March 14, 2006

Belo Corp. Awards IBM Multiyear Outsourcing Services Contract

One of Nation's Largest Diversified Media Companies Partners with IBM to Optimize Its Technology Infrastructure

Dallas and Somers, NY -- Belo Corp. (NYSE: BLC), one of the nation's largest diversified media companies, announced today that the company has awarded IBM (NYSE: IBM) a comprehensive, 5 1/2-year outsourcing services contract to manage Belo's information technology infrastructure. IBM will assume operational support of the information technology functions that support Belo's market-leading television stations, newspapers, interactive media and cable news operations across the nation.

Dennis Williamson, Belo executive vice president/Chief Financial Officer, said, "Out-tasking Belo's technology infrastructure is a transformational initiative that will allow us to leverage IBM's expertise to operate more efficiently, compete more effectively and grow our businesses. This strategic decision accelerates our ability to provide local content to Belo audiences across an expanding array of distribution channels, which include our traditional print and broadcast operations as well as online and other emerging media."

Williamson added, "This also represents an important decision for us because IBM's world-class technology services will enable us to expand our technological capabilities much more quickly and cost-effectively than we could have done on our own."

"Belo is building a centralized technologies organization to drive enterprise-wide business results. The purpose of this agreement is to deliver transformational business value in addition to cost efficiencies, and is indicative of what a services relationship with IBM can deliver," said Harris Warsaw, Vice President of Sales, North America for IBM. "IBM is looking forward to working with Belo to support its strategic priorities while delivering a more consistent and cost-effective set of IT services."

Belo will retain responsibility for setting the strategic direction of its technology functions and IBM will provide day-to-day technology production support for four functional areas: data center and server management, voice and data network management, help desk, and desktop support services. A six-month transition period will begin April 1, 2006, with IBM assuming responsibility for the bulk of these support services on October 1. Belo's nine regional data centers will be consolidated into two IBM data centers over a one-year period, beginning October 1, 2006.

Significant enterprise-wide technology and business benefits that are planned include:

By utilizing IBM's capabilities, Belo anticipates realizing these technology improvements within 18 months -- significantly faster than the Company could have done independently. The Company will also be able to adapt to changing needs while better controlling technology and capital expenditures.

Williamson concluded, "Belo's new out-tasking agreement with IBM gives us the technological agility to continue to be a leader in delivering the news and information content our audiences want, whenever and wherever they want it."

About Belo
Belo Corp. 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 7,700 employees and $1.5 billion in annual revenues, Belo operates in some of America's most dynamic markets in Texas, the Northwest, the Southwest, Rhode Island, and the Mid-Atlantic. Belo owns 19 television stations, six of which are in the 15 largest U.S. broadcast markets. The Company also owns or operates seven cable news channels and manages one television station through a local marketing agreement. Belo's daily newspapers are The Dallas Morning News , The Providence Journal , The Press-Enterprise (Riverside, CA) and the Denton Record-Chronicle (Denton, TX). The Company also publishes specialty publications targeting young adults and the fast-growing Hispanic market, including Quick and Al Dia in Dallas/Fort Worth, and El D and La Prensa in Riverside. Belo operates more than 30 Web sites associated with its operating companies. Additional information is available at www.belo.com or by contacting Nancy Del Regno, manager/Corporate Communications and Investor Relations, at 214-977-6825 or ndelregno@belo.com.

About IBM Global Services
IBM Global Services is the world's largest information technology services and consulting provider. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to benefit from the on demand business model by saving money and transforming their businesses to be more competitive. For more information, visit http://www.ibm.com/services or contact Lia Papa, IBM Media Relations, at 202-515-5499 or lia.papa@us.ibm.com .

Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, capital expenditures, investments, future financings or other financial and non-financial items 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 capital market conditions and prospects, and other factors such as changes in advertising demand, interest rates and newsprint prices; newspaper circulation matters, including changes in readership, and audits and related actions (including the censure of The Dallas Morning News) by the Audit Bureau of Circulations; technological changes, including the transition to digital television and the development of new systems to distribute television and other audio-visual content; development of Internet commerce; industry cycles; changes in pricing or other actions by competitors and suppliers; regulatory changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions and dispositions; the recovery of the New Orleans market from the effects of Hurricane Katrina; general economic conditions; and significant armed conflict, as well as other risks detailed in Belo's other public disclosures, and filings with the Securities and Exchange Commission ("SEC") including the Annual Report on Form 10-K.