Deutsche Bank

2007 Global High Yield Conference

October 3, 2007
 Safe Harbor Act
This presentation may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Forward-looking statements contained herein and elsewhere in this presentation are based on current expectations. Such statements are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The terms “expect,” “anticipate,” “intend,” “believe,” and “project” and similar words
or expressions are intended to identify forward-looking statements. These statements speak only as of the date of this presentation. These forward-looking statements
are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those anticipated and should be viewed with caution.

Potential risks and uncertainties that could adversely affect our ability to obtain these results, and in most instances are beyond our control, include, without limitation,
the following factors: (a) increased consolidation among major retailers, bankruptcy or other events that may adversely affect business operations of major customers and
depress the level of local and national advertising, (b) an economic downturn in some or all of our principal newspaper markets that may lead to decreased circulation or
decreased local or national advertising, (c) a decline in general newspaper readership patterns as a result of competitive alternative media or other factors, (d) increases in
newsprint costs over the level anticipated, (e) labor disputes which may cause revenue declines or increased labor costs, (f) acquisitions of new businesses or dispositions
of existing businesses, (g) costs or difficulties related to the integration of businesses acquired by us may be greater than expected, (h) increases in interest or financing
costs, (i) rapid technological changes and frequent new product introductions prevalent in electronic publishing, including the ongoing evolution of the Internet, and (j)
other unanticipated events and conditions. It is not possible to foresee or identify all such factors. We make no commitment to update any forward-looking statement or
to disclose any facts, events, or circumstances after the date hereof that may affect the accuracy of any forward-looking statements.
 Company Brief
 4th largest newspaper company in US in daily
circulation
 Paid circulation of 2.5 million daily and 3.6 million Sunday
 57 dailies in 12 states
 Geographically diversified markets
 Newspapers, Online and Niche products in each market

 FY 2007 Results
 Revenue: $1.6 Billion – Pro rata basis
 Adjusted EBITDA: $247.1 Million
 Adjusted EBITDA Available to Company: $169 Million
 Geographically Diverse Markets
Anchorage, AK Prairie Mountain Publishing (50%)
KTVA Boulder
(CBS Affiliate) Salt Lak e City, UT Denver, CO Fort Morgan New England
Salt Lak e City Tribune The Denver Post Sterling Bennington, VT
(JOA-58%) (JOA-50%) Lamar Brattleboro, VT
Park City Fitchburg, MA
Lowell, MA
Detroit, MI
North Adams, MA
St. Paul, MN The Detroit News
Pittsfield, MA
Northern California (JOA-nominal interest)
East Bay Newspaper Group
San Jose Bridgeport, CT
Santa Cruz Danbury, CT
Monterey
Eureka
Marin Texas-New Mexico
Chico/Oroville Partnership
Red Bluff York
Ukiah Lebanon
Lakeport Hanover
Vallejo Chambersburg
Woodland
Vacaville
Ontario Charleston, WV
Southern California Daily Mail
San Gabriel Newspaper Group (JOA-editorial only)
Inland Valley Texas-New Mexico
Redlands Partnership
San Bernardino El Paso
San Fernando Valley Las Cruces Graham, TX
Long Beach Farmington Weekly Newspaper Group
Torrance Alamogordo and 4 Radio Stations Daily Newspaper
Carlsbad Television Station
Deming Radio Station
Industry Update
 Industry Environment
 Evolving landscape with continued media fragmentation
 Major retail advertisers and auto dealers facing challenges
 Increased demand for information
 More choices
 Less time to consume
 Industry players are
 More open minded
 More collaborative
 MediaNews is leading change
 Niche publications and online products offer solutions
 Non traditional advertisers
 New revenue streams
 Yahoo! partnership
 Newsprint cost reduction
 Continued web width reduction
 Lighter weight paper migration
 Lower prices
 Advertising Outlook
 Environment continues to be challenging
 National and Retail continue negative trends
 Classified
 Employment – recent softening
 Real Estate – worst comps of the verticals
 Auto – continued softening
 Internet growth remains strong $100.2 Billion projected in 2007 for
Local Advertising Expenditures
Other
2006-2007 Trends 18%

