1. Newspapers in Decline

2. Declining Readership 54% of Americans read a newspaper during the week 62% read on Sundays 54% of Americans read a newspaper during the week 62% read on Sundays

3. Declining Variety Number of newspapers has been dropping 1% per year for last 2 decades ~1,400 presently Number of newspapers has been dropping 1% per year for last 2 decades ~1,400 presently

4. Who Reads Newspapers 18 - 24: 40% on a weekday 25 - 34:41% 35 - 44:50% 45 - 54:59% 55 - 64:64% 65 +71% 18 - 24: 40% on a weekday 25 - 34:41% 35 - 44:50% 45 - 54:59% 55 - 64:64% 65 +71%

5. Education level highly predictive of readership 52% college grads 24% no high school degree Education level highly predictive of readership 52% college grads 24% no high school degree

6. Declining Circulation in last year Los Angeles Times, (843,432)  3.79% USA Today (2,296,335)  0.59% Wall Street Journal (2,083,660)  1.1% S F Chronicle (391,681)  16.4% NY Times .46% in last year Los Angeles Times, (843,432)  3.79% USA Today (2,296,335)  0.59% Wall Street Journal (2,083,660)  1.1% S F Chronicle (391,681)  16.4% NY Times .46%

7. Profit Margins Year Knight-Ridder Gannet 2000 20.8 29.2 2001 15.9 25 2002 21.3 30 2003 19.2 29.5 2004 19.4 29.1 Earnings Before Interest and Taxes (EBIT) divided by sales

8. Pulitzer Prize Winners 1975-1984 15 9 14 1985-1994 29 8 15 1995-2004 8 3 26 1975-1984 15 9 14 1985-1994 29 8 15 1995-2004 8 3 26 Years Knight- Ridder GannettNY Times

9. Newspaper Profit Margins National average is ~23% Blue chip average ~12% Newspaper Shareholders demand returns in the high 20s National average is ~23% Blue chip average ~12% Newspaper Shareholders demand returns in the high 20s

10. Profit Margins Editorial quality versus pleasing stockholders More than 2,000 newspaper jobs cut in 2007 More than 3,000 cut so far in 2008 Editorial quality versus pleasing stockholders More than 2,000 newspaper jobs cut in 2007 More than 3,000 cut so far in 2008