| (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, 2008 | 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 |  9 |
| Item 1B.               | Unresolved Staff      Comments |  10 |
| Item 2.                     | Properties | 10 |
| Item 3.                     | Legal    Proceedings | 10 |
| Item 4.                     | Submission of Matters to a      Vote of Security Holders  | 10 |
|                        |   |   |
|                        | PART      II. |   |
| Item 5.                     | Market for the Registrant's Common Equity,      Related Stockholder |   |
|                        | Matters and Issuer Purchases of      Equity Securities | 11 |
| Item 6.                | Selected Financial Data | 13 |
| Item 7.                | Management's Discussion and      Analysis of Financial Condition and |   |
|                        | Results of Operations | 14 |
| Item7A.                     | Quantitative and Qualitative      Disclosures About Market Risk | 21 |
| Item 8.                | Financial Statements and Supplementary      Data | 22 |
| Item 9.                | Changes in and Disagreements with      Accountants on Accounting |   |
|                        | and Financial    Disclosure | 54 |
| Item 9A(T).            | Controls and Procedures | 54 |
| Item 9B.          | Other      Information | 54 |
|                        |   |   |
|                        | PART      III. |   |
| Item10.                | Directors and Executive Officers,      and Corporate Governance | 55 |
| Item 11.               | Executive Compensation | 56 |
| Item 12.               | Security Ownership of Certain Beneficial Owners      and Management |   |
|                        | and Related Stockholder    Matters  | 56 |
| Item 13.               | Certain Relationships and Related      Transactions, |   |
|                        | and Director Independence  |  56 |
| Item 14.               | Principal Accountant Fees and      Services | 56 |
|                        |   |   |
|                        | PART IV. |   |
| Item 15.               | Exhibits and Financial Statement    Schedule | 57 |
|                        |   |   |
| SIGNATURES                  |   | 59 |
|                        |   |   |
| EXHIBIT INDEX               |    | 60 |

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| Item      1. | Business |
|--------------|----------|

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| Item      1A. | Risk    Factors |
|---------------|-----------------|

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| Item      1B. | Unresolved Staff      Comments |
|---------------|--------------------------------|

| Item      2. | Properties |
|--------------|------------|

| Item      3. | Legal  Proceedings |
|--------------|--------------------|

| Item      4. | Submission of Matters to a Vote of Security      Holders |
|--------------|----------------------------------------------------------|

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| Item      5. | Market for the Registrant's Common Equity,      Related Stockholder Matters and Issuers Purchases of Equity      Securities |
|--------------|-----------------------------------------------------------------------------------------------------------------------------|

| Stock      Price                                                                                   |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------|
|         January 1, 2007 - March 17,      2007              |   | $      | 14.00  |   |
|         March      18, 2007 - September 15, 2007           |   |   | 14.75  |   |
|         September      16, 2007 - March 15, 2008      |   |   | 15.00  |   |
|         March 16,      2008 - September 20, 2008 |   |   | 15.50  |   |
|         Septebmer      21, 2008- December 31, 2008         |   |   | 15.75  |   |

| Record Date      and Dividend Amount                                    |   |   |   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|
|         March      17, 2007     |   | $      | .18    |   |
|         September      15, 2007 |   |   | .18    |   |
|         March      15, 2008     |   |   | .20    |   |
|         September      20, 2008 |   |   | .20    |   |

|  Four-week      Period                | Total Number      of Shares  Purchased | Average Price      Paid per Share |
|--------------------------------------------|--------------------------------------------------|-----------------------------------|
|                                       |                                             |                              |
| September 7,      2008 - October 4, 2008   | 82,193                                           | $      15.73                      |
| October 5,      2008 - November 1, 2008    | 287,517                                          | $      15.75                      |
| November 2,      2008 - November 29, 2008  | 59,944                                           | $      15.75                      |
| November 30,      2008 - December 31, 2008 | 202,395                                          | $      15.75                      |

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| Item      6. | Selected Financial      Data |
|--------------|------------------------------|

|                                                 |   | 2008   |    |   | 2007   |   |    | 2006          |   |   | 2005          |   |   | 2004          |    |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|---------------|--------|--------|---------------|--------|--------|---------------|---------|
|                                                 |   |   |    |   |   |   |    | (adjusted)(c) |   |   | (adjusted)(c) |   |   | (adjusted)(c) |    |
| Operating      Revenues                              |   | $      | 352,211 |   |   | $      | 352,224 |          |   | $      | 344,862       |   |   | $             | 329,036 |   |   | $ | 322,604 |   |
| Operating      Expenses (a)                          |   |   | 303,316 |   |   |   | 303,669 |          |   |   | 313,747       |   |   |          | 287,960 |   |   |   | 281,908 |   |
| (Loss) Gain      on Dispositions (b)                 |   |   | (12     | )      |   |   | 92,133  |          |   |   | (19           | )      |   |          | (28     | ) |   |   | (44 | ) |
| Operating      Profit                                |   |   | 48,883  |   |   |   | 140,688 |          |   |   | 31,096        |   |   |          | 41,048  |   |   |   | 40,652 |   |
| Investment      Income                               |   |   | 4,579   |   |   |   | 5,566   |          |   |   | 5,883         |   |   |          | 4,132   |   |   |   | 3,713 |   |
| Interest      Expense                                |   |   | (3,277  | )      |   |   | (4,472  | )             |   |   | (5,604        | )      |   |          | (5,907  | ) |   |   | (5,620 | ) |
| Income Before      Income Taxes                      |   |   | 50,185  |   |   |   | 141,782 |          |   |   | 31,375        |   |   |          | 39,273  |   |   |   | 38,745 |   |
| Income      Taxes                                    |   |   | 18,744  |   |   |   | 53,744  |          |   |   | 11,922        |   |   |          | 15,696  |   |   |   | 14,586 |   |
| Net      Income                                      |   | $      | 31,441  |   |   | $      | 88,038  |          |   | $      | 19,453        |   |   | $             | 23,577  |   |   | $ | 24,159 |   |
| Profit      Margins (% of revenues):                 |   |   |    |   |   |   |    |          |   |   |          |   |   |          |    |   |   |   |   |   |
|   Operating      Profit                    |   |   | 13.9    |   |   |   | 39.9    |          |   |   | 9.0           |   |   |          | 12.5    |   |   |   | 12.6 |   |
|   Earnings                                 |   |   | 8.9     |   |   |   | 25.0    |          |   |   | 5.6           |   |   |          | 7.2     |   |   |   | 7.5 |   |
| Earnings Per      Share                              |   | $      | 1.11    |   |   | $      | 2.99    |          |   | $      | .65           |   |   | $             | .75     |   |   | $ | .74 |   |
| Dividends Per      Share                             |   | $      | .40     |   |   | $      | .36     |          |   | $      | .34           |   |   | $             | .32     |   |   | $ | .31 |   |
| Balance Sheet      Data:                             |   |   |    |   |   |   |    |          |   |   |          |   |   |          |    |   |   |   |   |   |
|   Total      Assets                        |   | $      | 412,686 |   |   | $      | 399,528 |          |   | $      | 334,426       |   |   | $             | 318,882 |   |   | $ | 322,163 |   |
|   Long-Term      Debt-less current portion |   |   | 23,500  |   |   |   | 34,000  |          |   |   | 44,500        |   |   |          | 55,000  |   |   |   | 62,500 |   |
| Employee      Data:                                  |   |   |    |   |   |   |    |          |   |   |          |   |   |          |    |   |   |   |   |   |
|   Number      of Employees                 |   |   | 1,745   |   |   |   | 1,719   |          |   |   | 1,728         |   |   |          | 1,729   |   |   |   | 1,802 |   |
|   Total      Employment Costs              |   | $      | 180,931 |   |   | $      | 179,482 |          |   | $      | 182,008       |   |   | $             | 177,138 |   |   | $ | 172,595 |   |
| Stockholder      Data at Year-End:                   |   |   |    |   |   |   |    |          |   |   |          |   |   |          |    |   |   |   |   |   |
|   Number      of Stockholders              |   |   | 1,511   |   |   |   | 1,557   |          |   |   | 1,655         |   |   |          | 1,673   |   |   |   | 1,711 |   |
|  Common      Shares Outstanding (in thousands)  |   |   | 27,619  |   |   |   | 28,734  |          |   |   | 30,155        |   |   |          | 30,204  |   |   |   | 31,719 |   |

|  (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 2005 and 2004 as follows: 2005,      decreased $579 ($0.02); 2004, increased $681 ($0.02).  The      effect of the change on assets was as follows: 2006, decreased $2,746;      2005, decreased $2,829; 2004, decreased $2,250.  In addition, as      of January 1, 2004, this adjustment reduced retained earnings by      $2,930. |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item      7. | Management's Discussion and Analysis of Financial      Condition and Result of      Operations |
|--------------|------------------------------------------------------------------------------------------------|

