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Meredith Reports Fiscal 2009 Second Quarter Earnings


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Second quarter results were in-line with previously stated expectations

DES MOINES, Iowa, Jan. 22 /PRNewswire-FirstCall/ -- Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported fiscal 2009 second quarter earnings per share of $0.28, including a special charge of $0.21. Excluding the special charge, Meredith's earnings per share were $0.49, in-line with stated expectations. Second quarter revenues were $366 million. This compares to fiscal 2008 second quarter earnings per share of $0.75, and revenues of $396 million.

Meredith recorded a special charge of $16 million ($10 million after tax) in the fiscal second quarter. The charge includes the cost of a companywide workforce reduction of approximately 250 employees; the closure of Country Home magazine, effective with the March 2009 issue; and the relocation of the creative functions of the ReadyMade brand and Parents.com to Des Moines. Additional information on the special charge is available in Tables 1 and 2, and in Meredith's press release dated January 8, 2009.

For the first six months of fiscal 2009, earnings per share were $0.69, including the special charge. Excluding the special charge, earnings per share were $0.90. Fiscal 2009 first-half revenues were $737 million. This compares to fiscal 2008 first-half earnings per share of $1.43, and revenues of $800 million.

"Advertising revenues across our businesses continue to be significantly impacted by the recession," said Meredith President and Chief Executive Officer Stephen M. Lacy. "However, certain revenue streams not tied to advertising are growing, particularly our integrated marketing, brand licensing and video production activities. Also, even in these difficult economic times, our connection to the consumer is rock solid and strengthening. We've seen notable gains in magazine readership and circulation response rates for many of our national brands, as well as marked improvement in news ratings at our local television stations."

Meredith continues to execute its performance improvement plan, which is focused on gaining market share, growing new revenue streams and practicing aggressive expense control. Excluding the special charge and despite higher paper prices, total Meredith operating expenses declined 2.6 percent in the second fiscal quarter, and were down 2.8 percent for the first six months of fiscal 2009. Excluding acquisitions and the special charge, total company operating expenses declined 4.0 percent in the quarter, and were down 4.5 percent for the first six months of fiscal 2009.

"We possess a strong balance sheet, modest levels of debt at a low cost of funds, and adequate liquidity supported by strong operating cash flow," Lacy said. "We are continually taking steps to strengthen our solid financial position through disciplined expense and cash management. Our conservative financial practices and strong national and local brands position Meredith well for the future economic recovery."

OPERATING RESULTS

Publishing

Fiscal 2009 second quarter Publishing operating profit was $15 million. Excluding the special charge, operating profit was $28 million, compared to $45 million in the year-ago period. Revenues were $282 million, compared to $309 million in the year-ago period. Advertising revenues were $122 million, versus $153 million in the prior-year period, when advertising revenues increased 8 percent.

For the first six months of fiscal 2009, operating profit was $48 million. Excluding the special charge, operating profit was $61 million, compared to $100 million in the year-ago period. Revenues were $582 million, compared to $638 million in the year-ago period. Advertising revenues were $271 million, versus $333 million in the prior-year period, when advertising revenues increased 11 percent. Net advertising revenues per page rose approximately 1 percent in the first six months of fiscal 2009 compared to the prior-year period.

"Our consumer brands continue to demonstrate powerful and enduring appeal in print, online or via other platforms such as brand licensing," Lacy said. "Additionally, consumer response rates to our most recent direct mail activity exceeded our expectations."

    Examples of Meredith's growing connection to the consumer include:

     --   According to the fall 2008 Mediamark Research and Intelligence
          study, readership for Meredith's major subscription magazines held
          steady at a very strong 120 million.  Average household incomes rose
          and average reader age declined compared to the prior year study.
          Meredith's two flagship brands -- Better Homes and Gardens and
          Parents -- each increased readership and median household income,
          while average reader age decreased for both titles.

     --   Traffic on Meredith's consumer Web sites rose in the second quarter
          of fiscal 2009 from the year-ago period.  The number of unique
          visitors rose 25 percent to nearly 16 million and page views
          averaged nearly 200 million per month during the quarter.  The
          average time spent on the sites per visitor grew to nearly 13
          minutes.  The total number of videos viewed during the quarter rose
          17 percent to 3.2 million.

