##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 10-K





|                                                                                                              |  |                                                                                             
|------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------
|(Mark One)                                                                                                    |  |                                                                                             
|x                                                                                                             |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|                                                                                                             
|For the fiscal year ended December 26, 2004 or                                                               
|                                                                                                             
|o                                                                                                             |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|                                                                                                             
|For the transition period
    from                   to                   
     Commission File Number 1-9329











|                                |  |                       
|------------------------------- |  | ----------------------
|Delaware                        |  | 43-1819711            
|(State or other jurisdiction of |  | (I.R.S. Employer      
|incorporation or organization)  |  | Identification Number)

900 North Tucker Boulevard,


St. Louis, Missouri 63101




(314) 340-8000


















X






X










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TABLE OF CONTENTS



|                                                                                        |                                                                                                         |  |  |  |  |  |  | 
|--------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|                                                                                        | ITEM 1. BUSINESS.                                                                                      
|                                                                                        | ITEM 2. PROPERTIES                                                                                     
|                                                                                        | ITEM 3. LEGAL AND REGULATORY PROCEEDINGS                                                               
|                                                                                        | ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                            
|PART II                                                                                
|                                                                                        | ITEM 5. MARKET FOR THE REGISTRANTS COMMON EQUITY AND RELATED STOCKHOLDER MATTERS                      
|                                                                                        | ITEM 6. SELECTED FINANCIAL DATA                                                                        
|                                                                                        | ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS          
|                                                                                        | ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA                                                    
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                
|NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                
|Schedule II -- Valuation & Qualifying Accounts & Reserves                              
|                                                                                        | ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE           
|                                                                                        | ITEM 9A. CONTROLS AND PROCEDURES                                                                       
|                                                                                        | ITEM 9B. OTHER INFORMATION                                                                             
|PART III                                                                               
|                                                                                        | ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT                                            
|MANAGEMENT                                                                             
|                                                                                        | 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                                                
|                                                                                        | ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES                                                        
|PART IV                                                                                
|                                                                                        | ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES                                                    
|SIGNATURES                                                                             
|EXHIBIT INDEX                                                                          
|Letter Agreement                                                                       
|Incentive Opportunities Term Sheet for Terrance C. Z. Egger                            
|Incentive Opportunities Term Sheet for Jon H. Holt                                     
|Incentive Opportunities Term Sheet for Matthew G. Kraner                               
|Incentive Opportunities Term Sheet for James V. Maloney                                
|Incentive Opportunities Term Sheet for Jan P. Pallares                                 
|Incentive Opportunities Term Sheet for Alan G. Silverglat                              
|Incentive Opportunities Term Sheet for Robert C. Woodworth                             
|Executive Transition Agreement - Terrance C. Z. Egger                                  
|Executive Transition Agreement - Jon H. Holt                                           
|Executive Transition Agreement - Matthew G. Kraner                                     
|Executive Transition Agreement - James V. Maloney                                      
|Executive Transition Agreement - Jan P. Pallares                                       
|Executive Transition Agreement - Alan G. Silverglat                                    
|Executive Transition Agreement - Robert C. Woodworth                                   
|Subsidiaires of the Registrant                                                         
|Consent of Independent Registered Public Accounting Firm                               
|Powers of Attorney                                                                     
|Certification by President and CEO Pursuant to Section 302                             
|Certification by Senior Vice President-Finance Pursuant to Section 302                 
|Certification by President and CEO Pursuant to Section 906                             
|Certification by Senior Vice President-Finance Pursuant to Section 906                 



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##### Table of Contents









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##### Table of Contents






ITEM 1. BUSINESS.


Introduction




St. Louis Post-Dispatch Post-Dispatch


Post-Dispatch, Arizona Daily
Star Star Star Tucson Citizen Citizen ,




Post-Dispatch. Post-Dispatch






Lee Merger Agreement






2



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##### Table of Contents



ITEM 1. BUSINESS  Continued








Veeck Veeck Veeck Veeck Fern Veeck Fern In re Pulitzer Inc. Shareholders
Litigation, Civil Action No. 1063-N.






Initial Capitalization




3



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##### Table of Contents



ITEM 1. BUSINESS  Continued










Historical Financial Information




|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |        |         |         | 
|----------------------------- | ------------ | ------------------------ | ------------------------ | ------- | ------- | ------- | --------- | ------ | ------- | ------- | --------- | ------ | ------- | ------- | --------- | ------ | ------- | ------- | --------- | ------ | ------- | ------- | 
|                              |              | Years Ended December 31,
|                              |              |                         
|                              |              | 2004                     |                          | 2003(1) |         | 2002    |           | 2001   |         | 2000(2)
|                              |              |                          |                          |         |         |         |           |        |         |        
|                              |              | (In thousands)          
|Operating revenues:           |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|                              | Advertising: |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |        |        
|                              |              | Retail                   |                          | $       | 123,429 |         |           | $      | 120,284 |         |           | $      | 118,741 |         |           | $      | 118,738 |         |           | $      | 110,289 |        
|                              |              | National                 |                          |         | 26,876  |         |           |        | 29,000  |         |           |        | 26,706  |         |           |        | 26,049  |         |           |        | 23,216  |        
|                              |              | Classified               |                          |         | 134,402 |         |           |        | 122,559 |         |           |        | 125,777 |         |           |        | 132,134 |         |           |        | 133,043 |        
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|                              |              |                          | Total                    |         |         | 284,707 |           |        |         | 271,843 |           |        |         | 271,224 |           |        |         | 276,921 |           |        |         | 266,548 | 
|                              |              | Preprints                |                          |         | 70,064  |         |           |        | 63,249  |         |           |        | 55,935  |         |           |        | 47,679  |         |           |        | 42,388  |        
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|                              |              |                          | Total advertising        |         |         | 354,771 |           |        |         | 335,092 |           |        |         | 327,159 |           |        |         | 324,600 |           |        |         | 308,936 | 
|                              | Circulation  |                          |                          | 81,288  |         |         |           | 80,639 |         |         |           | 80,751 |         |         |           | 81,200 |         |         |           | 80,517 |        
|                              | Other        |                          |                          | 7,596   |         |         |           | 6,933  |         |         |           | 8,050  |         |         |           | 7,706  |         |         |           | 7,706  |        
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|                              |              |                          | Total operating revenues |         | $       | 443,655 |           |        | $       | 422,664 |           |        | $       | 415,960 |           |        | $       | 413,506 |           |        | $       | 397,159 | 
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|Operating income(3)           |              | $                        | 85,084                   |         |         | $       | 87,193    |        |         | $       | 82,885    |        |         | $       | 43,391    |        |         | $       | 60,390    |       
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|Depreciation and amortization |              | $                        | 20,198                   |         |         | $       | 19,135    |        |         | $       | 18,719    |        |         | $       | 40,508    |        |         | $       | 31,985    |       
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       
|Assets                        |              | $                        | 1,386,662                |         |         | $       | 1,319,243 |        |         | $       | 1,287,246 |        |         | $       | 1,288,763 |        |         | $       | 1,282,873 |       
|                              |              |                          |                          |         |         |         |           |        |         |         |           |        |         |         |           |        |         |         |           |       






|    |                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Certain reclassifications have been made to the prior
    years consolidated financial statements to conform to the
    2004 presentation.

4



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##### Table of Contents



ITEM 1. BUSINESS  Continued




|    |                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | The year ended December 31, 2000, includes an extra week of
    operations resulting from a 53-week year. All other years
    presented include 52 weeks of operations.                                         
|   
|(3) | Includes St. Louis Agency adjustments of $9.4 million
    in 2000. See Agency Agreements and See PD LLC
    Operating Agreement in Item 7 for additional
    information on the St. Louis Agency adjustment.

Operating Strategy














St. Louis Operations


Post-Dispatch,


5



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##### Table of Contents



ITEM 1. BUSINESS  Continued




|                                   |                |                          |   |         |         |      |   |         |         |         |   |         |         |  |   |         |         |  |   |         |         | 
|---------------------------------- | -------------- | ------------------------ | - | ------- | ------- | ---- | - | ------- | ------- | ------- | - | ------- | ------- |  | - | ------- | ------- |  | - | ------- | ------- | 
|                                   |                | Years Ended December 31,
|                                   |                |                         
|                                   |                | 2004                     |   | 2003    |         | 2002 |   | 2001    |         | 2000(1)
|                                   |                |                          |   |         |         |      |   |         |         |        
|Operating revenues (in thousands): |                |                          |   |         |         |      |   |         |         |         |   |         |         |  |   |         |         |  |   |        
|                                   | Advertising(2) |                          | $ | 250,684 |         |      | $ | 242,277 |         |         | $ | 236,551 |         |  | $ | 237,465 |         |  | $ | 225,137 |        
|                                   | Circulation    |                          |   | 60,676  |         |      |   | 59,890  |         |         |   | 59,808  |         |  |   | 60,225  |         |  |   | 60,555  |        
|                                   | Other          |                          |   | 2,575   |         |      |   | 1,751   |         |         |   | 2,184   |         |  |   | 2,086   |         |  |   | 3,761   |        
|                                   |                |                          |   |         |         |      |   |         |         |         |   |         |         |  |   |         |         |  |   |        
|                                   |                | Total                    |   | $       | 313,935 |      |   | $       | 303,918 |         |   | $       | 298,543 |  |   | $       | 299,776 |  |   | $       | 289,453 | 
|                                   |                |                          |   |         |         |      |   |         |         |         |   |         |         |  |   |         |         |  |   |        






|    |                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Beginning in August 2000, the operating revenues include the
    Suburban Journals. In addition, the year ended December 31,
    2000, includes an extra week of operations resulting from a
    53-week fiscal year. All other years presented include
    52 weeks of operations.
|   
|(2) | Advertising includes revenues from preprinted inserts and online
    advertising.                                                                                                                                                                                                  

St. Louis Post-Dispatch


Post-Dispatch Post-Dispatch Post-Dispatch


Post-Dispatch Post-Dispatchs


Post-Dispatch.


|                                             |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |       |         |       | 
|-------------------------------------------- | --------------- | ------------------------ | ------------ | ---- | ------- | ----- |  | ---- | ------- | ----- |  | ----- | ------- | ----- |  | ----- | ------- | ----- |  | ----- | ------- | ----- | 
|                                             |                 | Years Ended December 31,
|                                             |                 |                         
|                                             |                 | 2004                     |              | 2003 |         | 2002  |  | 2001 |         | 2000 
|                                             |                 |                          |              |      |         |       |  |      |         |      
|Post-Dispatch:                               |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |      
|                                             | Circulation(1): |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |       |        
|                                             |                 | Daily                    |              |      | 283,362 |       |  |      | 286,619 |       |  |       | 288,894 |       |  |       | 292,777 |       |  |       | 300,920 |      
|                                             |                 | Sunday                   |              |      | 452,626 |       |  |      | 463,850 |       |  |       | 470,271 |       |  |       | 474,638 |       |  |       | 487,080 |      
|Advertising linage (in thousands of inches): |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |      
|                                             | Retail          |                          |              | 737  |         |       |  | 786  |         |       |  | 787   |         |       |  | 670   |         |       |  | 728   |        
|                                             | General         |                          |              | 177  |         |       |  | 199  |         |       |  | 203   |         |       |  | 210   |         |       |  | 204   |        
|                                             | Classified      |                          |              | 965  |         |       |  | 995  |         |       |  | 1,043 |         |       |  | 1,142 |         |       |  | 1,135 |        
|                                             |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |      
|                                             |                 |                          | Total        |      |         | 1,879 |  |      |         | 1,980 |  |       |         | 2,033 |  |       |         | 2,022 |  |       |         | 2,067 | 
|                                             | Part run(2)     |                          |              | 480  |         |       |  | 484  |         |       |  | 546   |         |       |  | 719   |         |       |  | 834   |        
|                                             |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |      
|                                             |                 |                          | Total inches |      |         | 2,359 |  |      |         | 2,464 |  |       |         | 2,579 |  |       |         | 2,741 |  |       |         | 2,901 | 
|                                             |                 |                          |              |      |         |       |  |      |         |       |  |       |         |       |  |       |         |       |  |      






|    |                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts for 2004 are based on internal records of PD LLC for the
    twelve-month period ended September 30. Amounts for prior
    years are based on ABC Audit Reports for the twelve-month
    periods ended September 30.                                                                                                                                                
|   
|(2) | Part run inches represent advertisements that are published in
    selected copies (i.e., less than the full press run) of a daily
    edition of the newspaper to specifically target certain
    geographic locations. The advertisements typically appear in a
    special news and advertising sections designed specifically for
    the targeted geographic locations.

6



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##### Table of Contents



ITEM 1. BUSINESS  Continued


Post-Dispatch


Post-Dispatch Post-Dispatch Post-Dispatch Post-Dispatch


Suburban Journals of Greater St. Louis








Post-Dispatch


St. Louis Internet Operations


www.STLtoday.com stlouisatwork.com


7



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##### Table of Contents



ITEM 1. BUSINESS  Continued




|                     |               |                |  |          |  |                |  |            |   |  |  |         |  |  |  |      |  
|-------------------- | ------------- | -------------- |  | -------- |  | -------------- |  | ---------- | - |  |  | ------- |  |  |  | ---- | -
|                     |               |                |  | % Change |  |                |  | % Change  
|                     |               | 2004 Full Year |  | vs. 2003 |  | 2004 Qtr. 4    |  | vs. Qtr. 4
|                     |               |                |  |          |  |                |  |           
|                     |               | (In thousands) |  |          |  | (In thousands) |  |           
|St. Louis Web sites: |               |                |  |          |  |                |  |            |   |  |  |         |  |  |  |     
|                     | Page views(1) |                |  | 393,029  |  |                |  | 52.3       | % |  |  | 108,065 |  |  |  | 40.2 | %






|    |                                                                                      
|--- | -------------------------------------------------------------------------------------
|(1) | A page view occurs when a web server provides a Web
    page to a Web site visitor.

STL Distribution Services Operations


Post-Dispatch, The
Ladue News


Pulitzer Newspapers, Inc.




|                         |  |                           |         |             |        |        |         |  |        | 
|------------------------ |  | ------------------------- | ------- | ----------- | ------ | ------ | ------- |  | ------ | 
|                         |  |                           |         | Circulation
|                         |  |                           |         |            
|                         |  |                           |         | Daily       |        | Sunday
|                         |  |                           |         |             |        |       
|The Pantagraph           |  | Bloomington, Illinois     |         |             | 47,083 |        |         |  | 50,202 | 
|The Daily Herald         |  | Provo, Utah               |         |             | 30,872 |        |         |  | 34,324 | 
|Santa Maria Times        |  | Santa Maria, California   |         |             | 17,881 |        |         |  | 18,485 | 
|The Napa Valley Register |  | Napa, California          |         |             | 17,851 |        |         |  | 18,665 | 
|The Sentinel             |  | Hanford, California       |         |             | 13,001 |        |         |  | 13,660 | 
|The World                |  | Coos Bay, Oregon(1)       |         |             | 13,010 |        |         |  | 14,418 | 
|Arizona Daily Sun        |  | Flagstaff, Arizona        |         |             | 11,462 |        |         |  | 12,488 | 
|Daily Chronicle          |  | DeKalb, Illinois          |         |             | 8,964  |        |         |  | 10,267 | 
|The Garden Island        |  | Lihue, Hawaii             |         |             | 8,677  |        |         |  | 9,130  | 
|Daily Journal            |  | Park Hills, Missouri      |         |             | 8,214  |        |         |  | 8,284  | 
|The Lompoc Record        |  | Lompoc, California        |         |             | 6,967  |        |         |  | 7,377  | 
|The Daily News           |  | Rhinelander, Wisconsin(2) |         |             | 4,134  |        |         |  | 4,545  | 
|                         |  |                           |         |             |        |        |         |  |        | 
|Total                    |  |                           | 188,116 |             |        |        | 201,845 | 
|                         |  |                           |         |             |        |        |         | 






|    |                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------
|(1) | Sunday circulation represents the weekend edition of The
    (Coos Bay) World, which is published on Saturdays.
|   
|(2) | Amounts are based on the internal records of the Company.                                                      



8



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##### Table of Contents



ITEM 1. BUSINESS  Continued






|                    |             |                          |   |         |         |      |   |        |         |         |   |        |         |  |   |        |         |  |   |        |         | 
|------------------- | ----------- | ------------------------ | - | ------- | ------- | ---- | - | ------ | ------- | ------- | - | ------ | ------- |  | - | ------ | ------- |  | - | ------ | ------- | 
|                    |             | Years Ended December 31,
|                    |             |                         
|                    |             | 2004                     |   | 2003    |         | 2002 |   | 2001   |         | 2000(1)
|                    |             |                          |   |         |         |      |   |        |         |        
|                    |             | (In thousands)          
|Operating revenues: |             |                          |   |         |         |      |   |        |         |         |   |        |         |  |   |        |         |  |   |       
|                    | Advertising |                          | $ | 104,087 |         |      | $ | 92,815 |         |         | $ | 90,608 |         |  | $ | 87,135 |         |  | $ | 83,799 |        
|                    | Circulation |                          |   | 20,612  |         |      |   | 20,749 |         |         |   | 20,943 |         |  |   | 20,975 |         |  |   | 19,962 |        
|                    | Other       |                          |   | 5,021   |         |      |   | 5,182  |         |         |   | 5,866  |         |  |   | 5,620  |         |  |   | 3,945  |        
|                    |             |                          |   |         |         |      |   |        |         |         |   |        |         |  |   |        |         |  |   |       
|                    |             | Total                    |   | $       | 129,720 |      |   | $      | 118,746 |         |   | $      | 117,417 |  |   | $      | 113,730 |  |   | $      | 107,706 | 
|                    |             |                          |   |         |         |      |   |        |         |         |   |        |         |  |   |        |         |  |   |       






|    |                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In January 2000, the PNI Group acquired The Pantagraph,which operatesin Bloomington, Illinois. In addition,
    the year ended December 31, 2000 includes an extra week of
    operations resulting in a 53-week year. All other years
    presented include 52 weeks of operations.

PNI Internet Operations






|                        |               |                |  |              |  |                |  |              |   |  |  |        |  |  |  |      |  
|----------------------- | ------------- | -------------- |  | ------------ |  | -------------- |  | ------------ | - |  |  | ------ |  |  |  | ---- | -
|                        |               |                |  | % Change vs. |  |                |  | % Change vs.
|                        |               | Full Year 2004 |  | 2003         |  | 2004 Qtr. 4    |  | 2003 Qtr. 4 
|                        |               |                |  |              |  |                |  |             
|                        |               | (In thousands) |  |              |  | (In thousands) |  |             
|Combined PNI Web Sites: |               |                |  |              |  |                |  |              |   |  |  |        |  |  |  |     
|                        | Page views(1) |                |  | 108,870      |  |                |  | 22.4         | % |  |  | 28,000 |  |  |  | 25.2 | %






|    |                                                                                      
|--- | -------------------------------------------------------------------------------------
|(1) | A page view occurs when a web server provides a Web
    page to a Web site visitor.

Tucson Operations


Star Star, Citizen, Star Citizen Star Citizen




9



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##### Table of Contents



ITEM 1. BUSINESS  Continued


Star Citizen.


Star Citizen.


Star Citizen


|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         | 
|------------------------------------------------------- | --------------------------- | ------------------------ | -------------- | ------- | ----- | ------- | - | ------- | ----- | ------- | - | ------- | ----- | ------- | - | ------- | ----- | ------- | - | ------- | ----- | ------- | 
|                                                        |                             | Years Ended December 31,
|                                                        |                             |                         
|                                                        |                             | 2004                     |                | 2003    |       | 2002    |   | 2001    |       | 2000   
|                                                        |                             |                          |                |         |       |         |   |         |       |        
|Circulation(1):                                         |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        | Stardaily                   |                          |                | 106,618 |       |         |   | 103,844 |       |         |   | 103,048 |       |         |   | 101,034 |       |         |   | 98,469  |      
|                                                        | Citizendaily                |                          |                | 30,937  |       |         |   | 33,370  |       |         |   | 36,056  |       |         |   | 38,067  |       |         |   | 39,543  |      
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        |                             |                          | Combined Daily |         |       | 137,555 |   |         |       | 137,214 |   |         |       | 139,104 |   |         |       | 139,101 |   |         |       | 138,012 | 
|                                                        | StarSunday                  |                          |                | 168,482 |       |         |   | 170,669 |       |         |   | 171,350 |       |         |   | 171,485 |       |         |   | 171,726 |      
|Combined advertising linage (in thousands of inches):   |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        | Full run (all zones) Retail |                          |                | 1,447   |       |         |   | 1,499   |       |         |   | 1,593   |       |         |   | 1,571   |       |         |   | 1,713   |      
|                                                        |                             | General                  |                |         | 72    |         |   |         | 89    |         |   |         | 99    |         |   |         | 89    |         |   |         | 97    |        
|                                                        |                             | Classified               |                |         | 1,659 |         |   |         | 1,560 |         |   |         | 1,554 |         |   |         | 1,618 |         |   |         | 2,033 |        
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        |                             |                          | Total          |         |       | 3,178   |   |         |       | 3,148   |   |         |       | 3,246   |   |         |       | 3,278   |   |         |       | 3,843   | 
|                                                        |                             | Part run(2)              |                |         | 22    |         |   |         | 29    |         |   |         | 92    |         |   |         | 207   |         |   |         | 256   |        
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        |                             |                          | Total inches   |         |       | 3,200   |   |         |       | 3,177   |   |         |       | 3,338   |   |         |       | 3,485   |   |         |       | 4,099   | 
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|100% of TNI Partners operating revenues (in thousands): |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        | Advertising                 |                          | $              | 87,958  |       |         | $ | 82,992  |       |         | $ | 82,876  |       |         | $ | 82,732  |       |         | $ | 93,560  |      
|                                                        | Circulation                 |                          |                | 22,678  |       |         |   | 22,935  |       |         |   | 21,358  |       |         |   | 21,350  |       |         |   | 22,786  |      
|                                                        | Other                       |                          |                | 1,082   |       |         |   | 880     |       |         |   | 344     |       |         |   | 2,286   |       |         |   | 4,804   |      
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        
|                                                        |                             |                          | Total          |         | $     | 111,718 |   |         | $     | 106,807 |   |         | $     | 104,578 |   |         | $     | 106,368 |   |         | $     | 121,150 | 
|                                                        |                             |                          |                |         |       |         |   |         |       |         |   |         |       |         |   |         |       |         |   |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Amounts for 2004 are based on the internal records of Star
    Publishing. Amounts for prior years are based on ABC Audit
    Reports for the 52-week period ended December 31.                                                                                                                                                                                                                                                                    
|   
|(2) | Part run inches represent advertisements that are published in
    selected copies (i.e., less than the full press run) of a daily
    edition of the newspaper to specifically target certain
    geographic locations. The advertisements typically appear in
    special news and advertising sections designed specifically for
    the targeted geographic locations. The methodology for
    calculating part-run linage was changed in 2003.

Star Citizen


www.azstarnet.com www.tucsoncitizen.com Star Citizen.


10



---



##### Table of Contents



ITEM 1. BUSINESS  Continued




|                           |               |                |  |              |  |                |  |              |  |  |  |        |  |  |  |       | 
|-------------------------- | ------------- | -------------- |  | ------------ |  | -------------- |  | ------------ |  |  |  | ------ |  |  |  | ----- | 
|                           |               |                |  | % Change vs. |  |                |  | % Change vs.
|                           |               | Full Year 2004 |  | 2003         |  | 2004 Qtr. 4    |  | 2003 Qtr. 4 
|                           |               |                |  |              |  |                |  |             
|                           |               | (In thousands) |  |              |  | (In thousands) |  |             
|Combined Tucson Web Sites: |               |                |  |              |  |                |  |              |  |  |  |        |  |  |  |      
|                           | Page views(1) |                |  | 81,360       |  |                |  | 2.9%         |  |  |  | 22,383 |  |  |  | 14.8% | 






|    |                                                                                      
|--- | -------------------------------------------------------------------------------------
|(1) | A page view occurs when a web server provides a Web
    page to a Web site visitor.