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|                                | Payments Due      by Period     |
|-------------------------------------|-------------------------------------------|
|  Contractual      Obligations: |       Total | Less      than   1      Year |       1-3     Years |       3-5    Years |   After      5  Years |
| Term Debt (includes      interest)  | $  38,525                       | $  12,946 | $  25,579 | $        --- | $        --- |
| Operating      Leases               |       9,747 |       3,072 |       4,010 |       1,815 |         850 |
| Planned      Pension Contributions  |     15,000            |     15,000 |           --- |           --- |           --- |
| Total                               | $  63,272                       | $  31,018 | $  29,589 | $    1,815 | $      850 |

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| Item      7A. | Quantitative and Qualitive Disclosures      about Market  Risk |
|---------------|----------------------------------------------------------------|

| Expected      Maturity Date                               | 2009                                          | 2010                               | 2011                                          | 2012                                          | 2013                                          | Thereafter                         |
|-----------------------------------------------------------|-----------------------------------------------|------------------------------------|-----------------------------------------------|-----------------------------------------------|-----------------------------------------------|------------------------------------|
|                                                      |                                          |                               |                                          |                                          |                                          |                               |
| Municipal      Bonds                                      | $8,530                                        | $15,935                            | $13,433                                       | $3,906                                        | $8,118                                        | $51,799                            |
|                                                      |                                          |                               |                                          |                                          |                                          |                               |
|      Average      Interest Yield | 4.3%                                          | 5.0%                               | 4.9%                                          | 5.0%                                          | 4.8%                                          | 5.0%                               |
|                                                      |                                          |                               |                                          |                                          |                                          |                               |
| Corporate      Bonds                                      |        --- |      $281 |        --- |        --- |        --- |      $690 |
|                                                      |                                          |                               |                                          |                                          |                                          |                               |
|      Average      Interest Yield |        --- | 4.7%                               |        --- |        --- |        --- | 8.3%                               |
|                                                      |                                          |                               |                                          |                                          |                                          |                               |
| Total                                                     | $8,530                                        | $16,216                            | $13,433                                       | $3,906                                        | $8,118                                        | $52,489                            |
|      Average      Interest Yield | 4.3%                                          | 5.0%                               | 4.9%                                          | 5.0%                                          | 4.8%                                          | 5.1%                               |

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| Item      8. | Financial Statements and Supplementary      Data |
|--------------|--------------------------------------------------|

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|                                                              |   | 2008   |    | 2007    |   | 2006Adjusted* |   |
|-------------------------------------------------------------------|--------|--------|---------|---------|--------|---------------|--------|
|                                                              |   |   |    |    |   |          |   |
| Operating      Revenues (Note      2)                             |   | $      | 352,211 |    | $      | 352,224       |   | $ | 344,862 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Operating      Expenses                                           |   |   |    |    |   |          |   |   |   |   |
|    (Notes 2,      3, 6, 8  and 10): |   |   |    |    |   |          |   |   |   |   |
|   Editorial,      production, and distribution          |   |   | 188,114 |    |   | 184,301       |   |   | 184,477 |   |
|   Selling                                               |   |   | 55,286  |    |   | 57,478        |   |   | 58,184 |   |
|   General      and administrative                       |   |   | 59,916  |    |   | 61,890        |   |   | 59,510 |   |
|   Goodwill      impairment                              |   |   | ---     |    |   | ---           |   |   | 11,576 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
|     Total      Operating Expenses             |   |   | 303,316 |    |   | 303,669       |   |   | 313,747 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
|  (Loss)      Gain on Dispositions (Note      5)         |   |   | (12     | )  |   | 92,133        |   |   | (19 | ) |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Operating      Profit                                             |   |   | 48,883  |    |   | 140,688       |   |   | 31,096 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Investment      income (Note      4)                              |   |   | 4,579   |    |   | 5,566         |   |   | 5,883 |   |
| Interest      expense (Note      9)                               |   |   | (3,277  | )       |   | (4,472        | )      |   | (5,604 | ) |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Income      Before Income Taxes                                   |   |   | 50,185  |    |   | 141,782       |   |   | 31,375 |   |
| Provision      for income taxes (Note      7)                     |   |   | 18,744  |    |   | 53,744        |   |   | 11,922 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Net      Income                                                   |   | $      | 31,441  |    | $      | 88,038        |   | $ | 19,453 |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
|                                                              |   |   |    |    |   |          |   |   |   |   |
| Earnings      Per Share (Note      11)                       |   | $      | 1.11    |    | $      | 2.99          |   | $ | .65 |   |

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|                                                                 | December      31, |    |
|----------------------------------------------------------------------|-------------------|---------|
|                                                                 |              |    |   |   |
|                                                                 | 2008              |    | 2007 |   |
| Current      Assets:                                                 |              |    |   |   |
|   Cash      and cash equivalents (Note 4)                  | $                 | 11,139  |   | $ | 11,789 |   |
|   Short-term      investments (Note 4)                     |              | 8,530   |   |   | 10,378 |   |
|   Receivables,      net (Note 8)                           |              | 35,661  |   |   | 42,432 |   |
|   Inventories,  net      (Note 8)                |              | 2,608   |   |   | 3,143 |   |
|   Prepaid      expenses                                    |              | 4,966   |   |   | 4,589 |   |
|   Deferred      income taxes (Note 7)                      |              | 7,136   |   |   | 8,189 |   |
|                                                                 |              |    |   |   |   |   |
| Total      Current Assets                                            |              | 70,040  |   |   | 80,520 |   |
|                                                                 |              |    |   |   |   |   |
| Marketable      Securities (Note 4)                                  |              | 106,681 |   |   | 109,801 |   |
| Property      and Equipment, net (Note      8)                  |              | 120,426 |   |   | 125,628 |   |
| Deferred      Income Taxes (Note 7)                                  |              | 45,286  |   |   | 11,925 |   |
| Goodwill      (Note 6)                                               |              | 61,790  |   |   | 61,790 |   |
| Intangible      and Other Amortizable Assets, net (Note      8) |              | 8,377   |   |   | 9,741 |   |
| Other      Assets                                                    |              | 86      |   |   | 123 |   |
|                                                                 |              |    |   |   |   |   |
| Total      Assets                                                    | $                 | 412,686 |   | $ | 399,528 |   |

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|                                                                             | December      31, |     |
|----------------------------------------------------------------------------------|-------------------|----------|
|                                                                             |              |     |   |   |
|                                                                             | 2008              |     | 2007 |   |
| Current      Liabilities:                                                        |              |     |   |   |
|   Current      portion of long-term debt (Note 9)                      | $                 | 10,500   |   | $ | 10,500 |   |
|   Payables      and accrued liabilities (Note 8)                       |              | 40,497   |   |   | 39,285 |   |
|   Deferred      revenues (Note 2)                                      |              | 133,630  |   |   | 140,044 |   |
|                                                                             |              |     |   |   |   |   |
| Total      Current Liabilities                                                   |              | 184,627  |   |   | 189,829 |   |
|                                                                             |              |     |   |   |   |   |
| Long-Term      Debt, less current portion  (Note      9)               |              | 23,500   |   |   | 34,000 |   |
| Postretirement      Benefits, less current portion (Note    3)                   |              | 219,686  |   |   | 140,616 |   |
| Other      Liabilities                                                           |              | 1,337    |   |   | 1,703 |   |
|                                                                             |              |     |   |   |   |   |
| Total      Liabilities                                                           |              | 429,150  |   |   | 366,148 |   |
|                                                                             |              |     |   |   |   |   |
| Commitments      and Contingencies (Notes 10, and 11)                            |              |     |   |   |   |   |
|                                                                             |              |     |   |   |   |   |
| Stockholders’      (Deficit)      Equity      (Note 11):                   |              |     |   |   |   |   |
|   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                                      |              | 42,181   |   |   | 35,772 |   |
|   Retained      earnings                                               |              | 218,026  |   |   | 198,003 |   |
|   Treasury      stock, at cost – 29,547,221 shares               |              |     |   |   |   |   |
|     in      2008 and 28,432,880 in 2007                      |              | (250,902 | ) |   | (227,202 | ) |
|   Accumulated      other comprehensive (loss) income:                  |              |     |   |   |   |   |
|     Net      unrealized (loss) gain on marketable securities |              | (3,701   | ) |   | 1,822 |   |
|     Foreign      currency translation adjustment             |              | (104     | ) |   | (287 | ) |
|     Postretirement      benefits                             |              | (79,131  | ) |   | (31,895 | ) |
|                                                                             |              |     |   |   |   |   |
| Total      Stockholders’ (Deficit) Equity                                  |              | (16,464  | ) |   | 33,380 |   |
|                                                                             |              |     |   |   |   |   |
| Total      Liabilities and Stockholders’ (Deficit) Equity                  | $                 | 412,686  |   | $ | 399,528 |   |

