February 7, 2003

Belo reports results for 2002 Full Year and Fourth Quarter

Dallas, TX --Belo Corp. (NYSE: BLC) today reported fourth quarter earnings per share of $0.40 compared with a per share loss of $0.02 in the fourth quarter of 2001. Analysts' consensus estimate was $0.38. For full-year 2002, reported earnings per share were $1.15 compared with a per share loss of $0.02 for full-year 2001. At the beginning of 2002, Belo adopted FAS 142, which changes accounting for goodwill and intangible assets. Earnings per share for the fourth quarter and full-year of 2001 included $0.22 and $0.53, respectively, for goodwill amortization expense, net of tax, that would not have been required had the new Statement been in effect in 2001.

Adjusting for the adoption of FAS 142, earnings per share for the fourth quarter and full-year 2001 were $0.20 and $0.51, respectively.

2002 and 2001 Earnings Adjustments
Belo's reported earnings per share of $0.40 for the fourth quarter of 2002 include a non-recurring gain of $2.0 million, or $0.01 per share, related to the curtailment of the Company's post-retirement medical benefits program. In addition to this fourth quarter non-recurring gain, full-year 2002 reported earnings per share of $1.15 include a non-recurring gain of $0.02 per share related to Belo's sale of its interest in the Dallas Mavericks and American Airlines Center and a non-recurring credit of $0.02 per share primarily related to the resolution of certain contingencies associated with the Company's sale of KOTV in Tulsa, Oklahoma, the Messenger-Inquirer in Owensboro, Kentucky, the Gleaner in Henderson, Kentucky and The Eagle in Bryan/College Station, Texas at the end of 2000.
Belo's reported per share loss of $0.02 for the fourth quarter of 2001 includes a non-recurring charge of $3.7 million, or $0.02 per share, related to severance costs for a Company-wide reduction-in-force and an early retirement program at The Providence Journal. In addition to the $0.02 charge from the fourth quarter, the full-year 2001 per share loss of $0.02 includes $0.19 in non-recurring charges recorded in the second quarter which resulted from a $29 million write-down of Belo's investments in certain Internet-related companies and a $4.5 million charge related to early retirements and corporate staff reductions.

In the fourth quarter of 2002, if Belo had expensed stock options, earnings per share would have been $0.38 compared to the $0.40 reported today. The fourth quarter of 2001 would have been a loss of $0.05 per share compared to the reported loss of $0.02 per share. The pro forma effect of expensing stock options would have been $0.10 per share for full-year 2002 and $0.11 per share for full-year 2001.

Results of Operations
The following tables summarize Belo's fourth quarter and full-year performance. To take into account the non-recurring items affecting earnings from operations and the effects of FAS 142 on amortization expense referred to above, segment financial highlights are also presented on an adjusted basis:

Three months ended Dec. 31,

Three months ended Dec. 31,

(in thousands)

(in thousands)

Reported

Adjusted

Reported

Adjusted

Reported
Adjusted

2002
Adjustments

2002

2001
Adjustments

2001

% Chg.
% Chg.
Net operating revenues

Television group
$ 187,113
--

$ 187,113

$ 155,777
--

$ 155,777

20.1%
20.1%
Newspaper group
196,826
--

196,826

185,452
--

185,452

6.1%
6.1%
Interactive media
5,622
--

5,622

3,349
--

3,349

67.9%
67.9%
Other
4,499
--

4,499

4,120
--

4,120

9.2%
9.2%
Segment revenues
$ 394,060
--

$ 394,060

$ 348,698
--

$ 348,698

13.0%
13.0%
Operating cash flow

Television group
$ 87,312
--

$ 87,312

$ 63,269
$ 897
(2)
$ 64,166

38.0%
36.1%
Newspaper group
52,213
--

52,213

43,267
2,261
(2)
45,528

20.7%
14.7%
Interactive media
(2,329)
--

(2,329)

(3,194)
467
(2)
(2,727)

27.1%
14.6%
Other
(360)
--

(360)

(620)
19
(2)
(601)

41.9%
40.1%
Segment operating cash flow (4)
$ 136,836
--

$ 136,836

$ 102,722
$ 3,644

$ 106,366

33.2%
28.6%
Corporate expenses
$ (11,403)
$ (1,969)
(1)
$ (13,372)