Acquisition Strategy






Agency Agreements




St. Louis Agency. Post-Dispatch Post-Dispatchs


Tucson Agency. Star Citizen. Star Citizen. Star Citizen




11



---



##### Table of Contents



ITEM 1. BUSINESS  Continued


Competition




Star Citizen Star Citizen


Raw Materials




Employees


Post-Dispatch


Post-Dispatch Post-Dispatch Post-Dispatch




12



---



##### Table of Contents



ITEM 1. BUSINESS  Continued


INTERNET INFORMATION


www.pulitzerinc.com




GOVERNANCE









|        |           
|------- | ----------
|ITEM 2. | PROPERTIES





|                                                                                     |                         |                     |  |         |  |  |  |        | 
|------------------------------------------------------------------------------------ | ----------------------- | ------------------- |  | ------- |  |  |  | ------ | 
|                                                                                     |                         | Approximate Area in
|                                                                                     |                         | Square Feet        
|                                                                                     |                         |                    
|General Character of Property                                                        |                         | Owned               |  | Leased 
|                                                                                     |                         |                     |  |        
|Printing plants, business and editorial offices, and warehouse
    space located in: |                         |                     |  |         |  |  |  |       
|                                                                                     | St. Louis, Missouri(1)  |                     |  | 657,459 |  |  |  | 18,707 | 
|                                                                                     | St. Louis, Missouri(2)  |                     |  | 127,335 |  |  |  | 41,330 | 
|                                                                                     | St. Louis, Missouri(3)  |                     |  | 96,360  |  |  |  | 37,400 | 
|                                                                                     | Tucson, Arizona(4)      |                     |  | 272,182 |  |  |  | 60,905 | 
|                                                                                     | Washington, D.C.        |                     |  |         |  |  |  | 2,420  | 
|                                                                                     | Bloomington, Illinois   |                     |  | 84,326  |  |  |  | 13,396 | 
|                                                                                     | Provo, Utah             |                     |  | 40,858  |  |  |  | 21,330 | 
|                                                                                     | Hanford, California     |                     |  | 29,942  |  |  |  | 4,325  | 
|                                                                                     | Lihue, Hawaii           |                     |  | 8,505   |  |  |  | 20,902 | 
|                                                                                     | Flagstaff, Arizona      |                     |  | 23,170  |  |  |  | 2,600  | 
|                                                                                     | Santa Maria, California |                     |  | 20,815  |  |  |  | 5,356  | 
|                                                                                     | Napa, California        |                     |  | 20,984  |  |  |  | 2,400  | 
|                                                                                     | DeKalb, Illinois        |                     |  | 16,098  |  |  |  | 2,880  | 
|                                                                                     | Coos Bay, Oregon        |                     |  | 16,500  |  |  |  | 5,000  | 
|                                                                                     | Park Hills, Missouri    |                     |  | 22,706  |  |  |  |        | 
|                                                                                     | Lompoc, California      |                     |  | 10,500  |  |  |  | 17,500 | 
|                                                                                     | Rhinelander, Wisconsin  |                     |  | 9,611   |  |  |  |        | 

13



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##### Table of Contents



|        |                       
|------- | ----------------------
|ITEM 2. | PROPERTIES  Continued






|    |                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Property is owned by and used in the operations of PD LLC.                                                                                                                      
|   
|(2) | Property primarily includes locations operated by the Suburban
    Journals in the greater St. Louis area.                                                                      
|   
|(3) | Property is owned and used in the operations of DS LLC.                                                                                                                         
|   
|(4) | The 272,182 square foot facility in Tucson, Arizona is used
    in the production of the Starand the Citizenand
    is jointly owned with Gannett pursuant to the Tucson Agency.






|        |                                 
|------- | --------------------------------
|ITEM 3. | LEGAL AND REGULATORY PROCEEDINGS









Post-Dispatch


14



---



##### Table of Contents



ITEM 3. LEGAL AND REGULATORY
PROCEEDINGS  Continued






Lee Merger Agreement Litigation









|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



15



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##### Table of Contents






PART II







|        |                                                                              
|------- | -----------------------------------------------------------------------------
|ITEM 5. | MARKET FOR THE REGISTRANTS COMMON EQUITY AND RELATED
    STOCKHOLDER MATTERS









|               |  |      |       |     |  |             |       |  |  |   |      | 
|-------------- |  | ---- | ----- | --- |  | ----------- | ----- |  |  | - | ---- | 
|               |  | High |       | Low |  | Dividend(1)
|               |  |      |       |     |  |            
|2004           |  |      |       |     |  |             |       |  |  |   |      | 
|First Quarter  |  | $    | 56.64 |     |  | $           | 47.93 |  |  | $ | 0.19 | 
|Second Quarter |  |      | 52.42 |     |  |             | 44.94 |  |  |   | 0.19 | 
|Third Quarter  |  |      | 49.65 |     |  |             | 43.71 |  |  |   | 0.19 | 
|Fourth Quarter |  |      | 64.90 |     |  |             | 49.10 |  |  |   | 0.19 | 

|               |  |      |       |     |  |             |       |  |  |   |      | 
|-------------- |  | ---- | ----- | --- |  | ----------- | ----- |  |  | - | ---- | 
|               |  | High |       | Low |  | Dividend(2)
|               |  |      |       |     |  |            
|2003           |  |      |       |     |  |             |       |  |  |   |      | 
|First Quarter  |  | $    | 49.25 |     |  | $           | 40.75 |  |  | $ | 0.18 | 
|Second Quarter |  |      | 52.00 |     |  |             | 42.30 |  |  |   | 0.18 | 
|Third Quarter  |  |      | 54.19 |     |  |             | 46.73 |  |  |   | 0.18 | 
|Fourth Quarter |  |      | 54.65 |     |  |             | 48.90 |  |  |   | 0.18 | 






|    |                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------
|(1) | In 2004 the Company declared and paid cash dividends of
    $0.76 per share of common stock and Class B common
    stock.
|   
|(2) | In 2003 the Company declared and paid cash dividends of
    $0.72 per share of common stock and Class B common
    stock.



16



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##### Table of Contents








|        |                        
|------- | -----------------------
|ITEM 6. | SELECTED FINANCIAL DATA

|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |         |         | 
|----------------------------------------------------------------------- | --------------------------------------------- | ---------------------------------------- | ------- | ------- | ------- | ---- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                                        |                                               | Years Ended December 31,                
|                                                                        |                                               |                                         
|                                                                        |                                               | 2004                                     |         | 2003    |         | 2002 |         | 2001    |         | 2000(1)
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |        
|                                                                        |                                               | (In thousands, except per share amounts)
|OPERATING RESULTS                                                       |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Operating Revenues  net                                                |                                               | $                                        | 443,655 |         |         | $    | 422,664 |         |         | $       | 415,960 |         |         | $ | 413,506 |         |         | $ | 397,159 |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Operating Expenses:                                                     |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Payroll and other personnel expense           |                                          |         | 187,414 |         |      |         | 181,422 |         |         |         | 180,027 |         |   |         | 174,626 |         |   |         | 157,224 |        
|                                                                        | Newsprint expense                             |                                          |         | 47,245  |         |      |         | 43,368  |         |         |         | 41,055  |         |   |         | 56,372  |         |   |         | 55,539  |        
|                                                                        | St. Louis Agency adjustment(2)                |                                          |         | 0       |         |      |         | 0       |         |         |         | 0       |         |   |         | 0       |         |   |         | 9,363   |        
|                                                                        | Depreciation                                  |                                          |         | 15,348  |         |      |         | 14,613  |         |         |         | 14,286  |         |   |         | 14,330  |         |   |         | 12,916  |        
|                                                                        | Amortization                                  |                                          |         | 4,850   |         |      |         | 4,522   |         |         |         | 4,433   |         |   |         | 26,178  |         |   |         | 19,069  |        
|                                                                        | Other expenses                                |                                          |         | 121,760 |         |      |         | 107,610 |         |         |         | 111,018 |         |   |         | 116,113 |         |   |         | 105,145 |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        |                                               | Total operating expenses                 |         |         | 376,617 |      |         |         | 351,535 |         |         |         | 350,819 |   |         |         | 387,619 |   |         |         | 359,256 | 
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Equity in earnings of Tucson newspaper partnership                      |                                               |                                          | 18,046  |         |         |      | 16,064  |         |         |         | 17,744  |         |         |   | 17,504  |         |         |   | 22,487  |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Operating income                                                        |                                               |                                          | 85,084  |         |         |      | 87,193  |         |         |         | 82,885  |         |         |   | 43,391  |         |         |   | 60,390  |        
|Interest income                                                         |                                               |                                          | 5,054   |         |         |      | 3,687   |         |         |         | 4,235   |         |         |   | 7,573   |         |         |   | 19,017  |        
|Interest expense                                                        |                                               |                                          | (20,013 | )       |         |      | (20,395 | )       |         |         | (20,593 | )       |         |   | (24,609 | )       |         |   | (16,537 | )      
|Net gain (loss) on marketable securities                                |                                               |                                          | 334     |         |         |      | 502     |         |         |         | 1,100   |         |         |   | 602     |         |         |   | (3,918  | )      
|Net loss on investments                                                 |                                               |                                          | (104    | )       |         |      | (1,790  | )       |         |         | (9,091  | )       |         |   | (5,607  | )       |         |   | (7      | )      
|Net other income (expense)                                              |                                               |                                          | 32      |         |         |      | 74      |         |         |         | 132     |         |         |   | (204    | )       |         |   | (109    | )      
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Income from continuing operations before provision for income
    taxes |                                               |                                          | 70,387  |         |         |      | 69,271  |         |         |         | 58,668  |         |         |   | 21,146  |         |         |   | 58,836  |        
|Provision for income taxes                                              |                                               |                                          | 24,843  |         |         |      | 25,306  |         |         |         | 22,371  |         |         |   | 8,021   |         |         |   | 23,389  |        
|Minority interest in net earnings of subsidiaries                       |                                               |                                          | 1,430   |         |         |      | 1,788   |         |         |         | 1,598   |         |         |   | 839     |         |         |   | 849     |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Income from continuing operations                                       |                                               |                                          | 44,114  |         |         |      | 42,177  |         |         |         | 34,699  |         |         |   | 12,286  |         |         |   | 34,598  |        
|Discontinued operations, net of tax                                     |                                               |                                          | 0       |         |         |      | 0       |         |         |         | 0       |         |         |   | (1,624  | )       |         |   | 304     |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Net Income                                                              |                                               | $                                        | 44,114  |         |         | $    | 42,177  |         |         | $       | 34,699  |         |         | $ | 10,662  |         |         | $ | 34,902  |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Basic Earnings/(Loss) Per Share of Stock:                               |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Income from continuing operations             |                                          | $       | 2.04    |         |      | $       | 1.97    |         |         | $       | 1.63    |         |   | $       | 0.58    |         |   | $       | 1.59    |        
|                                                                        | Discontinued operations                       |                                          |         | 0.00    |         |      |         | 0.00    |         |         |         | 0.00    |         |   |         | (0.08   | )       |   |         | 0.01    |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Basic earnings per share                      |                                          | $       | 2.04    |         |      | $       | 1.97    |         |         | $       | 1.63    |         |   | $       | 0.50    |         |   | $       | 1.60    |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Weighted average number of shares outstanding |                                          |         | 21,591  |         |      |         | 21,404  |         |         |         | 21,279  |         |   |         | 21,192  |         |   |         | 21,757  |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Diluted Earnings/(Loss) Per Share of Stock:                             |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Income from continuing operations             |                                          | $       | 2.02    |         |      | $       | 1.95    |         |         | $       | 1.62    |         |   | $       | 0.58    |         |   | $       | 1.59    |        
|                                                                        | Discontinued operations                       |                                          |         | 0.00    |         |      |         | 0.00    |         |         |         | 0.00    |         |   |         | (0.08   | )       |   |         | 0.01    |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Diluted earnings per share                    |                                          | $       | 2.02    |         |      | $       | 1.95    |         |         | $       | 1.62    |         |   | $       | 0.50    |         |   | $       | 1.60    |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|                                                                        | Weighted average number of shares outstanding |                                          |         | 21,888  |         |      |         | 21,627  |         |         |         | 21,447  |         |   |         | 21,364  |         |   |         | 21,786  |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        
|Dividends per share of common and Class B common stock                  |                                               | $                                        | 0.76    |         |         | $    | 0.72    |         |         | $       | 0.70    |         |         | $ | 0.68    |         |         | $ | 0.64    |        
|                                                                        |                                               |                                          |         |         |         |      |         |         |         |         |         |         |         |   |         |         |         |   |         |        

17



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##### Table of Contents



ITEM 6. SELECTED FINANCIAL DATA 
Continued


|                               |  |                          |           |      |  |      |           |      |  |      |           |  |  |   |           |  |  |   |           | 
|------------------------------ |  | ------------------------ | --------- | ---- |  | ---- | --------- | ---- |  | ---- | --------- |  |  | - | --------- |  |  | - | --------- | 
|                               |  | Years Ended December 31,
|                               |  |                         
|                               |  | 2004                     |           | 2003 |  | 2002 |           | 2001 |  | 2000
|                               |  |                          |           |      |  |      |           |      |  |     
|OTHER DATA                     |  |                          |           |      |  |      |           |      |  |      |           |  |  |   |           |  |  |   |           | 
|Cash and marketable securities |  | $                        | 207,308   |      |  | $    | 176,196   |      |  | $    | 194,394   |  |  | $ | 193,739   |  |  | $ | 194,313   | 
|Working capital                |  |                          | 242,378   |      |  |      | 214,436   |      |  |      | 225,548   |  |  |   | 221,002   |  |  |   | 218,619   | 
|Total assets                   |  |                          | 1,386,662 |      |  |      | 1,319,243 |      |  |      | 1,287,246 |  |  |   | 1,288,763 |  |  |   | 1,282,873 | 
|Long-term debt                 |  |                          | 306,000   |      |  |      | 306,000   |      |  |      | 306,000   |  |  |   | 306,000   |  |  |   | 306,000   | 
|Stockholders equity           |  |                          | 898,149   |      |  |      | 851,444   |      |  |      | 815,218   |  |  |   | 797,217   |  |  |   | 799,701   | 






|    |                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The year ended December 31, 2000, includes an extra week of
    operations resulting from a 53-week year. All other years
    presented include 52 weeks of operations
|   
|(2) | See Agency Agreements in Item 1 and PD
    LLC Operating Agreement in Item 7 for additional
    information on the St. Louis Agency adjustment.                   






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



General








18



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued













Lee Merger Agreement








19



---



##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





Veeck Veeck Veeck Veeck Fern Veeck Fern In re Pulitzer Inc. Shareholders
Litigation, Civil Action No. 1063-N.






Acquisition and Disposition of Properties








20



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



Critical Accounting Policies




, Goodwill and Other Intangible Assets










21



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





2004 Compared with 2003


Executive Overview






Post-Dispatchs (Local Values);


Operating Results




Local Values


22



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |      |   |  |  |      |  
|---------------- |  | ----------------------------------------- | ---- | ---- |  | ---- | ---- | ---- |  | ---- | ---- | -- |  |  | ---- | - |  |  | ---- | -
|                 |  |                                           |      | 4th  |  | 3rd  |      | 2nd  |  | 1st 
|                 |  | Full Year                                 |      | Qtr. |  | Qtr. |      | Qtr. |  | Qtr.
|                 |  | 2004                                      |      | 2004 |  | 2004 |      | 2004 |  | 2004
|                 |  |                                           |      |      |  |      |      |      |  |     
|                 |  | Classified advertising revenue percentage
|                 |  | change from comparable prior year period 
|Help Wanted      |  |                                           | 15.4 | %    |  |      | 14.9 | %    |  |      | 18.0 | %  |  |  | 17.0 | % |  |  | 11.4 | %
|Automotive       |  |                                           | 2.0  | %    |  |      | (6.4 | )%   |  |      | (2.2 | )% |  |  | 9.4  | % |  |  | 6.3  | %
|Real Estate      |  |                                           | 13.4 | %    |  |      | 11.3 | %    |  |      | 12.4 | %  |  |  | 13.6 | % |  |  | 16.6 | %
|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |      |   |  |  |      |  
|Total Classified |  |                                           | 9.7  | %    |  |      | 6.1  | %    |  |      | 9.7  | %  |  |  | 11.8 | % |  |  | 10.9 | %
|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |      |   |  |  |      |  



|              |  |                                          |      |      |  |      |      |      |  |      |      |   |  |  |      |   |  |  |      |  
|------------- |  | ---------------------------------------- | ---- | ---- |  | ---- | ---- | ---- |  | ---- | ---- | - |  |  | ---- | - |  |  | ---- | -
|              |  |                                          |      | 4th  |  | 3rd  |      | 2nd  |  | 1st 
|              |  | Full Year                                |      | Qtr. |  | Qtr. |      | Qtr. |  | Qtr.
|              |  | 2004                                     |      | 2004 |  | 2004 |      | 2004 |  | 2004
|              |  |                                          |      |      |  |      |      |      |  |     
|              |  | Reported advertising revenue percentage 
|              |  | change from comparable prior year period
|              |  | prior year                              
|St. Louis     |  |                                          | 3.5  | %    |  |      | 1.7  | %    |  |      | 5.3  | % |  |  | 3.6  | % |  |  | 3.6  | %
|PNI           |  |                                          | 12.1 | %    |  |      | 10.7 | %    |  |      | 12.7 | % |  |  | 14.3 | % |  |  | 10.9 | %
|Pulitzer Inc. |  |                                          | 5.9  | %    |  |      | 4.2  | %    |  |      | 7.4  | % |  |  | 6.5  | % |  |  | 5.6  | %











23



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued

Local Values;




Non-Operating Items








Net Income




2003 Compared with 2002


Executive Overview




24



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|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



Operating Results












|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |       |    |  |  |       |   
|---------------- |  | ----------------------------------------- | ---- | ---- |  | ---- | ---- | ---- |  | ---- | ---- | -- |  |  | ----- | -- |  |  | ----- | --
|                 |  |                                           |      | 4th  |  | 3rd  |      | 2nd  |  | 1st 
|                 |  | Full Year                                 |      | Qtr. |  | Qtr. |      | Qtr. |  | Qtr.
|                 |  | 2003                                      |      | 2003 |  | 2003 |      | 2003 |  | 2003
|                 |  |                                           |      |      |  |      |      |      |  |     
|                 |  | Classified advertising revenue percentage
|                 |  | change from comparable prior year period 
|Automotive       |  |                                           | (6.3 | )%   |  |      | (1.0 | )%   |  |      | (5.8 | )% |  |  | (9.2  | )% |  |  | (9.2  | )%
|Help Wanted      |  |                                           | (8.9 | )%   |  |      | 1.6  | %    |  |      | (8.7 | )% |  |  | (13.9 | )% |  |  | (11.8 | )%
|Real Estate      |  |                                           | 9.3  | %    |  |      | 18.8 | %    |  |      | 8.6  | %  |  |  | 4.5   | %  |  |  | 6.5   | % 
|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |       |    |  |  |       |   
|Total Classified |  |                                           | (2.5 | )%   |  |      | 5.6  | %    |  |      | (1.8 | )% |  |  | (7.2  | )% |  |  | (6.7  | )%
|                 |  |                                           |      |      |  |      |      |      |  |      |      |    |  |  |       |    |  |  |       |   

25



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|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



|              |  |                                          |     |      |  |      |     |      |  |      |      |    |  |  |     |   |  |  |      |   
|------------- |  | ---------------------------------------- | --- | ---- |  | ---- | --- | ---- |  | ---- | ---- | -- |  |  | --- | - |  |  | ---- | --
|              |  |                                          |     | 4th  |  | 3rd  |     | 2nd  |  | 1st 
|              |  | Full Year                                |     | Qtr. |  | Qtr. |     | Qtr. |  | Qtr.
|              |  | 2003                                     |     | 2003 |  | 2003 |     | 2003 |  | 2003
|              |  |                                          |     |      |  |      |     |      |  |     
|              |  | Reported advertising revenue percentage 
|              |  | change from comparable prior year period
|St. Louis     |  |                                          | 2.4 | %    |  |      | 7.6 | %    |  |      | (1.4 | )% |  |  | 5.0 | % |  |  | (1.9 | )%
|PNI           |  |                                          | 2.4 | %    |  |      | 6.1 | %    |  |      | 3.6  | %  |  |  | 1.0 | % |  |  | (1.6 | )%
|Pulitzer Inc. |  |                                          | 2.4 | %    |  |      | 7.2 | %    |  |      | 0.0  | %  |  |  | 3.9 | % |  |  | (1.8 | )%



Post-Dispatch






Post-Dispatch




Non-Operating Items






26



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





Net Income




Liquidity and Capital Resources


This section has been updated to give effect to the
restatement as discussed in Note 21 to the audited
consolidated financial statements included in Item 8 and
should be read in conjunction with the accompanying audited
consolidated financial statements prepared in accordance with
accounting principles generally accepted in the United States of
America.












Post-Dispatch


27



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





Contractual Obligations




Table of Contractual Obligations


|                                                               |  |                 |       |          |  |          |       |        |  |      |      |  |  |   |       |     |  |   |     |    
|-------------------------------------------------------------- |  | --------------- | ----- | -------- |  | -------- | ----- | ------ |  | ---- | ---- |  |  | - | ----- | --- |  | - | --- | ---
|                                                               |  | Payments due in
|                                                               |  |                
|                                                               |  |                 |       | 2006 and |  | 2008 and |       | Beyond
|                                                               |  | Total           |       | 2005     |  | 2007     |       | 2009   |  | 2009
|                                                               |  |                 |       |          |  |          |       |        |  |     
|                                                               |  | (In millions)  
|Contractual Obligations                                        |  |                 |       |          |  |          |       |        |  |      |      |  |  |   |       |     |  |   |     |    
|Long-term debt obligations                                     |  | $               | 306.0 |          |  | $        | 0.0   |        |  | $    | 0.0  |  |  | $ | 306.0 | (1) |  | $ | 0.0 |    
|Interest payments(2)                                           |  |                 | 104.6 |          |  |          | 24.6  |        |  |      | 49.3 |  |  |   | 30.7  |     |  |   | 0.0 | (1)
|Consulting and other agreements                                |  |                 | 1.5   |          |  |          | 1.2   |        |  |      | 0.3  |  |  |   | 0.0   |     |  |   | 0.0 |    
|Lease obligations                                              |  |                 | 11.2  |          |  |          | 2.4   |        |  |      | 3.7  |  |  |   | 2.5   |     |  |   | 2.6 |    
|Purchase obligations for capital goods                         |  |                 | 1.0   |          |  |          | 1.0   |        |  |      | 0.0  |  |  |   | 0.0   |     |  |   | 0.0 |    
|                                                               |  |                 |       |          |  |          |       |        |  |      |      |  |  |   |       |     |  |   |     |    
|Obligations excluding Lee Merger Agreement obligations(3)      |  | $               | 424.3 |          |  | $        | 29.2  |        |  | $    | 53.3 |  |  | $ | 339.2 |     |  | $ | 2.6 |    
|Obligations under Lee Merger Agreement(4)(5)                   |  |                 | 109.6 |          |  |          | 90.6  |        |  |      | 2.5  |  |  |   | 16.5  |     |  |   | 0.0 |    
|                                                               |  |                 |       |          |  |          |       |        |  |      |      |  |  |   |       |     |  |   |     |    
|Total Obligations (including Lee Merger Agreement obligations) |  | $               | 533.9 |          |  | $        | 119.8 |        |  | $    | 55.8 |  |  | $ | 355.7 |     |  | $ | 2.6 |    
|                                                               |  |                 |       |          |  |          |       |        |  |      |      |  |  |   |       |     |  |   |     |    






|    |                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------
|(1) | The operating agreement governing PD LLC mandates this be
    replaced with similar debt. See PD LLC
    Operating Agreement.
|   
|(2) | Represents interest payments on the Companys long-term
    debt obligation absent any impact of interest rate swaps.            
|   
|(3) | Totals do not include:                                                                                                           



| |                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Future cash requirements for pension, post-retirement
    and post-employment obligations. The period in which these
    obligations will be settled in cash is not readily determinable
    and is subject to numerous future events and assumptions. The
    Companys estimate of cash requirements for these
    obligations in 2005 is approximately $7.1 million.
|
| | (ii) At December 31, 2004, other long-term liabilities
    consisted, principally, of deferred income taxes. The Company
    does not expect deferred tax reversals to significantly impact
    expected tax payments in 2005. At December 26, 2004, the
    last day of the Companys 2004 fiscal year, approximately
    $5.6 million                                    

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|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | in deferred compensation was included in current liabilities.
    The deferred compensation liability was fully funded by an asset
    presented as Prepaid and Other Assets  current in the
    Companys financial statements. On December 28, 2004,
    the Company terminated its deferred compensation plan and
    distributed the participants account balances aggregating
    approximately $5.6 million.                                                                                                         
|
| | (iii) At December 31, 2004, the Company had unfunded
    capital contribution commitments totaling up to
    $4.5 million related to limited partnerships in which it is
    an investor. The limited liability partnerships (the
    Partnerships) control the timing of partner
    contributions, which the partnerships use to make investments.
    Accordingly, the Company does not know when capital
    contributions, if any, will be required. The capital
    contribution commitments expire on June 10, 2010.
|
| | (iv) The Companys obligations with respect to the PD
    LLC Operating Agreement. See PD LLC Operating
    Agreement.                                                                                                                                                                                                                                                                                                                                                                                                     



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Includes: (i) contingent payments totaling an estimated
    $16.2 million for financial advisory, legal, consulting and
    other professional services provided in connection with the
    Strategic Review Process and the Lee Merger (all of which are
    contingent upon consummation of the Lee Merger);
    (ii) estimated contingent payments totaling up to
    $11.9 million for transaction-related and retention
    incentives, (iii) estimated contingent payments totaling
    $11.7 million for the cashout of non-vested stock options
    and restricted stock units in connection with the Lee Merger;
    (iv) estimated contingent payments totaling
    $42.8 million for the cashout of vested stock options and
    restricted stock units in connection with the Lee Merger;
    (v) contingent payments relating to the potential
    termination of split dollar life insurance arrangements
    maintained with respect to five current and former executives
    (with an estimated total cost of up to approximately
    $6.4 million (approximately $4.5 million of which is
    included in the policies cash values));
    (vi) estimated payments of approximately $20.6 million
    attributable to the payment of annual benefits under the
    Pulitzer Inc. Supplemental Executive Benefit Pension Plan (the
    Supplemental Plan) until May 2008, and the
    contingent cost of cashing out the Supplemental Plan in May 2008
    in connection with the Lee Merger ($15.7 million of which
    is reflected as a net liability as of December 31, 2004);
    and (vii) acceleration of a $0.3 million payment that,
    absent consummation of the Lee Merger, would be payable for
    services in 2006 under a consulting agreement. The total of
    $109.6 million does not include severance and
    severance-related obligations that may arise in conjunction with
    the Lee Merger. See Part III, Item 11 for additional
    information on executive compensation in connection with the Lee
    Merger.
|   
|(5) | The Lee Merger Agreement provides that, upon termination of the
    Lee Merger Agreement under specified circumstances, Pulitzer
    Inc. may be required to pay Lee a fee of up to $55 million,
    which is not included in this table.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

Cash Flows  2004 Compared to 2003






29



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



Cash Flows  2003 Compared to 2002




Post-Dispatchs




HTV Merger Agreement Indemnification




Internal Revenue Service Matters






30



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|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued





PD LLC Operating Agreement


Post-Dispatch






31



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued







New Accounting Pronouncements


Consolidation of Variable Interest
Entities


Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003


32



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued









Inventory Costs Inventory Pricing




Accounting for Stock-Based Compensation Accounting for Stock Issued to
Employees Statement of Cash Flows,




33



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##### Table of Contents



|        |                                                                                                          
|------- | ---------------------------------------------------------------------------------------------------------
|ITEM 7. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF
    OPERATIONS  Continued



Exchanges of Nonmonetary Assets Accounting for Nonmonetary Transactions




|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Newsprint




Loan/ Swaps








34



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##### Table of Contents



|         |                                                                           
|-------- | --------------------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK  Continued








|        |                                            
|------- | -------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA







| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | Report of Independent Registered Public Accounting Firm                                                                                           
|
| | Consolidated Statements of Income for each of the Three Years in
    the Period Ended December 31, 2004                                           
|
| | Consolidated Statements of Financial Position at
    December 31, 2004, and December 31, 2003                                                     
|
| | Consolidated Statements of Stockholders Equity and
    Comprehensive Income for each of the Three Years in the Period
    Ended December 31, 2004
|
| | Consolidated Statements of Cash Flows for each of the Three
    Years in the Period Ended December 31, 2004                                       
|
| | Notes to Consolidated Financial Statements for each of the Three
    Years in the Period Ended December 31, 2004                                  