     --   Meredith now ranks in the Top 5 of online networks dedicated to
          women.  During the quarter, Meredith announced an investment in the
          Real Girls Media Network -- a group of premium-branded online social
          communities.  Also, Meredith launched MixingBowl.com -- a branded
          social networking site for women passionate about food and recipes.

     --   Brand licensing delivered another outstanding quarter as revenues
          rose 27 percent.  Sales of Better Homes and Gardens-branded home
          products at Walmart U.S. are meeting expectations following the
          September 2008 launch of the program.  Meredith and Walmart recently
          reached agreement to increase the number of products to
          approximately 1,000 SKUs in calendar 2009 from 550.

     --   Internationally, Meredith completed multiple licensing agreements
          during the quarter that will extend the Better Homes and Gardens,
          Parents, More, and Diabetic Living brands to more than 20 countries,
          including Italy, Mexico and Brazil.

Broadcasting

Fiscal 2009 second quarter Broadcasting operating profit was $22 million. Excluding the special charge, operating profit was $24 million, compared to $28 million in the year-ago period. Revenues were $84 million, compared to $88 million in the year-ago period. Net political revenues were $17 million, in-line with expectations, compared to $1 million in the year-ago period.

For the first six months of fiscal 2009, operating profit was $33 million. Excluding the special charge, operating profit was $35 million, compared to $41 million in the year-ago period. Revenues were $155 million, compared to $162 million in the year-ago period. Net political revenues were $23 million, in-line with expectations, compared to $3 million in the first half of fiscal 2008.

Broadcasting advertising revenues were particularly impacted by a 40 percent decline in automobile advertising -- its largest category -- during the second quarter of fiscal 2009. "While the automotive industry is facing unprecedented challenges, and our other advertisers are also feeling the impact of the recession, we are encouraged that our local television brands continue to resonate with our consumers," Lacy said. "Our investments in local news, combined with our online, video and retransmission initiatives, are laying an important foundation for future growth."

Meredith's television stations posted stronger ratings during the recently completed November sweeps. Highlights included market-leading performances for news programming in Portland, Hartford and Nashville, and a first-ever second-place finish in late news in Atlanta. Meredith's stations in Las Vegas, Kansas City and Greenville, SC, also had solid rating gains.

Meredith Video Solutions, the company's in-house production unit, posted strong revenue growth in the quarter. The Better show, Meredith's nationally syndicated lifestyle show featuring content inspired by Meredith's publishing brands, is now available in 43 markets, representing 30 percent of the country. Top 20 markets San Francisco, Cleveland and Denver recently cleared the program.

Meredith recently agreed to a new retransmission agreement with Comcast -- the largest carrier of Meredith's signal with customers in eight of its 10 television markets -- and also agreed to extend its successful video on demand (VOD) alliance with Comcast for Parents-branded video. Meredith has now successfully completed new retransmission agreements with six of seven major cable operators in its markets.

OTHER FINANCIAL INFORMATION

Meredith generated $83 million in cash flow from operations during the first six months of fiscal 2009. Meredith's total debt was $455 million at December 31, 2009, down $30 million from its prior fiscal year end, and its weighted average interest rate was approximately 4.4 percent as of December 31, 2008. Meredith's debt-to-EBITDA ratio was a conservative 1.7 to 1, under existing debt covenants. The company has repurchased 865,000 shares in fiscal 2009, leaving 1.5 million shares remaining under current share repurchase authorizations.

"We are well-positioned to weather the current softness in advertising and the turbulence in the financial markets, as well as make acquisitions and investments when opportunities arise," Lacy said. "We have a strong balance sheet with a low level of debt, and continue to exercise prudent cash management."

All earnings per share figures in the text of this release are diluted. Both basic and diluted earnings per share can be found in the attached condensed consolidated statements of earnings.

OUTLOOK

Most of Meredith's advertising clients continue to experience a difficult economic environment. The resulting weakness will impact Meredith's revenues for the remainder of fiscal 2009.

While it's too early to predict an improving trend, fiscal 2009 third quarter Publishing advertising revenues are currently down nearly 15 percent, compared to a decline of nearly 20 percent in the first half of fiscal 2009. Additionally, fiscal third quarter paper prices are moderating compared to the first half. Still, paper prices are expected to be approximately 7 percent higher than the third quarter of fiscal 2008.

