International Newspaper Group Chicago, Illinois October 6, 1012

2 Update After Restructuring How we began this Journey Progress and Changes Lessons Learned

4 Auburn, Alabama

5 Bristol and Lynchburg

6 Feasibility Study February 2007 Feasibility Committee  Team members: Operations and Accounting  Scope: Why do this? What is not being provided now? What is the scope of the new division? What assets would be in the new division? How would it be structured? How would accounting occur? Sustainability?

Innovative printing, packaging and distribution solutions for a changing media world.

8 Structure  June 25, 2012 sale of 63 daily and weekly products completed to World Media Enterprises.  B.H. Media  World Media Publishing Solutions Centralized support group Provide customer service to core newspaper production and distribution needs. Have goals and responsibility to grow revenues from third party commercial opportunities. Be responsible for supplying the most cost effective and quality solution for all production and distribution needs within the organization.

9 The Model  Centralization verses decentralization  Prior to 2008 the business model was one of individual business units whose decisions supported the goals of the local or regional organization. The results wee a disjointed manufacturing and distribution effort. Lost opportunities, revenue left on the table.  In 2008 we proposed a single manufacturing and distribution group to offer a focused approach. A consolidated view of core product support and commercial revenue opportunities. a group with P&L responsibility to grow revenue that brings to bear the entire manufacturing and distribution effort of the organization with a common goal. This would enable publishers to grow their businesses without the distraction of printing, packaging and distribution. The group would leverage existing capacity and load balance production. Capitalize on market niche with our new facilities with full color. Quicker response time to outsource production of current products.

10 The Challenge has not Changed This is no surprise; we are still in a rapidly changing media world. The challenge: How do we deliver long term value with traditional assets? The proposal in 2008: Establish a new organization that is solely focused on leveraging fixed assets to provide these long term investments more relevance in a changing world.

11 Execution of the 2008 Plan  Leverage available printing and packaging capacity  Load balance existing printing and packaging  Fully leverage existing equipment and personnel  Add infrastructure as new revenue supports the investment.  Commercial sales team Leverage advertising sales team to direct commercial opportunities Commercial sales and customer service support  Leverage economies of scale where possible to reduce expenses.  Leverage existing distribution network beyond traditional core services

12 OD&S Revenue Projections

13 Where are we to Plan? 133% 96% 38% 12%

14 Where are we to Plan?

15 Keys to Success Focus on the mission: Growth and Retention Structure organization to take advantage of opportunities, must flexible and dynamic Retooling to meet future needs, equipment and talent Rewards for Performance The Goal

16 Measures of Success  Contribution to core newspapers  Commercial budget  Year over Year Comparison  Net Profit verses EBITDA Profit  Customer Turnover  Growth of Customer Base

17 QUESTIONS