National Retail Classified Online Total Newspapers

Q1 2006 -4.8% -1.0% 4.7% 34.9% 1.8% 39%
Q2 2006 -4.3% 1.0% 0.0% 33.2% 1.1% Yellow Pages
12%
Q3 2006 -8.3% -0.3% -3.0% 23.0% -1.5%
Q4 2006 -3.8% -0.9% -7.1% 35.0% -2.2%
Q1 2007 -2.8% -2.2% -13.2% 22.3% -4.8%
Q2 2007 -7.9% -6.4% -16.4% 19.3% -8.6%

Radio Stations TV Stations

16% 15%

Source: Universal McCann’s Robert J. Coen

 Newsprint
 Steady decline in North American consumption continues
 North America offshore exports tracking lower as well
 Newspapers continuing web width reduction
 August RISI for 30# newsprint $566

In d e x P ricin g 620 860

U.S. Consumption*
600 840
RISI Average U.S. Inventories*

$ 675 1yr $623 580

820

3 yr $609 560
$ 625 800

Consumption

Inventories
5 yr $563 540
780
$ 575 520
760
500
$ 525
RISI 740
480

$ 475 720
460

$ 425 440 700

1/06

4/06

7/06

10/06

1/07

4/07

7/07
3/01 6/02 9/03 12/04 3/06 6/07
Company Update
 Company Results

42.4%

2.4 3.0 4.7 Gross on a

% % % pro rata
basis
Available to
Company

Pro-rata consolidation Pro-rata consolidation

* Pro forma for the McClatchy acquisition revenue declined 1.6% in FY ‘07
 FY 2007 Summary
Transforming acquisition vaults MNG to 4th largest newspaper company
First half on plan with revenue slightly down
Second half revenue challenge
 Most categories softened further
 Collapse in real estate
Market Highlights
 LA and Bay Area hit hard by real estate
 Denver continued to struggle but progress in fiscal Q4
 Salt Lake showed revenue growth for the year
 Texas New Mexico newspapers performed better in fiscal 2007
Reaction to challenging environment
 Operating Task Force
 Streamline operations
 Move toward centralization
 Focus on three segments
 Core
 Niche
 Internet
 Recent Acquisitions
 Santa Cruz
 California Newspapers Partnership purchased for $45.0
million
 MNG funded $25.0 million share with revolver
 Torrance
 Purchased by Hearst for $25.0 million
 MNG manages newspaper
 Hearst will contribute upon consummation of equity
investment
 Danbury
 Hearst purchased for $80.0 million
 Management agreement with Hearst
 MNG operates
 MNG/Hearst split is 73%/27%
 Opportunity for expansion
 Possible restructuring
 Other Items of Interest
 MNG led newspaper consortium forming partnership with Yahoo!
 Extends relationship started with Yahoo! Hotjobs
 Enhances newspapers online revenue
 Search
 Graphic ad servicing
 Leverages leading online sales force
 Completed new Denver press facility Q2
 Strategic Opportunities
 Possible small technology/internet investments
 Possible niche magazine investment
 Successfully settled litigation
 Salt Lake
 Bay Area
 St. Paul
 Strategic Focus
 Cost Management
 OTF
 Printing consolidation
 Shared service center
 Core Newspaper
 Changing culture
 Audience growth – print and online
 Feet on the street
 Internet
 Growth in audience and revenue
 Embrace newspaper next concepts – Marketplace strategy
 Focused on new revenues – not tied to print
 Phase II of Yahoo! partnership
 Niche
 New leadership
 Title expansion
 Investment with Hearst/others
 Front Page upgrade to Local News 1.5
enables more granular geo-targeting