Broadcasting advertising pacings are currently down nearly 40 percent, driven by a 70 percent decline in automotive pacings.

Meredith's average tax rate is expected to be approximately 36 percent in the third quarter, and 40 percent for the full fiscal 2009.

Currently, Meredith expects third quarter earnings per share to range from approximately $0.55 to $0.60. Full year earnings per share are expected to range from $2.00 to $2.25, excluding the special charge taken in the fiscal second quarter.

A number of uncertainties remain that may affect our outlook for results in the third quarter and full fiscal year as stated in this press release. These include overall advertising volatility; the performance of the company's retail businesses; and paper prices and postal rates. These and other uncertainties are referenced below under "Safe Harbor" and in certain of the company's SEC filings.

CONFERENCE CALL WEBCAST

Meredith will host a conference call on January 22, 2009, at 11 a.m. EST (10 a.m. CST) to discuss fiscal second quarter results. A live webcast will be accessible to the public on the company's web site, http://www.meredith.com, and a replay will be available for one week after the call. A transcript will be available within 48 hours following the conference call at http://www.meredith.com.

RATIONALE FOR USE AND ACCESS TO NON-GAAP MEASURES

Management uses and presents GAAP and non-GAAP results to evaluate and communicate the performance of the company. Non-GAAP measures should not be construed as alternatives to GAAP measures. EBITDA and free cash flow are common supplemental measures of performance used by investors and financial analysts. Management believes that EBITDA and free cash flow provide additional analytical tools to clarify the company's results from core operations and delineate underlying trends. Meredith does not use EBITDA or free cash flow as a measure of liquidity or funds available for management's discretionary use because they include certain contractual and non- discretionary expenditures.

Results excluding the special charge recorded in the second quarter of fiscal 2009 are also supplemental non-GAAP financial measures. Management believes the special charge is not reflective of Meredith's ongoing business activities. While results excluding the special charge are not a substitute for reported earnings results under GAAP, management believes this information is useful as an aid in better understanding Meredith's current performance, performance trends and financial condition. Reconciliations of non-GAAP to GAAP measures are included in the attached tables. The attached consolidated financial statements and reconciliation tables will be made available at http://www.meredith.com

SAFE HARBOR

This release contains certain forward-looking statements that are subject to risks and uncertainties. These statements are based on management's current knowledge and estimates of factors affecting the company's operations. Statements in this announcement that are forward-looking include, but are not limited to, the statements regarding broadcasting pacings and publishing advertising revenues, along with the company's earnings per share outlook for the third quarter and all of fiscal 2009.

Actual results may differ materially from those currently anticipated. Factors that could adversely affect future results include, but are not limited to, downturns in national and/or local economies; a softening of the domestic advertising market; world, national or local events that could disrupt broadcast television; increased consolidation among major advertisers or other events depressing the level of advertising spending; the unexpected loss or insolvency of one or more major clients; the integration of acquired businesses; changes in consumer reading, purchasing and/or television viewing patterns; increases in paper, postage, printing or syndicated programming costs; changes in television network affiliation agreements; technological developments affecting products or methods of distribution; changes in government regulations affecting the company's industries; unexpected changes in interest rates; and the consequences of acquisitions and/or dispositions. The company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.

ABOUT MEREDITH CORPORATION

Meredith Corporation (NYSE: MDP: http://www.meredith.com ) is the leading media and marketing company serving American women. Meredith combines well- known national brands -- including Better Homes and Gardens, Parents, Ladies' Home Journal, Family Circle, American Baby, Fitness and More -- with local television brands in fast growing markets. Meredith is the industry leader in creating content in key consumer interest areas such as home, family, health and wellness and self-development. Meredith then uses multiple distribution platforms -- including print, television, online, mobile and video -- to give consumers content they desire and to deliver the messages of its marketing partners. Additionally, Meredith uses its many assets to create powerful custom marketing solutions for many of the nation's top brands and companies. The goals of these programs are to increase consumer loyalty and produce repeated consumer interaction. In the last two years, Meredith has significantly added to its capabilities in this area through the acquisition of cutting-edge companies in areas such as online, word-of-mouth and database marketing. Headquartered in Des Moines, Meredith has a nationwide workforce of approximately 3,500 employees.