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|                                                                       |   |    |   |   | 2006      |   |
|----------------------------------------------------------------------------|--------|---------|--------|--------|-----------|--------|
|                                                                       | 2008   |    | 2007   |   | Adjusted* |   |
|                                                                       |   |    |   |   |      |   |
| Cash      Flows from Operating Activities:                                 |   |    |   |   |      |   |
|   Net      income                                                | $      | 31,441  |   | $      | 88,038    |   | $ | 19,453 |   |
|                                                                       |   |    |   |   |      |   |   |   |   |
|   Adjustments      to reconcile net income to net                |   |    |   |   |      |   |   |   |   |
|     cash      provided by operating activities – |   |    |   |   |      |   |   |   |   |
|     Goodwill      impairment                           |   | ---     |   |   | ---       |   |   | 11,576 |   |
|     Depreciation      and amortization                 |   | 9,935   |   |   | 8,319     |   |   | 8,534 |   |
|     Deferred      income taxes                         |   | 721     |   |   | 35,040    |   |   | 184 |   |
|     Loss      (gain) on sales of securities            |   | 314     |   |   | (450      | )      |   | (1,347 | ) |
|     Gain      on sale of buildings                     |   | ---     |   |   | (92,524   | )      |   | --- |   |
|     Others                                             |   | 645     |   |   | 1,545     |   |   | 1,125 |   |
|                                                                       |   |    |   |   |      |   |   |   |   |
|   Changes      in operating assets and liabilities –       |   |    |   |   |      |   |   |   |   |
|     Receivables                                        |   | 7,182   |   |   | 1,918     |   |   | (5,963 | ) |
|     Deferred      revenues                             |   | (6,414  | )      |   | 4,384     |   |   | 4,067 |   |
|     Payables      and accrued liabilities              |   | 1,219   |   |   | (6,284    | )      |   | 3,435 |   |
|     Postretirement      benefits                       |   | 1,634   |   |   | 1,090     |   |   | 5,106 |   |
|     Inventories                                        |   | 535     |   |   | 556       |   |   | (493 | ) |
|     Other      assets and liabilities – net      |   | (482    | )      |   | 650       |   |   | (993 | ) |
|                                                                       |   |    |   |   |      |   |   |   |   |
| Net cash      provided by operating activities                             |   | 46,730  |   |   | 42,282    |   |   | 44,684 |   |
|                                                                       |   |    |   |   |      |   |   |   |   |
| 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         |   | (1,482  | )      |   | (10,209   | )      |   | (4,570 | ) |
|     Capitalized      software                          |   | (1,007  | )      |   | (343      | )      |   | (1,032 | ) |
|     Purchase      of publishing assets                 |   | (831    | )      |   | (155      | )      |   | (50 | ) |
|     Proceeds      from sale of assets                  |   | ---     |   |   | ---       |   |   | 26 |   |
|     Investment      security sales and maturities      |   | 67,765  |   |   | 89,303    |   |   | 66,821 |   |
|     Investment      securities purchases               |   | (72,633 | )      |   | (93,651   | )      |   | (71,424 | ) |
| Net cash used      for investing activities                                |   | (8,188  | )      |   | (12,920   | )      |   | (10,632 | ) |

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|                                                                      |   |    |   |   | 2006      |   |
|---------------------------------------------------------------------------|--------|---------|--------|--------|-----------|--------|
|                                                                      | 2008   |    | 2007   |   | Adjusted* |   |
|                                                                      |   |    |   |   |      |   |
| Cash      Flows from Financing Activities:                                |   |    |   |   |      |   |
|   Receipts      for capital stock sales to employees            |   | 11,175  |   |   | 9,626     |   |   | 12,617 |   |
|   Purchases      of treasury stock                              |   | (28,449 | )      |   | (29,980   | )      |   | (13,954 | ) |
|   Payment      of long-term debt                                |   | (10,500 | )      |   | (10,500   | )      |   | (7,500 | ) |
|   Dividends      paid                                           |   | (11,418 | )      |   | (10,720   | )      |   | (10,270 | ) |
|                                                                      |   |    |   |   |      |   |   |   |   |
| Net cash used      for financing activities                               |   | (39,192 | )      |   | (41,574   | )      |   | (19,107 | ) |
|                                                                      |   |    |   |   |      |   |   |   |   |
| Net      (Decrease) Increase in Cash  and      Cash Equivalents |   | (650    | )      |   | (12,212   | )      |   | 14,945 |   |
|                                                                      |   |    |   |   |      |   |   |   |   |
| Cash      and Cash Equivalents, beginning of    year                      |   | 11,789  |   |   | 24,001    |   |   | 9,056 |   |
|                                                                      |   |    |   |   |      |   |   |   |   |
| Cash      and Cash Equivalents, end of year                               | $      | 11,139  |   | $      | 11,789    |   | $ | 24,001 |   |
|                                                                      |   |    |   |   |      |   |   |   |   |
|                                                                      |   |    |   |   |      |   |   |   |   |
| Supplemental      Cash Flow Information:                                  |   |    |   |   |      |   |   |   |   |
|   Interest      paid                                            | $      | 3,430   |   | $      | 4,146     |   | $ | 4,840 |   |
|   Income      taxes paid                                        |   | 19,893  |   |   | 17,230    |   |   | 11,761 |   |

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|                                                                  |   | Comprenhensive      Income (loss)(Note 12) |    | Capital      StockIssued |   | Additional      Paid-InCapital |   | RetainedEarnings |   | TreasuryStock |    | Accum.OtherComprehensiveIncome |   |
|-----------------------------------------------------------------------|--------|--------------------------------------------|---------|--------------------------|--------|--------------------------------|--------|------------------|--------|---------------|---------|--------------------------------|--------|
|                                                                  |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |
|  Balance,      January 1, 2006, as adjusted*                     |   |                                       |    | $                        | 57,167 |                           | $      | 22,730           |   | $             | 111,502 |                           | $      | (192,610 | ) | $ | (93 | ) |
|                                                                  |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |
|   Net      Income, as adjusted*                             |   | $                                          | 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*                   |   |                                       |    |                     |   | 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 | ) |
|                                                                  |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |   |
|   Net      Income                                           |   | $                                          | 31,441  |                     |   | ---                            |   |             | ---    |          |    | 31,441                         |   |   | --- |   |   | --- |   |
|   Other      Comprehensive Income, net of tax:              |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |   |
|     Unrealized      loss on marketable securities |   |                                       | (5,523  | )                        |   | ---                            |   |             | ---    |          |    | ---                            |   |   | --- |   |   | (5,523 | ) |
|     Currency      translation adjustment          |   |                                       | 183     |                     |   | ---                            |   |             | ---    |          |    | ---                            |   |   | --- |   |   | 183 |   |
|     Post      Retirement Benefit adjustment       |   |                                       | (47,236 | )                        |   | ---                            |   |             | ---    |          |    | ---                            |   |   | --- |   |   | (47,236 | ) |
|   Comprehensive      Loss                                   |   | $                                          | (21,135 | )                        |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |   |
|                                                                  |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |   |
|   Sales      of Class A treasury shares to employees        |   |                                       |    |                     |   | ---                            |   |             | 6,409  |          |    | ---                            |   |   | 4,749 |   |   | --- |   |
|   Repurchases      of shares                                |   |                                       |    |                     |   | ---                            |   |             | ---    |          |    | ---                            |   |   | (28,449 | ) |   | --- |   |
|   Cash      dividends--$.40 per share, class A, B, and C    |   |                                       |    |                     |   | ---                            |   |             | ---    |          |    | (11,418                        | )      |   | --- |   |   | --- |   |
|                                                                  |   |                                       |    |                     |   |                           |   |             |   |          |    |                           |   |   |   |   |   |   |   |
| Balance,      December 31, 2008                                       |   |                                       |    |                     | $      | 57,167                         |   | $                | 42,181 |          | $       | 218,026                        |   | $ | (250,902 | ) | $ | (82,936 | ) |

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| (2) | RECOGNITION      OF REVENUES, DEFERRED REVENUES, AND SELLING  EXPENSES |
|-----|------------------------------------------------------------------------|