35



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

















DELOITTE &
TOUCHE LLP






36



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##### Table of Contents



PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF INCOME


|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |         |         |         | 
|---------------------------------------------------------- | ----------------------------------------------------------- | ----------------------------------------- | ------------------------ | ------- | ------- | ------- | ------ | ------- | ------- | ------- | ------ | ------- | ------- | ------- | 
|                                                           |                                                             | Years Ended December 31,                 
|                                                           |                                                             |                                          
|                                                           |                                                             | 2004                                      |                          | 2003    |         | 2002   
|                                                           |                                                             |                                           |                          |         |         |        
|                                                           |                                                             | (In thousands, except earnings per share)
|OPERATING REVENUES  NET:                                  |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Advertising:                                                |                                           |                          |         |         |         |        |         |         |         |        |         |        
|                                                           |                                                             | Retail                                    |                          | $       | 123,429 |         |        | $       | 120,284 |         |        | $       | 118,741 |        
|                                                           |                                                             | National                                  |                          |         | 26,876  |         |        |         | 29,000  |         |        |         | 26,706  |        
|                                                           |                                                             | Classified                                |                          |         | 134,402 |         |        |         | 122,559 |         |        |         | 125,777 |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           |                                                             |                                           | Total                    |         |         | 284,707 |        |         |         | 271,843 |        |         |         | 271,224 | 
|                                                           |                                                             | Preprints                                 |                          |         | 70,064  |         |        |         | 63,249  |         |        |         | 55,935  |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           |                                                             |                                           | Total advertising        |         |         | 354,771 |        |         |         | 335,092 |        |         |         | 327,159 | 
|                                                           | Circulation                                                 |                                           |                          | 81,288  |         |         |        | 80,639  |         |         |        | 80,751  |        
|                                                           | Other                                                       |                                           |                          | 7,596   |         |         |        | 6,933   |         |         |        | 8,050   |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           |                                                             |                                           | Total operating revenues |         |         | 443,655 |        |         |         | 422,664 |        |         |         | 415,960 | 
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|OPERATING EXPENSES:                                        |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Payroll and other personnel expense                         |                                           |                          | 187,414 |         |         |        | 181,422 |         |         |        | 180,027 |        
|                                                           | Newsprint expense                                           |                                           |                          | 47,245  |         |         |        | 43,368  |         |         |        | 41,055  |        
|                                                           | Depreciation                                                |                                           |                          | 15,348  |         |         |        | 14,613  |         |         |        | 14,286  |        
|                                                           | Amortization                                                |                                           |                          | 4,850   |         |         |        | 4,522   |         |         |        | 4,433   |        
|                                                           | Other expenses                                              |                                           |                          | 121,760 |         |         |        | 107,610 |         |         |        | 111,018 |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           |                                                             |                                           | Total operating expenses |         |         | 376,617 |        |         |         | 351,535 |        |         |         | 350,819 | 
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Equity in earnings of Tucson newspaper partnership (Note 4) |                                           |                          | 18,046  |         |         |        | 16,064  |         |         |        | 17,744  |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Operating income                                            |                                           |                          | 85,084  |         |         |        | 87,193  |         |         |        | 82,885  |        
|                                                           | Interest income                                             |                                           |                          | 5,054   |         |         |        | 3,687   |         |         |        | 4,235   |        
|                                                           | Interest expense                                            |                                           |                          | (20,013 | )       |         |        | (20,395 | )       |         |        | (20,593 | )      
|                                                           | Net gain on marketable securities                           |                                           |                          | 334     |         |         |        | 502     |         |         |        | 1,100   |        
|                                                           | Net loss on investments                                     |                                           |                          | (104    | )       |         |        | (1,790  | )       |         |        | (9,091  | )      
|                                                           | Net other income                                            |                                           |                          | 32      |         |         |        | 74      |         |         |        | 132     |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|INCOME BEFORE PROVISION FOR INCOME TAXES                   |                                                             |                                           | 70,387                   |         |         |         | 69,271 |         |         |         | 58,668 |        
|PROVISION FOR INCOME TAXES (Note 12)                       |                                                             |                                           | 24,843                   |         |         |         | 25,306 |         |         |         | 22,371 |        
|MINORITY INTEREST IN NET EARNINGS OF SUBSIDIARIES (Note 4) |                                                             |                                           | 1,430                    |         |         |         | 1,788  |         |         |         | 1,598  |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|NET INCOME                                                 |                                                             | $                                         | 44,114                   |         |         | $       | 42,177 |         |         | $       | 34,699 |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|BASIC EARNINGS PER SHARE OF STOCK (Note 15):               |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Earnings per share                                          |                                           | $                        | 2.04    |         |         | $      | 1.97    |         |         | $      | 1.63    |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Weighted average number of shares outstanding               |                                           |                          | 21,591  |         |         |        | 21,404  |         |         |        | 21,279  |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|DILUTED EARNINGS PER SHARE OF STOCK (Notes 14 and 15):     |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Earnings per share                                          |                                           | $                        | 2.02    |         |         | $      | 1.95    |         |         | $      | 1.62    |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        
|                                                           | Weighted average number of shares outstanding               |                                           |                          | 21,888  |         |         |        | 21,627  |         |         |        | 21,447  |        
|                                                           |                                                             |                                           |                          |         |         |         |        |         |         |         |        |        





37



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##### Table of Contents



PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


|                             |                                                                                           |                                   |       |         |         |           |   |         |         |           | 
|---------------------------- | ----------------------------------------------------------------------------------------- | --------------------------------- | ----- | ------- | ------- | --------- | - | ------- | ------- | --------- | 
|                             |                                                                                           | December 31,                     
|                             |                                                                                           |                                  
|                             |                                                                                           | 2004                              |       | 2003   
|                             |                                                                                           |                                   |       |        
|                             |                                                                                           | (In thousands)                   
|ASSETS                       |                                                                                           |                                   |       |         |         |           |   |        
|CURRENT ASSETS:              |                                                                                           |                                   |       |         |         |           |   |        
|                             | Cash and cash equivalents                                                                 |                                   | $     | 58,152  |         |           | $ | 27,552  |        
|                             | Marketable securities (Note 7)                                                            |                                   |       | 149,156 |         |           |   | 148,644 |        
|                             | Trade accounts receivable (less allowance for doubtful accounts
    of $3,710 and $3,843) |                                   |       | 60,105  |         |           |   | 54,700  |        
|                             | Inventory                                                                                 |                                   |       | 8,479   |         |           |   | 7,566   |        
|                             | Income taxes receivable                                                                   |                                   |       | 0       |         |           |   | 7,097   |        
|                             | Prepaid expenses and other                                                                |                                   |       | 21,660  |         |           |   | 9,171   |        
|                             |                                                                                           |                                   |       |         |         |           |   |        
|                             |                                                                                           | Total current assets              |       |         | 297,552 |           |   |         | 254,730 |          
|PROPERTIES:                  |                                                                                           |                                   |       |         |         |           |   |        
|                             | Land                                                                                      |                                   |       | 9,982   |         |           |   | 9,758   |        
|                             | Buildings                                                                                 |                                   |       | 74,450  |         |           |   | 73,192  |        
|                             | Machinery and equipment                                                                   |                                   |       | 147,566 |         |           |   | 156,425 |        
|                             | Construction in progress                                                                  |                                   |       | 877     |         |           |   | 1,256   |        
|                             |                                                                                           |                                   |       |         |         |           |   |        
|                             |                                                                                           | Total                             |       |         | 232,875 |           |   |         | 240,631 |          
|                             | Less accumulated depreciation                                                             |                                   |       | 122,251 |         |           |   | 124,550 |        
|                             |                                                                                           |                                   |       |         |         |           |   |        
|                             |                                                                                           | Properties  net                  |       |         | 110,624 |           |   |         | 116,081 |          
|INTANGIBLE AND OTHER ASSETS: |                                                                                           |                                   |       |         |         |           |   |        
|                             | Goodwill (Note 5)                                                                         |                                   |       | 817,362 |         |           |   | 811,409 |        
|                             | Intangible assets  net of amortization (Note 5)                                          |                                   |       | 34,279  |         |           |   | 37,217  |        
|                             | Restricted cash and investments (Notes 7 and 8)                                           |                                   |       | 69,810  |         |           |   | 54,810  |        
|                             | Other                                                                                     |                                   |       | 57,035  |         |           |   | 44,996  |        
|                             |                                                                                           |                                   |       |         |         |           |   |        
|                             |                                                                                           | Total intangible and other assets |       |         | 978,486 |           |   |         | 948,432 |          
|                             |                                                                                           |                                   |       |         |         |           |   |        
|                             |                                                                                           |                                   | TOTAL |         | $       | 1,386,662 |   |         | $       | 1,319,243 | 
|                             |                                                                                           |                                   |       |         |         |           |   |        



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PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |         |         |           | 
|-------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------- | ------- | ------- | ------- | --------- | ------- | ------- | ------- | --------- | 
|                                                                                                                                                               |                                                                                                                                                                 | December 31,              
|                                                                                                                                                               |                                                                                                                                                                 |                           
|                                                                                                                                                               |                                                                                                                                                                 | 2004                       |         | 2003   
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |        
|                                                                                                                                                               |                                                                                                                                                                 | (In thousands)            
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                           |                                                                                                                                                                 |                            |         |         |         |           |         |        
|CURRENT LIABILITIES:                                                                                                                                           |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               | Trade accounts payable                                                                                                                                          |                            | $       | 12,499  |         |           | $       | 9,995   |        
|                                                                                                                                                               | Salaries, wages and commissions                                                                                                                                 |                            |         | 22,121  |         |           |         | 15,595  |        
|                                                                                                                                                               | Interest payable                                                                                                                                                |                            |         | 3,944   |         |           |         | 3,582   |        
|                                                                                                                                                               | Pension obligations (Note 9)                                                                                                                                    |                            |         | 1,365   |         |           |         | 1,356   |        
|                                                                                                                                                               | Income taxes payable                                                                                                                                            |                            |         | 1,612   |         |           |         | 0       |        
|                                                                                                                                                               | Deferred revenue                                                                                                                                                |                            |         | 9,883   |         |           |         | 8,882   |        
|                                                                                                                                                               | Other                                                                                                                                                           |                            |         | 3,750   |         |           |         | 884     |        
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               |                                                                                                                                                                 | Total current liabilities  |         |         | 55,174  |           |         |         | 40,294  |          
|LONG-TERM DEBT (Notes 4, 8 and 17)                                                                                                                             |                                                                                                                                                                 |                            | 306,000 |         |         |           | 306,000 |        
|PENSION OBLIGATIONS (Note 9)                                                                                                                                   |                                                                                                                                                                 |                            | 15,795  |         |         |           | 14,809  |        
|POSTRETIREMENT AND POSTEMPLOYMENT BENEFIT OBLIGATIONS
    (Note 10)                                                                                            |                                                                                                                                                                 |                            | 54,129  |         |         |           | 61,265  |        
|OTHER LONG-TERM LIABILITIES                                                                                                                                    |                                                                                                                                                                 |                            | 57,415  |         |         |           | 45,431  |        
|COMMITMENTS AND CONTINGENCIES (Note 16) STOCKHOLDERS
    EQUITY (Note 13):                                                                                    |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               | Preferred stock, $.01 par value; authorized 
    100,000,000 shares in 2004 and 2003; issued and
    outstanding  none                                        |                            |         | 0       |         |           |         | 0       |        
|                                                                                                                                                               | Common stock, $.01 par value; authorized 
    100,000,000 shares in 2004 and 2003; issued 
    10,044,697 in 2004 and 9,682,134 in 2003                       |                            |         | 100     |         |           |         | 97      |        
|                                                                                                                                                               | Class B common stock, convertible, $.01 par value;
    authorized  100,000,000 shares in 2004 and 2003;
    issued  11,660,942 in 2004 and 11,834,592 in 2003 |                            |         | 117     |         |           |         | 118     |        
|                                                                                                                                                               | Additional paid-in capital                                                                                                                                      |                            |         | 394,528 |         |           |         | 384,291 |        
|                                                                                                                                                               | Retained earnings                                                                                                                                               |                            |         | 505,153 |         |           |         | 477,437 |        
|                                                                                                                                                               | Accumulated other comprehensive loss                                                                                                                            |                            |         | (1,424  | )       |           |         | (10,151 | )      
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               |                                                                                                                                                                 | Total                      |         |         | 898,474 |           |         |         | 851,792 |          
|Unamortized restricted stock grant                                                                                                                             |                                                                                                                                                                 |                            | (72     | )       |         |           | (303    | )      
|Treasury stock  at cost; 5,137 and 1,061 shares
    of common stock in 2004 and 2003, respectively, and
    0 shares of Class B common stock in 2004 and 2003 |                                                                                                                                                                 |                            | (253    | )       |         |           | (45     | )      
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               |                                                                                                                                                                 | Total stockholders equity |         |         | 898,149 |           |         |         | 851,444 |          
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |        
|                                                                                                                                                               |                                                                                                                                                                 |                            | TOTAL   |         | $       | 1,386,662 |         |         | $       | 1,319,243 | 
|                                                                                                                                                               |                                                                                                                                                                 |                            |         |         |         |           |         |        





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PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY AND


COMPREHENSIVE INCOME


|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |         |        |  
|------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------ | -- | ------- | - | ---------- | --- | -------- | - | ------------- | ------- | -------- | --- | ----------- | ------- | -------- | - | - | ------- | - | ------ | - | ------- | ------ | - | - | ---- | ---- | - | - | ------- | ------- | ------ | -
|                                |                                                                          |                                            |    |         |   |            |     |          |   | Accumulated   |         |          |     |             |         |         
|                                |                                                                          |                                            |    |         |   |            |     |          |   | Other         |         |          |     |             |         | Total   
|                                |                                                                          |                                            |    | Class B |   | Additional |     |          |   | Comprehensive |         |          |     | Unamortized |         | Stock-  
|                                |                                                                          | Common                                     |    | Common  |   | Paid-In    |     | Retained |   | Income        |         | Treasury |     | Restricted  |         | holders
|                                |                                                                          | Stock                                      |    | Stock   |   | Capital    |     | Earnings |   | (Loss)        |         | Stock    |     | Stock Grant |         | Equity  
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |         
|                                |                                                                          | (In thousands)                            
|Balances at January 1, 2002     |                                                                          | $                                          | 97 |         |   | $          | 131 |          |   | $             | 430,647 |          |     | $           | 430,840 |          |   | $ | (2,482  | ) |        | $ | (61,996 | )      |   | $ | (20  | )    |   | $ | 797,217 |        
|Comprehensive income:           |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|                                | Net income                                                               |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         | 34,699   |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 34,699  |       
|                                | Other comprehensive income(loss), net of tax:                            |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |         |       
|                                |                                                                          | Minimum pension liability adjustment       |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   | (8,206 | ) |         |        |   |   |      |      |   |   |         |         | (8,206 | )
|                                |                                                                          | Unrealized gain on marketable securities   |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   | 325    |   |         |        |   |   |      |      |   |   |         |         | 325    |  
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|                                | Comprehensive income                                                     |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 26,818  |       
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|                                |                                                                          | Issuance of common stock grants            |    |         |   |            |     |          |   |               |         |          | 841 |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |         | 841    |  
|                                | Common stock options exercised                                           |                                            |    | 1       |   |            |     |          |   |               |         | 4,090    |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 4,091   |       
|                                | Conversion of Class B common stock To common stock                       |                                            |    | 2       |   |            |     | (2       | ) |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |         |       
|                                | Common stock issued under Employee Stock Purchase Plan                   |                                            |    |         |   |            |     |          |   |               |         | 904      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 904     |       
|                                | Tax benefit from stock options exercised                                 |                                            |    |         |   |            |     |          |   |               |         | 328      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 328     |       
|                                | Cash dividends declared $0.70 per Share of common and
    Class B common |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         | (14,886  | ) |   |         |   |        |   |         |        |   |   |      |      |   |   |         | (14,886 | )     
|                                | Restricted Stock Grant                                                   |                                            |    |         |   |            |     |          |   |               |         | 250      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      | (250 | ) |   |         |         |       
|                                | Amortization of Restricted Stock                                         |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      | 62   |   |   |         | 62      |       
|                                | Retirement of Treasury Stock                                             |                                            |    | (5      | ) |            |     | (11      | ) |               |         | (62,123  | )   |             |         |          |   |   |         |   |        |   |         | 62,139 |   |   |      |      |   |   |         |         |       
|                                | Purchase of treasury stock                                               |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         | (157   | ) |   |      |      |   |   |         | (157    | )     
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|Balances at December 31, 2002   |                                                                          |                                            | 95 |         |   |            | 118 |          |   |               | 374,937 |          |     |             | 450,653 |          |   |   | (10,363 | ) |        |   | (14     | )      |   |   | (208 | )    |   |   | 815,218 |        
|Comprehensive income:           |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|                                | Net income                                                               |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         | 42,177   |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 42,177  |       
|                                | Other comprehensive income(loss), net of tax:                            |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |         |       
|                                |                                                                          | Minimum pension liability adjustment       |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   | 311    |   |         |        |   |   |      |      |   |   |         |         | 311    |  
|                                |                                                                          | Unrealized (loss) on marketable securities |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   | (99    | ) |         |        |   |   |      |      |   |   |         |         | (99    | )
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|                                | Comprehensive income                                                     |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 42,389  |       
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|Issuance of common stock grants |                                                                          |                                            |    |         |   |            |     |          |   |               | 1,187   |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   | 1,187   |        
|                                | Common stock options exercised                                           |                                            |    | 2       |   |            |     |          |   |               |         | 6,583    |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 6,585   |       
|                                | Common stock issued under Employee Stock Purchase Plan                   |                                            |    |         |   |            |     |          |   |               |         | 922      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 922     |       
|                                | Tax benefit from stock options exercised                                 |                                            |    |         |   |            |     |          |   |               |         | 462      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         | 462     |       
|                                | Cash dividends declared $0.72 per Share of common and
    Class B common |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         | (15,393  | ) |   |         |   |        |   |         |        |   |   |      |      |   |   |         | (15,393 | )     
|                                | Restricted Stock Grant                                                   |                                            |    |         |   |            |     |          |   |               |         | 200      |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      | (200 | ) |   |         |         |       
|                                | Amortization of Restricted Stock                                         |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      | 105  |   |   |         | 105     |       
|                                | Purchase of treasury stock                                               |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         | (31    | ) |   |      |      |   |   |         | (31     | )     
|                                |                                                                          |                                            |    |         |   |            |     |          |   |               |         |          |     |             |         |          |   |   |         |   |        |   |         |        |   |   |      |      |   |   |         |        
|Balances at December 31, 2003   |                                                                          |                                            | 97 |         |   |            | 118 |          |   |               | 384,291 |          |     |             | 477,437 |          |   |   | (10,151 | ) |        |   | (45     | )      |   |   | (303 | )    |   |   | 851,444 |        



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|                                |                                                                          |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         |           |                  
|------------------------------- | ------------------------------------------------------------------------ | -------------------------------------------------------------------------- | - | --- |  |  | - | --- | - |  | ----- | ------- | --------- |  | - | ------- | - |  | - | ------ | ------ | - | - | ---- | - |  | - | ---- | - |  | ---------- | ------- | --------- | -----------------
|Comprehensive income:           |                                                                          |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |        
|                                | Net income                                                               |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   | 44,114  |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            | 44,114  |          
|                                | Other comprehensive income(loss), net of tax:                            |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         |          
|                                |                                                                          | Minimum pension liability adjustment                                       |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        | 9,933  |   |   |      |   |  |   |      |   |  |            |         | 9,933     |                  
|                                |                                                                          | Unrealized (loss) on marketable securities                                 |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        | (1,206 | ) |   |      |   |  |   |      |   |  |            |         | (1,206    | ) -------- 52,841
|                                | Comprehensive income                                                     |                                                                            |   |     |  |  |   |     |   |  |       | 1,437   |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            | 1,437   |          
|Issuance of common stock grants |                                                                          |                                                                            | 2 |     |  |  |   |     |   |  | 7,299 |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  | 7,301      |        
|                                | Common stock options exercised                                           |                                                                            |   | 1   |  |  |   | (1  | ) |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         |          
|                                | Conversion of Class B common stock                                       |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         |          
|                                |                                                                          | To common stock Common stock issued under Employee Stock
    Purchase Plan |   |     |  |  |   |     |   |  |       |         | 1,046 710 |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         | 1,046 710 |                  
|                                | Tax benefit from stock options exercised                                 |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |         |          
|                                | Cash dividends declared $0.76 per Share of common and
    Class B common |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   | (16,398 | ) |  |   |        |        |   |   |      |   |  |   |      |   |  |            | (16,398 | )        
|                                | Settlement of IRS Issues  Broadcast Transaction                         |                                                                            |   |     |  |  |   |     |   |  |       | (375    | ) 120     |  |   |         |   |  |   |        |        |   |   |      |   |  |   | (120 | ) |  |            | (375    | )        
|                                | Restricted Stock Grant                                                   |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   | 151  |   |  |            | 151     |          
|                                | Amortization of Restricted Stock                                         |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   | (200 | ) |  |   | 200  |   |  |            |         |          
|                                | Cancellation of Restricted Stock                                         |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   | (8   | ) |  |   |      |   |  |            | (8      | )        
|                                | Purchase of treasury stock                                               |                                                                            | $ | 100 |  |  | $ | 117 |   |  | $     | 394,528 |           |  | $ | 505,153 |   |  | $ | (1,424 | )      |   | $ | (253 | ) |  | $ | (72  | ) |  | -------- $ | 898,149 |          
|Balances at December 31, 2004   |                                                                          |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |        
|                                |                                                                          |                                                                            |   |     |  |  |   |     |   |  |       |         |           |  |   |         |   |  |   |        |        |   |   |      |   |  |   |      |   |  |            |        



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PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY


|                              |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |       | 
|----------------------------- | ------------------------------------------------------- | -------------- | ------ | -------------- | - | ------ | ---- | -------- | - |  | ------ | ------ | - |  | ------ | ----- | 
|                              |                                                         |                |        | Class B Common
|                              |                                                         | Common Stock   |        | Stock         
|                              |                                                         |                |        |               
|                              |                                                         |                |        | Held in        |   |        |      | Held in 
|                              |                                                         | Issued         |        | Treasury       |   | Issued |      | Treasury
|                              |                                                         |                |        |                |   |        |      |         
|                              |                                                         | (In thousands)
|Share Activity:               |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |      
|Balances at January 1, 2002   |                                                         |                | 9,680  |                |   |        | (529 | )        |   |  | 13,059 |        |   |  | (1,000 | )    
|                              | Common stock options exercised                          |                |        | 100            |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Conversion of Class B common stock to common stock      |                |        | 224            |   |        |      |          |   |  |        | (224   | ) |  |        |       | 
|                              | Common stock issued under Employee Stock Purchase Plan  |                |        | 20             |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Restricted Stock Grant                                  |                |        | 6              |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Retirement of treasury stock                            |                |        | (532           | ) |        |      | 532      |   |  |        | (1,000 | ) |  |        | 1,000 | 
|                              | Purchase of treasury stock                              |                |        |                |   |        |      | (3       | ) |  |        |        |   |  |        |       | 
|                              |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |      
|Balances at December 31, 2002 |                                                         |                | 9,498  |                |   |        | 0    |          |   |  | 11,835 |        |   |  | 0      |      
|                              | Common stock options exercised                          |                |        | 159            |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Common stock issued under Employee Stock Purchase Plans |                |        | 21             |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Restricted Stock Grant                                  |                |        | 4              |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Purchase of treasury stock                              |                |        |                |   |        |      | (1       | ) |  |        |        |   |  |        |       | 
|                              |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |      
|Balances at December 31, 2003 |                                                         |                | 9,682  |                |   |        | (1   | )        |   |  | 11,835 |        |   |  | 0      |      
|                              | Common stock options exercised                          |                |        | 165            |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Conversion of Class B common stock to common stock      |                |        | 174            |   |        |      |          |   |  |        | (174   | ) |  |        |       | 
|                              | Common stock issued under Employee Stock Purchase Plans |                |        | 22             |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Restricted Stock Grant                                  |                |        | 2              |   |        |      |          |   |  |        |        |   |  |        |       | 
|                              | Purchase of treasury stock                              |                |        |                |   |        |      | (4       | ) |  |        |        |   |  |        |       | 
|                              |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |      
|Balances at December 31, 2004 |                                                         |                | 10,045 |                |   |        | (5   | )        |   |  | 11,661 |        |   |  | 0      |      
|                              |                                                         |                |        |                |   |        |      |          |   |  |        |        |   |  |        |      





