May 17, 2006
The Press-Enterprise Company Launches Multimedia Strategy with Restructuring of Operations
RIVERSIDE, CA -- The Press-Enterprise Company, a Riverside, CA-based subsidiary of Belo Corp. (NYSE: BLC), announced the implementation of an enhanced multimedia business plan and accompanying organizational restructuring aimed at better serving and reaching its readers, online users and advertisers in Inland Southern California.
The restructuring plan will be phased in over the next two months and includes an increased emphasis on the dissemination of breaking news and information via The Press-Enterprise's Web site, PE.com, including streaming video; the launch of more than 40 micro-local community Web pages; a greater focus on online advertising sales; the expansion of targeted sales opportunities in advertising and circulation through database marketing; an increased focus on developing print and online products to serve distinct interests throughout the region; and the enhancement of production processes to provide earlier delivery for the region's many commuters.
Implementation of The Press-Enterprise's multimedia strategy will result in a net reduction of approximately 50 positions by mid-year 2006. More than 80 positions will be eliminated or consolidated, while approximately 30 new positions will be created. The Company noted that a severance plan is being offered to employees affected by the strategy to help them transition to other employment.
About the Press-Enterprise Company
The Press-Enterprise Company, a Riverside, CA-based subsidiary of Belo Corp., publishes The Press-Enterprise, a 185,000-circulation daily newspaper, the largest daily newspaper serving Inland Southern California; The Business Press, a weekly business journal; La Prensa and El D, weekly Spanish-language newspapers serving the region's diverse Hispanic community; and the advertising publications Inland Empire HomeSeller, Inland Empire AutoSeller, Inland Empire Employment and Savings Express.
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 more than $1.5 billion in annual revenues, Belo operates in some of America's most dynamic markets in Texas, the Northwest, the Southwest, the Mid-Atlantic and Rhode Island. 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 other daily newspapers are The Dallas Morning News, The Providence Journal 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. Belo operates more than 30 Web sites associated with its operating companies. Additional information is available at www.belo.com or by contacting Carey Hendrickson, vice president/Investor Relations & Corporate Communications, at 214-977-6626.
Statements in this communication concerning Belo's business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, 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 (where the Company owns and operates market-leading television station WWL-TV, the CBS affiliate) 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.