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Table of Contents

|                                                                                             | Pension      Benefits |    | Other      Postretirement Benefits |   |
|--------------------------------------------------------------------------------------------------|-----------------------|---------|------------------------------------|--------|
|                                                                                             |                  |    |                               |   |   |   |   |   |
|                                                                                             | 2008                  |    | 2007                               |   | 2008 |   | 2007 |   |
| Change in      projected benefit obligation:                                                     |                  |    |                               |   |   |   |   |   |
| Benefit      obligation - January 1                                                              | $                     | 196,621 |                               | $      | 197,595 |   | $ | 155,078 |   | $ | 140,332 |   |
| Service      cost                                                                                |                  | 7,568   |                               |   | 7,997 |   |   | 5,748 |   |   | 5,672 |   |
| Interest      cost                                                                               |                  | 12,267  |                               |   | 11,250 |   |   | 9,795 |   |   | 8,203 |   |
| Actuarial      (gain) loss                                                                       |                  | 4,256   |                               |   | (12,397 | ) |   | 11,143 |   |   | 4,524 |   |
| Benefits      paid                                                                               |                  | (8,508  | )                                  |   | (7,824 | ) |   | (4,439 | ) |   | (3,653 | ) |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Benefit      obligation - December 31                                                            |                  | 212,204 |                               |   | 196,621 |   |   | 177,325 |   |   | 155,078 |   |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Change in      plan assets:                                                                      |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Fair value of      plan assets - January 1                                                       |                  | 184,966 |                               |   | 167,958 |   |   | 25,996 |   |   | 26,520 |   |
| Actual return      on plan assets                                                                |                  | (37,275 | )                                  |   | 10,744 |   |   | (9,554 | ) |   | (524 | ) |
| Employer      contribution                                                                       |                  | 14,000  |                               |   | 14,000 |   |   | --- |   |   | --- |   |
| Benefits      paid                                                                               |                  | (8,387  | )                                  |   | (7,736 | ) |   | --- |   |   | --- |   |
| Fair value of      plan assets - December 31                                                     |                  | 153,304 |                               |   | 184,966 |   |   | 16,442 |   |   | 25,996 |   |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Funded      status                                                                               | $                     | (58,900 | )                                  | $      | (11,655 | ) | $ | (160,883 | ) | $ | (129,082 | ) |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Amounts      recognized in the balance sheet                                                     |                  |    |                               |   |   |   |   |   |   |   |   |   |
|   Payables      and accrued liabilities                                                |                  | (97     | )                                  |   | (121 | ) |   | --- |   |   | --- |   |
|   Postretirement      benefits                                                         |                  | (58,803 | )                                  |   | (11,534 | ) |   | (160,883 | ) |   | (129,082 | ) |
| Net amount      recognized                                                                       | $                     | (58,900 | )                                  | $      | (11,655 | ) | $ | (160,883 | ) | $ | (129,082 | ) |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Amounts      included in accumulated other  comprehensive      (loss) income (pre-tax) |                  |    |                               |   |   |   |   |   |   |   |   |   |
|   Net      actuarial loss                                                              |                  | (70,090 | )                                  |   | (13,153 | ) |   | (60,811 | ) |   | (40,296 | ) |
|   Prior      service cost                                                              |                  | (433    | )                                  |   | (495 | ) |   | --- |   |   | --- |   |
| Total                                                                                            | $                     | (70,523 | )                                  | $      | (13,648 | ) | $ | (60,811 | ) | $ | (40,296 | ) |
|                                                                                             |                  |    |                               |   |   |   |   |   |   |   |   |   |
| Assumed      discount rate                                                                       |                  | 6.25    | %                                  |   | 6.35 | % |   | 6.25 | % |   | 6.35 | % |
| Assumed rate      of compensation increase                                                       |                  | 4.75    | %                                  |   | 4.75 | % |   | --- |   |   | --- |   |

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|                         |     |   | Other          |
|------------------------------|----------|--------|----------------|
|                         | Pension  |   | Postretirement |
|                         | Benefits |   | Benefits       |
|                         |     |   |           |   |   |
| 2009                         | $        | 10,521 |           | $ | 4,973 |
| 2010                         |     | 11,414 |           |   | 5,771 |
| 2011                         |     | 12,461 |           |   | 6,525 |
| 2012                         |     | 13,597 |           |   | 7,371 |
| 2013                         |     | 14,495 |           |   | 8,197 |
| Years 2014 –      2018 |     | 86,234 |           |   | 52,595 |

|                                                | Pension      Benefits |
|-----------------------------------------------------|-----------------------|
|                                                |                  |   |   |   |   |
|                                                |                  | 2008 |   |   | 2007 |
| Projected      benefit obligation                   | $                     | 212,204 |   | $ | 196,621 |
| Accumulated      benefit obligation                 |                  |   |   |   |   |
|   Qualified      plan                     |                  | 175,456 |   |   | 161,878 |
|   Supplemental      plan                  |                  | 2,155 |   |   | 1,696 |
| Fair value of      plan assets–qualified plan |                  | 153,304 |   |   | 184,966 |

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|                                                      | 2008   |    |    | 2007   |   | 2006    |    |
|-----------------------------------------------------------|--------|---------|---------|--------|--------|---------|---------|
| Service cost      – benefits earned during the year | $      | 7,568   |    |   | $      | 7,997   |    | $ | 8,160 |   |
| Interest      cost                                        |   | 12,267  |    |   |   | 11,250  |    |   | 10,404 |   |
| Expected      return on plan assets                       |   | (15,513 | )       |   |   | (14,467 | )       |   | (12,051 | ) |
| Amortization      of net actuarial loss                   |   | 108     |    |   |   | 317     |    |   | 1,957 |   |
| Amortization      of prior service cost                   |   | 62      |    |   |   | 62      |    |   | 62 |   |
|                                                      |   |    |    |   |   |    |    |   |   |   |
| Pension      expense                                      | $      | 4,492   |    |   | $      | 5,159   |    | $ | 8,532 |   |
|                                                      |   |    |    |   |   |    |    |   |   |   |
| Assumed      discount rate                           |   | 6.35    | %       |   |   | 5.8     | %  |   | 5.5 | %  |
| Assumed rate      of compensation increase           |   | 4.75    | %  |   |   | 4.75    | %  |   | 4.75 | %  |
| Expected      long-term return on plan assets   |   | 8.5     | %  |   |   | 8.5     | %  |   | 8.5 | %  |

|                                                |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Net      loss                                       |   | $      | (57,045 | )      |   | $      | --- |   |
| Amortization      of net actuarial loss             |   |   | 108     |   |   |   | --- |   |
| Amortization      of prior service cost             |   |   | 62      |   |   |   | --- |   |
|                                                |   |   |    |   |   |   |   |   |
| Total      recognized in other comprehensive income |   | $      | (56,875 | )      |   | $      | --- |   |

|                                                      |   | 2008   |   |    | 2007   |   |   | 2006    |   |
|-----------------------------------------------------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
| Service cost      – benefits earned during the year |   | $      | 5,748  |    |   | $      | 5,672  |    |   | $ | 5,610 |   |
| Interest      cost                                        |   |   | 9,795  |    |   |   | 8,203  |    |   |   | 7,835 |   |
| Expected      return on plan assets                       |   |   | (2,210 | )       |   |   | (2,254 | )       |   |   | (2,129 | ) |
| Amortization      of net actuarial loss                   |   |   | 2,369  |    |   |   | 2,068  |    |   |   | 2,636 |   |
| Amortization      of prior service cost                   |   |   | ---    |    |   |   | (17    | )       |   |   | (54 | ) |
|                                                      |   |   |   |    |   |   |   |    |   |   |   |   |
| Other      postretirement benefits expense                |   | $      | 15,702 |    |   | $      | 13,672 |    |   | $ | 13,898 |   |
|                                                      |   |   |   |    |   |   |   |    |   |   |   |   |
| Assumed      discount rate                                |   |   | 6.35   |  % |   |   | 5.8    |  % |   |   | 5.5 |  % |
| Expected      long-term return on plan assets        |   |   | 8.5    |  % |   |   | 8.5    |  % |   |   | 8.5 |  % |

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|                                              |   | 2008   |    |   | 2007   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Net      loss                                     |   | $      | (22,884 | )      |   | $      | --- |   |
| Amortization      of net actuarial loss           |   |   | 2,369   |   |   |   | --- |   |
|                                              |   |   |    |   |   |   |   |   |
| Total      recognized in other comprehensive loss |   | $      | (20,515 | )      |   | $      | --- |   |

|                         |  Pension      Benefits |    |  Other      Postretirement Benefits |
|------------------------------|-----------------------------|---------|------------------------------------------|
|                         | 2008                        |    |                                     | 2007 |   |   | 2008 |   |   | 2007 |   |
| Equity      securities       | 51                          | %  |                                     |   65 | %  |   | --- | %  |   | 67 | %  |
| Fixed income      securities | 37                          |    |                                     |  28 |   |   | 62 |   |   | 32 |   |
| Cash      equivalents        | 12                          |    |                                     |  7 |   |   | 38 |   |   | 1 |   |
|                         |                        |    |                                     |   |   |   |   |   |   |   |   |
|   Total            | 100                         | %       |                                     | 100 | %  |   | 100 | % |   | 100 | %  |