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PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |          |        |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ----------- | ------ | ----------- | ------- | -------- | ------ | ------- | -------- | -------- | ------ | ------- | -
|                                                     |                                                                                       | Years Ended December 31,                                                                                                                     
|                                                     |                                                                                       |                                                                                                                                              
|                                                     |                                                                                       | 2004                                                                                                                                          |                                                                 | 2003        |        | 2002       
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |            
|                                                     |                                                                                       |                                                                                                                                               |                                                                 | As          |        | As         
|                                                     |                                                                                       |                                                                                                                                               |                                                                 | Restated,   |        | Restated,  
|                                                     |                                                                                       |                                                                                                                                               |                                                                 | See Note 21 |        | See Note 21
|                                                     |                                                                                       | (In thousands)                                                                                                                               
|CASH FLOWS FROM OPERATING ACTIVITIES:                |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|                                                     | Net Income                                                                            |                                                                                                                                               | $                                                               | 44,114      |        |             | $       | 42,177   |        |         | $        | 34,699   |       
|                                                     | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |          |       
|                                                     |                                                                                       | Depreciation                                                                                                                                  |                                                                 |             | 15,348 |             |         |          | 14,613 |         |          |          | 14,286 |        
|                                                     |                                                                                       | Amortization                                                                                                                                  |                                                                 |             | 4,850  |             |         |          | 4,522  |         |          |          | 4,433  |        
|                                                     |                                                                                       | Stock-based compensation                                                                                                                      |                                                                 |             | 1,608  |             |         |          | 1,292  |         |          |          | 903    |        
|                                                     |                                                                                       | Deferred income taxes                                                                                                                         |                                                                 |             | 5,503  |             |         |          | 22,249 |         |          |          | 23,256 |        
|                                                     |                                                                                       | Net gain on marketable securities                                                                                                             |                                                                 |             | (334   | )           |         |          | (502   | )       |          |          | (1,100 | )      
|                                                     |                                                                                       | Net loss on investments                                                                                                                       |                                                                 |             | 104    |             |         |          | 1,790  |         |          |          | 9,091  |        
|                                                     |                                                                                       | Changes in assets and liabilities (net of the effects of the
    purchase of newspaper properties and routes) which provided
    (used) cash: |                                                                 |             |        |             |         |          |        |         |          |          |        |        
|                                                     |                                                                                       |                                                                                                                                               | Trade accounts receivable                                       |             |        | (5,240      | )       |          |        | (664    | )        |          |        | (1,738  | )
|                                                     |                                                                                       |                                                                                                                                               | Inventory                                                       |             |        | (913        | )       |          |        | (1,398  | )        |          |        | (1,041  | )
|                                                     |                                                                                       |                                                                                                                                               | Other assets                                                    |             |        | (2,643      | )       |          |        | (14,112 | )        |          |        | 3,162   |  
|                                                     |                                                                                       |                                                                                                                                               | Trade accounts payable, other liabilities, and deferred revenue |             |        | 2,896       |         |          |        | (26,220 | )        |          |        | (22,891 | )
|                                                     |                                                                                       |                                                                                                                                               | Income taxes (receivable)/payable                               |             |        | 10,412      |         |          |        | (7,033  | )        |          |        | 7,065   |  
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|NET CASH FROM OPERATING ACTIVITIES                   |                                                                                       |                                                                                                                                               | 75,705                                                          |             |        |             | 36,714  |          |        |         | 70,125   |         
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|CASH FLOWS FROM INVESTING ACTIVITIES:                |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|                                                     | Capital expenditures                                                                  |                                                                                                                                               |                                                                 | (9,491      | )      |             |         | (12,526  | )      |         |          | (25,124  | )     
|                                                     | Purchases of newspaper properties and routes, net of cash
    acquired                |                                                                                                                                               |                                                                 | (7,522      | )      |             |         | (17,424  | )      |         |          | (9,117   | )     
|                                                     | Acquisition payable                                                                   |                                                                                                                                               |                                                                 | 0           |        |             |         | 0        |        |         |          | (9,707   | )     
|                                                     | Purchases of marketable securities                                                    |                                                                                                                                               |                                                                 | (340,960    | )      |             |         | (335,554 | )      |         |          | (218,118 | )     
|                                                     | Sales of marketable securities                                                        |                                                                                                                                               |                                                                 | 337,080     |        |             |         | 298,501  |        |         |          | 106,256  |       
|                                                     | Cash received from gain on investment                                                 |                                                                                                                                               |                                                                 | 0           |        |             |         | 825      |        |         |          | 0        |       
|                                                     | Investment in joint ventures and limited partnerships                                 |                                                                                                                                               |                                                                 | (1,153      | )      |             |         | (1,584   | )      |         |          | (1,689   | )     
|                                                     | Increase in restricted cash and investments                                           |                                                                                                                                               |                                                                 | (15,000     | )      |             |         | (15,000  | )      |         |          | (15,000  | )     
|                                                     | Decrease in notes receivable                                                          |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          | 200      |       
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|NET CASH FROM INVESTING ACTIVITIES                   |                                                                                       |                                                                                                                                               | (37,046                                                         | )           |        |             | (82,762 | )        |        |         | (172,299 | )       
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|CASH FLOWS FROM FINANCING ACTIVITIES:                |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|                                                     | Dividends paid                                                                        |                                                                                                                                               |                                                                 | (16,398     | )      |             |         | (15,393  | )      |         |          | (14,886  | )     
|                                                     | Proceeds from exercise of stock options                                               |                                                                                                                                               |                                                                 | 7,301       |        |             |         | 6,585    |        |         |          | 4,091    |       
|                                                     | Proceeds from employee stock purchase plan                                            |                                                                                                                                               |                                                                 | 1,046       |        |             |         | 922      |        |         |          | 904      |       
|                                                     | Purchase of treasury stock                                                            |                                                                                                                                               |                                                                 | (8          | )      |             |         | (31      | )      |         |          | (157     | )     
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|NET CASH FROM FINANCING ACTIVITIES                   |                                                                                       |                                                                                                                                               | (8,059                                                          | )           |        |             | (7,917  | )        |        |         | (10,048  | )       
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |                                                                                       |                                                                                                                                               | 30,600                                                          |             |        |             | (53,965 | )        |        |         | (112,222 | )       
|CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR       |                                                                                       |                                                                                                                                               | 27,552                                                          |             |        |             | 81,517  |          |        |         | 193,739  |         
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         
|CASH AND CASH EQUIVALENTS AT END OF YEAR             |                                                                                       | $                                                                                                                                             | 58,152                                                          |             |        | $           | 27,552  |          |        | $       | 81,517   |         
|                                                     |                                                                                       |                                                                                                                                               |                                                                 |             |        |             |         |          |        |         |          |         



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PULITZER INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                                           |                                                                |                          |  |             |        |             |  |        |        |   |  |         |        |  
|-------------------------------------------------------------------------- | -------------------------------------------------------------- | ------------------------ |  | ----------- | ------ | ----------- |  | ------ | ------ | - |  | ------- | ------ | -
|                                                                           |                                                                | Years Ended December 31,
|                                                                           |                                                                |                         
|                                                                           |                                                                | 2004                     |  | 2003        |        | 2002       
|                                                                           |                                                                |                          |  |             |        |            
|                                                                           |                                                                |                          |  | As          |        | As         
|                                                                           |                                                                |                          |  | Restated,   |        | Restated,  
|                                                                           |                                                                |                          |  | See Note 21 |        | See Note 21
|SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                          |                                                                |                          |  |             |        |             |  |        |        |   |  |        
|                                                                           | Cash paid (received) during the year for:                      |                          |  |             |        |             |  |        |        |   |  |         |       
|                                                                           |                                                                | Interest paid            |  | $           | 20,262 |             |  | $      | 20,706 |   |  | $       | 21,586 |  
|                                                                           |                                                                | Interest received        |  |             | (4,642 | )           |  |        | (4,082 | ) |  |         | (3,605 | )
|                                                                           |                                                                | Income taxes             |  |             | 16,899 |             |  |        | 10,941 |   |  |         | 2,003  |  
|                                                                           |                                                                | Income tax refunds       |  |             | (7,055 | )           |  |        | (968   | ) |  |         | (9,897 | )
|SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING
    ACTIVITIES: |                                                                |                          |  |             |        |             |  |        |        |   |  |        
|                                                                           | Issuance of restricted stock grants and restricted stock units |                          |  | (120        | )      |             |  | (2,271 | )      |   |  | (1,130  | )     
|                                                                           | Retirement of treasury stock                                   |                          |  | 0           |        |             |  | 0      |        |   |  | (62,139 | )     





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PULITZER INC. AND SUBSIDIARIES







NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND 2002




|   |                      
|-- | ---------------------
|1. | BASIS OF PRESENTATION



St. Louis
Post-Dispatch ( Post-Dispatch Arizona Daily Star Star Star Tucson Citizen Citizen),












|   |                                           
|-- | ------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                             
|-- | ------------------------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)









The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain
Investments








Goodwill and Other
Intangible Assets


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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                             
|-- | ------------------------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)









Post-Dispatch.








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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                             
|-- | ------------------------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)





Accounting for Derivative Instruments and Hedging Activities


Consolidation of Variable Interest Entities


Accounting and Disclosure
Requirements Related to the Medicare Prescription Drug,
Improvement and Modernization Act of 2003






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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                             
|-- | ------------------------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)





Inventory Costs Inventory Pricing




Accounting for Stock-Based Compensation Statement of Cash Flows,




Exchanges of Nonmonetary Assets Accounting for Nonmonetary Transactions


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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                             
|-- | ------------------------------------------------------------
|2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
    (Continued)









|   |                                       
|-- | --------------------------------------
|3. | STOCK-BASED EMPLOYEE COMPENSATION PLAN

Accounting for Stock-Based
Compensation


|                                                                                                                                                   |                       |                                    |        |      |  |      |        |      |  |   |        |      | 
|-------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | ---------------------------------- | ------ | ---- |  | ---- | ------ | ---- |  | - | ------ | ---- | 
|                                                                                                                                                   |                       | Year Ended December 31,           
|                                                                                                                                                   |                       |                                   
|                                                                                                                                                   |                       | 2004                               |        | 2003 |  | 2002
|                                                                                                                                                   |                       |                                    |        |      |  |     
|                                                                                                                                                   |                       | (In thousands, except earnings per
|                                                                                                                                                   |                       | share)                            
|Net income, as reported                                                                                                                            |                       | $                                  | 44,114 |      |  | $    | 42,177 |      |  | $ | 34,699 |     
|Add: Stock-based employee compensation expense included in
    reported net income, net of related tax effects                                     |                       |                                    | 1,089  |      |  |      | 808    |      |  |   | 549    |     
|Deduct: Total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effect |                       |                                    | (5,264 | )    |  |      | (4,949 | )    |  |   | (5,136 | )   
|                                                                                                                                                   |                       |                                    |        |      |  |      |        |      |  |   |        |     
|Pro forma net income                                                                                                                               |                       | $                                  | 39,939 |      |  | $    | 38,036 |      |  | $ | 30,112 |     
|                                                                                                                                                   |                       |                                    |        |      |  |      |        |      |  |   |        |     
|Pro forma earnings per share:                                                                                                                      |                       |                                    |        |      |  |      |        |      |  |   |        |     
|                                                                                                                                                   | Basic  as reported   |                                    | $      | 2.04 |  |      | $      | 1.97 |  |   | $      | 1.63 | 
|                                                                                                                                                   | Basic  pro forma     |                                    | $      | 1.85 |  |      | $      | 1.78 |  |   | $      | 1.42 | 
|Pro forma earnings per share:                                                                                                                      |                       |                                    |        |      |  |      |        |      |  |   |        |     
|                                                                                                                                                   | Diluted  as reported |                                    | $      | 2.02 |  |      | $      | 1.95 |  |   | $      | 1.62 | 
|                                                                                                                                                   | Diluted  pro forma   |                                    | $      | 1.82 |  |      | $      | 1.76 |  |   | $      | 1.40 | 

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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                       
|-- | ------------------------------------------------------
|3. | STOCK-BASED EMPLOYEE COMPENSATION
    PLAN  Continued



|                        |  |              |      |      |  |      |      |   |  |  |      |  
|----------------------- |  | ------------ | ---- | ---- |  | ---- | ---- | - |  |  | ---- | -
|                        |  | Year Ended  
|                        |  | December 31,
|                        |  |             
|                        |  | 2004         |      | 2003 |  | 2002
|                        |  |              |      |      |  |     
|Expected life (years)   |  |              | 7    |      |  |      | 7    |   |  |  | 7    |  
|Risk-free interest rate |  |              | 3.8  | %    |  |      | 3.5  | % |  |  | 4.5  | %
|Volatility              |  |              | 22.0 | %    |  |      | 21.3 | % |  |  | 27.0 | %
|Dividend yield          |  |              | 1.5  | %    |  |      | 1.5  | % |  |  | 1.5  | %





|   |                  
|-- | -----------------
|4. | AGENCY AGREEMENTS

PD LLC Operating Agreement


Post-Dispatch






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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                              
|-- | -----------------------------
|4. | AGENCY AGREEMENTS  Continued







Post-Dispatch Post-Dispatch,


TNI Partners


Star Citizen. Star Citizen


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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                              
|-- | -----------------------------
|4. | AGENCY AGREEMENTS  Continued



|                    |  |                |        |          |  |   |        | 
|------------------- |  | -------------- | ------ | -------- |  | - | ------ | 
|                    |  | Dec. 31,       |        | Dec. 31,
|                    |  |               
|                    |  | 2004           |        | 2003    
|                    |  |                |        |         
|                    |  | (In thousands)
|Current assets      |  | $              | 16,811 |          |  | $ | 15,935 | 
|Current liabilities |  | $              | 9,031  |          |  | $ | 9,315  | 
|Partners equity    |  | $              | 7,780  |          |  | $ | 6,620  | 

|                                                                                                                      |  |                         |         |      |  |      |         |  |  |   |         | 
|--------------------------------------------------------------------------------------------------------------------- |  | ----------------------- | ------- | ---- |  | ---- | ------- |  |  | - | ------- | 
|                                                                                                                      |  | Year Ended December 31,
|                                                                                                                      |  |                        
|                                                                                                                      |  | 2004                    |         | 2003 |  | 2002
|                                                                                                                      |  |                         |         |      |  |     
|                                                                                                                      |  | (In thousands)         
|Operating revenues                                                                                                    |  | $                       | 111,718 |      |  | $    | 106,807 |  |  | $ | 104,578 | 
|Operating income                                                                                                      |  | $                       | 36,092  |      |  | $    | 32,128  |  |  | $ | 35,488  | 
|Companys share of operating income before depreciation,
    amortization, and general and administrative expenses(1) |  | $                       | 18,046  |      |  | $    | 16,064  |  |  | $ | 17,744  | 






|    |                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Star Publishings depreciation, amortization, and general
    and administrative expenses associated with the operation and
    administration of TNI are reported as operating expenses in the
    Companys consolidated statements of income. In aggregate,
    these amounts totaled $3.1 million for 2004 and
    $2.3 million per year for each of 2003 and 2002.



|   |                                     
|-- | ------------------------------------
|5. | GOODWILL AND OTHER INTANGIBLE ASSETS



|                             |  |                |         |            |  |   |        |  
|---------------------------- |  | -------------- | ------- | ---------- |  | - | ------ | -
|                             |  |                |         | Intangible
|                             |  | Goodwill       |         | Assets    
|                             |  |                |         |           
|                             |  | (In thousands)
|Balance at December 31, 2003 |  | $              | 811,409 |            |  | $ | 37,217 |  
|Additions during the period  |  |                | 5,953   |            |  |   | 1,912  |  
|Amortization expense         |  |                |         |            |  |   | (4,850 | )
|                             |  |                |         |            |  |   |        |  
|Balance at December 31, 2004 |  | $              | 817,362 |            |  | $ | 34,279 |  
|                             |  |                |         |            |  |   |        |  

|                             |  |                |         |                   |  |   |        |  
|---------------------------- |  | -------------- | ------- | ----------------- |  | - | ------ | -
|                             |  | Goodwill       |         | Intangible Assets
|                             |  |                |         |                  
|                             |  | (In thousands)
|Balance at January 1, 2003   |  | $              | 797,719 |                   |  | $ | 38,210 |  
|Additions during the period  |  |                | 13,690  |                   |  |   | 3,529  |  
|Amortization expense         |  |                |         |                   |  |   | (4,522 | )
|                             |  |                |         |                   |  |   |        |  
|Balance at December 31, 2003 |  | $              | 811,409 |                   |  | $ | 37,217 |  
|                             |  |                |         |                   |  |   |        |  

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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                                     
|-- | ----------------------------------------------------
|5. | GOODWILL AND OTHER INTANGIBLE
    ASSETS  Continued



|                         |                                  |                               |   |              |        |      |   |        |        |  |   |        |        | 
|------------------------ | -------------------------------- | ----------------------------- | - | ------------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                         |                                  |                               |   | Accumulated  |        | Net 
|                         |                                  | Cost                          |   | Amortization |        | Cost
|                         |                                  |                               |   |              |        |     
|                         |                                  | (In thousands)               
|December 31, 2004        |                                  |                               |   |              |        |      |   |        |        |  |   |       
|Other intangible assets: |                                  |                               |   |              |        |      |   |        |        |  |   |       
|                         | Advertising base                 |                               | $ | 34,872       |        |      | $ | 9,173  |        |  | $ | 25,699 |       
|                         | Subscriber lists                 |                               |   | 24,002       |        |      |   | 16,836 |        |  |   | 7,166  |       
|                         | Long-term pension asset          |                               |   | 1,063        |        |      |   | 0      |        |  |   | 1,063  |       
|                         | Non-compete agreements and other |                               |   | 5,428        |        |      |   | 5,077  |        |  |   | 351    |       
|                         |                                  |                               |   |              |        |      |   |        |        |  |   |       
|                         |                                  | Total other intangible assets |   | $            | 65,365 |      |   | $      | 31,086 |  |   | $      | 34,279 | 
|                         |                                  |                               |   |              |        |      |   |        |        |  |   |       
|December 31, 2003        |                                  |                               |   |              |        |      |   |        |        |  |   |       
|Other intangible assets: |                                  |                               |   |              |        |      |   |        |        |  |   |       
|                         | Advertising base                 |                               | $ | 33,552       |        |      | $ | 7,487  |        |  | $ | 26,065 |       
|                         | Subscriber lists                 |                               |   | 23,300       |        |      |   | 14,040 |        |  |   | 9,260  |       
|                         | Long-term pension asset          |                               |   | 1,260        |        |      |   |        |        |  |   | 1,260  |       
|                         | Non-compete agreements and other |                               |   | 5,341        |        |      |   | 4,709  |        |  |   | 632    |       
|                         |                                  |                               |   |              |        |      |   |        |        |  |   |       
|                         |                                  | Total other intangible assets |   | $            | 63,453 |      |   | $      | 26,236 |  |   | $      | 37,217 | 
|                         |                                  |                               |   |              |        |      |   |        |        |  |   |       





|   |                                          
|-- | -----------------------------------------
|6. | ACQUISITION AND DISPOSITION OF PROPERTIES









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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                      
|-- | ---------------------
|7. | MARKETABLE SECURITIES



|                                                           |                      |                |         |            |  |            |    |            |  |   |        |        |   |   |         |         | 
|---------------------------------------------------------- | -------------------- | -------------- | ------- | ---------- |  | ---------- | -- | ---------- |  | - | ------ | ------ | - | - | ------- | ------- | 
|                                                           |                      |                |         | Gross      |  | Gross      |    |           
|                                                           |                      | Amortized      |         | Unrealized |  | Unrealized |    |           
|December 31, 2004:                                         |                      | Cost           |         | Gains      |  | Losses     |    | Fair Value
|                                                           |                      |                |         |            |  |            |    |           
|                                                           |                      | (In thousands)
|Debt securities issued by the U.S. Government and agencies |                      | $              | 157,496 |            |  | $          | 11 |            |  | $ | (1,116 | )      |   | $ | 156,391 |        
|Corporate securities                                       |                      |                | 40,074  |            |  |            | 4  |            |  |   | (389   | )      |   |   | 39,689  |        
|Asset-backed and mortgage-backed securities                |                      |                | 22,965  |            |  |            | 32 |            |  |   | (111   | )      |   |   | 22,886  |        
|                                                           |                      |                |         |            |  |            |    |            |  |   |        |        |   |   |         |        
|                                                           | Total investments(1) |                | $       | 220,535    |  |            | $  | 47         |  |   | $      | (1,616 | ) |   | $       | 218,966 | 
|                                                           |                      |                |         |            |  |            |    |            |  |   |        |        |   |   |         |        

|                                                           |                      |                |         |            |  |            |     |            |  |   |     |      |   |   |         |         | 
|---------------------------------------------------------- | -------------------- | -------------- | ------- | ---------- |  | ---------- | --- | ---------- |  | - | --- | ---- | - | - | ------- | ------- | 
|                                                           |                      |                |         | Gross      |  | Gross      |     |           
|                                                           |                      | Amortized      |         | Unrealized |  | Unrealized |     |           
|December 31, 2003:                                         |                      | Cost           |         | Gains      |  | Losses     |     | Fair Value
|                                                           |                      |                |         |            |  |            |     |           
|                                                           |                      | (In thousands)
|Debt securities issued by the U.S. Government and agencies |                      | $              | 153,697 |            |  | $          | 257 |            |  | $ | (96 | )    |   | $ | 153,858 |        
|Corporate securities                                       |                      |                | 31,467  |            |  |            | 141 |            |  |   | (95 | )    |   |   | 31,513  |        
|Asset-backed and mortgage-backed securities                |                      |                | 15,371  |            |  |            | 162 |            |  |   | (8  | )    |   |   | 15,525  |        
|                                                           |                      |                |         |            |  |            |     |            |  |   |     |      |   |   |         |        
|                                                           | Total investments(1) |                | $       | 200,535    |  |            | $   | 560        |  |   | $   | (199 | ) |   | $       | 200,896 | 
|                                                           |                      |                |         |            |  |            |     |            |  |   |     |      |   |   |         |        






|    |                                                                                                                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Fair value of investments included $149.2 million and
    $69.8 million reported as marketable securities and
    restricted cash and investments, respectively, on the
    Companys Consolidated Statements of Financial Position at
    December 31, 2004, and $148.6 million and
    $52.3 million, respectively, at December 31, 2003.





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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                  
|-- | ---------------------------------
|7. | MARKETABLE SECURITIES  Continued



|                                            |                   |                |         |            |  |   |         |         | 
|------------------------------------------- | ----------------- | -------------- | ------- | ---------- |  | - | ------- | ------- | 
|                                            |                   | Amortized      |         |           
|December 31, 2004:                          |                   | Cost           |         | Fair Value
|                                            |                   |                |         |           
|                                            |                   | (In thousands)
|Due in one year or less                     |                   | $              | 95,615  |            |  | $ | 95,288  |        
|Due after one year through five years       |                   |                | 101,955 |            |  |   | 100,792 |        
|Asset-backed and mortgage-backed securities |                   |                | 22,965  |            |  |   | 22,886  |        
|                                            |                   |                |         |            |  |   |         |        
|                                            | Total investments |                | $       | 220,535    |  |   | $       | 218,966 | 
|                                            |                   |                |         |            |  |   |         |        



|   |                       
|-- | ----------------------
|8. | FINANCING ARRANGEMENTS









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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                                   
|-- | ----------------------------------
|8. | FINANCING ARRANGEMENTS  Continued





|   |              
|-- | -------------
|9. | PENSION PLANS







|                                                 |  |                         |         |      |  |      |        |   |  |   |         |  
|------------------------------------------------ |  | ----------------------- | ------- | ---- |  | ---- | ------ | - |  | - | ------- | -
|                                                 |  | Year Ended December 31,
|                                                 |  |                        
|                                                 |  | 2004                    |         | 2003 |  | 2002
|                                                 |  |                         |         |      |  |     
|                                                 |  | (In thousands)         
|Service cost for benefits earned during the year |  | $                       | 4,900   |      |  | $    | 4,366  |   |  | $ | 4,228   |  
|Interest cost on projected benefit obligation    |  |                         | 9,324   |      |  |      | 9,293  |   |  |   | 9,127   |  
|Expected return on plan assets                   |  |                         | (11,103 | )    |  |      | (9,862 | ) |  |   | (10,379 | )
|Amortization of prior service cost               |  |                         | 313     |      |  |      | 313    |   |  |   | 284     |  
|Amortization of transition obligation            |  |                         | 0       |      |  |      | 55     |   |  |   | 318     |  
|Amortization of unrecognized net actuarial loss  |  |                         | 1,453   |      |  |      | 401    |   |  |   | 25      |  
|Cost for special termination benefits            |  |                         | 188     |      |  |      | 128    |   |  |   | 127     |  
|                                                 |  |                         |         |      |  |      |        |   |  |   |         |  
|Net periodic pension cost                        |  | $                       | 5,075   |      |  | $    | 4,694  |   |  | $ | 3,730   |  
|                                                 |  |                         |         |      |  |      |        |   |  |   |         |  

|                                        |  |                |         |          |  |   |         |  
|--------------------------------------- |  | -------------- | ------- | -------- |  | - | ------- | -
|                                        |  | Dec. 31,       |         | Dec. 31,
|                                        |  | 2004           |         | 2003    
|                                        |  |                |         |         
|                                        |  | (In thousands)
|Change in benefit obligation:           |  |                |         |          |  |   |         |  
|Benefit obligation at beginning of year |  | $              | 160,302 |          |  | $ | 147,224 |  
|Service cost                            |  |                | 4,900   |          |  |   | 4,366   |  
|Interest cost                           |  |                | 9,324   |          |  |   | 9,293   |  
|Actuarial loss                          |  |                | 5,345   |          |  |   | 7,499   |  
|Benefits paid                           |  |                | (10,026 | )        |  |   | (8,767  | )
|Plan amendments                         |  |                | 15      |          |  |   | 559     |  
|Special termination benefits            |  |                | 188     |          |  |   | 128     |  
|                                        |  |                |         |          |  |   |         |  
|Benefit obligation at end of year       |  |                | 170,048 |          |  |   | 160,302 |  
|                                        |  |                |         |          |  |   |         |  

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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                          
|-- | -------------------------
|9. | PENSION PLANS  Continued

|                                                                          |                                        |                |         |          |   |   |         |         |  
|------------------------------------------------------------------------- | -------------------------------------- | -------------- | ------- | -------- | - | - | ------- | ------- | -
|                                                                          |                                        | Dec. 31,       |         | Dec. 31,
|                                                                          |                                        | 2004           |         | 2003    
|                                                                          |                                        |                |         |         
|                                                                          |                                        | (In thousands)
|Change in plan assets:                                                    |                                        |                |         |          |   |   |         |        
|Fair value of plan assets at beginning of year                            |                                        |                | 119,618 |          |   |   | 97,721  |        
|Actual gain on plan assets                                                |                                        |                | 15,803  |          |   |   | 18,067  |        
|Employer contributions                                                    |                                        |                | 25,009  |          |   |   | 12,597  |        
|Benefits paid                                                             |                                        |                | (10,026 | )        |   |   | (8,767  | )      
|                                                                          |                                        |                |         |          |   |   |         |        
|Fair value of plan assets at September 30                                 |                                        |                | 150,404 |          |   |   | 119,618 |        
|                                                                          |                                        |                |         |          |   |   |         |        
|Funded status  benefit obligation in excess of plan
    assets           |                                        |                | 19,644  |          |   |   | 40,684  |        
|Unrecognized net actuarial loss                                           |                                        |                | (25,940 | )        |   |   | (26,733 | )      
|Unrecognized prior service cost                                           |                                        |                | (1,050  | )        |   |   | (1,362  | )      
|                                                                          |                                        |                |         |          |   |   |         |        
|Net amount recognized as of September 30 measurement date                 |                                        |                | (7,346  | )        |   |   | 12,589  |        
|Fourth quarter contribution                                               |                                        |                | (996    | )        |   |   | (23,988 | )      
|                                                                          |                                        |                |         |          |   |   |         |        
|Net amount recognized (asset)                                             |                                        | $              | (8,342  | )        |   | $ | (11,399 | )      
|                                                                          |                                        |                |         |          |   |   |         |        
|Amounts recognized in the Statement of Financial Position
    consist of: |                                        |                |         |          |   |   |         |        
|                                                                          | Pension asset/other long-term assets   |                | $       | (23,731  | ) |   | $       | (9,570  | )
|                                                                          | Accrued benefit liability              |                |         | 17,160   |   |   |         | 16,165  |  
|                                                                          | Intangible asset (Note 5)              |                |         | (1,063   | ) |   |         | (1,260  | )
|                                                                          | Accumulated other comprehensive income |                |         | (708     | ) |   |         | (16,734 | )
|                                                                          |                                        |                |         |          |   |   |         |        
|Net amount recognized (asset)                                             |                                        | $              | (8,342  | )        |   | $ | (11,399 | )      
|                                                                          |                                        |                |         |          |   |   |         |        