Before 10/1 Now

•
Front Page Local news • Front Page Local
targeted at the DMA News targets at the
level city/town level
•
So, users in San Jose • So, those same San
and San Francisco Jose users now see
saw the same news San Jose Mercury
results across the SF News as their lead
DMA news source
 Update on Hearst Investment
 Background
 Hearst investment of approximately $300 million
 Held up by Department of Justice
 MNG management of newspapers

 Certified substantial compliance with 2nd request

 Thirty day waiting period ends October 18th

 Expect to close investment absent DOJ action, in Q2

Recent Financial
Performance
Reconciliation of Non-GAAP Financial Measures

Please see “Summary Supplemental Non-GAAP Financial Data”

and “Reconciliation of GAAP and Non-GAAP Financial
Information” in our Annual Report on Form 10-K for our fiscal
year ended June 30, 2007 for a reconciliation of non-GAAP
financial measures included in this presentation and the most
directly comparable financial measures calculated and presented
in accordance with GAAP. Our Annual Report on Form 10-K is
available on our website at www.medianewsgroup.com
 Leverage/Coverage Trends
($ in millions)
$1,124.6
$1,000 $877.6 7.0x
$867.9
$900
6.0x
$800 6.3x
5.8x 5.0x
$700 5.4x
$600 4.0x
3.2x
$500
2.6x
$400 3.0x
2.0x
$300 2.0x
$200
1.0x
$100
$0 0.0x
FY2005 FY2006 FY2007

Long-TermDebtand Capital Leases LeverageRatio (1) InterestCoverage

(1) Leverage ratio is calculated based on the Company’s indentures.

GAAP Statement of Operations
Year Ended June 30
(in thousands)
Revenues 2007 2006
Advertising 1,063,681 660,389
Circulation 210,702 130,829
Other 55,457 44,658
Total Revenues 1,329,840 835,876
Income from Unconsolidated JOAs (10,418) (23,298)
Costs and Expenses
Cost of Sales 421,343 260,939
Selling, General and Administative 687,875 417,602
Depreciation and Amortization 68,670 44,067
Interest Expense 82,388 55,564
Other (net) 11,223 1,440
Total Costs and Expenses 1,271,499 779,612
Equity Investment Income (734) 5,898
Gain on Sale of New spaper Properties 66,156 1,129
Minority Interest (59,557) (35,033)
Income Before Taxes 53,788 4,960

Income Tax Expense (18,146) (3,883)

Net Income 35,642 1,077
Partnerships and JOAs
 EBITDA Available to Company Reconciliation
Fiscal Year 2007

GAAP
As
Reported
Revenues $1,329,840
Cost of Sales 421,343
Selling, General, & Administrative 687,875
EBITDA $220,622
 EBITDA Available to Company Reconciliation
Fiscal Year 2007

GAAP Pro-rata
As JOA
Reported Adjustments Pro forma
Revenues $1,329,840 $283,148 $1,612,988
Cost of Sales 421,343 $111,965 533,308
Selling, General, & Administrative 687,875 144,674 832,549
EBITDA $220,622 $26,509 $247,131
 EBITDA Available to Company Reconciliation
Fiscal Year 2007

GAAP Pro-rata
As JOA
Reported Adjustments Pro forma
Revenues $1,329,840 $283,148 $1,612,988
Cost of Sales 421,343 111,965 533,308
Selling, General, & Administrative 687,875 144,674 832,549
EBITDA $220,622 $26,509 $247,131

Minority Interest (80,004)

EBITDA of Praire Mountain Publishing Company 1,891

Adjusted EBITDA Available to Company $169,018
 Historical Financial Data

(1) Leverage ratio is calculated based on the Company’s indentures

(2) Calculations are based on definitions contained in our amended and restated credit agreement
 Summary
 Substantial savings in FY’08 and FY’09 from Bay Area synergies,
Denver plant, OTF initiatives, and lower newsprint consumption and
prices

 Strategic partnerships with major media players – Hearst, Yahoo!,

and other members of the Yahoo! Consortium

 New and expanded Web and niche revenue initiatives

 Steady free cash flow generation

 Management is committed to reducing debt and improving the credit

profile

 Experienced and stable senior management team