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|                           |   | December      31, |    |
|--------------------------------|--------|-------------------|---------|
|                           |   |              |    |   |   |   |
|                           |   | 2008              |    |   | 2007 |   |
| Cash and cash      equivalents |   | $                 | 11,139  |   |   | $ | 11,789 |   |
| Short-term      investments    |   |              | 8,530   |   |   |   | 10,378 |   |
| Marketable      securities     |   |              | 106,681 |   |   |   | 109,801 |   |
|                           |   |              |    |   |   |   |   |   |
| Total                          |   | $                 | 126,350 |   |   | $ | 131,968 |   |

|                                        |   | 2008   |   |   | 2007   |   | 2006   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                        |   |   |   |   |   |   |   |   |
| Interest      income                        |   | $      | 4,591  |   |   | $      | 4,735  |   | $ | 4,091 |   |
| Dividend      income                        |   |   | 302    |   |   |   | 381    |   |   | 445 |   |
| Net (loss)      gain on sales of securities |   |   | (314   | )      |   |   | 450    |   |   | 1,347 |   |
|                                        |   |   |   |   |   |   |   |   |   |   |   |
| Total                                       |   | $      | 4,579  |   |   | $      | 5,566  |   | $ | 5,883 |   |

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| December      31, 2008 |   | Amortized      Cost |    | Gross      Unrealized      Gains |   | Gross      Unrealized Losses |   | Fair      Value |   |
|------------------------|--------|---------------------|---------|----------------------------------|--------|-----------------------------------|--------|-----------------|--------|
|                   |   |                |    |                             |   |                              |   |            |   |
| Equity      securities |   | $                   | 16,859  |                             | $      | 131                               |   | $               | (5,390 | ) | $ | 11,600 |   |
| Municipal      bonds   |   |                | 101,960 |                             |   | 1,736                             |   |            | (1,975 | ) |   | 101,721 |   |
| Corporate      debt    |   |                | 2,085   |                             |   | ---                               |   |            | (195   | ) |   | 1,890 |   |
|                   |   |                |    |                             |   |                              |   |            |   |   |   |   |   |
| Total                  |   | $                   | 120,904 |                             | $      | 1,867                             |   | $               | (7,560 | ) | $ | 115,211 |   |

| December      31, 2007 |   | AmortizedCost |    | Gross      UnrealizedGains |   | 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 |   |

|                         |   |            |   | Gross Realized      Losses  |   |
|------------------------------|--------|-----------------|--------|----------------------------------|--------|
|  December      31, 2008 |   | Fair Value      |   | Less than 12      Months         |   | More than 12      Months |   |
| Equity      securities       |   | $               | 10,504 |                             | $      | (5,390 | ) | $ | --- |   |
| Municipal      bonds         |   |            | 33,162 |                             |   | (1,279 | ) |   | (696 | ) |
| Corporate      debt          |   |            | 1,890  |                             |   | (195 | ) |   | --- |   |
|                         |   |            |   |                             |   |   |   |   |   |   |
| Total                        |   | $               | 45,556 |                             | $      | (6,864 | ) | $ | (696 | ) |
|                         |   |            |   |                             |   |   |   |   |   |   |
|                         |   |            |   | Gross      Unrealized Loses      |   |
| December      31, 2007  |   | Fair      Value |   | Less than 12      Months         |   | More than 12      Months |   |
| Equity      securities       |   | $               | 4,064  |                             | $      | (36 | ) | $ | --- |   |
| Municipal      bonds         |   |            | 16,645 |                             |   | (92 | ) |   | (49 | ) |
|                         |   |            |   |                             |   |   |   |   |   |   |
| Total                        |   | $               | 20,709 |                             | $      | (128 | ) | $ | (49 | ) |

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Table ofContents

|                        | Amortized |    | Fair   |
|-----------------------------|-----------|---------|--------|
|                        | Cost      |    | Value  |
|                        |      |    |   |   |   |
| Within one      year        | $         | 8,513   |   | $ | 8,530 |
| One through      five years |      | 41,076  |   |   | 41,673 |
| Five through      ten years |      | 16,674  |   |   | 16,601 |
| Over ten      years         |      | 36,718  |   |   | 35,888 |
| No fixed      maturity date |      | 1,064   |   |   | 919 |
|                        |      |    |   |   |   |
| Total                       | $         | 104,045 |   | $ | 103,611 |

|                             |   |   |   |   |   |   |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|
|                             |   | 2008   |   | 2007   |   | 2006   |   |
|                             |   |   |   |   |   |   |   |
| Gain on sale      of buildings   |   | $      | ---    |   | $      | 92,524 |   | $ | --- |   |
| Loss on      disposals of assets |   |   | (12    | )      |   | (391   | )      |   | (19 | ) |
|                             |   |   |   |   |   |   |   |   |   |   |
| Total                            |   | $      | 12     |   | $      | 92,133 |   | $ | (19 | ) |

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Table of Contents

|                            | Publishing |    |   | Printing |   | Software |   | Total  |   |
|---------------------------------|------------|---------|--------|----------|--------|----------|--------|--------|--------|
|                            |       |    |   |     |   |     |   |   |   |
| Balance,      January 1, 2006   | $          | 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 |   |
| Balance,      December 31, 2008 | $          | 38,422  |   |     | $      | 917      |   | $      | 22,451 |   | $ | 61,790 |   |

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|                         |    |         |   |    |         |   |
|------------------------------|---------|--------------|--------|---------|--------------|--------|
|                         | 2008    |         | 2007   |    | 2006         |   |
|                         |    |         |   |    |         |   |
| Taxes      Currently payable |  $ | 14,868       |   |  $ | 14,363       |   |  $ | 8,051 |   |
| Federal                      |    |  3,155  |   |    |  4,341  |   |   |  3,687 |   |
| State      and local    |    |         |   |    |         |   |   |   |   |
|                         |    | 18,023       |   |    | 18,704       |   |   | 11,738 |   |
| Deferred tax      provision: |    |         |   |    |         |   |   |   |   |
| Federal                 |    |  (619   | )      |    |  30,580 |   |   |  539 |   |
| State and      local         |    | 1,340        |   |    | 4,460        |   |   | (355 | ) |
|                         |    |         |   |    |         |   |   |   |   |
|                         |    |  721    |   |    |  35,040 |   |   |  184 |   |
|                         |    |         |   |    |         |   |   |   |   |
| Total                   |  $ |  18,744 |   |  $ |  53,744 |   |  $ |  11,922 |   |

|                                        | Percent of      Pretax Income |   |
|---------------------------------------------|-------------------------------|--------|
|                                        |                          |   |   |   |   |   |   |   |
|                                        | 2008                          |   |   | 2007 |   |   | 2006 |   |
|                                        |                          |   |   |   |   |   |   |   |
| Federal      statutory rate                 |                          | 35.0   | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State and      local income taxes, net of   |                          |   |   |   |   |   |   |   |   |   |   |
|   federal      income tax benefit |                          | 5.8    |   |   |   | 4.0 |   |   |   | 6.9 |   |
| Tax exempt      interest exclusion          |                          | (2.7   | ) |   |   | (0.9 | ) |   |   | (3.5 | ) |
| Dividends      received exclusion           |                          | (0.1   | ) |   |   | (0.1 | ) |   |   | (0.2 | ) |
| Others                                      |                          | (0.6   | ) |   |   | (0.1 | ) |   |   | (0.2 | ) |
|                                        |                          |   |   |   |   |   |   |   |   |   |   |
| Total                                       |                          | 37.4   | % |   |   | 37.9 | % |   |   | 38.0 | % |

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|                                                                   |   | December      31, |    |
|------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                   |   |              |    |   |   |   |
|                                                                   |   | 2008              |    |   | 2007 |   |
| Deferred tax      assets:                                              |   |              |    |   |   |   |
|    Postretirement      benefits liability               |   | $                 | 81,303  |   |   | $ | 51,514 |   |
|    Inventories                                          |   |              | 1,562   |   |   |   | 1,474 |   |
|    Annual      leave                                    |   |              | 2,125   |   |   |   | 2,270 |   |
|    Accounts      receivable allowances                  |   |              | 535     |   |   |   | 585 |   |
|    Medical      claims                                  |   |              | 1,446   |   |   |   | 1,409 |   |
|    Unrealized      loss (gain) on marketable securities |   |              | 1,991   |   |   |   | (982 | ) |
|    Others                                               |   |              | 2,550   |   |   |   | 2,117 |   |
|    Valuation      allowance                             |   |              | ---     |   |   |   | (601 | ) |
|                                                                   |   |              |    |   |   |   |   |   |
| Total      deferred tax assets                                         |   |              | 91,512  |   |   |   | 57,786 |   |
|                                                                   |   |              |    |   |   |   |   |   |
| Deferred tax      (liabilities):                                       |   |              |    |   |   |   |   |   |
|    Capitalized      software                            |   |              | (1,577  | ) |   |   | (2,100 | ) |
|    Deferred      gain on real estate transactions       |   |              | (35,942 | ) |   |   | (36,101 | ) |
|    Depreciation                                         |   |              | (384    | ) |   |   | 41 |   |
|    Amortization      of acquired intangible assets      |   |              | (881    | ) |   |   | 778 |   |
|    Others                                               |   |              | (306    | ) |   |   | (290 | ) |
|                                                                   |   |              |    |   |   |   |   |   |
| Total      deferred tax (liabilities)                                  |   |              | (39,090 | ) |   |   | (37,672 | ) |
|                                                                   |   |              |    |   |   |   |   |   |
| Net deferred      tax assets                                           |   | $                 | 52,422  |   |   | $ | 20,114 |   |