Meredith Corporation and Subsidiaries

Consolidated Statements of Earnings (Unaudited)


                                        Three Months          Six Months

Period Ended December 31, 2008 2007 2008 2007

(In thousands except per share

     data)
    Revenues
    Advertising                      $204,213  $239,256  $419,749  $493,591
    Circulation                        69,274    72,959   143,296   153,245
    All other                          92,753    84,030   173,633   153,482
      Total revenues                  366,240   396,245   736,678   800,318
    Operating expenses

Production, distribution, and

     editorial                        165,744   166,122   338,956   341,830

Selling, general, and

     administrative                   161,735   153,046   310,658   308,616

Depreciation and amortization 10,778 12,025 21,636 24,143

Total operating expenses 338,257 331,193 671,250 674,589

    Income from operations             27,983    65,052    65,428   125,729
    Interest income                       107       296       227       648
    Interest expense                   (5,353)   (5,734)  (10,787)  (11,897)

Earnings from continuing

operations before income taxes 22,737 59,614 54,868 114,480

Income taxes 10,194 24,401 23,688 45,799

Earnings from continuing

       operations                      12,543    35,213    31,180    68,681

Income from discontinued

     operations, net of taxes               -       846         -       748
    Net earnings                      $12,543   $36,059   $31,180   $69,429

Basic earnings per share

Earnings from continuing

     operations                         $0.28     $0.74     $0.69     $1.44
    Discontinued operations                 -      0.02         -      0.02
    Basic earnings per share            $0.28     $0.76     $0.69     $1.46
    Basic average shares outstanding   44,951    47,287    45,096    47,541

Diluted earnings per share

Earnings from continuing

     operations                         $0.28     $0.73     $0.69     $1.41
    Discontinued operations               -        0.02       -        0.02

Diluted earnings per share $0.28 $0.75 $0.69 $1.43

Diluted average shares

     outstanding                       45,072    48,325    45,219    48,576

    Dividends paid per share           $0.215    $0.185    $0.430    $0.370

Meredith Corporation and Subsidiaries

Segment Information (Unaudited)

                                          Three Months         Six Months
    Period Ended December 31,            2008      2007      2008      2007
    (In thousands)
    Revenues
    Publishing                         $281,864  $308,608  $581,899  $638,130
    Broadcasting

Non-political advertising 64,717 85,168 126,365 157,660

       Political advertising             17,005     1,436    22,876     2,508
       Other revenues                     2,654     1,033     5,538     2,020
         Total broadcasting              84,376    87,637   154,779   162,188
    Total revenues                     $366,240  $396,245  $736,678  $800,318

    Operating profits
    Publishing                          $15,241   $44,512   $48,425   $99,945
    Broadcasting                         22,329    27,564    33,025    41,141
    Unallocated corporate                (9,587)   (7,024)  (16,022)  (15,357)
    Income from operations              $27,983   $65,052   $65,428  $125,729

Depreciation and amortization

    Publishing                           $4,230    $5,305    $8,058   $10,505
    Broadcasting                          6,448     6,329    12,517    12,707
    Unallocated corporate                   100       391     1,061       931
    Total depreciation and
     amortization                       $10,778   $12,025   $21,636   $24,143

    EBITDA
    Publishing                          $19,471   $49,817   $56,483  $110,450
    Broadcasting                         28,777    33,893    45,542    53,848
    Unallocated corporate                (9,487)   (6,633)  (14,961)  (14,426)
    Total EBITDA                        $38,761   $77,077   $87,064  $149,872


Meredith Corporation and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

                                                 December 31,       June 30,
    Assets                                          2008              2008
    (In thousands)
    Current assets
    Cash and cash equivalents                      $33,359           $37,644
    Accounts receivable, net                       217,091           230,978
    Inventories                                     40,659            44,085

Current portion of subscription

     acquisition costs                              60,988            59,939
    Current portion of broadcast rights             17,391            10,779
    Other current assets                            20,500            19,665
    Total current assets                           389,988           403,090
    Property, plant, and equipment                 457,469           446,935
    Less accumulated depreciation                 (258,292)         (247,147)
    Net property, plant, and equipment             199,177           199,788
    Subscription acquisition costs                  60,588            60,958
    Broadcast rights                                 6,816             7,826
    Other assets                                    73,653            74,472
    Intangible assets, net                         777,309           781,154
    Goodwill                                       531,256           532,332
    Total assets                                $2,038,787        $2,059,620