$ (9,621)
$ 5
(2)
$ (9,616)

-18.5%
-39.1%
Depreciation and amortization
(26,479)
--

$ (26,479)

(46,881)
19,091
(3)
$ (27,790)

43.5%
4.7%
Earnings from operations
$ 98,954
$ (1,969)

$ 96,985

$ 46,220
$ 22,740

$ 68,960

114.1%
40.6%

Twelve months ended Dec. 31,
Twelve months ended Dec. 31,

(in thousands)

(in thousands)

Reported

Adjusted

Reported

Adjusted

Reported
Adjusted

2002
Adjustments

2002

2001
Adjustments

2001

% Chg.
% Chg.
Net operating revenues

Television group
$ 657,525
--

$ 657,525

$ 597,869
--

$ 597,869

10.0%
10.0%
Newspaper group
733,501
--

733,501

737,481
--

737,481

-0.5%
-0.5%
Interactive media
19,472
--

19,472

13,065
--

13,065

49.0%
49.0%
Other
17,266
--

17,266

16,163
--

16,163

6.8%
6.8%
Segment revenues
$ 1,427,764
--

$ 1,427,764

$ 1,364,578
--

$ 1,364,578

4.6%
4.6%
Operating cash flow

Television group
$ 282,229
--

$ 282,229

$ 236,169
$ 897
(2)
$ 237,066

19.5%
19.1%
Newspaper group
194,121
--

194,121

173,298
2,261
(2)
175,559

12.0%
10.6%
Interactive media
(10,738)
--

(10,738)

(16,930)
467
(2)
(16,463)

36.6%
34.8%
Other
(1,248)
--

(1,248)

(1,955)
19
(2)
(1,936)

36.2%
35.5%
Segment operating cash flow (4)
$ 464,364
--

$ 464,364

$ 390,582
$ 3,644

$ 394,226

18.9%
17.8%
Corporate expenses
$ (45,968)
$ (1,969)
(1)
$ (47,937)

$ (43,968)
$ 4,466
(2)
$ (39,502)

-4.5%
-21.4%
Depreciation and amortization
$ (105,332)
--

$ (105,332)

(183,010)
75,128
(3)
$ (107,882)

42.4%
2.4%
Earnings from operations
$ 313,064
$ (1,969)

$ 311,095

$ 163,604
$ 83,238

$ 246,842

91.4%
26.0%

Note: Certain amounts for the prior year have been reclassified to conform to the current year presentation.
(1) Related to the curtailment of the Company's post-retirement medical benefits program.
(2) Related to severance costs for a Company-wide reduction-in-force and early retirements.
(3) Related to the Company's adoption of Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets."
(4) All references herein to segment operating cash flow (excluding Corporate expenses) refer to segment earnings from operations plus
depreciation and amortization. (See "GAAP and Non-GAAP Financial Measures.")

GAAP and Non-GAAP Financial Measures
GAAP refers to generally accepted accounting principles in the United States of America. In this release, financial measures are presented in accordance with GAAP and also on a non-GAAP basis. All references in this release to "adjusted" financial measures and operating cash flow are non-GAAP financial measures. Management believes that the use of non-GAAP financial measures enables management and investors to evaluate, and compare from period to period, the Company's results from ongoing operations in a meaningful and consistent manner. Operating cash flow is used in the broadcasting and publishing industries to analyze and compare companies on the basis of operating performance and liquidity. Operating cash flow should not be used as a measure of financial performance or liquidity under GAAP and should not be considered in isolation or as an alternative to net income, cash flows generated by operating, investing or financing activities or financial statement data presented in the consolidated financial statements. Because operating cash flow is not a measurement determined in accordance with GAAP and is thus susceptible to varying calculations, operating cash flow as presented may not be comparable to other similarly titled measures of other companies.

2002 in Review
Robert W. Decherd, Belo's chairman, president, and chief executive officer, said, "By every measure, Belo's 2002 financial performance showed marked improvement over 2001. Operating performance in each of Belo's business segments exceeded the expectations that most people had coming into the year. Revenue momentum built throughout 2002, with each quarter's revenue performance exceeding the previous quarter.

The Company achieved full-year segment operating cash flow growth of 17.8 percent, and the operating cash flow margins for both our Television Group and Newspaper Group expanded impressively. This operating performance, coupled with reduced capital spending levels, resulted in record free cash flow of approximately $200 million.