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|                                                           | 2008   |   | 2007    |
|----------------------------------------------------------------|--------|--------|---------|
| Unrecognized      tax benefits, January 1                      | $      | 2,993  |    | $ | 1,724 |
| Increases      resulting from tax positions taken during year  |   | 482    |    |   | 1,269 |
| Decreases      relating to settlements with taxing authorities |   | (1,032 | )  |   | --- |
|                                                           |   |   |    |   |   |
| Unrecognized      tax benefits, December 31                    | $      | 2,443  |    | $ | 2,993 |

|                                                   |   |   |   |   |   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                   |   | 2008   |   |   | 2007   |   |
| Receivables:                                           |   |   |   |   |   |   |
|    Customers                            |   | $      | 34,675 |   |   | $      | 40,908 |   |
|    Others                               |   |   | 2,709  |   |   |   | 3,558 |   |
|    Allowance      for doubtful accounts |   |   | (1,723 | )      |   |   | (2,034 | ) |
|                                                   |   |   |   |   |   |   |   |   |
| Total                                                  |   | $      | 35,661 |   |   | $      | 42,432 |   |

|                                          |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------|--------|--------|--------|--------|--------|--------|
| Inventories:                                  |   |   |   |   |   |   |
|    Materials      and supplies |   | $      | 1,272  |   |   | $      | 1,528 |   |
|    Work      in process        |   |   | 266    |   |   |   | 476 |   |
|    Finished      goods         |   |   | 1,070  |   |   |   | 1,139 |   |
|                                          |   |   |   |   |   |   |   |   |
| Total                                         |   | $      | 2,608  |   |   | $      | 3,143 |   |

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|                                              |   | 2008   |    |   | 2007   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Property and      equipment, at cost:             |   |   |    |   |   |   |
|    Land                            |   | $      | 23,642  |   |   | $      | 23,642 |   |
|    Buildings      and improvements |   |   | 95,857  |   |   |   | 96,059 |   |
|    Furniture      and equipment    |   |   | 46,469  |   |   |   | 46,302 |   |
|    Accumulated      depreciation   |   |   | (45,542 | )      |   |   | (40,375 | ) |
|                                              |   |   |    |   |   |   |   |   |
| Total                                             |   | $      | 120,426 |   |   | $      | 125,628 |   |

|                                             |   | 2008   |    |   | 2007   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Intangible      and other amortizable assets:    |   |   |    |   |   |   |
|   Gross      carrying amount--         |   |   |    |   |   |   |
|    Software                       |   | $      | 25,693  |   |   | $      | 25,970 |   |
|    Customer      lists            |   |   | 5,582   |   |   |   | 4,751 |   |
|    Copyrights                     |   |   | 9,145   |   |   |   | 9,145 |   |
|    Other      amortizable assets  |   |   | 130     |   |   |   | 130 |   |
|                                             |   |   |    |   |   |   |   |   |
|                                             |   |   | 40,550  |   |   |   | 39,996 |   |
|   Accumulated      amortization--      |   |   |    |   |   |   |   |   |
|    Software                       |   |   | (19,963 | )      |   |   | (19,299 | ) |
|    Customer      lists            |   |   | (4,644  | )      |   |   | (4,316 | ) |
|    Copyrights                     |   |   | (7,459  | )      |   |   | (6,545 | ) |
|    Other      amortizable assets  |   |   | (107    | )      |   |   | (95 | ) |
|                                             |   |   |    |   |   |   |   |   |
|                                             |   |   | (32,173 | )      |   |   | (30,255 | ) |
|                                             |   |   |    |   |   |   |   |   |
| Net      intangible and other amortizable assets |   | $      | 8,377   |   |   | $      | 9,741 |   |

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Table of Contents

|                                                      |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Payables and      accrued liabilities:                    |   |   |   |   |   |   |
|   Accounts      payable and accrued liabilities |   | $      | 18,928 |   |   | $      | 17,543 |   |
|   Employee      compensation and benefits       |   |   | 20,159 |   |   |   | 18,438 |   |
|   Postretirement      benefits, current portion |   |   | 97     |   |   |   | 121 |   |
|   Income      taxes                             |   |   | 1,313  |   |   |   | 3,183 |   |
|                                                      |   |   |   |   |   |   |   |   |
| Total                                                     |   | $      | 40,497 |   |   | $      | 39,285 |   |

|                                                |   |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                |   | 2008   |   |   | 2007   |   |
|                                                |   |   |   |   |   |   |
| Notes      payable, unsecured, 8.15%, due 2009-2010 |   | $      | 15,000 |   |   | $      | 22,500 |   |
| Notes      payable, unsecured, 6.99%, due 2009-2011 |   |   | 19,000 |   |   |   | 22,000 |   |
| Total term      debt                                |   |   | 34,000 |   |   |   | 44,500 |   |
|   Current      portion                    |   |   | 10,500 |   |   |   | 10,500 |   |
|                                                |   |   |   |   |   |   |   |   |
|   Long-term      debt                     |   | $      | 23,500 |   |   | $      | 34,000 |   |

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|                                   | Treasury      Stock Shares |       |
|----------------------------------------|----------------------------|------------|
|                                   |                       |       |   |   |   |   |
|                                   | Class      A               |       | Class      B |   | Class      C |   |
|                                   |                       |       |   |   |   |   |
| Balance,      January 1, 2006          |                       | 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 |   |
|                                   |                       |       |   |   |   |   |   |   |   |
| Sales to      employees                |                       | (714,011   | ) |   | --- |   |   | --- |   |
| Repurchases                            |                       | 682,658    |   |   | 1,145,694 |   |   | --- |   |
| Conversions      of Class A to Class B |                       | 547,389    |   |   | (547,389 | ) |   | --- |   |
|                                   |                       |       |   |   |   |   |   |   |   |
| Balance,      December 31, 2008        |                       | 18,621,895 |   |   | 8,406,086 |   |   | 2,519,240 |   |

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| (12) | OTHER      COMPREHENSIVE (LOSS) INCOME |
|------|----------------------------------------|

|                                                              | 2008   |    | 2007   |   | 2006   |   |
|-------------------------------------------------------------------|--------|---------|--------|--------|--------|--------|
|                                                              |   |    |   |   |   |   |
| Holding      (losses) gains on securities arising during the year | $      | (8,810  | )      | $      | 958    |   | $ | 2,769 |   |
| Less net      (loss) gain included in net income                  |   | (314    | )      |   | 450    |   |   | 1,347 |   |
| Changes in      unrealized (losses) gains                         |   | (8,496  | )      |   | 508    |   |   | 1,422 |   |
| Less income      taxes                                            |   | (2,973  | )      |   | 178    |   |   | 499 |   |
| Net      unrealized (losses) gains                                |   | (5,523  | )      |   | 330    |   |   | 923 |   |
|                                                              |   |    |   |   |   |   |   |   |   |
| Currency      translation gains (losses)                          |   | 282     |   |   | (71    | )      |   | (271 | ) |
| Less income      taxes                                            |   | 99      |   |   | (25    | )      |   | (95 | ) |
| Net currency      translation gains (losses)                      |   | 183     |   |   | (46    | )      |   | (176 | ) |
|                                                              |   |    |   |   |   |   |   |   |   |
| Minimum      pension liability adjustment                         |   | ---     |   |   | 157    |   |   | 852 |   |
| Less income      taxes                                            |   | ---     |   |   | 61     |   |   | 351 |   |
| Net minimum      pension liability adjustment                     |   | ---     |   |   | 96     |   |   | 501 |   |
|                                                              |   |    |   |   |   |   |   |   |   |
| Post      retirement benefit adjustment                           |   | (77,390 | )      |   | ---    |   |   | --- |   |
| Less income      taxes                                            |   | (30,154 | )      |   | ---    |   |   | --- |   |
| Net post      retirement benefit adjustment                       |   | (47,236 | )      |   | ---    |   |   | --- |   |
|                                                              |   |    |   |   |   |   |   |   |   |
| Other      comprehensive (loss) income                            | $      | (52,576 | )      | $      | 380    |   | $ | 1,248 |   |

| Level      1: | Unadjusted      quoted prices in active markets that are accessible at the measurement      date for identical, unrestricted assets or  liabilities. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level      2: | Inputs, other      than quoted prices, that are observable for the asset or liability, either      directly or indirectly.  These include quoted prices for similar      assets or liabilities in active markets and quoted prices for identical or      similar assets or liabilities in markets that are not    active. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Level      3: | Unobservable      inputs that reflect the reporting entity's own  assumptions. |
|---------------|--------------------------------------------------------------------------------|

