                              |
|         Chairman              of the Board of Directors |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:/s/Paul              A. Blakely                                                        | March              27, 2007       |  By:                 /s/Gregory                C. McCaffrey                                                            | March              27, 2007       |
|          Paul              A. Blakely              | Date                              |          Gregory              C. McCaffrey                                          | Date                              |
|          Director                                  |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:/s/Cynthia              J. Bolbach                                                     | March              27, 2007       |  By:               /s/Darren              P. McKewen                                                              | March              27, 2007       |
|          Cynthia              J. Bolbach           | Date                              |         Daren                P. McKewen               | Date                              |
|          Director                                  |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:/s/Eunice              Lin              Bumgardner                                     | March              27, 2007       |  By:               /s/Jonathan              Newcomb                                                                    | March              27, 2007       |
|          Eunice              Lin Bumgardner        | Date                              |          Jonathan              Newcomb                                              | Date                              |
|          Director                                  |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:               /s/Neil              R. Froemming                                  | March               27, 2007 |  By:               /s/Susan              E. Rice                                                                       | March              27, 2007       |
|          Neil              R. Froemming            | Date                              |          Susan              E. Rice         | Date                              |
|          Director                                  |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:/s/Gerald              S. Hobbs                                                        | March               27, 2007 |  By:               /s/Ellen              Taus                                                                          | March              27, 2007  |
|          Gerald              S. Hobbs              | Date                              |          Ellen              Taus                 | Date                              |
|          Director                                  |                              |          Director                                                                   |                              |
|                                                                                            |                              |                                                                                                                             |                              |
|  By:               /s/Margaret              S. Hullinger                              | March              27, 2007  | By: /s/Daniel              W. Toohey                                                                                   |                              |
|          Margaret              S. Hullinger        | Date                              |                       Daniel W. Toohey                                                   |                              |
|          Director                                  |                              |          Director                                                                   |                              |

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Table          of Contents

| Number                         |   | Exhibit                Description                                                                                                  | Sequential                Page |
|--------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                           |   |                                                                                                                                |  Number                   |
|                           |   |                                                                                                                                |                           |
| 3.1                            |   | Certificate                of Incorporation, as amended                                                                             |  *                        |
|                           |   |                                                                                                                                |                           |
|     3.2    |   | By                laws, as amended                                                                                                  |  *                *       |
|                           |   |                                                                                                                                |                           |
|     11     |   | Statement                re: Computation of Per Share Earnings is contained in the                2007                              |                           |
|                           |   |     Consolidated                financial Statements in the Notes to Consolidated  Financial               |                           |
|       |   |     Statements              , Note 12 "Stockholders Equity,"                                                    | 49                             |
|                           |   |                                                                                                                                |                           |
| 18                        |   | Letter              re: Change in              Accounting Principle                                                       | 62                        |
|                           |   |                                                                                                                                |                           |
|     21     |   | Subsidiaries                of                Registrant                                                                            | 63                             |
|                           |   |                                                                                                                                |                           |
| 23.1                      |   | Consent              of BDO              Seidman, LLP, Independent Registered Public Accounting              Firm              | 64                        |
|                           |   |                                                                                                                                |                           |
| 23.2                      |   |  Consent              of KPMG,              LLP, Independent              Registered Public Accounting              Firm  |  65                  |
|                           |   |                                                                                                                                |                           |
|     31.1   |   | Certification                of the Chief Executive                Officer pursuant to Section 302                                  |                           |
|                           |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section                1350.                    | 66                             |
|                           |   |                                                                                                                                |                           |
|     31.2   |   | Certification                of the Chief Financial                Officer pursuant to Section 302                                  |                           |
|                           |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section                1350.                    | 67                             |
|                           |   |                                                                                                                                |                           |
|     32.1   |   | Certification                of the Chief Executive                Officer pursuant to Section 906                                  |                           |
|                           |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                   | 68                             |
|                           |   |                                                                                                                                |                           |
|     32.2   |   | Certification                of the Chief Financial                Officer pursuant to Section 906                                  |                           |
|                           |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                   | 69                             |
|                           |   |                                                                                                                                |                           |
|     99.1   |   | Proxy                Statement for the Annual Meeting of Stockholders to be held on April                21, 2007              | **                             |
|                           |   |                                                                                                                                |                           |
| *                              |   | Incorporated                by reference to the Company’s 2001 Form 10-K                                                      |                           |
|                           |   | Commission                File Number 2-28286, filed on March 29, 2002.                                                             |                           |
|                           |   | The                exhibit number indicated above corresponds to the                                                                |                           |
|                           |   | exhibit                number in that filing.                                                                                       |                           |
|                           |   |                                                                                                                                |                           |
|  **                       |   | The              Definitive Proxy Statement is expected to be filed with                                                            |                           |
|                           |   | the              SEC within 120 days of December 31, 2007.                                                                          |                           |

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