December 16, 2005

Technology Optimization Update Memo

To: Belo Technologies Team

From: Caren Shiozaki

Subject: Update on Technology Optimization

cc: ITLC, Publishers, Group Heads, General Managers, HR-DirNational, Dennis Williamson, Marian Spitzberg, Wes Jackson, Dan Doggendorf, Catherine Kuehler, David Starr, Carey Hendrickson, Nancy Del Regno

We want to update you on the work under way to complete the out-tasking evaluation process and realign Belo's technology organization through our Technology Optimization initiative. Additional questions have been submitted since our last conference call, and we want to respond to those and provide some timing on next steps.

Answers to your questions have been compiled in the attached file due to the number received. This Q&A provides information about applying for jobs, the impact of decisions about accepting or declining job offers, expected benefits, severance policies, transitions and employment relationships with the out-tasking company.

As for the evaluation process, we are taking a number of steps to finalize Belo's requirements for the out-tasking company and identify related internal changes:

After these and other steps are completed, the next phases in the evaluation process will include requesting a proposal from IBM, based on our service level criteria, and receiving and evaluating their proposal to determine if it delivers the technical support, quality customer service and value we want to achieve. If IBM's proposal reflects our expectations, we will move into detailed contract negotiations. If it does not, however, we will begin talks with other potential providers, which could affect our transition schedule. The attached flow chart outlines this process.

In mid-January 2006, we will announce Belo Technologies' organizational structure. By late January, we expect to begin posting the new positions that will be available at Belo and conducting interviews. The out-tasking company will start interviews after we have completed Belo's interviewing process. No jobs will be eliminated during the first half of the year.

This memo, evaluation process chart and Q&A are all posted in the Communications section of the Technology Optimization site on Belo's Intranet at /it/consolidation . We encourage you to ask other questions you may have by contacting your local technology leader; Dan Doggendorf, Project Owner; another member of the ITLC; or Catherine Kuehler, Project Manager; or by sending an e-mail to We will provide additional information as soon as it is available.

Thank you for your continued support.