Liabilities and Shareholders' Equity

Current liabilities

    Current portion of long-term debt             $130,000           $75,000

Current portion of long-term broadcast rights

     payable                                        18,702            11,141
    Accounts payable                                67,174            79,028
    Accrued expenses and other liabilities         101,589           102,707

Current portion of unearned subscription

     revenues                                      177,263           175,261
    Total current liabilities                      494,728           443,137
    Long-term debt                                 325,000           410,000
    Long-term broadcast rights payable              15,512            17,186
    Unearned subscription revenues                 160,124           157,872
    Deferred income taxes                          153,303           139,598
    Other noncurrent liabilities                   107,215           103,972
    Total liabilities                            1,255,882         1,271,765

Shareholders' equity

    Common stock                                    35,795            36,295
    Class B stock                                    9,161             9,181
    Additional paid-in capital                      50,365            52,693
    Retained earnings                              699,948           701,205

Accumulated other comprehensive income

     (loss)                                        (12,364)          (11,519)
    Total shareholders' equity                     782,905           787,855

Total liabilities and shareholders'

     equity                                     $2,038,787        $2,059,620



Meredith Corporation and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

Six Months Ended December 31, 2008 2007

(In thousands)

Net cash provided by operating activities $83,028 $142,919

Cash flows from investing activities

      Acquisitions of businesses                    (5,195)           (1,920)

Additions to property, plant, and

       equipment                                   (15,185)          (10,210)
      Proceeds from dispositions of assets             636                 -

Net cash used in investing activities (19,744) (12,130)

Cash flows from financing activities

      Proceeds from issuance of long-term debt     120,000            90,000
      Repayments of long-term debt                (150,000)         (145,000)
      Purchases of Company stock                   (21,562)          (77,482)
      Dividends paid                               (19,430)          (17,607)
      Proceeds from common stock issued              2,457             9,442
      Excess tax benefits from share-based
       payments                                        966               360

Net cash used in financing activities (67,569) (140,287)

Net decrease in cash and cash

     equivalents                                    (4,285)           (9,498)

Cash and cash equivalents at beginning of

     period                                         37,644            39,220
    Cash and cash equivalents at end of period     $33,359           $29,722



    Meredith Corporation and Subsidiaries                             Table 1

Supplemental Disclosures Regarding Non-GAAP Financial Measures

(Unaudited)

Special Charge -- During the second quarter of fiscal 2009, Meredith

recorded a special charge which relates primarily to the cost of a

companywide workforce reduction of approximately 250 employees; the

closure of Country Home magazine, effective with the March 2009 issue;

and the relocation of the creative functions of the ReadyMade brand and

Parents.com to Des Moines. Please see Meredith's press release dated

January 8, 2009, for additional information relating to the special

charge.

The following table shows results of operations excluding the special

charge and as reported with the difference being the special charge.

Results of operations excluding the special charge are non-GAAP

measures. Management's rationale for presenting non-GAAP measures is

included in the text of this earnings release.




    Period Ended December 31, 2008                  Three Months
                                          Excluding
                                           Special   Special
                                           Charge     Charge     As Reported

(In thousands except per share data)

    Revenues
    Advertising                            $204,213        $-      $204,213
    Circulation                              69,274         -        69,274
    All other                                92,753                  92,753
      Total revenues                        366,240         -       366,240
    Operating expenses

Production, distribution, and

     editorial                              165,115       629 (a)   165,744
    Selling, general, and administrative    146,569    15,166 (b)   161,735
    Depreciation and amortization            10,778         -        10,778
      Total operating expenses              322,462    15,795       338,257
    Income from operations                   43,778   (15,795)       27,983
    Interest income                             107         -           107
    Interest expense                         (5,353)        -        (5,353)
      Earnings before income taxes           38,532   (15,795)       22,737
    Income taxes                             16,354    (6,160)       10,194
    Net earnings                            $22,178   $(9,635)      $12,543

    Basic earnings per share                  $0.49    $(0.21)        $0.28
    Basic average shares outstanding         44,951    44,951        44,951

    Diluted earnings per share                $0.49    $(0.21)        $0.28
    Diluted average shares outstanding       45,072    45,072        45,072


    Period Ended December 31, 2008                   Six Months
                                          Excluding
                                           Special   Special
                                           Charge     Charge     As Reported