"The positive momentum our operations gained throughout 2002 has carried over into the first quarter of 2003. With continued high ratings and increased market revenue share at our television stations, along with growing circulation at our newspapers, Belo is well-positioned to capitalize on a continued advertising recovery.

"Television Group revenues increased 20.1 percent in the fourth quarter with a 21.4 percent increase in spot revenues. Political revenues were $27.9 million compared to $3.0 million in the fourth quarter of last year.

Television Group revenues increased 10 percent for the full year with a 10.8 percent increase in spot revenues. Full-year political revenues were $48.7 million compared to $5.5 million in 2001. On an adjusted basis, Television Group cash expenses were 8.9 percent higher in the fourth quarter of 2002 coming off of significantly reduced expense levels in the fourth quarter of 2001. Television Group cash expenses for full-year 2002 were 4.0 percent higher than full-year 2001. Much of the increase for both the fourth quarter and full year was in bonus expense, due to significantly improved revenue and operating cash flow performance at Belo's television stations for the fourth quarter and full-year 2002, and revenue-related expense categories such as sales commissions and national representation fees.

Television Group cash expenses were also affected by a return to normal spending levels for advertising and promotion expense after being significantly reduced in 2001. On an adjusted basis, operating cash flow for the Television Group increased 36.1 percent for the fourth quarter and 19.1 percent for the full year.

"Newspaper Group revenues increased 6.1 percent in the fourth quarter, with advertising revenues up 7.3 percent. For the full year, total revenues and advertising revenues were down less than one percent. On an adjusted basis, Newspaper Group cash expenses were 3.4 percent higher than the fourth quarter of 2001 and 4.0 percent better for the full year, with higher bonus expense, related to the achievement of fourth quarter and full-year financial targets, higher outside services expense at The Dallas Morning News related to advertising revenue initiatives, and higher pension and distribution costs. Newsprint expense was 13.6 percent better in the fourth quarter and 24 percent better for the full year.

Adjusted operating cash flow for the Newspaper Group increased 14.7 percent in the fourth quarter and 10.6 percent for the full year.

"Total revenues at The Dallas Morning News increased 6.0 percent in the fourth quarter with an increase of 7.4 percent in advertising revenues. For the full year, total revenues at The Dallas Morning News decreased 1.9 percent with a 2.0 percent decrease in advertising revenues.

The Dallas Morning News experienced revenue gains in all major advertising categories except classified employment in the fourth quarter. Employment revenue decreased 16.6 percent in the fourth quarter and 34.6 percent for the full year.

Excluding classified employment, advertising revenue at The Dallas Morning News was up almost 10 percent in the fourth quarter and 3.9 percent for the full year.

"Belo Interactive's Web sites generated $5.6 million in revenue during the fourth quarter, compared to $3.3 million in the fourth quarter of 2001, an increase of 67.9 percent. The net investment in Belo Interactive operations in the fourth quarter was $2.3 million compared with $2.7 million on an adjusted basis in the fourth quarter of 2001. The net investment in Belo Interactive for full-year 2002 improved to $10.7 million from $16.5 million on an adjusted basis in 2001.

"Belo Interactive recorded an average of 103 million page views per month in the fourth quarter of 2002, an increase of 26 percent over the 82 million page views in the fourth quarter of 2001. After implementing full-site registration in early 2002, Belo Interactive had 2.6 million registered users at the end of 2002.

"Revenues at Belo's cable news operations increased 9.2 percent in the fourth quarter of 2002 to $4.5 million. Cash operating losses improved by 40.1 percent on an adjusted basis, resulting in an overall fourth quarter investment of $360,000 compared with $601,000 in the fourth quarter of 2001. For full-year 2002, total cable news revenues were up 6.8 percent to $17.3 million. Full-year 2002 operating cash flow on an adjusted basis improved 35.5 percent, resulting in an overall investment of $1.2 million.

"Corporate expenses in the fourth quarter of 2002 were $3.8 million higher than the prior year due to an increase in bonus expense related to the achievement of full-year financial targets, as well as increases in benefits costs, training costs and management development expenses. For full-year 2002, corporate expenses increased $8.4 million due to increases in the same categories.