Additional Information


|                                                                                     |  |              |        |      |  |   |      |  
|------------------------------------------------------------------------------------ |  | ------------ | ------ | ---- |  | - | ---- | -
|                                                                                     |  | Year Ended  
|                                                                                     |  | December 31,
|                                                                                     |  |             
|                                                                                     |  | 2004         |        | 2003
|                                                                                     |  |              |        |     
|Decrease in minimum liability included in other comprehensive
    income, net of tax |  | $            | (9,933 | )    |  | $ | (311 | )

Assumptions


Weighed-average assumptions used to determine benefit
obligations at December 31


|                              |  |      |      |      |  |  |     |  
|----------------------------- |  | ---- | ---- | ---- |  |  | --- | -
|                              |  | 2004 |      | 2003
|                              |  |      |      |     
|Discount rate                 |  |      | 5.75 | %    |  |  | 6.0 | %
|Rate of compensation increase |  |      | 3.5  | %    |  |  | 3.5 | %

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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                          
|-- | -------------------------
|9. | PENSION PLANS  Continued

Weighed-average assumptions used to determine net periodic
benefit cost for years ended December 31


|                                         |  |      |     |      |  |      |      |   |  |  |     |  
|---------------------------------------- |  | ---- | --- | ---- |  | ---- | ---- | - |  |  | --- | -
|                                         |  | 2004 |     | 2003 |  | 2002
|                                         |  |      |     |      |  |     
|Discount rate                            |  |      | 6.0 | %    |  |      | 6.5  | % |  |  | 7.0 | %
|Expected long-term return on plan assets |  |      | 8.5 | %    |  |      | 8.5  | % |  |  | 9.0 | %
|Rate of compensation increase            |  |      | 3.5 | %    |  |      | 3.75 | % |  |  | 4.0 | %



Plan Assets




Asset Allocation versus Policy Allocation


|              |  |                   |  |               |     |      |  |  |     |  
|------------- |  | ----------------- |  | ------------- | --- | ---- |  |  | --- | -
|              |  |                   |  | Allocation of
|              |  |                   |  | Plan Assets  
|              |  |                   |  | at           
|              |  |                   |  | December 31  
|              |  |                   |  |              
|Asset Classes |  | Policy Allocation |  | 2004          |     | 2003
|              |  |                   |  |               |     |     
|Equities      |  | 65% to 70%        |  |               | 71  | %    |  |  | 68  | %
|Bonds         |  | 35% to 30%        |  |               | 29  | %    |  |  | 32  | %
|Total         |  | 100%              |  |               | 100 | %    |  |  | 100 | %





Cash Flows


Contributions




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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|   |                          
|-- | -------------------------
|9. | PENSION PLANS  Continued

Estimated Future Benefit Payments




|                |  |                  |      | 
|--------------- |  | ---------------- | ---- | 
|Year            |  | Pension Benefits
|                |  |                 
|                |  | (In millions)   
|2005            |  | $                | 9.7  | 
|2006            |  |                  | 9.8  | 
|2007            |  |                  | 10.0 | 
|2008            |  |                  | 10.2 | 
|2009            |  |                  | 10.4 | 
|Years 2010-2014 |  | $                | 57.3 | 





10. POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS


Post-Dispatch.






|                                                 |  |                         |        |      |  |      |       |   |  |   |        |  
|------------------------------------------------ |  | ----------------------- | ------ | ---- |  | ---- | ----- | - |  | - | ------ | -
|                                                 |  | Year Ended December 31,
|                                                 |  |                        
|                                                 |  | 2004                    |        | 2003 |  | 2002
|                                                 |  |                         |        |      |  |     
|                                                 |  | (In thousands)         
|Service cost for benefits earned during the year |  | $                       | 2,843  |      |  | $    | 2,327 |   |  | $ | 2,006  |  
|Interest cost on projected benefit obligation    |  |                         | 6,620  |      |  |      | 6,680 |   |  |   | 6,292  |  
|Expected return on plan assets                   |  |                         | (1,136 | )    |  |      | (766  | ) |  |   | 0      |  
|Amortization of prior service cost               |  |                         | (1     | )    |  |      | 10    |   |  |   | (1,143 | )
|Amortization of net gain                         |  |                         | 688    |      |  |      | 360   |   |  |   | 360    |  
|                                                 |  |                         |        |      |  |      |       |   |  |   |        |  
|Net periodic postretirement benefit cost         |  | $                       | 9,014  |      |  | $    | 8,611 |   |  | $ | 7,515  |  
|                                                 |  |                         |        |      |  |      |       |   |  |   |        |  

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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




10. POSTRETIREMENT AND POSTEMPLOYMENT
BENEFITS  Continued




|                                                           |  |                |         |          |  |   |         |  
|---------------------------------------------------------- |  | -------------- | ------- | -------- |  | - | ------- | -
|                                                           |  | Dec. 31,       |         | Dec. 31,
|                                                           |  | 2004           |         | 2003    
|                                                           |  |                |         |         
|                                                           |  | (In thousands)
|Benefit obligation at beginning of year                    |  | $              | 123,092 |          |  | $ | 106,378 |  
|Service cost                                               |  |                | 2,843   |          |  |   | 2,327   |  
|Interest cost                                              |  |                | 6,620   |          |  |   | 6,680   |  
|Actuarial (gain)/loss                                      |  |                | (16,192 | )        |  |   | 13,225  |  
|Benefits paid                                              |  |                | (5,407  | )        |  |   | (5,518  | )
|                                                           |  |                |         |          |  |   |         |  
|Benefit obligation at end of year                          |  |                | 110,956 |          |  |   | 123,092 |  
|Change in Plan Assets:                                     |  |                |         |          |  |   |         |  
|Fair value of plan assets at beginning of year             |  |                | 23,090  |          |  |   | 14,472  |  
|Actual return on plan assets                               |  |                | 464     |          |  |   | 651     |  
|Employer contributions                                     |  |                | 13,993  |          |  |   | 13,485  |  
|Benefits paid                                              |  |                | (5,407  | )        |  |   | (5,518  | )
|                                                           |  |                |         |          |  |   |         |  
|Fair value of plan assets at end of year                   |  |                | 32,140  |          |  |   | 23,090  |  
|                                                           |  |                |         |          |  |   |         |  
|Funded status                                              |  |                | 78,816  |          |  |   | 100,002 |  
|Unrecognized net actuarial loss                            |  |                | (17,845 | )        |  |   | (29,701 | )
|Unrecognized prior service cost                            |  |                | 4,367   |          |  |   | 15      |  
|                                                           |  |                |         |          |  |   |         |  
|Net amount recognized as of September 30, measurement date |  |                | 65,338  |          |  |   | 70,316  |  
|Fourth quarter contribution                                |  |                | (14,849 | )        |  |   | (12,743 | )
|                                                           |  |                |         |          |  |   |         |  
|Net amount recognized  accrued benefit cost               |  | $              | 50,489  |          |  | $ | 57,573  |  
|                                                           |  |                |         |          |  |   |         |  

Assumptions


Weighed-average assumptions used to determine benefit
obligations at December 31


|                                         |  |      |      |      |  |  |     |  
|---------------------------------------- |  | ---- | ---- | ---- |  |  | --- | -
|                                         |  | 2004 |      | 2003
|                                         |  |      |      |     
|Discount rate                            |  |      | 5.75 | %    |  |  | 6.0 | %
|Expected long-term return on plan assets |  |      | 5.0  | %    |  |  | 4.0 | %

Weighed-average assumptions used to determine net periodic
benefit cost for years ended December 31


|                                         |  |      |     |      |  |      |     |   |  |  |     |  
|---------------------------------------- |  | ---- | --- | ---- |  | ---- | --- | - |  |  | --- | -
|                                         |  | 2004 |     | 2003 |  | 2002
|                                         |  |      |     |      |  |     
|Discount rate                            |  |      | 6.0 | %    |  |      | 6.5 | % |  |  | 7.0 | %
|Expected long-term return on plan assets |  |      | 4.0 | %    |  |      | 4.0 | % |  |  | 4.0 | %



61



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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




10. POSTRETIREMENT AND POSTEMPLOYMENT
BENEFITS  Continued


Assumed health care cost trend rates at December 31


|                                                                                      |                   |      |       |             |  |  |      |      |  
|------------------------------------------------------------------------------------- | ----------------- | ---- | ----- | ----------- |  |  | ---- | ---- | -
|                                                                                      |                   | 2004 |       | 2003       
|                                                                                      |                   |      |       |            
|Health care cost trend rate assumed for next year                                     |                   |      |       |             |  |  |      |     
|                                                                                      |  Indemnity plans |      |       | 12.5%-13.5% |  |  |      | 13.0 | %
|                                                                                      |  PPO plans       |      |       | 11.5%-12.5% |  |  |      | 12.0 | %
|                                                                                      |  HMO plans       |      |       | 9.5%-10.5%  |  |  |      | 10.0 | %
|Rate to which the cost trend rate is assumed to decline (the
    ultimate trend rate) |                   |      | 5.25% |             |  |  | 5.5  | %   
|Year that the rate reaches the ultimate trend rate                                    |                   |      | 2015  |             |  |  | 2014 |     





|                                                   |  |                        |        |          |  |   |         |  
|-------------------------------------------------- |  | ---------------------- | ------ | -------- |  | - | ------- | -
|                                                   |  | Income from Operations
|                                                   |  | 1-percentage-point    
|                                                   |  |                       
|                                                   |  | Increase               |        | Decrease
|                                                   |  |                        |        |         
|                                                   |  | (In thousands)        
|Effect on net periodic postretirement benefit cost |  | $                      | 1,686  |          |  | $ | (1,302  | )
|Effect on postretirement benefit obligation        |  | $                      | 16,177 |          |  | $ | (12,727 | )

Plan Assets




Asset Allocation versus Policy Allocation


|              |  |            |     |                |  |      |     |   |  |  |     |  
|------------- |  | ---------- | --- | -------------- |  | ---- | --- | - |  |  | --- | -
|              |  |            |     | Allocation of 
|              |  |            |     | Plan Assets at
|              |  |            |     | December 31,  
|              |  | Policy     |     |               
|Asset Classes |  | Allocation |     | 2004           |  | 2003
|              |  |            |     |                |  |     
|Equities      |  |            | 0   | %              |  |      | 0   | % |  |  | 0   | %
|Bonds         |  |            | 100 | %              |  |      | 100 | % |  |  | 100 | %
|Total         |  |            | 100 | %              |  |      | 100 | % |  |  | 100 | %





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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




10. POSTRETIREMENT AND POSTEMPLOYMENT
BENEFITS  Continued


Post-Dispatch,


Cash Flows


Contributions




Estimated Future Benefit Payments




|                |  |               |      | 
|--------------- |  | ------------- | ---- | 
|Year            |  | Benefit Plans
|                |  |              
|                |  | (In millions)
|2005            |  | $             | 5.7  | 
|2006            |  |               | 6.1  | 
|2007            |  |               | 6.4  | 
|2008            |  |               | 6.6  | 
|2009            |  |               | 6.9  | 
|Years 2010-2014 |  | $             | 38.4 | 





|    |                           
|--- | --------------------------
|11. | RELATED PARTY TRANSACTIONS







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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)


12. INCOME TAXES




|          |                 |                         |   |        |        |      |   |        |        |  |   |        |        | 
|--------- | --------------- | ----------------------- | - | ------ | ------ | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|          |                 | Year Ended December 31,
|          |                 |                        
|          |                 | 2004                    |   | 2003   |        | 2002
|          |                 |                         |   |        |        |     
|          |                 | (In thousands)         
|Current:  |                 |                         |   |        |        |      |   |        |        |  |   |       
|          | Federal         |                         | $ | 18,805 |        |      | $ | 2,931  |        |  | $ | (815   | )     
|          | State and local |                         |   | 535    |        |      |   | 126    |        |  |   | (70    | )     
|Deferred: |                 |                         |   |        |        |      |   |        |        |  |   |       
|          | Federal         |                         |   | 5,348  |        |      |   | 21,335 |        |  |   | 21,420 |       
|          | State and local |                         |   | 155    |        |      |   | 914    |        |  |   | 1,836  |       
|          |                 |                         |   |        |        |      |   |        |        |  |   |       
|          |                 | Total                   |   | $      | 24,843 |      |   | $      | 25,306 |  |   | $      | 22,371 | 
|          |                 |                         |   |        |        |      |   |        |        |  |   |       



|                                                          |       |                         |      |      |   |      |      |      |   |  |      |      |  
|--------------------------------------------------------- | ----- | ----------------------- | ---- | ---- | - | ---- | ---- | ---- | - |  | ---- | ---- | -
|                                                          |       | Year Ended December 31,
|                                                          |       |                        
|                                                          |       | 2004                    |      | 2003 |   | 2002
|                                                          |       |                         |      |      |   |     
|Federal statutory rate                                    |       |                         | 35.0 | %    |   |      | 35.0 | %    |   |  | 35.0 | %   
|State and local income taxes (net of Federal tax benefit) |       |                         | 2.1  | %    |   |      | 2.5  | %    |   |  | 2.0  | %   
|Other                                                     |       |                         | (1.8 | )%   |   |      | (1.0 | )%   |   |  | 1.1  | %   
|                                                          |       |                         |      |      |   |      |      |      |   |  |      |     
|                                                          | Total |                         |      | 35.3 | % |      |      | 36.5 | % |  |      | 38.1 | %
|                                                          |       |                         |      |      |   |      |      |      |   |  |      |     



|                           |                                                            |                |        |          |        |   |        |        |        | 
|-------------------------- | ---------------------------------------------------------- | -------------- | ------ | -------- | ------ | - | ------ | ------ | ------ | 
|                           |                                                            | Dec. 31,       |        | Dec. 31,
|                           |                                                            | 2004           |        | 2003    
|                           |                                                            |                |        |         
|                           |                                                            | (In thousands)
|Deferred tax assets:       |                                                            |                |        |          |        |   |        |       
|                           | Pensions and employee benefits                             |                | $      | 5,836    |        |   | $      | 8,363  |       
|                           | Postretirement benefit costs                               |                |        | 19,806   |        |   |        | 22,187 |       
|                           | State operating loss carryforwards                         |                |        | 7,872    |        |   |        | 7,749  |       
|                           | Valuation allowances on state operating loss carryforwards |                |        | (7,872   | )      |   |        | (7,749 | )     
|Other                      |                                                            |                | 4,182  |          |        |   | 3,715  |       
|                           |                                                            |                |        |          |        |   |        |       
|                           |                                                            | Total          |        |          | 29,824 |   |        |        | 34,265 | 
|Deferred tax liabilities:  |                                                            |                |        |          |        |   |        |       
|                           | Depreciation                                               |                |        | 15,559   |        |   |        | 16,765 |       
|                           | Amortization                                               |                |        | 52,387   |        |   |        | 44,232 |       
|                           |                                                            |                |        |          |        |   |        |       
|                           |                                                            | Total          |        |          | 67,946 |   |        |        | 60,997 | 
|                           |                                                            |                |        |          |        |   |        |       
|Net deferred tax liability |                                                            | $              | 38,122 |          |        | $ | 26,732 |       
|                           |                                                            |                |        |          |        |   |        |       



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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                     
|--- | --------------------
|13. | STOCKHOLDERS EQUITY











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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                   
|--- | ------------------
|14. | COMMON STOCK PLANS







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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                               
|--- | ------------------------------
|14. | COMMON STOCK PLANS  Continued

Stock Options




|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |       | 
|--------------------------------- | ------------------------------------------------------------- | ------ | --------- | ----------- | - | -------- | ------------ | ------------ |  | - | ----- | ----- | 
|                                  |                                                               |        |           |             |   | Weighted
|                                  |                                                               |        |           |             |   | Average 
|                                  |                                                               | Shares |           | Price Range |   | Price   
|                                  |                                                               |        |           |             |   |         
|Common Stock Options:             |                                                               |        |           |             |   |          |              |              |  |   |       |      
|Outstanding, January 1, 2002      |                                                               |        | 1,982,482 |             |   | $        | 37.31$54.20 |              |  | $ | 41.31 |      
|                                  | Granted (weighted average fair value at grant date of $13.43) |        |           | 466,324     |   |          | $            | 42.86$54.70 |  |   | $     | 43.41 | 
|                                  | Canceled                                                      |        |           | (67,936     | ) |          | $            | 39.69$50.45 |  |   | $     | 45.47 | 
|                                  | Exercised                                                     |        |           | (100,607    | ) |          | $            | 39.69$50.45 |  |   | $     | 40.66 | 
|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |      
|Outstanding, December 31, 2002    |                                                               |        | 2,280,263 |             |   | $        | 37.31$54.70 |              |  | $ | 43.53 |      
|Exercisable, December 31, 2002    |                                                               |        | 1,340,857 |             |   | $        | 37.31$54.20 |              |  | $ | 42.20 |      
|                                  | Granted (weighted average fair value at grant date of $13.32) |        |           | 578,141     |   |          | $            | 42.49$52.92 |  |   | $     | 51.58 | 
|                                  | Canceled                                                      |        |           | (66,576     | ) |          | $            | 42.86$53.15 |  |   | $     | 45.71 | 
|                                  | Exercised                                                     |        |           | (158,758    | ) |          | $            | 39.69$50.45 |  |   | $     | 41.88 | 
|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |      
|Outstanding, December 31, 2003    |                                                               |        | 2,633,070 |             |   | $        | 37.31$54.70 |              |  | $ | 45.36 |      
|Exercisable, December 31, 2003    |                                                               |        | 1,616,871 |             |   | $        | 37.31$54.70 |              |  | $ | 43.19 |      
|                                  | Granted (weighted average fair value at grant date of $13.23) |        |           | 28,750      |   |          | $            | 48.00$55.13 |  |   | $     | 51.90 | 
|                                  | Canceled                                                      |        |           | (11,413     | ) |          | $            | 42.86$52.92 |  |   | $     | 47.72 | 
|                                  | Exercised                                                     |        |           | (164,275    | ) |          | $            | 39.69$53.40 |  |   | $     | 44.28 | 
|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |      
|Outstanding, December 31, 2004(1) |                                                               |        | 2,486,132 |             |   | $        | 37.31$55.13 |              |  | $ | 45.50 |      
|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |      
|Exercisable, December 31, 2004    |                                                               |        | 1,924,705 |             |   | $        | 37.31$54.70 |              |  | $ | 44.36 |      
|                                  |                                                               |        |           |             |   |          |              |              |  |   |       |      






|    |                                                                                                
|--- | -----------------------------------------------------------------------------------------------
|(1) | The remaining weighted average life of options outstanding at
    December 31, 2004 is 7 years.

Restricted Stock Awards




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PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                               
|--- | ------------------------------
|14. | COMMON STOCK PLANS  Continued



|                                            |          |        |        |             |   |          |              |              |  |   |       |       | 
|------------------------------------------- | -------- | ------ | ------ | ----------- | - | -------- | ------------ | ------------ |  | - | ----- | ----- | 
|                                            |          |        |        |             |   | Weighted
|                                            |          |        |        |             |   | Average 
|                                            |          | Shares |        | Price Range |   | Price   
|                                            |          |        |        |             |   |         
|Common Stock Grants:                        |          |        |        |             |   |          |              |              |  |   |       |      
|Outstanding, January 1, 2002                |          |        | 8,021  |             |   | $        | 39.88$42.88 |              |  | $ | 40.51 |      
|                                            | Granted  |        |        | 5,949       |   |          | $            | 42.03$42.03 |  |   | $     | 42.03 | 
|                                            | Canceled |        |        | (660        | ) |          | $            | 41.88$42.88 |  |   | $     | 42.40 | 
|                                            | Vested   |        |        | (6,020      | ) |          | $            | 39.88$39.88 |  |   | $     | 39.88 | 
|                                            |          |        |        |             |   |          |              |              |  |   |       |      
|Outstanding, December 31, 2002              |          |        | 7,290  |             |   | $        | 41.31$42.88 |              |  | $ | 42.10 |      
|                                            | Granted  |        |        | 3,946       |   |          | $            | 50.69$50.69 |  |   | $     | 50.69 | 
|                                            | Canceled |        |        | (572        | ) |          | $            | 41.31$42.88 |  |   | $     | 42.54 | 
|                                            | Vested   |        |        | (421        | ) |          | $            | 41.88$41.88 |  |   | $     | 41.88 | 
|                                            |          |        |        |             |   |          |              |              |  |   |       |      
|Outstanding, December 31, 2003              |          |        | 10,243 |             |   | $        | 42.03$50.69 |              |  | $ | 45.39 |      
|                                            | Granted  |        |        | 2,346       |   |          | $            | 51.07$51.07 |  |   | $     | 51.07 | 
|                                            | Canceled |        |        | (3,946      | ) |          | $            | 50.69$50.69 |  |   | $     | 50.69 | 
|                                            | Vested   |        |        | (348        | ) |          | $            | 42.88$42.88 |  |   | $     | 42.88 | 
|                                            |          |        |        |             |   |          |              |              |  |   |       |      
|Outstanding Stock Grants, December 31, 2004 |          |        | 8,295  |             |   | $        | 42.03$51.07 |              |  | $ | 44.58 |      
|                                            |          |        |        |             |   |          |              |              |  |   |       |      





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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                   
|--- | ------------------
|15. | EARNINGS PER SHARE



|                                                      |  |                         |        |      |  |      |        |  |  |  |        | 
|----------------------------------------------------- |  | ----------------------- | ------ | ---- |  | ---- | ------ |  |  |  | ------ | 
|                                                      |  | Year Ended December 31,
|                                                      |  |                        
|                                                      |  | 2004                    |        | 2003 |  | 2002
|                                                      |  |                         |        |      |  |     
|                                                      |  | (In thousands)         
|Weighted average shares outstanding (Basic EPS)       |  |                         | 21,591 |      |  |      | 21,404 |  |  |  | 21,279 | 
|Common stock equivalents                              |  |                         | 297    |      |  |      | 223    |  |  |  | 168    | 
|                                                      |  |                         |        |      |  |      |        |  |  |  |        | 
|Weighted average shares and equivalents (Diluted EPS) |  |                         | 21,888 |      |  |      | 21,627 |  |  |  | 21,447 | 
|                                                      |  |                         |        |      |  |      |        |  |  |  |        | 

Earnings per Share,




|    |                              
|--- | -----------------------------
|16. | COMMITMENTS AND CONTINGENCIES

Capital Commitments




Investment Commitments




Rental Expense and Lease Commitments




|            |       |                |       |        | 
|----------- | ----- | -------------- | ----- | ------ | 
|            |       | (In thousands)
|2005        |       | $              | 2,418 |       
|2006        |       |                | 2,111 |       
|2007        |       |                | 1,635 |       
|2008        |       |                | 1,342 |       
|2009        |       |                | 1,201 |       
|Later years |       |                | 2,524 |       
|            |       |                |       |       
|            | Total |                | $     | 11,231 | 
|            |       |                |       |       

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                                          
|--- | -----------------------------------------
|16. | COMMITMENTS AND CONTINGENCIES  Continued

HTV Merger Agreement Indemnification




Internal Revenue Service Matters










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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)


16. COMMITMENTS AND
CONTINGENCIES  Continued




PD LLC Operating Agreement Contingent Payments




Legal Contingencies


Post-Dispatch








|    |                                    
|--- | -----------------------------------
|17. | FAIR VALUE OF FINANCIAL INSTRUMENTS







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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                                                    
|--- | ---------------------------------------------------
|17. | FAIR VALUE OF FINANCIAL
    INSTRUMENTS  Continued



|                                                 |       |                |         |            |  |   |         |         | 
|------------------------------------------------ | ----- | -------------- | ------- | ---------- |  | - | ------- | ------- | 
|                                                 |       | Carrying Value |         | Fair Value
|                                                 |       |                |         |           
|                                                 |       | (In thousands)
|2004                                             |       |                |         |            |  |   |         |        
|Long-term debt                                   |       | $              | 313,927 |            |  | $ | 341,373 |        
|Deferred gain on interest rate swap terminations |       |                | (3,321  | )          |  |   |         |        
|Interest rate swaps (asset)                      |       |                | (4,606  | )          |  |   | (4,606  | )      
|                                                 |       |                |         |            |  |   |         |        
|                                                 | Total |                | $       | 306,000    |  |   | $       | 336,767 | 
|                                                 |       |                |         |            |  |   |         |        

|                                                 |       |                |         |            |  |   |         |         | 
|------------------------------------------------ | ----- | -------------- | ------- | ---------- |  | - | ------- | ------- | 
|                                                 |       | Carrying Value |         | Fair Value
|                                                 |       |                |         |           
|                                                 |       | (In thousands)
|2003                                             |       |                |         |            |  |   |         |        
|Long-term debt                                   |       | $              | 316,389 |            |  | $ | 338,359 |        
|Deferred gain on interest rate swap terminations |       |                | (4,088  | )          |  |   |         |        
|Interest rate swaps (asset)                      |       |                | (6,301  | )          |  |   | (6,301  | )      
|                                                 |       |                |         |            |  |   |         |        
|                                                 | Total |                | $       | 306,000    |  |   | $       | 332,058 | 
|                                                 |       |                |         |            |  |   |         |        





|    |                              
|--- | -----------------------------
|18. | NEWSPAPER PUBLISHING REVENUES



|                     |       |                         |         |         |  |      |         |         |  |   |         |         | 
|-------------------- | ----- | ----------------------- | ------- | ------- |  | ---- | ------- | ------- |  | - | ------- | ------- | 
|                     |       | Year Ended December 31,
|                     |       |                        
|                     |       | 2004                    |         | 2003    |  | 2002
|                     |       |                         |         |         |  |     
|                     |       | (In thousands)         
|St. Louis Operations |       | $                       | 313,935 |         |  | $    | 303,918 |         |  | $ | 298,543 |        
|PNI Group            |       |                         | 129,720 |         |  |      | 118,746 |         |  |   | 117,417 |        
|                     |       |                         |         |         |  |      |         |         |  |   |         |        
|                     | Total |                         | $       | 443,655 |  |      | $       | 422,664 |  |   | $       | 415,960 | 
|                     |       |                         |         |         |  |      |         |         |  |   |         |        