(In thousands except per share data)

    Revenues
    Advertising                            $419,749        $-      $419,749
    Circulation                             143,296         -       143,296
    All other                               173,633         -       173,633
      Total revenues                        736,678         -       736,678
    Operating expenses

Production, distribution, and

     editorial                              338,327       629 (a)   338,956
    Selling, general, and administrative    295,492    15,166 (b)   310,658
    Depreciation and amortization            21,636         -        21,636
      Total operating expenses              655,455    15,795       671,250
    Income from operations                   81,223   (15,795)       65,428
    Interest income                             227         -           227
    Interest expense                        (10,787)        -       (10,787)
      Earnings before income taxes           70,663   (15,795)       54,868
    Income taxes                             29,848    (6,160)       23,688
    Net earnings                            $40,815   $(9,635)      $31,180

    Basic earnings per share                  $0.91    $(0.21)        $0.69
    Basic average shares outstanding         45,096    45,096        45,096

    Diluted earnings per share                $0.90    $(0.21)        $0.69
    Diluted average shares outstanding       45,219    45,219        45,219

Notes

(a) Write-down of art and manuscript inventory

(b) Severance expense and write-down of subscription acquisition costs




    Meredith Corporation and Subsidiaries                             Table 2

Supplemental Disclosures Regarding Non-GAAP Financial Measures

(Unaudited)

The following table shows results of operations excluding the special

charge and as reported with the difference being the special charge.

Results of operations excluding the special charge are non-GAAP

measures. Management's rationale for presenting non-GAAP measures is

included in the text of this earnings release.




    Period Ended December 31, 2008                  Three Months
                                          Excluding
                                           Special    Special
                                           Charge     Charge      As Reported
    (In thousands)
    Revenues
    Publishing                             $281,864         $-      $281,864
    Broadcasting
       Non-political advertising             64,717          -        64,717
       Political advertising                 17,005          -        17,005
       Other revenues                         2,654          -         2,654
         Total broadcasting                  84,376          -        84,376
    Total revenues                         $366,240         $-      $366,240

    Operating profit
    Publishing                              $28,043   $(12,802)(a)   $15,241
    Broadcasting                             24,342     (2,013)(b)    22,329
    Unallocated corporate                    (8,607)      (980)(c)    (9,587)
    Income from operations                  $43,778   $(15,795)      $27,983

Depreciation and amortization

    Publishing                               $4,230         $-        $4,230
    Broadcasting                              6,448          -         6,448
    Unallocated corporate                       100          -           100

Total depreciation and amortization $10,778 $- $10,778

    EBITDA(1)
    Publishing                              $32,273   $(12,802)      $19,471
    Broadcasting                             30,790     (2,013)       28,777
    Unallocated corporate                    (8,507)      (980)       (9,487)
    Total EBITDA(1)                         $54,556   $(15,795)      $38,761


    Period Ended December 31, 2008                      Six Months
                                          Excluding
                                           Special    Special
                                           Charge     Charge      As Reported
    (In thousands)
    Revenues
    Publishing                             $581,899         $-      $581,899
    Broadcasting
       Non-political advertising            126,365          -       126,365
       Political advertising                 22,876          -        22,876
       Other revenues                         5,538          -         5,538
         Total broadcasting                 154,779          -       154,779
    Total revenues                         $736,678         $-      $736,678

    Operating profit
    Publishing                              $61,227   $(12,802)(a)   $48,425
    Broadcasting                             35,038     (2,013)(b)    33,025
    Unallocated corporate                   (15,042)      (980)(c)   (16,022)
    Income from operations                  $81,223   $(15,795)      $65,428

Depreciation and amortization

    Publishing                               $8,058         $-        $8,058
    Broadcasting                             12,517          -        12,517
    Unallocated corporate                     1,061          -         1,061

Total depreciation and amortization $21,636 $- $21,636

    EBITDA(1)
    Publishing                              $69,285   $(12,802)      $56,483
    Broadcasting                             47,555     (2,013)       45,542
    Unallocated corporate                   (13,981)      (980)      (14,961)
    Total EBITDA(1)                        $102,859   $(15,795)      $87,064

(1) EBITDA is earnings before interest, taxes, depreciation, and

amortization.