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|                                       |   | Balanceas      of |    |   | Fair Value      Measures at 12/31/08Using Fair      Value Hierarchy |   |    | Fair      Valueas      of |   |
|--------------------------------------------|--------|-------------------|---------|--------|---------------------------------------------------------------------|--------|---------|---------------------------|--------|
|                                       |   | 12/31/08          |    |   | Level      1                                                        |   |    | Level      2              |   |   | Level      3 |   |   | 12/31/08 |   |
| Assets:                                    |   |              |    |   |                                                                |   |    |                      |   |   |   |   |   |   |   |
|   Cash      and cash equivalents |   | $                 | 11,139  |   |                                                                | $      | 11,139  |                      |   | $ | --- |   |   | $ | --- |   |   | $ | 11,139 |   |
|                                       |   |              |    |   |                                                                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Short-term      investments    |   |              | 8,530   |   |                                                                |   | 8,530   |                      |   |   | --- |   |   |   | --- |   |   |   | 8,530 |   |
|   Marketable      securities     |   |              | 106,681 |   |                                                                |   | 106,681 |                      |   |   | --- |   |   |   | --- |   |   |   | 106,681 |   |
|                                       |   |              |    |   |                                                                |   |    |                      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total              |   | $                 | 126,350 |   |                                                                | $      | 126,350 |                      |   | $ | --- |   |   | $ | --- |   |   | $ | 126,350 |   |

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|                                  |   |   |       |   |   |
|---------------------------------------|--------|--------|------------|--------|--------|
| Year Ended      December 31, 2008     |   |   | Publishing |   |   | Printing |   |   | Software |   |   | Total |   |
|                                  |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Revenues from      external customers |   | $      | 290,537    |   | $      | 33,125 |   | $ | 28,549 |   | $ | 352,211 |   |
| Intersegment      revenues            |   |   | ---        |   |   | 10,536 |   |   | 2,507 |   |   | 13,043 |   |
| Operating      profit                 |   |   | 38,613     |   |   | 1,805 |   |   | 8,465 |   |   | 48,883 |   |
| Interest      expense                 |   |   | 3,274      |   |   | 79 |   |   | --- |   |   | 3,353 |   |
| Identifiable      assets              |   |   | 410,000    |   |   | 20,698 |   |   | 28,517 |   |   | 459,215 |   |
| Depreciation      and amortization    |   |   | 8,798      |   |   | 1,101 |   |   | 36 |   |   | 9,935 |   |
| Capital      expenditures             |   |   | 3,144      |   |   | 164 |   |   | 12 |   |   | 3,320 |   |
|                                  |   |   |       |   |
| 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 buildings        |   |   | 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   |

|                                                | 2008   |    | 2007   |   | 2006    |   |
|-----------------------------------------------------|--------|---------|--------|--------|---------|--------|
| Total      interest expense for reportable segments | $      | 3,353   |   | $      | 4,671   |   | $ | 5,715 |   |
| Elimination      of intersegment interest expense   |   | (76     | )      |   | (199    | )      |   | (111 | ) |
|   Consolidated      interest expense      | $      | 3,277   |   | $      | 4,472   |   | $ | 5,604 |   |
|                                                |   |    |   |   |    |   |   |   |   |
| Total assets      for reportable segments           | $      | 459,215 |   | $      | 443,244 |   | $ | 353,074 |   |
| Elimination      of intersegment assets             |   | (46,529 | )      |   | (43,716 | )      |   | (18,648 | ) |
|   Consolidated      assets                | $      | 412,686 |   | $      | 399,528 |   | $ | 334,426 |   |

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Table ofContents

|                    | Quarter Ended      2008 |   |
|-------------------------|-------------------------|--------|
|                    | March      22           |   | June      14 |   | September      6 |   | December      31 |   |
|                    |                    |   |   |   |   |   |   |   |
| Revenues                | $                       | 75,261 |   | $ | 79,716 |   | $ | 78,189 |   | $ | 119,045 |   |
| Gross      Profit       |                    | 36,001 |   |   | 37,799 |   |   | 36,941 |   |   | 53,356 |   |
| Net      Income         |                    | 7,365  |   |   | 8,092 |   |   | 6,754 |   |   | 9,230 |   |
|                    |                    |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Per      Share | $                       | .26    |   | $ | .29 |   | $ | .24 |   | $ | .33 |   |
|                    |                    |   |
|                    | Quarter Ended      2007 |   |
|                    | March      24           |   | June      16 |   | September      8 |   | December      31 |   |
|                    |                    |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                | $                       | 77,871 |   | $ | 78,671 |   | $ | 81,344 |   | $ | 114,338 |   |
| Gross      Profit       |                    | 36,987 |   |   | 37,272 |   |   | 39,621 |   |   | 54,043 |   |
| Net      Income         |                    | 6,878  |   |   | 7,498 |   |   | 63,951 |   |   | 9,711 |   |
|                    |                    |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Per      Share | $                       | .23    |   | $ | .25 |   | $ | 2.18 |   | $ | .33 |   |

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Table of Contents

|                                     |   | 2007                    |          | 2006              |    |
|------------------------------------------|--------|-------------------------|---------------|-------------------|---------|
|                                     |   | Commission      Expense |          |              |    |   | Commission      Expense  |   |   |   |
|                                     |   | Before      Change      |          | After      Change |    |   | Effect      of      Change |   |  Reported |  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      Expense      |   |                    | 3,947         |              |    |  --- |   |   |   | (3,947 | )  |   |   |   |   |   |   |   |   |   |
|  Deferred Income Taxes      Current |   |                    |  4,696   |              |    |  6,250 |   |   |   |  235 |   |   |   |   |   |   |   |   |   |   |
| Retained    Earnings                |   |  $                 |  200,396 |              |  $ |  198,003 |   |   |  $ |  (2,393 | )  |  $ | 123,431  |   |  $ |  120,685 |   |  $ |  (2,746 | )  |

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Table ofContents

| 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, 2008 |   | $               | 2,034  |            | $      | 390        |            | $      | (158         | )(a)          |   | $ | (543 | )(b) |   | $ | 1,723 |   |
|    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 |   |
|                                                |   |            |   |            |   |       |            |   |         |          |   |   |   |   |   |   |   |   |
| Allowance for      Excess Inventory:                |   |            |   |            |   |       |            |   |         |          |   |   |   |   |   |   |   |   |
|    Year      ended December 31, 2008 |   | $               | 680    |            | $      | 44         |            |   |         |          |   |   |   |   |   | $ | 724 |   |
|    Year      ended December 31, 2007 |   |            | 680    |            |   | ---        |            |   |         |          |   |   |   |   |   |   | 680 |   |
|    Year      ended December 31, 2006 |   |            | 588    |            |   | 92         |            |   |         |          |   |   |   |   |   |   | 680 |   |
|                                                |   |            |   |            |   |       |            |   |         |          |   |   |   |   |   |   |   |   |
| Allowance for      Deferred Tax Assets:             |   |            |   |            |   |       |            |   |         |          |   |   |   |   |   |   |   |   |
|    Year      ended December 31, 2008 |   | $               | 601    |            | $      | (601       | )               |   |         |          |   |   |   |   |   | $ | --- |   |
|    Year      ended December 31, 2007 |   |            | 658    |            |   | (57        | )               |   |         |          |   |   |   |   |   |   | 601 |   |
|    Year      ended December 31, 2006 |   |            | 536    |            |   | 122        |            |   |         |          |   |   |   |   |   |   | 658 |   |