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                                     
|--- | ------------------------------------
|19. | QUARTERLY FINANCIAL DATA (UNAUDITED)



|                                               |  |                                           |         |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|---------------------------------------------- |  | ----------------------------------------- | ------- | ------- |  | ------- | ------- | ------- |  | ----- | ------- |  |  | - | ------- |  |  | - | ------- | 
|                                               |  | First                                     |         | Second  |  | Third   |         | Fourth  |  |      
|                                               |  | Quarter                                   |         | Quarter |  | Quarter |         | Quarter |  | Total
|                                               |  |                                           |         |         |  |         |         |         |  |      
|                                               |  | (In thousands, except earnings per share)
|2004                                           |  |                                           |         |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|OPERATING REVENUES  NET                       |  | $                                         | 102,735 |         |  | $       | 113,053 |         |  | $     | 109,730 |  |  | $ | 118,137 |  |  | $ | 443,655 | 
|NET INCOME                                     |  | $                                         | 8,055   |         |  | $       | 11,796  |         |  | $     | 10,600  |  |  | $ | 13,663  |  |  | $ | 44,114  | 
|BASIC EARNINGS PER SHARE OF STOCK (Note 15):   |  | $                                         | 0.37    |         |  | $       | 0.55    |         |  | $     | 0.49    |  |  | $ | 0.63    |  |  | $ | 2.04    | 
|                                               |  |                                           |         |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|DILUTED EARNINGS PER SHARE OF STOCK (Note 15): |  | $                                         | 0.37    |         |  | $       | 0.54    |         |  | $     | 0.49    |  |  | $ | 0.62    |  |  | $ | 2.02    | 
|                                               |  |                                           |         |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 

|                                               |  |                                           |        |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|---------------------------------------------- |  | ----------------------------------------- | ------ | ------- |  | ------- | ------- | ------- |  | ----- | ------- |  |  | - | ------- |  |  | - | ------- | 
|                                               |  | First                                     |        | Second  |  | Third   |         | Fourth  |  |      
|                                               |  | Quarter                                   |        | Quarter |  | Quarter |         | Quarter |  | Total
|                                               |  |                                           |        |         |  |         |         |         |  |      
|                                               |  | (In thousands, except earnings per share)
|2003                                           |  |                                           |        |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|OPERATING REVENUES  NET                       |  | $                                         | 98,232 |         |  | $       | 107,112 |         |  | $     | 103,252 |  |  | $ | 114,068 |  |  | $ | 422,664 | 
|NET INCOME                                     |  | $                                         | 7,056  |         |  | $       | 11,428  |         |  | $     | 9,380   |  |  | $ | 14,313  |  |  | $ | 42,177  | 
|BASIC EARNINGS PER SHARE OF STOCK (Note 15):   |  | $                                         | 0.33   |         |  | $       | 0.53    |         |  | $     | 0.44    |  |  | $ | 0.67    |  |  | $ | 1.97    | 
|                                               |  |                                           |        |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 
|DILUTED EARNINGS PER SHARE OF STOCK (Note 15): |  | $                                         | 0.33   |         |  | $       | 0.53    |         |  | $     | 0.43    |  |  | $ | 0.66    |  |  | $ | 1.95    | 
|                                               |  |                                           |        |         |  |         |         |         |  |       |         |  |  |   |         |  |  |   |         | 





|    |                  
|--- | -----------------
|20. | SUBSEQUENT EVENTS

Lee Merger Agreement








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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)




|    |                              
|--- | -----------------------------
|20. | SUBSEQUENT EVENTS  Continued





Veeck Veeck Veeck Veeck Fern Veeck Fern In re Pulitzer Inc. Shareholders
Litigation, Civil Action No. 1063-N.












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##### Table of Contents



PULITZER INC. AND SUBSIDIARIES


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


YEARS ENDED DECEMBER 31, 2004, 2003 AND
2002  (Continued)


20. SUBSEQUENT EVENTS  Continued










|    |                                                     
|--- | ----------------------------------------------------
|21. | RESTATEMENT OF CONSOLIDATED STATEMENTS OF CASH FLOWS



|                             |                                      |               |   |             |   |  |   |          |  
|---------------------------- | ------------------------------------ | ------------- | - | ----------- | - |  | - | -------- | -
|                             |                                      | As Previously |   |            
|                             |                                      | Reported      |   | As Restated
|                             |                                      |               |   |            
|Year ended December 31, 2003 |                                      |               |   |             |   |  |   |         
|                             | Cash flows from operating activities |               | $ | 80,676      |   |  | $ | 36,714   |  
|                             | Cash flows from investing activities |               | $ | (126,724    | ) |  | $ | (82,762  | )
|                            
|Year ended December 31, 2002 |                                      |               |   |             |   |  |   |         
|                             | Cash flow from operating activities  |               | $ | 98,222      |   |  | $ | 70,125   |  
|                             | Cash flow from investing activities  |               | $ | (200,396    | ) |  | $ | (172,299 | )



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM








Deloitte & Touche
LLP






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SCHEDULE II


PULITZER INC. AND SUBSIDIARIES







Schedule II  Valuation & Qualifying
Accounts & Reserves


For The Years Ended December 31, 2004, 2003 &
2002


|                             |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |        |  
|---------------------------- | ------------------------------- | -------------- | - | ---------- | - | ---------- | - | ---------- |  | --------- | - | --- | --- |  | - | ------ | --- |  | - | ------ | -
|                             |                                 | Balance At     |   | Charged to |   | Charged to |   |            |  | Balance  
|                             |                                 | Beginning      |   | Costs &    |   | Other      |   |            |  | At End   
|Description                  |                                 | Of Period      |   | Expenses   |   | Accounts   |   | Deductions |  | Of Period
|                             |                                 |                |   |            |   |            |   |            |  |          
|                             |                                 | (In thousands)
|Year Ended December 31, 2004 |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|Valuation Accounts:          |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Allowance for Doubtful Accounts |                | $ | 3,843      |   |            | $ | 2,130      |  |           | $ | 493 | (a) |  | $ | 2,756  | (b) |  | $ | 3,710  |  
|Reserves:                    |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Accrued (Prepaid) Medical Plan  |                |   | (545       | ) |            |   | 16,773     |  |           |   |     |     |  |   | 13,087 | (c) |  |   | 3,141  |  
|                             | Workers Compensation            |                |   | 932        |   |            |   | 3,049      |  |           |   |     |     |  |   | 2,417  |     |  |   | 1,564  |  
|Year Ended December 31, 2003 |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|Valuation Accounts:          |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Allowance for Doubtful Accounts |                | $ | 4,004      |   |            | $ | 3,150      |  |           | $ | 555 | (a) |  | $ | 3,866  | (b) |  | $ | 3,843  |  
|Reserves:                    |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Accrued (Prepaid) Medical Plan  |                |   | (3,030     | ) |            |   | 16,015     |  |           |   |     |     |  |   | 13,530 | (c) |  |   | (545   | )
|                             | Workers Compensation            |                |   | 2,254      |   |            |   | 1,736      |  |           |   |     |     |  |   | 3,058  |     |  |   | 932    |  
|Year Ended December 31, 2002 |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|Valuation Accounts:          |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Allowance for Doubtful Accounts |                | $ | 6,024      |   |            | $ | 5,206      |  |           | $ | 506 | (a) |  | $ | 7,732  | (b) |  | $ | 4,004  |  
|Reserves:                    |                                 |                |   |            |   |            |   |            |  |           |   |     |     |  |   |        |     |  |   |       
|                             | Accrued (Prepaid) Medical Plan  |                |   | (207       | ) |            |   | 5,738      |  |           |   |     |     |  |   | 8,561  | (c) |  |   | (3,030 | )
|                             | Workers Compensation            |                |   | 2,592      |   |            |   | 2,518      |  |           |   |     |     |  |   | 2,856  |     |  |   | 2,254  |  






|    |                                      
|--- | -------------------------------------
|(a) | Accounts reinstated, cash recoveries.
|   
|(b) | Accounts written off                 
|   
|(c) | Amount represents:                   

|                      |  |      |        |      |  |      |        |  |  |   |       | 
|--------------------- |  | ---- | ------ | ---- |  | ---- | ------ |  |  | - | ----- | 
|                      |  | 2004 |        | 2003 |  | 2002
|                      |  |      |        |      |  |     
|Claims paid           |  | $    | 14,466 |      |  | $    | 11,439 |  |  | $ | 6,291 | 
|Prepaid contributions |  |      | (2,821 | )    |  |      | 789    |  |  |   | 1,460 | 
|Service fees          |  |      | 1,442  |      |  |      | 1,302  |  |  |   | 810   | 
|                      |  |      |        |      |  |      |        |  |  |   |       | 
|                      |  | $    | 13,087 |      |  | $    | 13,530 |  |  | $ | 8,561 | 
|                      |  |      |        |      |  |      |        |  |  |   |       | 

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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
    AND FINANCIAL DISCLOSURE








|         |                        
|-------- | -----------------------
|ITEM 9A. | CONTROLS AND PROCEDURES

Disclosure Controls and Procedures




Internal Control Reporting


a) Managements Report on Internal Control










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|         |                                    
|-------- | -----------------------------------
|ITEM 9A. | CONTROLS AND PROCEDURES  Continued

Internal
Control  Integrated Framework


b) Report of Independent Registered Public Accounting
Firm














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|         |                                    
|-------- | -----------------------------------
|ITEM 9A. | CONTROLS AND PROCEDURES  Continued







Deloitte & Touche
llp






c) Changes in Internal Control






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ITEM 9A. CONTROLS AND
PROCEDURES  Continued















ITEM 9B. OTHER INFORMATION




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PART III







|         |                                                   
|-------- | --------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT




MANAGEMENT




|                            |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|--------------------------- |  | --------------------------------------------------------------- |  | ---------------- | ---- | -------- |  | ------- | ---- |  |  |  | ---- | 
|                            |  |                                                                 |  | Date of          |      |          |  | Term   
|                            |  |                                                                 |  | Employment by    |      | Director |  | Expires
|Name, Age and Class         |  | Positions with Pulitzer Inc.                                    |  | Pulitzer Inc.(1) |      | Since(1) |  | In     
|                            |  |                                                                 |  |                  |      |          |  |        
|Class A Directors           |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|Emily Rauh Pulitzer; 71(2)  |  | Director                                                        |  |                  |     |          |  |         | 1999 |  |  |  | 2005 | 
|James M. Snowden, Jr.; 61   |  | Director                                                        |  |                  |     |          |  |         | 1999 |  |  |  | 2005 | 
|Robert C. Woodworth; 57     |  | Director; President and Chief Executive Officer                 |  |                  | 1999 |          |  |         | 1999 |  |  |  | 2005 | 
|Class B Directors           |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|William Bush; 58            |  | Director                                                        |  |                  |     |          |  |         | 1999 |  |  |  | 2006 | 
|Michael E. Pulitzer; 75(2)  |  | Director; Chairman of the Board                                 |  |                  |     |          |  |         | 1998 |  |  |  | 2006 | 
|Ronald H. Ridgway; 66       |  | Director                                                        |  |                  |     |          |  |         | 1998 |  |  |  | 2006 | 
|Class C Directors           |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|Susan T. Congalton; 58      |  | Director                                                        |  |                  |     |          |  |         | 2001 |  |  |  | 2007 | 
|Ken J. Elkins; 67           |  | Director                                                        |  |                  |     |          |  |         | 1999 |  |  |  | 2007 | 
|Alice B. Hayes; 67          |  | Director                                                        |  |                  |     |          |  |         | 1999 |  |  |  | 2007 | 
|Richard W. Moore; 55(3)     |  | Director                                                        |  |                  |     |          |  |         | 2003 |  |  |  | 2007 | 
|Director Emeritus           |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|David E. Moore; 81(2)(3)(4) |  | Director Emeritus                                               |  |                  |     |          |  |         |     |  |  |  | 2004 | 
|Other Executive Officers    |  |                                                                 |  |                  |      |          |  |         |      |  |  |  |      | 
|Terrance C.Z. Egger; 47     |  | Senior Vice President                                           |  |                  | 1999 |          |  |         |     |  |  |  |     | 
|Matthew G. Kraner; 41       |  | Vice President                                                  |  |                  | 1999 |          |  |         |     |  |  |  |     | 
|James V. Maloney; 55        |  | Secretary                                                       |  |                  | 1999 |          |  |         |     |  |  |  |     | 
|Alan G. Silverglat; 58      |  | Senior Vice President  Finance and Chief Financial
    Officer |  |                  | 2001 |          |  |         |     |  |  |  |     | 
|Jon H. Holt; 41             |  | Treasurer and Assistant Secretary                               |  |                  | 1999 |          |  |         |     |  |  |  |     | 
|Jan Pallares; 42            |  | Corporate Controller                                            |  |                  | 2002 |          |  |         |     |  |  |  |     | 






|    |                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Any service as a director of or employment by Old Pulitzer is
    discussed individually in the biographies that follow this table.                                         
|   
|(2) | Michael E. Pulitzer and David E. Moore are cousins, and Michael
    E. Pulitzer is the brother-in-law of Emily Rauh Pulitzer.                                               
|   
|(3) | Richard W. Moore is the son of David E. Moore.                                                                                                                              
|   
|(4) | David E. Moore served as a director of Pulitzer Inc. between
    1999 and the 2003 Annual Meeting of Stockholders, following
    which he was appointed a director emeritus.





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|         |                                                                   
|-------- | ------------------------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANT  Continued









The Kansas City Star The Fort-Worth Star Telegram The Belleville
News-Democrat.






83



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|         |                                                                   
|-------- | ------------------------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANT  Continued





Harrison
Independent Connecticut
Business Journal Westchester Business
Journal, International Business


St. Louis Post-Dispatch Post-Dispatch Post-Dispatch


Post-Dispatch The Kansas City Star.








Sun
News.


Section 16(a) Beneficial Ownership Reporting
Compliance




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|         |                                                                   
|-------- | ------------------------------------------------------------------
|ITEM 10. | DIRECTORS AND EXECUTIVE OFFICERS OF THE
    REGISTRANT  Continued

Information Regarding the Boards Audit Committee






Additional Information




www.pulitzerinc.com.







|         |                       
|-------- | ----------------------
|ITEM 11. | EXECUTIVE COMPENSATION

Compensation of Directors








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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued







Compensation Committee Report On Executive Compensation






| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | a) Base salaries should be maintained at competitive levels.                                                                        
|
| | b) Executives should have a meaningful portion of their
    annual compensation at risk, tied to the performance of the
    Company.
|
| | c) Executives should have long-term incentives which align
    their interests with those of the stockholders.                      
|
| | d) Executive compensation should be subject to periodic
    review by the Compensation Committee.                                   



Executive Compensation Components




Base Salary


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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued



Annual Incentive Compensation


Long-Term Incentive Compensation


Deduction of Compensation




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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued

Compensation of the Chief Executive Officer




Lee Merger-Related Compensation Arrangements


Long-Term
Incentive Compensation


|                               |                     |             |           |                  |  |           |           |         |  |  |           |         | 
|------------------------------ | ------------------- | ----------- | --------- | ---------------- |  | --------- | --------- | ------- |  |  | --------- | ------- | 
|                               |                     | Transaction |           | Bonus in Lieu of |  | Retention
|                               |                     | Incentive   |           | 2004 Options     |  | Incentive
|                               |                     |             |           |                  |  |          
|Named Executives:              |                     |             |           |                  |  |           |           |         |  |  |           |        
|                               | Mark G. Contreras   |             | $         | 0                |  |           | $         | 0       |  |  | $         | 0       | 
|                               | Terrance C.Z. Egger |             |           | 75,000           |  |           |           | 195,000 |  |  |           | 675,000 | 
|                               | Matthew G. Kraner   |             |           | 75,000           |  |           |           | 138,000 |  |  |           | 456,750 | 
|                               | Alan G. Silverglat  |             |           | 75,000           |  |           |           | 192,000 |  |  |           | 666,972 | 
|                               | Robert C. Woodworth |             |           | 0                |  |           |           | 420,450 |  |  |           | 388,273 | 
|All other employees as a group |                     |             | 2,100,693 | *                |  |           | 2,751,000 |         |  |  | 3,632,724 |        

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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued






|  |                                                                                                                                                                                                   
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Up to approximately $1.6 million of this amount is
    allocated to a bonus pool. The Compensation Committee, acting in
    its discretion, is authorized to make bonus awards from this
    pool.



|                                             |  |                    |           |                             |  |   |           | 
|-------------------------------------------- |  | ------------------ | --------- | --------------------------- |  | - | --------- | 
|                                             |  | Options Cashout    |           | Cashout Value of           
|                                             |  | Value of           |           | Non-Vested Restricted Stock
|Named Executives:                            |  | Non-Vested Options |           | and Stock Units            
|                                             |  |                    |           |                            
|Robert C. Woodworth                          |  | $                  | 1,931,704 |                             |  | $ | 3,942,400 | 
|Alan G. Silverglat                           |  |                    | 614,570   |                             |  |   | 0         | 
|Terrance C.Z. Egger                          |  |                    | 470,405   |                             |  |   | 380,736   | 
|Mark G. Contreras                            |  |                    | NA        |                             |  |   | NA        | 
|Matthew G. Kraner                            |  |                    | 318,423   |                             |  |   | 0         | 
|All other employees and directors as a group |  |                    | 4,237,394 |                             |  |   | 150,144   | 





| |                           
| | --------------------------
| | Compensation Committee    
| | of the Board of Directors:
|
| | WILLIAM BUSH, Chairman    
| | MICHAEL E. PULITZER       
| | KEN J. ELKINS             
| | JAMES M. SNOWDEN, JR.     
| | ROBERT C. WOODWORTH       

Compensation Committee Interlocks and Insider
Participation




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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued







Certain Relationships and Related Transactions






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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued

Executive Compensation




Summary Compensation Table


|                            |                             |                     |      |              |  |              |         |          |  |                        |         |              |  |     |         |        |     |  |   |           |     |  |   |         |  |  |   |   |  |  |       |         | 
|--------------------------- | --------------------------- | ------------------- | ---- | ------------ |  | ------------ | ------- | -------- |  | ---------------------- | ------- | ------------ |  | --- | ------- | ------ | --- |  | - | --------- | --- |  | - | ------- |  |  | - | - |  |  | ----- | ------- | 
|                            |                             |                     |      |              |  |              |         |          |  | Long-Term Compensation
|                            |                             |                     |      |              |  |              |         |          |  |                       
|                            |                             | Annual Compensation |      | Awards       |  | Payouts      |         |         
|                            |                             |                     |      |              |  |              |         |         
|                            |                             |                     |      | Other Annual |  | Restricted   |         | Options/ |  | LTIP                   |         | All Other   
|                            |                             |                     |      | Compensation |  | Stock Awards |         | SARs     |  | Payouts                |         | Compensation
|Name and Principal Position |                             | Year                |      | Salary($)    |  | Bonus($)     |         | ($)      |  | ($)                    |         | (#)(5)       |  | ($) |         | ($)(6)
|                            |                             |                     |      |              |  |              |         |          |  |                        |         |              |  |     |         |       
|Robert C. Woodworth         |                             |                     | 2004 |              |  |              | 750,286 |          |  |                        | 781,125 |              |  |     | 106,157 | (1)    |     |  | 0 |           |     |  | 0 |         |  |  | 0 |   |  |  | 4,745 |        
|                            | President and Chief         |                     |      | 2003         |  |              |         | 738,288  |  |                        |         | 653,181      |  |     |         | 76,546 | (1) |  |   | 2,071,417 | (2) |  |   | 125,667 |  |  |   | 0 |  |  |       | 4,730   | 
|                            | Executive Officer           |                     |      | 2002         |  |              |         | 699,930  |  |                        |         | 774,873      |  |     |         | 54,656 | (1) |  |   | 880,044   | (2) |  |   | 62,330  |  |  |   | 0 |  |  |       | 5,401   | 
|Alan G. Silverglat          |                             |                     | 2004 |              |  |              | 429,612 |          |  |                        | 224,396 |              |  |     | 0       |        |     |  | 0 |           |     |  | 0 |         |  |  | 0 |   |  |  | 6,599 |        
|                            | Senior Vice                 |                     |      | 2003         |  |              |         | 420,923  |  |                        |         | 186,894      |  |     |         | 0      |     |  |   | 0         |     |  |   | 40,000  |  |  |   | 0 |  |  |       | 6,680   | 
|                            | President  Finance         |                     |      | 2002         |  |              |         | 393,404  |  |                        |         | 201,578      |  |     |         | 0      |     |  |   | 0         |     |  |   | 20,000  |  |  |   | 0 |  |  |       | 109,488 | 
|                            | and Chief Financial Officer |                     |      |              |  |              |         |          |  |                        |         |              |  |     |         |        |     |  |   |           |     |  |   |         |  |  |   |   |  |  |       |         | 
|Terrance C. Z. Egger        |                             |                     | 2004 |              |  |              | 432,438 |          |  |                        | 254,600 |              |  |     | 12,116  | (1)    |     |  | 0 |           |     |  | 0 |         |  |  | 0 |   |  |  | 4,700 |        
|                            | Senior Vice                 |                     |      | 2003         |  |              |         | 411,923  |  |                        |         | 194,174      |  |     |         | 11,442 | (1) |  |   | 0         |     |  |   | 43,333  |  |  |   | 0 |  |  |       | 4,598   | 
|                            | President                   |                     |      | 2002         |  |              |         | 371,760  |  |                        |         | 256,337      |  |     |         | 8,435  | (1) |  |   | 250,036   | (3) |  |   | 21,667  |  |  |   | 0 |  |  |       | 4,600   | 
|Mark G. Contreras           |                             |                     | 2004 |              |  |              | 325,992 |          |  |                        | 186,048 |              |  |     | 2,999   | (1)    |     |  | 0 |           |     |  | 0 |         |  |  | 0 |   |  |  | 1,993 |        
|                            | Senior Vice                 |                     |      | 2003         |  |              |         | 294,079  |  |                        |         | 141,391      |  |     |         | 0      |     |  |   | 200,062   | (4) |  |   | 33,333  |  |  |   | 0 |  |  |       | 4,538   | 
|                            | President                   |                     |      | 2002         |  |              |         | 259,901  |  |                        |         | 141,065      |  |     |         | 0      |     |  |   | 0         |     |  |   | 16,667  |  |  |   | 0 |  |  |       | 4,599   | 
|Matthew G. Kraner           |                             |                     | 2004 |              |  |              | 293,513 |          |  |                        | 144,160 |              |  |     | 0       |        |     |  | 0 |           |     |  | 0 |         |  |  | 0 |   |  |  | 4,700 |        
|                            | Vice President              |                     |      | 2003         |  |              |         | 276,462  |  |                        |         | 130,884      |  |     |         | 0      |     |  |   | 0         |     |  |   | 29,333  |  |  |   | 0 |  |  |       | 4,650   | 
|                            |                             |                     |      | 2002         |  |              |         | 254,519  |  |                        |         | 170,746      |  |     |         | 0      |     |  |   | 0         |     |  |   | 14,667  |  |  |   | 0 |  |  |       | 4,650   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Reflects (i) amounts paid to Mr. Woodworth as dividend
    equivalents with respect to his restricted stock unit awards;
    (ii) $7,595, $7,159 and $6,340 in benefits in 2004, 2003
    and 2002, respectively, related to participation in the 1999
    Pulitzer Inc. Employee Stock Purchase Plan by Mr. Egger,
    (iii) $4,521, $4,283 and $2,095 paid to Mr. Egger in
    2004, 2003 and 2002, respectively, as dividends with respect to
    his restricted stock awards, and (iv) $2,999 paid to
    Mr. Contreras in 2004 as dividend equivalents with respect
    to his restricted stock award.                                                                                                                                                                                                                                                                                                                                                             
|   
|(2) | Reflects the grant of 10,267 restricted stock units valued at an
    average market price of $42.58 per share on
    February 21, 2003 and 30,800 restricted stock units valued
    at an average market price of $53.06 per share on
    December 10, 2003, 20,533 restricted stock units valued at
    an average price of $42.86 per share on December 11,
    2002, and 28,000 shares of restricted stock units valued at
    the average market price of $48.22 per share on
    December 6, 2001. Pulitzer Inc. will pay Mr. Woodworth
    dividend equivalents related to his restricted stock units
    according to the terms of Pulitzer Inc.s normal dividend
    declarations. As of December 26, 2004, Mr. Woodworth
    held a total of 139,680 restricted stock units with an aggregate
    market value of approximately $8,932,536 based on the closing
    market price of Pulitzer Inc.s Common Stock of
    $63.95 per share on December 23, 2004.
|   
|(3) | Reflects the grant of 5,949 shares of restricted stock to
    Mr. Egger valued at an average market price of
    $42.03 per share on July 24, 2002, the date of the
    award. Pulitzer Inc. will pay Mr. Egger dividends on his
    restricted shares according to the terms of Pulitzer Inc.s
    normal dividend declarations. As of December 26, 2004,
    Mr. Egger held a total of 5,949 shares of restricted
    stock with an aggregate value of approximately $380,439 based on
    the closing market price of Pulitzer Inc.s Common Stock of
    $63.95 per share on December 23, 2004.                                                                                                                                                                                                                                                                                                                                                                    