Notes

(a) Write-down of art and manuscript inventory and severance expense

for Publishing operations

(b) Severance expense for Broadcasting operations

(c) Severance expense for Corporate personnel




    Meredith Corporation and Subsidiaries                            Table 3

Supplemental Disclosures Regarding Non-GAAP Financial Measures

(Unaudited)

EBITDA

Consolidated EBITDA, which is reconciled to earnings from continuing

operations in the following tables, is defined as earnings from

continuing operations before interest, taxes, depreciation, and

amortization.

Segment EBITDA is a measure of segment earnings before depreciation and

amortization.

Segment EBITDA margin is defined as segment EBITDA divided by segment

    revenues.



                                    Three Months Ended December 31, 2008

                                                            Unallocated
                                   Publishing  Broadcasting  Corporate  Total
    (In thousands)
    Revenues                         $281,864    $84,376         $-  $366,240

    Operating profit                  $15,241    $22,329    $(9,587)  $27,983

Depreciation and amortization 4,230 6,448 100 10,778

    EBITDA                            $19,471    $28,777    $(9,487)   38,761

Less:

    Depreciation and amortization                                     (10,778)
    Net interest expense                                               (5,246)
    Income taxes                                                      (10,194)
    Earnings from continuing operations                               $12,543

    Segment EBITDA margin                6.9%      34.1%


                                      Six Months Ended December 31, 2008

                                                            Unallocated
                                   Publishing  Broadcasting  Corporate  Total
    (In thousands)
    Revenues                        $581,899     $154,779         $-  $736,678

    Operating profit                 $48,425      $33,025   $(16,022) $65,428

Depreciation and amortization 8,058 12,517 1,061 21,636

    EBITDA                           $56,483      $45,542   $(14,961)  87,064

Less:

    Depreciation and amortization                                     (21,636)
    Net interest expense                                              (10,560)
    Income taxes                                                      (23,688)
    Earnings from continuing
     operations                                                       $31,180

    Segment EBITDA margin               9.7%        29.4%


                                    Three Months Ended December 31, 2007

                                                            Unallocated
                                   Publishing  Broadcasting  Corporate  Total
    (In thousands)
    Revenues                         $308,608     $87,637        $-  $396,245

    Operating profit                  $44,512     $27,564   $(7,024)  $65,052

Depreciation and amortization 5,305 6,329 391 12,025

    EBITDA                            $49,817     $33,893   $(6,633)   77,077

Less:

    Depreciation and amortization                                     (12,025)
    Net interest expense                                               (5,438)
    Income taxes                                                      (24,401)
    Earnings from continuing operations                               $35,213

    Segment EBITDA margin                16.1%       38.7%


                                       Six Months Ended December 31, 2007

                                                         Unallocated
                                  Publishing Broadcasting Corporate   Total
    (In thousands)
    Revenues                        $638,130    $162,188         $-  $800,318

    Operating profit                 $99,945     $41,141   $(15,357) $125,729

Depreciation and amortization 10,505 12,707 931 24,143

    EBITDA                          $110,450     $53,848   $(14,426)  149,872

Less:

    Depreciation and amortization                                     (24,143)
    Net interest expense                                              (11,249)
    Income taxes                                                      (45,799)
    Earnings from continuing
     operations                                                       $68,681

    Segment EBITDA margin              17.3%       33.2%



                                                                       Table 4
    FREE CASH FLOW

Free cash flow, which is reconciled to earnings from continuing operations

in the following table, is defined as earnings from continuing operations

plus depreciation and amortization less capital expenditures.


                                            Three Months        Six Months
    Period Ended December 31,              2008      2007     2008      2007

(In thousands)

    Free cash flow                        $17,744  $41,301  $37,631   $82,614

Depreciation and amortization (10,778) (12,025) (21,636) (24,143)

    Capital expenditures                    5,577    5,937   15,185    10,210

Earnings from continuing operations $12,543 $35,213 $31,180 $68,681

SOURCE Meredith Corporation - 01/22/2009

CONTACT: Shareholder|Financial Analysts, Mike Lovell, Director of
Investor Relations, +1-515-284-3622, Mike.Lovell@Meredith.com,
or Media, Art Slusark, VP|Corporate Communications, +1-515-284-3404,
Art.Slusark@Meredith.com,
both of Meredith Corporation
Web site: http://www.meredith.com
(MDP)

CO: Meredith Corporation

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