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Table of Contents

| PART      II |
|--------------|

| Item      9. | Changes in and Disagreements with      Accountants on Accounting and Financial      Disclosures |
|--------------|-------------------------------------------------------------------------------------------------|

| Item      9A(T). | Controls and      Procedures |
|------------------|------------------------------|

| Management’s      Report on Internal Control over Financial  Reporting |
|------------------------------------------------------------------------------|

| Item      9B. | Other  Information |
|---------------|--------------------|

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Table of Contents

| Item      10. | Directors, Executive Officers and      CorporateGovernance |
|---------------|------------------------------------------------------------|

| Name                      | Age      |   | Present      position and prior experience                                               |
|--------------------------------|----------|--------|------------------------------------------------------------------------------------------|
| Cynthia J.      Bolbach        | 61       |   | Vice      President and Corporate Secretary                                              |
|                           |     |   | Corporate      Secretary since 1995                                                      |
|                           |     |   | and vice      president since 2002. Joined                                               |
|                           |     |   | BNA in      1972                                                                         |
|                           |     |   |                                                                                     |
| Eunice L.      Bumgardner      | 48       |   | Vice      President & General      Counsel        |
|                           |     |   | Vice      president since 1996 and                                                       |
|                           |     |   | general      counsel since 1995. Joined                                                  |
|                           |     |   | BNA in      1994.                                                                        |
|                           |     |   |                                                                                     |
| Carol A.      Clark       | 52       |   | Vice      President                                   |
|                           |     |   | Vice      president since 2001                                                           |
|                           |     |   | Previously      served as technology director                                            |
|                           |     |   | since 1997.      Joined BNA in 1983.                                                     |
|                           |     |   |                                                                                     |
| Robert P.      Ambrosini  | 52  |   | 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      Chief Financial Officer                                                |
|                           |     |   | of Black      Entertainment Television, Inc.                                             |
|                           |     |   | from 2000 to      2004.                                                                  |
|                           |     |   |                                                                                     |
| Gilbert S.      Lavine         | 57       |   | Treasurer                                                                                |
|                           |     |   | Treasurer      since 1998.  Joined BNA in1985.                                      |

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Table of Contents

| Name                       | Age  |   | Present      position and prior experience    |
|---------------------------------|-----------|--------|----------------------------------------------------|
| Gregory C.      McCaffery  | 48        |   | President and      Chief Operating Officer         |
|                            |      |   | President      since 2007and chief operating  |
|                            |      |   | officer since      2003.  Joined BNA in1986   |

|                   |   |   |                                                |
|------------------------|--------|--------|-----------------------------------------------------|
| James R.      Schneble | 54     |   | Corporate      Controller                           |
|                   |   |   | Controller      since 1990. Joined BNA in 1985.     |
|                   |   |   |                                                |
| Paul N.      Wojcik    | 60     |   | Chairman and      Chief Executive Officer           |
|                   |   |   | Chairman      since 2007 and CEO since              |
|                   |   |   | 1997,      president 1995-2007.  Joined BNA in |
|                   |   |   | 1972                                                |

| Item      11. | Executive      Compensation |
|---------------|-----------------------------|

| Item      12. | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder    Matters |
|---------------|--------------------------------------------------------------------------------------------------------|

| Item      13. | Certain Relationships and Related Transactions,      and DirectorIndependence |
|---------------|-------------------------------------------------------------------------------|

| Item      14. | Principal Accountant Fees and      Services |
|---------------|---------------------------------------------|

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Table of Contents

| Item      15. | Exhibits and Financial Statement      Schedule |
|---------------|------------------------------------------------|

|   | The following      documents are filed as part of thisreport. |
|--------|---------------------------------------------------------------|

| (a) (1)                          | Financial      Statements                                                          | Page   |
|----------------------------------|------------------------------------------------------------------------------------|--------|
|                             | Reports of      Independent Registered Public Accounting Firms                     | 23     |
|                             |                                                                               |   |
|                             | Consolidated      Statements of Income for the years                               | 25     |
|                             |     ended      December 31, 2008, 2007, and 2006          |   |
|                             | Balance      Sheets as of December 31, 2008 and 2007                               | 26     |
|                             | Consolidated      Statements of Cash Flows for each of the                         |   |
|                             | years ended      December 31, 2008, 2007, and 2006                                 | 28     |
|                             | Consolidated      Statements of Changes in Stockholders'                           |   |
|                             | Equity and      Comprehensive Income for each of the                               |   |
|                             | years ended      December 31, 2008, 2007, and 2006                                 | 30     |
|                             | Notes to      Consolidated Financial Statements                                    | 31     |
|                             |                                                                               |   |
|     (2)      | Financial      Statement Schedule:                                                 |   |
|      II | Valuation and      Qualifying Accounts and Reserves                                |   |
|                             |     for      the years ended December 31, 2008, 2007, and 2006 | 53     |

| (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  2008                       |
|         | Consolidated      Financial Statements in the Notes to Consolidated  Financial      Statements, |
|         | Note 11,      "Stockholders' (Deficit) Equity"                                                  |

| 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 18,2009**** |

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Table of Contents

| *      | 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                                     |
|   | February      19, 2009. The exhibit number indicated abovecorresponds                                |
|   | 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, 2008.                                              |
|   |                                                                                                 |
|   | Upon      written or oral request to the Company’s General Counsel, a      copy                |
|   | of any of      the above exhibits will be furnished atcost.                                          |

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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      25, 2009                                         |  Date:  March      25,  2009                                                                |

| By:  /s/Paul      N.  Wojcik                                                             |
|-----------------------------------------------------------------------------------------------|
|          Paul      N. Wojcik                     |
|          Chairman      of the Board of Directors |
|          Director                                |
|                                                                                          |
|                                                                                          |
|  Date:  March      25,2009                                                          |

|  By: /s/Paul      A.      Blakely                                       | March      25,      2009       |  By:  /s/George      J.      Korphage                                                                 | March      25,      2009       |
|-----------------------------------------------------------------------------------|--------------------------------|-----------------------------------------------------------------------------------------------------------------|--------------------------------|
|         Paul      A. Blakely              | Date                           |          George      J. Korphage                                   | Date                           |
|         Director                          |                           |          Director                                                  |                           |
|                                                                              |                           |                                                                                                            |                           |
|  By: /s/Cynthia      J.      Bolbach                                         | March      25, 2009            |  By:  /s/Gregory      C.      McCaffrey                                                               | March      25,  2009           |
|          Cynthia      J. Bolbach     | Date                           |          Gregory      C. McCaffrey                                 | Date                           |
|          Director                    |                           |          Director                                                  |                           |
|                                                                              |                           |                                                                                                            |                           |
|  By: /s/Eunice      Lin      Bumgardner                                      | March      25, 2009            |  By:  /s/Darren      P. McKewen                                                                  | March      25,  2009           |
|          Eunice      Lin Bumgardner  | Date                           |         Daren      P. McKewen        | Date                           |
|          Director                    |                           |          Director                                                  |                           |
|                                                                              |                           |                                                                                                            |                           |
|  By: /s/Neil      R.      Froemming                                          | March      25, 2009            |  By:  /s/Jonathan      Newcomb                                                                        | March      25,  2009           |
|          Neil      R. Froemming | Date                           |          Jonathan      Newcomb                                     | Date                           |
|          Director                    |                           |          Director                                                  |                           |
|                                                                              |                           |                                                                                                            |                           |
|  By:  /s/Gerald      S.Hobbs                                            | March       25, 2009      |  By:  /s/Ellen      Taus                                                                              | March      25,  2009           |
|          Gerald      S. Hobbs        | Date                           |          Ellen      Taus                                           | Date                           |
|          Director                    |                           |          Director                                                  |                           |
|                                                                              |                           |                                                                                                            |                           |
|  By: /s/Marcia      P. Kaplan                                           | March       25,      2009 |  By:  /s/Daniel      W. Toohey                                                                   | March      25,      2009  |
|          Marcia      P. Kaplan       | Date                           |          Daniel      W.Toohey                                      | Date                           |
|          Director                    |                           |          Director                                                  |                           |

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Table of Contents

|                             |   |                                                                                                        | Sequential      Page |
|----------------------------------|--------|-------------------------------------------------------------------------------------------------------------|----------------------|
| Number                      |   | Exhibit    Description                                                                                 |  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 the2008                                |                 |
|                             |   |     Consolidated      financial Statements in the Notes to Consolidated  Financial |                 |
|         |   |     Statements      , Note 11 "Stockholders'      (Deficit) Equity,"               | 49                   |
|                             |   |                                                                                                        |                 |
|     21       |   | Subsidiaries of Registrant                                                                                  | 61                   |
|                             |   |                                                                                                        |                 |
| 23.1                             |   | Consent      of BDO Seidman, LLP, Independent Registered Public Accounting      Firm                   | 62                   |
|                             |   |                                                                                                        |                 |
| 23.2                             |   |  Consent      of KPMG, LLP, Independent Registered Public      Accounting      Firm               |  63             |
|                             |   |                                                                                                        |                 |
| 31.1    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.                | 64                   |
|                             |   |                                                                                                        |                 |
| 31.2    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.                     | 65                   |
|                             |   |                                                                                                        |                 |
| 32.1    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.                     | 66                   |
|                             |   |                                                                                                        |                 |
|     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.                     | 67                   |
|                             |   |                                                                                                        |                 |
|     99.1     |   | Proxy      Statement for the Annual Meeting of Stockholders to be held on April      18, 2009          | **                   |
|                             |   |                                                                                                        |                 |
| *                           |   | 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, 2008.                                                          |                 |

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