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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Reflects the grant of 3,946 shares of restricted stock to
    Mr. Contreras valued at an average market price of
    $50.69 per share on October 29, 2003, the date of the
    award. Pulitzer Inc. paid Mr. Contreras dividends on his
    restricted shares according to the terms of Pulitzer Inc.s
    normal dividend declarations. As of December 26, 2004,
    Mr. Contreras held a total of 3,946 shares of
    restricted stock with an aggregate value of approximately
    $252,347 based on the closing market price of Pulitzer
    Inc.s Common Stock of $63.95 per share on
    December 23, 2004. These shares were forfeited by
    Mr. Contreras upon his resignation from the Company
    effective January 3, 2005. See Employment Contracts
    and Change in Control Arrangements.
|   
|(5) | No options were granted in 2004 to the Named Executive Officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(6) | Includes (i) imputed income related to life insurance and
    pension benefits of $112, $88 and $810 in the case of
    Mr. Woodworth for 2004, 2003 and 2002, respectively,
    (ii) contributions to the Pulitzer Retirement Savings Plan,
    in the amount of $4,633, $4,559, $4,700, $1,993, $4,700,
    respectively, in the cases of Messrs. Woodworth,
    Silverglat, Egger, Contreras, and Kraner, (iii) medical
    opt-out payments of $2,040, $2,080 and $2,040 for
    Mr. Silverglat, in 2004, 2003 and 2002, respectively, and
    (iv) moving expenses of $102,979 in the case of
    Mr. Silverglat in 2002.                                                                                                                                                                              



Aggregate Option Exercises in Last Fiscal Year


and December 26, 2004 Option Values


|                                             |  |             |   |              |  |                       |   |                      |  |             |           |               |  |  |         |  |  |  |            |  |  |  |           | 
|-------------------------------------------- |  | ----------- | - | ------------ |  | --------------------- | - | -------------------- |  | ----------- | --------- | ------------- |  |  | ------- |  |  |  | ---------- |  |  |  | --------- | 
|                                             |  |             |   |              |  |                       |   | Value of Unexercised
|                                             |  |             |   |              |  | Number of Unexercised |   | In-the-Money        
|                                             |  | Shares      |   |              |  | Options/SARs (Shares) |   | Options/SARs ($)(1) 
|                                             |  | Acquired    |   | Value        |  |                       |   |                     
|Name                                         |  | on Exercise |   | Realized ($) |  | Exercisable           |   | Unexercisable        |  | Exercisable |           | Unexercisable
|                                             |  |             |   |              |  |                       |   |                      |  |             |           |              
|Robert C. Woodworth(2)                       |  |             | 0 |              |  |                       | 0 |                      |  |             | 462,133   |               |  |  | 125,667 |  |  |  | 9,699,765  |  |  |  | 1,925,417 | 
|Alan G. Silverglat                           |  |             | 0 |              |  |                       | 0 |                      |  |             | 72,500    |               |  |  | 40,000  |  |  |  | 1,199,108  |  |  |  | 612,567   | 
|Terrance C.Z. Egger(2)                       |  |             | 0 |              |  |                       | 0 |                      |  |             | 159,190   |               |  |  | 36,110  |  |  |  | 3,075,682  |  |  |  | 546,286   | 
|Mark G. Contreras                            |  |             | 0 |              |  |                       | 0 |                      |  |             | 111,723   |               |  |  | 27,777  |  |  |  | 2,265,871  |  |  |  | 420,212   | 
|Matthew G. Kraner                            |  |             | 0 |              |  |                       | 0 |                      |  |             | 79,557    |               |  |  | 24,443  |  |  |  | 1,541,866  |  |  |  | 369,793   | 
|All other employees and directors as a group |  |             |  |              |  |                       |  |                      |  |             | 1,039,602 |               |  |  | 307,430 |  |  |  | 19,920,460 |  |  |  | 4,292,829 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Computed based upon the difference between the closing market
    price of the Common Stock of $63.95 per share on
    December 23, 2004, the last stock trading day of the
    Companys 2004 fiscal year, and the exercise price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(2) | This table does not reflect restricted stock units held by
    Mr. Woodworth and shares of restricted stock held by
    Mr. Egger and non-employee directors. Mr. Woodworth
    holds 139,680 restricted stock units (each being equivalent to
    one share of common stock) of which 78,080 units (with a
    Lee Merger transaction value of $4,997,120) are vested and
    61,600 units (with a Lee Merger transaction value of
    $3,942,400) are not vested. Mr. Egger holds
    5,949 shares of restricted stock (with a Lee Merger
    transaction value of $380,736), none of which are currently
    vested. Non-employee directors hold 2,346 shares of
    restricted stock (with a Lee Merger transaction value of
    $150,144), none of which are currently vested. As in the case of
    the Companys stock options, all restricted stock units and
    shares of vested and non-vested restricted stock will be cashed
    out in connection with the Lee Merger transaction, with a per
    share Lee Merger transaction value of $64.00.

92



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued

Defined Benefit Plans


Pulitzer Inc. Pension Plan.




Pension Plan Table


|                    |  |                                   |        |         |  |         |        |         |  |         |        |  |  |   |         |  |  |   |         | 
|------------------- |  | --------------------------------- | ------ | ------- |  | ------- | ------ | ------- |  | ------- | ------ |  |  | - | ------- |  |  | - | ------- | 
|                    |  | Estimated Annual Pension Benefits
|                    |  | For Years of Services Indicated  
|Annual Compensation |  |                                  
|At Retirement       |  | 15 yrs.                           |        | 20 yrs. |  | 25 yrs. |        | 30 yrs. |  | 35 yrs.
|                    |  |                                   |        |         |  |         |        |         |  |        
|$150,000            |  | $                                 | 29,044 |         |  | $       | 34,386 |         |  | $       | 38,309 |  |  | $ | 39,101  |  |  | $ | 39,373  | 
|200,000             |  |                                   | 39,942 |         |  |         | 47,472 |         |  |         | 53,108 |  |  |   | 54,570  |  |  |   | 55,338  | 
|250,000             |  |                                   | 50,841 |         |  |         | 60,557 |         |  |         | 67,906 |  |  |   | 70,038  |  |  |   | 71,302  | 
|300,000             |  |                                   | 59,348 |         |  |         | 73,642 |         |  |         | 82,705 |  |  |   | 85,507  |  |  |   | 87,267  | 
|350,000             |  |                                   | 59,348 |         |  |         | 79,130 |         |  |         | 97,503 |  |  |   | 100,975 |  |  |   | 103,232 | 
|400,000             |  |                                   | 59,348 |         |  |         | 79,130 |         |  |         | 98,913 |  |  |   | 113,446 |  |  |   | 119,197 | 
|450,000             |  |                                   | 59,348 |         |  |         | 79,130 |         |  |         | 98,913 |  |  |   | 113,446 |  |  |   | 127,978 | 
|500,000             |  |                                   | 59,348 |         |  |         | 79,130 |         |  |         | 98,913 |  |  |   | 113,446 |  |  |   | 127,978 | 

Supplemental Executive Benefit Pension Plan.


93



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued





Supplemental Plan Table


|                    |  |                                   |         |         |  |         |         |         |  |         |         |  |  |   |         |  |  |   |         | 
|------------------- |  | --------------------------------- | ------- | ------- |  | ------- | ------- | ------- |  | ------- | ------- |  |  | - | ------- |  |  | - | ------- | 
|                    |  | Estimated Annual Pension Benefits
|                    |  | For Years of Service Indicated   
|Annual Compensation |  |                                  
|At Retirement       |  | 15 yrs.                           |         | 20 yrs. |  | 25 yrs. |         | 30 yrs. |  | 35 yrs.
|                    |  |                                   |         |         |  |         |         |         |  |        
|$150,000            |  | $                                 | 36,000  |         |  | $       | 48,000  |         |  | $       | 60,000  |  |  | $ | 60,000  |  |  | $ | 60,000  | 
|200,000             |  |                                   | 48,000  |         |  |         | 64,000  |         |  |         | 80,000  |  |  |   | 80,000  |  |  |   | 80,000  | 
|250,000             |  |                                   | 60,000  |         |  |         | 80,000  |         |  |         | 100,000 |  |  |   | 100,000 |  |  |   | 100,000 | 
|300,000             |  |                                   | 72,000  |         |  |         | 96,000  |         |  |         | 120,000 |  |  |   | 120,000 |  |  |   | 120,000 | 
|350,000             |  |                                   | 84,000  |         |  |         | 112,000 |         |  |         | 140,000 |  |  |   | 140,000 |  |  |   | 140,000 | 
|400,000             |  |                                   | 96,000  |         |  |         | 128,000 |         |  |         | 160,000 |  |  |   | 160,000 |  |  |   | 160,000 | 
|450,000             |  |                                   | 108,000 |         |  |         | 144,000 |         |  |         | 180,000 |  |  |   | 180,000 |  |  |   | 180,000 | 
|500,000             |  |                                   | 120,000 |         |  |         | 160,000 |         |  |         | 200,000 |  |  |   | 200,000 |  |  |   | 200,000 | 

94



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued



|                                                 |                     |               |           |                               |  |   |         |           | 
|------------------------------------------------ | ------------------- | ------------- | --------- | ----------------------------- |  | - | ------- | --------- | 
|                                                 |                     | Opening       |           |                              
|                                                 |                     | Balance as of |           | Maximum Potential Severance- 
|                                                 |                     | May 1, 2005   |           | Related Additional Credits(1)
|                                                 |                     |               |           |                              
|Named Executives:                                |                     |               |           |                               |  |   |         |          
|                                                 | Mark G. Contreras   |               | $         | 68,531                        |  |   | $       | 0         | 
|                                                 | Terrance C.Z. Egger |               |           | 268,612                       |  |   |         | 83,380    | 
|                                                 | Matthew G. Kraner   |               |           | 54,609                        |  |   |         | 39,449    | 
|                                                 | Alan G. Silverglat  |               |           | 163,620                       |  |   |         | 147,551   | 
|                                                 | Robert C. Woodworth |               |           | 822,227                       |  |   |         | 1,233,236 | 
|Certain Directors:                               |                     |               |           |                               |  |   |         |          
|                                                 | Ken J. Elkins       |               |           | 2,106,617                     |  |   |         | 0         | 
|                                                 | Michael E. Pulitzer |               |           | 6,755,885                     |  |   |         | 0         | 
|                                                 | Ronald H. Ridgway   |               |           | 1,507,046                     |  |   |         | 0         | 
|Other Eligible Employees and Retirees as a Group |                     | $             | 6,016,691 |                               |  | $ | 418,350 |          






|    |                                                                                                                                      
|--- | -------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes interest credited from January 1, 2005 at an
    annual rate of 5.75 percent until the termination date (if
    applicable).

Employment Contracts and Change in Control Arrangements








95



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued





Pulitzer Inc. Executive Transition Plan.


Supplemental Executive Benefit Pension
Plan




96



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued



STOCK PERFORMANCE GRAPH









97



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|         |                                   
|-------- | ----------------------------------
|ITEM 11. | EXECUTIVE COMPENSATION  Continued








|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT AND RELATED STOCKHOLDER MATTERS

EQUITY COMPENSATION PLANS




Equity Compensation Plan Information


|                                                           |       |                   |           |                   |  |                      |       |       |  |  |           |           | 
|---------------------------------------------------------- | ----- | ----------------- | --------- | ----------------- |  | -------------------- | ----- | ----- |  |  | --------- | --------- | 
|                                                           |       |                   |           |                   |  | Number of           
|                                                           |       |                   |           |                   |  | securities          
|                                                           |       | Number of         |           |                   |  | remaining available 
|                                                           |       | securities to be  |           |                   |  | for future issuance 
|                                                           |       | issued upon       |           | Weighted-average  |  | under equity        
|                                                           |       | exercise of       |           | exercise price of |  | compensation        
|                                                           |       | outstanding       |           | outstanding       |  | plans (excluding    
|                                                           |       | options, warrants |           | options, warrants |  | securities reflected
|Plan category                                              |       | and rights(1)     |           | and rights(1)     |  | in column (a))(2)   
|                                                           |       |                   |           |                   |  |                     
|                                                           |       | (a)               |           | (b)               |  | (c)                 
|Equity compensation plans approved by security holders     |       |                   | 2,486,132 |                   |  | $                    | 45.50 |       |  |  | 1,383,410 |          
|Equity compensation plans not approved by security holders |       |                   | 0         |                   |  |                      | 0     |       |  |  | 0         |          
|                                                           | Total |                   |           | 2,486,132         |  |                      | $     | 45.50 |  |  |           | 1,383,410 | 






|    |                                                                                                                                                                           
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes: (i) 139,680 restricted stock units with a
    purchase price of $0.01 per share, and (ii) shares
    issuable under the Companys employee stock purchase plans.
|   
|(2) | Under the Lee Merger Agreement, Pulitzer Inc. may not issue any
    new rights or options to acquire any shares of Common Stock
    except with the consent of Lee.       

98



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PRINCIPAL STOCKHOLDERS




|                                                                                                                |  |              |           |              |  |                      |      |         |  |              |            |  |  |  |      |   |  |  |      |  
|--------------------------------------------------------------------------------------------------------------- |  | ------------ | --------- | ------------ |  | -------------------- | ---- | ------- |  | ------------ | ---------- |  |  |  | ---- | - |  |  | ---- | -
|                                                                                                                |  |              |           | Class B      |  | Percent of Aggregate
|                                                                                                                |  | Common Stock |           | Common Stock |  | Voting Power of     
|                                                                                                                |  |              |           |              |  | Common Stock and    
|                                                                                                                |  | Number of    |           |              |  | Number of            |      |         |  | Class B     
|Directors, Officers and 5% Stockholders                                                                        |  | Shares       |           | Percent      |  | Shares               |      | Percent |  | Common Stock
|                                                                                                                |  |              |           |              |  |                      |      |         |  |             
|Trustees of Pulitzer Inc. Voting Trust(1)                                                                       |  |              |          |              |  |                      |     |         |  |              | 10,948,995 |  |  |  | 95.5 | % |  |  | 87.5 | %
|Emily Rauh Pulitzer(2)(3)                                                                                       |  |              | 192,596   |              |  |                      | 1.9  | %       |  |              | 6,284,843  |  |  |  | 54.8 | % |  |  | 50.4 | %
|Michael E. Pulitzer(2)(4)(5)                                                                                    |  |              | 264,800   |              |  |                      | 2.6  | %       |  |              | 1,462,496  |  |  |  | 12.8 | % |  |  | 11.9 | %
|David E. Moore(2)(6)                                                                                            |  |              | 1,877     |              |  |                      | *    |         |  |              | 2,851,073  |  |  |  | 24.9 | % |  |  | 22.8 | %
|Richard W. Moore(7)                                                                                             |  |              |          |              |  |                      | *    |         |  |              | 217,003    |  |  |  | 1.9  | % |  |  | 1.7  | %
|Ken J. Elkins(8)                                                                                                |  |              | 21,423    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|James M. Snowden, Jr.(8)                                                                                        |  |              | 22,057    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|William Bush(8)                                                                                                 |  |              | 18,391    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Susan T. Congalton(9)                                                                                           |  |              | 13,391    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Alice B. Hayes(8)                                                                                               |  |              | 18,391    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Robert C. Woodworth(2)(10)                                                                                      |  |              | 462,133   |              |  |                      | 4.5  | %       |  |              |           |  |  |  |     |   |  |  | **   |  
|Ronald H. Ridgway(11)                                                                                           |  |              | 28,802    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Alan G. Silverglat(2)(12)                                                                                       |  |              | 74,292    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Mark G. Contreras(13)                                                                                           |  |              |          |              |  |                      |     |         |  |              |           |  |  |  |     |   |  |  |     |  
|Terrance C.Z. Egger(14)                                                                                         |  |              | 178,544   |              |  |                      | 1.7  | %       |  |              |           |  |  |  |     |   |  |  | **   |  
|Matthew G. Kraner(15)                                                                                           |  |              | 82,001    |              |  |                      | *    |         |  |              |           |  |  |  |     |   |  |  | **   |  
|Castlerigg Master Investments LTD (16)                                                                          |  |              | 589,400   |              |  |                      | 5.7  | %       |  |              |           |  |  |  |     |   |  |  | **   |  
|c/o Citco Fund Services (Curacao) N.V.
    Kaya Flamboyan 9
    P.O. Box 812
    Curacao, Netherlands, Antilles |  |              |           |              |  |                      |      |         |  |              |            |  |  |  |      |   |  |  |      |  
|Gabelli Asset Management, Inc.(17)                                                                              |  |              | 3,720,652 |              |  |                      | 35.8 | %       |  |              |           |  |  |  |     |   |  |  | 3.0  | %
|One Corporate Center
    Rye, New York
    10580-1434                                                           |  |              |           |              |  |                      |      |         |  |              |            |  |  |  |      |   |  |  |      |  
|Wachovia Corporation(18)                                                                                        |  |              | 569,449   |              |  |                      | 5.5  | %       |  |              |           |  |  |  |     |   |  |  | **   |  
|One Wachovia Center
    Charlotte, North Carolina 28288                                                         |  |              |           |              |  |                      |      |         |  |              |            |  |  |  |      |   |  |  |      |  
|All directors and officers as a group (18 persons)(2)(19)                                                       |  |              | 1,490,735 |              |  |                      | 14.4 | %       |  |              | 10,815,415 |  |  |  | 94.3 | % |  |  | 87.7 | %






|  |                                                                                                                                                                         
|- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Unless otherwise indicated, the address of each person or entity
    named in the table is c/o Pulitzer Inc., 900 North Tucker
    Boulevard, St. Louis, Missouri 63101.



|  |                                                         
|- | --------------------------------------------------------
|* | Represents less than 1% of the outstanding Common Stock.



|   |                                                                                                    
|-- | ---------------------------------------------------------------------------------------------------
|** | Represents less than 1% of the aggregate voting power of Common
    Stock and Class B Common Stock.



| |     |                                                                                                                                                                                                                    
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | The Trustees of the Pulitzer Inc. Voting Trust are David E.
    Moore, Michael E. Pulitzer, Emily Rauh Pulitzer, Alan G.
    Silverglat, Ellen Soeteber and Robert C. Woodworth. The Pulitzer
    Inc. Voting Trust

99



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| |     |                                                                                                                                                                                                                                                                                                                           
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | and each of the individual Trustees may be reached at 900 North
    Tucker Boulevard, St. Louis, Missouri 63101.                                                                                                                                                                                                          
|
| | (2) | Excludes shares that would otherwise be deemed to be
    beneficially owned solely because of service as a trustee of the
    Pulitzer Inc. Voting Trust.                                                                                                                                                                 
|
| | (3) | Represents 6,477,439 shares held in trusts. These shares
    are beneficially owned by Mrs. Pulitzer.                                                                                                                                                                                                                     
|
| | (4) | Includes 1,438,716 shares held in trust and
    22,780 shares held in a private foundation. These shares
    are beneficially owned by Mr. Pulitzer. Also includes
    1,000 shares held in trust for the benefit of the wife of
    Michael E. Pulitzer. Mr. Pulitzer disclaims beneficial
    ownership of these shares.
|
| | (5) | Includes 264,800 shares of Common Stock which may be
    acquired upon the exercise of options under the Pulitzer Inc.
    2003 Incentive Plan which are exercisable within 60 days of
    the date hereof.                                                                                                               
|
| | (6) | Includes 50,998 shares of Class B Common Stock and
    182 shares of Common Stock beneficially owned by the wife
    of David E. Moore. Mr. Moore disclaims beneficial ownership
    of these shares.                                                                                                                     
|
| | (7) | Includes 37,003 shares beneficially owned by the wife and a
    daughter of Richard W. Moore. Mr. Moore disclaims
    beneficial ownership of these shares.                                                                                                                                                               
|
| | (8) | Includes 18,000 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof and
    391 shares of restricted stock under the 2003 Incentive
    Plan, subject to a one-year vesting condition.                                
|
| | (9) | Includes 12,000 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof and
    391 shares of restricted stock under the 2003 Incentive
    Plan, subject to a one-year vesting condition.                                



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Represents shares which may be acquired upon the exercise of
    options under the 2003 Incentive Plan which are exercisable
    within 60 days of the date hereof. Does not include
    78,080 shares covered by vested restricted stock units
    which are not distributable within 60 days of the date
    hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    
|(11) | Includes 22,070 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof and
    391 shares of restricted stock under the 2003 Incentive
    Plan, subject to a one-year vesting condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|    
|(12) | Includes 72,500 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    
|(13) | Mr. Contreras resigned from the Company effective
    January 3, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    
|(14) | Includes 162,801 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof and
    5,949 shares of restricted stock under the Pulitzer Inc.
    2003 Incentive Plan, subject to a three-year vesting condition.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|(15) | Represents shares which may be acquired upon the exercise of
    options under the 2003 Incentive Plan which are exercisable
    within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    
|(16) | This figure is based on information set forth in
    Schedule 13G, dated March 9, 2005, filed by Castlerigg
    Master Investments LTD and certain entities affiliated with
    Castlerigg Master Investments LTD with the Securities and
    Exchange Commission. The Schedule 13G states that each of
    (i) Castlerigg Master Investments LTD, (ii) Sandell
    Asset Management, (iii) Castlerigg International Limited,
    (iv) Castlerigg International Holdings Limited, and
    (v) Thomas E. Sandell has the shared power to vote, or
    direct the vote of, and the shared power to dispose, or direct
    the disposition of, 589,400 of such shares.                                                                                                                                                                                                                                         
|    
|(17) | This figure is based on information set forth in Amendment
    No. 31 to the Schedule 13D, dated January 27,
    2005, filed by Gabelli Asset Management Inc. and certain
    entities affiliated with Gabelli Asset Management Inc. with the
    Securities and Exchange Commission. The Schedule 13D states
    that (i) Gabelli Funds, LLC has the sole power to vote, or
    direct the vote of, and the sole power to dispose or direct the
    disposition of, 471,000 of such shares, (ii) GAMCO
    Investors, Inc. has the sole power to vote, or direct the vote
    of, 2,982,164 of such shares and the sole power to dispose, or
    direct the disposition of, 3,246,652 of such shares, and
    (iii) MJG Associates, Inc. has the sole power to vote, or
    direct the vote of, 3,000 of such shares and the sole power to
    dispose, or direct the disposition of, 3,000 of such shares.

100



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##### Table of Contents





|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(18) | This figure is based on information set forth in Amendment
    No. 1 to the Schedule 13G, dated January 26,
    2005, filed by Wachovia Corporation with the Securities and
    Exchange Commission. The Schedule 13G states that Wachovia
    Corporation has the sole power to vote, or direct the vote of,
    568,849 of such shares, has the shared power to vote, or direct
    the vote of 600 of such shares and the sole power to dispose, or
    direct the disposition of 557,349 of such shares.
|    
|(19) | Includes 1,259,356 shares which may be acquired upon the
    exercise of options under the 2003 Incentive Plan which are
    exercisable within 60 days of the date hereof.                                                                                                                                                                                                                                                                                                                                 

Voting Trust









|         |                                               
|-------- | ----------------------------------------------
|ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS








|         |                                       
|-------- | --------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES

Independent Registered Public Accounting Firms Fees




|                      |       |      |         |         |  |   |         |         | 
|--------------------- | ----- | ---- | ------- | ------- |  | - | ------- | ------- | 
|                      |       | 2004 |         | 2003   
|                      |       |      |         |        
|Audit Fees(a)         |       | $    | 629,000 |         |  | $ | 419,175 |        
|Audit-Related Fees(b) |       |      | 27,980  |         |  |   | 224,750 |        
|Tax Fees(c)           |       |      | 102,570 |         |  |   | 46,715  |        
|All Other Fees        |       |      | 0       |         |  |   | 0       |        
|                      |       |      |         |         |  |   |         |        
|                      | Total |      | $       | 759,550 |  |   | $       | 690,640 | 
|                      |       |      |         |         |  |   |         |        





| |   |                                                        
| | - | -------------------------------------------------------
| |  | Audit of the Companys annual financial statements     
|
| |  | Sarbanes-Oxley Act, Section 404 attestation services   
|
| |  | Reviews of the Companys quarterly financial statements
|
| |  | Consents and other services related to SEC matters     





| |   |                                                  
| | - | -------------------------------------------------
| |  | Sarbanes-Oxley Act, Section 404 advisory services
|
| |  | Financial accounting and reporting consultations 





| |   |                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Tax compliance services (i.e. services rendered based upon facts
    already in existence or transactions that have already occurred
    to document, compute, and obtain government approval for amounts
    to be included in tax filings) with respect to:





101



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##### Table of Contents





|         |                                                       
|-------- | ------------------------------------------------------
|ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES 
    Continued



| |   |                                                               
| | - | --------------------------------------------------------------
| |  | There were no fees in 2004 or 2003 for tax planning and advice

|                                                                                                                       |  |      |       |      |  |  |       | 
|---------------------------------------------------------------------------------------------------------------------- |  | ---- | ----- | ---- |  |  | ----- | 
|                                                                                                                       |  | 2004 |       | 2003
|                                                                                                                       |  |      |       |     
|Ratio of Tax Planning and Advice Fees and All Other Fees to
    Audit Fees, Audit-Related Fees and Tax Compliance Fees |  |      | 0:1.0 |      |  |  | 0:1.0 | 



Pre-Approval Policy









PART IV







|         |                                           
|-------- | ------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES







| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | The following financial statements are set forth in
    Part II, Item 8 of this Annual Report.





| |                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Report of Independent Registered Public Accounting Firm.                                                                                            
|
| | (ii) Consolidated Statements of Income for each of the
    Three Years in the Period Ended December 31, 2004.                                           
|
| | (iii) Consolidated Statements of Financial Position at
    December 31, 2004, and December 31, 2003.                                                    
|
| | (iv) Consolidated Statements of Stockholders Equity
    and Comprehensive Income for each of the Three Years in the
    Period Ended December 31, 2004.
|
| | (v) Consolidated Statements of Cash Flows for each of the
    Three Years in the Period Ended December 31, 2004.                                        
|
| | (vi) Notes to Consolidated Financial Statements for each of
    the Three Years in the Period Ended December 31, 2004.                                  





| |                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Supplementary unaudited data with respect to quarterly
    results of operations is set forth in Part II, Item 8
    of this Annual Report.
|
| | (ii) Report of Independent Registered Public Accounting
    Firm.                                                                              

102



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##### Table of Contents



|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES  Continued



| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) Financial Statement Schedule II 
    Valuation & Qualifying Accounts & Reserves as
    set forth in Part II, Item 8 of this Annual Report.







|        |    |     |  |                                                                                                                                                                                                                                                                                                                                                        
|------- | -- | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |    
|No.     |    |    
|        |    |    
|        | 10 | .51 |  | Letter Agreement between the Company and Mark G. Contreras, a
    then Senior Vice President of Pulitzer Inc., dated as of
    December 10, 2004.                                                                                                                                                                                                      
|        | 10 | .53 |  | Incentive Opportunities Term Sheet for Terrance C.Z. Egger.                                                                                                                                                                                                                                                                                            
|        | 10 | .54 |  | Incentive Opportunities Term Sheet for Jon H. Holt.                                                                                                                                                                                                                                                                                                    
|        | 10 | .55 |  | Incentive Opportunities Term Sheet for Matthew G. Kraner.                                                                                                                                                                                                                                                                                              
|        | 10 | .56 |  | Incentive Opportunities Term Sheet for James V. Maloney.                                                                                                                                                                                                                                                                                               
|        | 10 | .57 |  | Incentive Opportunities Term Sheet for Jan P. Pallares.                                                                                                                                                                                                                                                                                                
|        | 10 | .58 |  | Incentive Opportunities Term Sheet for Alan G. Silverglat.                                                                                                                                                                                                                                                                                             
|        | 10 | .59 |  | Incentive Opportunities Term Sheet for Robert C. Woodworth.                                                                                                                                                                                                                                                                                            
|        | 10 | .60 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Terrance C.Z. Egger, dated as of
    January 1, 2002.                                                                                                                                                                                                               
|        | 10 | .61 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Jon H. Holt, dated as of January 1, 2002.                                                                                                                                                                                                                           
|        | 10 | .62 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Matthew G. Kraner, dated as of January 1,
    2002.                                                                                                                                                                                                                 
|        | 10 | .63 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and James V. Maloney, dated as of January 1,
    2002.                                                                                                                                                                                                                  
|        | 10 | .64 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Jan P. Pallares, dated as of January 1,
    2003.                                                                                                                                                                                                                   
|        | 10 | .65 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Alan G. Silverglat, dated as of
    January 1, 2002.                                                                                                                                                                                                                
|        | 10 | .66 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Robert C. Woodworth, dated as of
    January 1, 2002.                                                                                                                                                                                                               
|        | 21 |     |  | Subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                                        
|        | 22 |     |  | Consent of Independent Registered Public Accounting Firm.                                                                                                                                                                                                                                                                                              
|        | 23 |     |  | Power of Attorney.                                                                                                                                                                                                                                                                                                                                     
|        | 31 | .1  |  | Certification by Robert C. Woodworth, President and Chief
    Executive Officer of Pulitzer Inc., pursuant to Exchange Act
    Rule 13a-14(a), as adopted pursuant to Section 302 of
    the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
    Inc.s Annual Report on Form 10-K for the year ended
    December 26, 2004.                   
|        | 31 | .2  |  | Certification by Alan G. Silverglat, Senior Vice
    President-Finance and Chief Financial Officer of Pulitzer Inc.,
    pursuant to Exchange Act Rule 13a-14(a), as adopted
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
    in connection with Pulitzer Inc.s Annual Report on
    Form 10-K for the year ended December 26, 2004.