"Like most companies with defined benefit pension plans, Belo's plan assets experienced declines in 2002 related to the stock market's performance. As a result, Belo recorded an additional minimum liability of $83.5 million at the end of 2002, in accordance with pension accounting rules. This did not affect the Company's reported net income but is reflected as a reduction in retained earnings of $48.6 million (net of tax). Based on current assumptions, pension expense in 2003 will increase to approximately $13 million from $6.2 million in 2002.

"Diluted average shares outstanding are higher than last year due to stock option exercises and the incremental effect of unexercised stock options as a result of the Company's higher share price in the fourth quarter of 2002."

First Quarter 2003 Outlook
Dunia A. Shive, Belo's executive vice president and chief financial officer, said, "Belo's Television Group spot revenues increased approximately 13 percent in January 2003 versus January 2002. The Company's four ABC affiliates benefited from almost $2 million of revenue related to the Super Bowl. February revenue comparisons will be more difficult as we cycle against Olympics revenue at Belo's NBC affiliates in February of 2002. For the first quarter overall, we currently expect Television Group spot revenues to be up in the mid-to-high single digits.

"In the Newspaper Group, we currently expect revenue in the first quarter of 2003 to be up in the low-to-mid single digits versus the first quarter of 2002. Advertising revenues in January 2003 increased approximately 4 percent compared to January 2002. The Newspaper Group expects to show revenue increases in all major advertising categories except classified employment in the first quarter.

We do not expect a significant turnaround in classified employment volumes at The Dallas Morning News until there is job creation associated with the economic recovery.

"On the expense side, we expect total cash expenses in the first quarter of 2003 to increase five to six percent for the Television Group, the Newspaper Group and the Company overall. Expenses associated with Belo's improved revenue and operating performance, such as commissions and national sales representation fees, will be higher in the first quarter of 2003 versus the first quarter of 2002. Direct compensation expense will increase about three percent.

Benefits expense will be up significantly, mostly due to higher pension expense and an increase in medical insurance expense. In addition, advertising and promotion costs, which were substantially reduced in the first quarter of last year, will return to more normal spending levels to fuel continued revenue growth. As previously communicated, we expect full-year cash expenses to be up about five percent, mostly due to increases in newsprint expense, various benefits expenses, insurance costs and distribution costs.

"Belo's investment in Belo Interactive's operations should be approximately 20 to 25 percent less in the first quarter of 2003 versus the first quarter of 2002.

Other income and expense in the first quarter of 2003 is expected to include approximately $1.5 million of incremental investment related to Belo's cable news joint ventures with Time Warner in Charlotte, Houston and San Antonio. Depreciation and amortization expense in the first quarter of 2003 is expected to be similar to the first quarter of 2002. Interest expense in the first quarter of 2003 should be 10 to 13 percent less than the first quarter of 2002 due to lower debt levels. The Company's effective tax rate for the first quarter of 2003 should be just under 39 percent."

About Belo
Belo is one of the nation's largest media companies with a diversified group of market-leading television, newspaper, cable and interactive media assets. A Fortune 1000 company with approximately 7,800 employees and $1.4 billion in annual revenues, Belo operates news and information franchises in some of America's most dynamic markets and regions, including Texas, the Northwest, the Southwest, Rhode Island, and the Mid-Atlantic region. Belo owns 19 television stations (six in the top 16 markets) reaching 13.7 percent of U.S. television households; owns or operates six cable news channels; and manages one television station through a local marketing agreement. Belo publishes four daily newspapers: The Dallas Morning News, The Providence Journal, The Press-Enterprise (Riverside, CA) and the Denton Record-Chronicle (Denton, TX). Belo Interactive's new media businesses include 34 Web sites, several interactive alliances, and a broad range of Internet-based products.For more information, contact Dunia Shive, Belo's executive vice president and chief financial officer, or Carey Hendrickson, Belo's vice president of investor relations, at 214-977-6606. Additional information, including earnings releases, is available online at http://www.belo.com.

Statements in this communication concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures or other financial items and other statements that are not historical facts, are "forward-looking statements" as the term is defined under applicable Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.

Such risks, uncertainties and factors include, but are not limited to, changes in advertising demand, interest rates and newsprint prices; technological changes; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; regulatory changes; the effects of Company acquisitions and dispositions; general economic conditions; and significant armed conflict, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Annual Report on Form 10-K.