103



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##### Table of Contents



|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES  Continued

|        |    |    |  |                                                                                                                                                                                                                                                                                                                                                   
|------- | -- | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |   
|No.     |    |   
|        |    |   
|        | 32 | .1 |  | Certification by Robert C. Woodworth, President and Chief
    Executive Officer of Pulitzer Inc., pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
    Inc.s Annual Report on Form 10-K for the year ended
    December 26, 2004.                   
|        | 32 | .2 |  | Certification by Alan G. Silverglat, Senior Vice
    President-Finance and Chief Financial Officer of Pulitzer Inc.,
    pursuant to 18 U.S.C. Section 1350, as adopted
    pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
    in connection with Pulitzer Inc.s Annual Report on
    Form 10-K for the year ended December 26, 2004.



|            |    |      |  |   |  |                                                                                                                                                                                                                                                                    
|----------- | -- | ---- |  | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    |      |  |  
|            |    |      |  |  
|            | 3  | .1   |  |  |  | Restated Certificate of Incorporation of Pulitzer Inc.(viii)                                                                                                                                                                                                       
|            | 3  | .2   |  |  |  | Amended and Restated By-laws of Pulitzer Inc.(xix)                                                                                                                                                                                                                 
|            | 4  | .1   |  |  |  | Form of Pulitzer Inc. Common Stock Certificate.(viii)                                                                                                                                                                                                              
|            | 9  | .1   |  |  |  | Pulitzer Inc. Voting Trust Agreement, dated as of
    March 18, 1999, between the holders of voting trust
    certificates and Michael E. Pulitzer, Emily Rauh Pulitzer,
    Ronald H. Ridgway, Cole C. Campbell, David E. Moore and Robert
    C. Woodworth.(ix)  
|            | 10 | .1   |  |  |  | Agreement, dated March 1, 1961, effective January 1,
    1961, between The Pulitzer Publishing Company, a Missouri
    corporation, and the Globe-Democrat Publishing Company, as
    amended on September 4, 1975, April 12, 1979 and
    December 22, 1983.(viii)
|            | 10 | .2.1 |  |  |  | Amended and Restated Joint Operating Agreement, dated
    December 22, 1988, between Star Publishing Company and
    Citizen Publishing Company.(viii)                                                                                                             
|            | 10 | .2.2 |  |  |  | Partnership Agreement, dated December 22, 1988, between
    Star Publishing Company and Citizen Publishing Company.(viii)                                                                                                                                          
|            | 10 | .3.1 |  |  |  | Amendment, dated September 16, 1997, to Pulitzer Retirement
    Savings Plan.(v)                                                                                                                                                                                   
|            | 10 | .3.2 |  |  |  | Amendment, dated January 28, 1997, to Pulitzer Retirement
    Savings Plan.(iv)                                                                                                                                                                                    
|            | 10 | .3.3 |  |  |  | Amendment, dated October 30, 1996, to Pulitzer Retirement
    Savings Plan.(iv)                                                                                                                                                                                    
|            | 10 | .3.4 |  |  |  | Amendment, dated July 31, 1996, to Pulitzer Retirement
    Savings Plan.(iv)                                                                                                                                                                                       
|            | 10 | .3.5 |  |  |  | Amendment, dated October 25, 1995, to Pulitzer Retirement
    Savings Plan.(iv)                                                                                                                                                                                    
|            | 10 | .3.6 |  |  |  | Amendment, dated October 25, 1995, to Pulitzer Retirement
    Savings Plan.(ii)                                                                                                                                                                                    
|            | 10 | .3.7 |  |  |  | Amendment, dated January 24, 1995, to Pulitzer Retirement
    Savings Plan.(i)                                                                                                                                                                                     
|            | 10 | .3.8 |  |  |  | Amended and Restated Pulitzer Retirement Savings Plan.(i)                                                                                                                                                                                                          
|            | 10 | .4.1 |  |  |  | Amendment, dated October 25, 1995, to Pulitzer Publishing
    Company Pension Plan.(iv)                                                                                                                                                                            
|            | 10 | .4.2 |  |  |  | Amended and Restated Pulitzer Publishing Company Pension Plan.(i)                                                                                                                                                                                                  
|            | 10 | .5.1 |  |  |  | Amendment, dated October 29, 1997, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                           
|            | 10 | .5.2 |  |  |  | Amendment, dated June 23, 1992, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                              
|            | 10 | .5.3 |  |  |  | Amendment, dated January 1, 1992, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                            
|            | 10 | .5.4 |  |  |  | Amendment, dated January 18, 1990, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                           
|            | 10 | .5.5 |  |  |  | Amendment, dated October 26, 1989, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                           
|            | 10 | .5.6 |  |  |  | Amendment, dated November 6, 1987, to Pulitzer Publishing
    Company Supplemental Executive Benefit Pension Plan.(viii)                                                                                                                                           

104



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|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES  Continued

|            |    |      |  |   |  |                                                                                                                                                                                                                                                   
|----------- | -- | ---- |  | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    |      |  |  
|            |    |      |  |  
|            | 10 | .5.7 |  |  |  | Pulitzer Publishing Company Supplemental Executive Benefit
    Pension Plan dated March 18, 1986.(viii)                                                                                                                                           
|            | 10 | .5.8 |  |  |  | Amendment, dated January 29, 2003, to the Pulitzer Inc.
    Supplemental Executive Benefit Pension Plan.(xviii)                                                                                                                                   
|            | 10 | .6   |  |  |  | Employment Agreement, dated October 1, 1986, between the
    Pulitzer Publishing Company and Joseph Pulitzer, Jr.(viii)                                                                                                                           
|            | 10 | .7   |  |  |  | Stock Purchase Agreement by and among Pulitzer Publishing
    Company and Mr. Edward W. Scripps, Mrs. Betty Knight
    Scripps, and the Edward W. Scripps and Betty Knight Scripps
    Charitable Remainder Unitrust dated as of May 4, 1996.(iii)
|            | 10 | .8   |  |  |  | Split Dollar Life Insurance Agreement, dated December 27,
    1996, between Pulitzer Publishing Company and Richard A. Palmer,
    Trustee of the Michael E. Pulitzer 1996 Life Insurance Trust.(iv)                                              
|            | 10 | .9   |  |  |  | Split Dollar Life Insurance Agreement, dated December 31,
    1996, between Pulitzer Publishing Company and Rebecca H.
    Penniman and Nicholas G. Penniman V, Trustees of the
    Nicholas G. Penniman IV Irrevocable 1996 Trust.(iv)           
|            | 10 | .10  |  |  |  | Amended and Restated Agreement and Plan of Merger by and among
    Pulitzer Publishing Company, Pulitzer Inc. and Hearst-Argyle
    Television, Inc., dated as of May 25, 1998.(vi)                                                               
|            | 10 | .11  |  |  |  | Contribution and Assumption Agreements, dated as of
    March 18, 1999 by and between Pulitzer Publishing Company
    and Pulitzer Inc.(ix)                                                                                                       
|            | 10 | .12  |  |  |  | Letter Agreement, dated May 25, 1998, by and among Pulitzer
    Publishing Company, Pulitzer Inc. and Hearst-Argyle Television,
    Inc.(viii)                                                                                                    
|            | 10 | .13  |  |  |  | Letter Agreement, dated March 18, 1999, between Pulitzer
    Inc. and Emily Rauh Pulitzer.(ix)                                                                                                                                                    
|            | 10 | .14  |  |  |  | Letter Agreement, dated March 18, 1999, between Pulitzer
    Inc. and David E. Moore.(ix)                                                                                                                                                         
|            | 10 | .15  |  |  |  | Pulitzer Inc. Registration Rights Agreement.(ix)                                                                                                                                                                                                  
|            | 10 | .16  |  |  |  | Pulitzer Inc. 1999 Key Employees Restricted Stock Purchase
    Plan.(viii)                                                                                                                                                                       
|            | 10 | .17  |  |  |  | Pulitzer Inc. 1999 Stock Option Plan.(viii)                                                                                                                                                                                                       
|            | 10 | .18  |  |  |  | Pulitzer Inc. 1999 Employee Stock Purchase Plan.(viii)                                                                                                                                                                                            
|            | 10 | .19  |  |  |  | Employment Agreement, dated December 18, 1998, between
    Pulitzer Inc. and Robert C. Woodworth.(vii)                                                                                                                                            
|            | 10 | .20  |  |  |  | Employment Agreement, dated August 26, 1998 between
    Pulitzer Inc. and Terrance C.Z. Egger.(viii)                                                                                                                                              
|            | 10 | .21  |  |  |  | Employment and Consulting Agreement, dated as of June 1,
    1999, between Pulitzer Inc. and Michael E. Pulitzer.(x)                                                                                                                              
|            | 10 | .22  |  |  |  | Employment Agreement, dated as of June 1, 1999, between
    Pulitzer Inc. and Ronald H. Ridgway(x)                                                                                                                                                
|            | 10 | .23  |  |  |  | Split Dollar Life Insurance Agreement, dated as of June 16,
    1999, by and among Pulitzer Inc. and James E. Elkins and Diana
    K. Walsh.(x)                                                                                                   
|            | 10 | .24  |  |  |  | Split Dollar Life Insurance Agreement, dated as of June 24,
    1999, by and among Pulitzer Inc. and Tansy K. Ridgway and Brian
    H. Ridgway.(x)                                                                                                
|            | 10 | .25  |  |  |  | Asset Purchase Agreement, as of October 4, 1999, by and
    between The Chronicle Publishing Company and Pulitzer Inc.(x)                                                                                                                         
|            | 10 | .26  |  |  |  | Joint Venture Agreement, dated as of May 1, 2000, among
    Pulitzer Inc., Pulitzer Technologies, Inc., The Herald Company,
    Inc. and St. Louis Post-Dispatch LLC.(xi)                                                                         
|            | 10 | .27  |  |  |  | Operating Agreement of St. Louis Post-Dispatch LLC, dated
    as of May 1, 2000.(xi)                                                                                                                                                              
|            | 10 | .28  |  |  |  | Indemnity Agreement, dated as of May 1, 2000, between The
    Herald Company, Inc. and Pulitzer Inc.(xi)                                                                                                                                          
|            | 10 | .29  |  |  |  | St. Louis Post-Dispatch LLC Note Agreement, dated as
    of May 1, 2000.(xii)                                                                                                                                                                     

105



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##### Table of Contents



|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES  Continued

|            |    |       |  |   |  |                                                                                                                                                                                                                                                
|----------- | -- | ----- |  | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |    |       |  |  
|            |    |       |  |  
|            | 10 | .30   |  |  |  | Pulitzer Inc. Guaranty Agreement, dated as of May 1,
    2000.(xii)                                                                                                                                                                            
|            | 10 | .31   |  |  |  | License Agreement, dated as of May 1, 2000, by and between
    Pulitzer Inc. and St. Louis Post-Dispatch LLC.(xii)                                                                                                                             
|            | 10 | .32   |  |  |  | Non-Confidentiality Agreement, dated as of May 1, 2000.(xii)                                                                                                                                                                                   
|            | 10 | .33   |  |  |  | Asset Sale and Purchase Agreement among Journal Register
    Company, Journal Register East, Inc., Suburban Newspapers of
    Greater St. Louis, LLC, Journal Company, Inc. and Pulitzer
    Inc. and SLSJ LLC dated as of June 24, 2000.(xiii)
|            | 10 | .34   |  |  |  | Pulitzer Inc. Deferred Compensation Plan.(xiv)                                                                                                                                                                                                 
|            | 10 | .35   |  |  |  | Pulitzer Inc. 2000 Stock Purchase Plan, as Amended and
    Restated.(xiv)                                                                                                                                                                      
|            | 10 | .36   |  |  |  | Robert C. Woodworth Restricted Stock Unit Award dated
    December 11, 2000.(xiv)                                                                                                                                                              
|            | 10 | .37   |  |  |  | Amendment No. 1 dated as of June 1, 2001, to Operating
    Agreement of St. Louis Post-Dispatch LLC, dated May 1,
    2000.(vx)                                                                                                                
|            | 10 | .38   |  |  |  | Pulitzer Inc. Executive Transition Plan.(xvi)                                                                                                                                                                                                  
|            | 10 | .39   |  |  |  | Pulitzer Inc. Annual Incentive Compensation Plan.(xvi)                                                                                                                                                                                         
|            | 10 | .39.1 |  |  |  | Amendment 2002-1 of Pulitzer Inc. Annual Incentive Plan(xviii)                                                                                                                                                                                 
|            | 10 | .40   |  |  |  | Robert C. Woodworth Restricted Stock Unit Award dated as of
    December 6, 2001(xvii)                                                                                                                                                         
|            | 10 | .41   |  |  |  | Split Dollar Life Insurance Agreement Dated as of
    January 24, 2002, by and among Pulitzer, Inc. and Robert C
    Woodworth (xvii)                                                                                                          
|            | 10 | .42   |  |  |  | Robert C. Woodworth Restricted Stock Unit Award dated as of
    December 11, 2002.(xviii)                                                                                                                                                      
|            | 10 | .43   |  |  |  | Robert C. Woodworth Restricted Stock Unit Award dated as of
    February 21, 2003.(xviii)                                                                                                                                                      
|            | 10 | .44   |  |  |  | Form of Stock Option Award for Robert C. Woodworth and Alan G.
    Silverglat dated as of February 21, 2003.(xviii)                                                                                                                            
|            | 10 | .45   |  |  |  | Robert C. Woodworth Restricted Stock Unit Award dated as of
    December 10, 2003.(xix)                                                                                                                                                        
|            | 10 | .46   |  |  |  | Form of Restricted Stock Unit Award for Robert C. Woodworth
    dated as of December 10, 2003.(xix)                                                                                                                                            
|            | 10 | .47   |  |  |  | Robert C. Woodworth Stock Option Award dated as of
    December 10, 2003.(xix)                                                                                                                                                                 
|            | 10 | .48   |  |  |  | Form of Stock Option Award for Robert C. Woodworth dated as of
    December 10, 2003.(xix)                                                                                                                                                     
|            | 10 | .49   |  |  |  | Stock Option Award for Alan G. Silverglat dated as of
    December 10, 2003.(xix)                                                                                                                                                              
|            | 10 | .50   |  |  |  | Form of Stock Option Award for Alan G. Silverglat dated as of
    December 10, 2003.(xix)                                                                                                                                                      
|            | 10 | .52   |  |  |  | Agreement and Plan of Merger, dated as of January 29, 2005,
    among Pulitzer Inc., Lee Enterprises, Incorporated and LP
    Acquisition Corp.(xx)                                                                                            






|      |  |                                                                                                                                                
|----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------
|(i)   |  | Incorporated by reference to Pulitzer Publishing Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 1994.     
|     
|(ii)  |  | Incorporated by reference to Pulitzer Publishing Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 1995.     
|     
|(iii) |  | Incorporated by reference to Pulitzer Publishing Companys
    Quarterly Report on Form 10-Q for the quarterly period
    ended March 31, 1996.
|     
|(iv)  |  | Incorporated by reference to Pulitzer Publishing Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 1996.     
|     
|(v)   |  | Incorporated by reference to Pulitzer Publishing Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 1997.     
|     
|(vi)  |  | Incorporated by reference to Pulitzer Publishing Companys
    Current Report on Form 8-K filed on January 22, 1999.                           
|     
|(vii) |  | Incorporated by reference to Pulitzer Publishing Companys
    Registration Statement (File No. 333-69701) on
    Form S-3.                    

106



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##### Table of Contents



|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT
    SCHEDULES  Continued



|        |  |                                                                                                                                           
|------- |  | ------------------------------------------------------------------------------------------------------------------------------------------
|(viii)  |  | Incorporated by reference to Pulitzer Inc.s Report on
    Form 10 (File No. 1-14541), as amended.                                        
|       
|(ix)    |  | Incorporated by reference to Pulitzer Publishing Companys
    Annual Report on Form 10-K for the fiscal year ended
    December 31, 1998.
|       
|(x)     |  | Incorporated by reference to Pulitzer Inc.s Annual Report
    on Form 10-K for the fiscal year ended December 31,
    1999.              
|       
|(xi)    |  | Incorporated by reference to Pulitzer Inc.s Current Report
    on Form 8-K dated May 1, 2000 and filed on May 2,
    2000.               
|       
|(xii)   |  | Incorporated by reference to Pulitzer Inc.s Quarterly
    Report on Form 10-Q for the quarterly period ended
    March 26, 2000.         
|       
|(xiii)  |  | Incorporated by reference to Pulitzer Inc.s Quarterly
    Report on Form 10-Q for the quarterly period ended
    June 25, 2000.          
|       
|(xiv)   |  | Incorporated by reference to Pulitzer Inc.s Annual Report
    on Form 10-K for the fiscal year ended December 31,
    2000.              
|       
|(xv)    |  | Incorporated by reference to Pulitzer Inc.s Quarterly
    Report on Form 10-Q for the quarterly period ended
    July 1, 2001.           
|       
|(xvi)   |  | Incorporated by reference to Pulitzer Inc.s Quarterly
    Report on Form 10-Q for the quarterly period ended
    September 30, 2001.     
|       
|(xvii)  |  | Incorporated by reference to Pulitzer Inc.s Annual Report
    on Form 10-K for the fiscal year ended December 30,
    2001.              
|       
|(xviii) |  | Incorporated by reference to Pulitzer Inc.s Annual Report
    on Form 10-K for the fiscal year ended December 29,
    2002.              
|       
|(xix)   |  | Incorporated by reference to Pulitzer Inc.s Annual Report
    on Form 10-K for the fiscal year ended December 28,
    2003.              
|       
|(xx)    |  | Incorporated by reference to Pulitzer Inc.s Current Report
    on Form 8-K dated January 29, 2005 and filed on
    February 3, 2005.     

107



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##### Table of Contents






SIGNATURES






| |              
| | -------------
| | Pulitzer Inc.



| |     |                        
| | --- | -----------------------
| | By: | /s/ Robert C. Woodworth

| |                                      
| | -------------------------------------
| |                                      
| | Robert C. Woodworth,                 
| | President and Chief Executive Officer



| |                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Pursuant to the requirements of the Securities Exchange Act of
    1934, this Report has been signed below by the following persons
    on behalf of the Registrant in the capacities indicated on the
    dates indicated.

|                                                          |  |                                                                                       |  |               
|--------------------------------------------------------- |  | ------------------------------------------------------------------------------------- |  | --------------
|Signature                                                 |  | Title                                                                                 |  | Date          
|                                                          |  |                                                                                       |  |               
|/s/ Robert C. Woodworth(Robert
    C. Woodworth)          |  | Director; President and
    Chief Executive Officer
    (Principal Executive Officer) |  | March 16, 2005
|/s/ Alan G. Silverglat(Alan
    G. Silverglat)            |  | Senior Vice President  Finance (Principal Financial
    and Accounting Officer)      |  | March 16, 2005
|                                                         
|/s/ William Bush*(William
    Bush)                       |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Susan T. Congalton*(Susan
    T. Congalton)           |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Ken J. Elkins*(Ken
    J. Elkins)                     |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Alice B. Hayes*(Alice
    B. Hayes)                   |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Richard W. Moore*(Richard
    W. Moore)               |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Emily Rauh
    Pulitzer*(Emily
    Rauh Pulitzer)     |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ Michael E.
    Pulitzer*(Michael
    E. Pulitzer)     |  | Director; Chairman                                                                    |  | March 16, 2005
|                                                         
|/s/ Ronald H. Ridgway*(Ronald
    H. Ridgway)             |  | Director                                                                              |  | March 16, 2005
|                                                         
|/s/ James M.
    Snowden, Jr.*(James
    M. Snowden, Jr.) |  | Director                                                                              |  | March 16, 2005



| |     |                       
| | --- | ----------------------
| | By: | /s/ Alan G. Silverglat

| |                    
| | -------------------
| |                    
| | Alan G. Silverglat*
| | attorney-in-fact   

108



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##### Table of Contents



PULITZER INC.


Report on Form 10-K for the Fiscal Year Ended


December 26, 2004







EXHIBIT INDEX


| |    |     |  |                                                                                                                                                                                                                                                                                                                                                       
| | -- | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .51 |  | Letter Agreement between Pulitzer Inc. and Mark G. Contreras, a
    then Senior Vice President of Pulitzer Inc., dated as of
    December 10, 2004                                                                                                                                                                                                    
| | 10 | .53 |  | Incentive Opportunities Term Sheet for Terrance C.Z. Egger                                                                                                                                                                                                                                                                                            
| | 10 | .54 |  | Incentive Opportunities Term Sheet for Jon H. Holt                                                                                                                                                                                                                                                                                                    
| | 10 | .55 |  | Incentive Opportunities Term Sheet for Matthew G. Kraner                                                                                                                                                                                                                                                                                              
| | 10 | .56 |  | Incentive Opportunities Term Sheet for James V. Maloney                                                                                                                                                                                                                                                                                               
| | 10 | .57 |  | Incentive Opportunities Term Sheet for Jan P. Pallares                                                                                                                                                                                                                                                                                                
| | 10 | .58 |  | Incentive Opportunities Term Sheet for Alan G. Silverglat                                                                                                                                                                                                                                                                                             
| | 10 | .59 |  | Incentive Opportunities Term Sheet for Robert C. Woodworth                                                                                                                                                                                                                                                                                            
| | 10 | .60 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Terrance C.Z. Egger, dated as of
    January 1, 2002                                                                                                                                                                                                               
| | 10 | .61 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Jon H. Holt, dated as of January 1, 2002                                                                                                                                                                                                                           
| | 10 | .62 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Matthew G. Kraner, dated as of January 1,
    2002                                                                                                                                                                                                                 
| | 10 | .63 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and James V. Maloney, dated as of January 1,
    2002                                                                                                                                                                                                                  
| | 10 | .64 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Jan P. Pallares, dated as of January 1,
    2003                                                                                                                                                                                                                   
| | 10 | .65 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Alan G. Silverglat, dated as of
    January 1, 2002                                                                                                                                                                                                                
| | 10 | .66 |  | Pulitzer Inc. Executive Transition Agreement, by and between
    Pulitzer Inc. and Robert C. Woodworth, dated as of
    January 1, 2002                                                                                                                                                                                                               
| | 21 |     |  | Subsidiaries of the Registrant                                                                                                                                                                                                                                                                                                                        
| | 22 |     |  | Consent of Independent Registered Public Accounting Firm                                                                                                                                                                                                                                                                                              
| | 23 |     |  | Power of Attorney                                                                                                                                                                                                                                                                                                                                     
| | 31 | .1  |  | Certification by Robert C. Woodworth, President and Chief
    Executive Officer of Pulitzer Inc., pursuant to Exchange Act
    Rule 13a-14(a), as adopted pursuant to Section 302 of
    the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
    Inc.s Annual Report on Form 10-K for the year ended
    December 26, 2004                   
| | 31 | .2  |  | Certification by Alan G. Silverglat, Senior Vice
    President-Finance and Chief Financial Officer of Pulitzer Inc.,
    pursuant to Exchange Act Rule 13a-14(a), as adopted
    pursuant to Section 302 of the Sarbanes-Oxley Act of 2002,
    in connection with Pulitzer Inc.s Annual Report on
    Form 10-K for the year ended December 26, 2004
| | 32 | .1  |  | Certification by Robert C. Woodworth, President and Chief
    Executive Officer of Pulitzer Inc., pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
    Inc.s Annual Report on Form 10-K for the year ended
    December 26, 2004                        
| | 32 | .2  |  | Certification by Alan G. Silverglat, Senior Vice
    President-Finance of Pulitzer Inc., pursuant to 18 U.S.C.
    Section 1350, as adopted pursuant to Section 906 of
    the Sarbanes-Oxley Act of 2002, in connection with Pulitzer
    Inc.s Annual Report on Form 10-K for the year ended
    December 26, 2004