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Meredith Reports Fiscal 2009 Third Quarter Earnings

Earnings in line with previously stated expectations

DES MOINES, Iowa, April 29 /PRNewswire-FirstCall/ -- Meredith Corporation (NYSE: MDP), the leading media and marketing company serving American women, today reported fiscal 2009 third quarter earnings per share of $0.56, in line with stated expectations. Third quarter revenues were $338 million. This compares to fiscal 2008 third quarter earnings per share of $0.97, and revenues of $392 million.

For the first nine months of fiscal 2009, earnings per share were $1.25, including a special charge of $0.21 taken during the fiscal second quarter for the cost of a companywide workforce reduction and closing Country Home magazine. Excluding the special charge, earnings per share for the first nine months of fiscal 2009 were $1.46. Revenues for the first nine months of fiscal 2009 were $1.1 billion. This compares to earnings per share of $2.40 and revenues of $1.2 billion during the first nine months of fiscal 2008.

Fiscal 2009 third quarter advertising revenues continued to be impacted by the recession. Publishing advertising revenues declined 12 percent, an improvement over first half results, and significantly outperformed the industry in the quarter. Broadcasting advertising revenues declined 31 percent, primarily due to lower automotive spending along with weakness in the Phoenix and Las Vegas markets.

Meredith continues to execute its performance improvement plan, which was put in place at the end of fiscal 2008 and emphasizes (1) gaining market share; (2) growing new revenue streams; and (3) aggressively reducing costs and debt. Meredith experienced success against this plan in the quarter as evidenced by:

    --  Meredith's total share of magazine advertising increased to 11.1
        percent from 9.4 percent, according to Publishers Information Bureau.
        Additionally, magazine subscription profitability grew and traffic
        rose across the Publishing Group's Websites.  Viewership at Meredith's
        television stations also made strong gains in the recently completed
        March sweeps.
    --  Retransmission revenues doubled, and revenues at Meredith Integrated
        Marketing and Meredith Video Solutions grew as well.
    --  Meredith's total operating costs declined 6 percent in the third
        quarter, despite a 7 percent increase in paper prices over the
        prior-year period.

    --  Meredith generated $56 million in cash flow from operations and
        increased cash and cash equivalents by $41 million.

"The plan we proactively put in place nearly one year ago is yielding improving results across many of our businesses," said Meredith President and CEO Stephen M. Lacy. "Additionally, our careful and conservative financial management allowed us to raise our dividend 5 percent during the third quarter and further strengthen our balance sheet. We will eliminate approximately $100 million, or 20 percent, of our debt in fiscal 2009, and we continue to be well-positioned to make further investments in our business as strategic opportunities arise."


    OPERATING RESULTS

    Publishing

For the fiscal 2009 third quarter, Publishing operating profit was $48 million and revenues were $280 million. This compares to operating profit of $64 million and revenues of $315 million in the prior year. Advertising revenues were $132 million, versus $150 million in the prior year. Net advertising revenues per page were down 1 percent from the prior-year period.

For the first nine months of fiscal 2009, Publishing operating profit was $105 million, or $111 million excluding the special charge, and revenues were $851 million. This compares to operating profit of $164 million and revenues of $936 million in the prior year. Advertising revenues were $397 million, versus $472 million in the prior year. Net advertising revenues per page were up slightly from the prior-year period.

Publishing operating costs declined approximately 7 percent in the third quarter, and 4 percent for the first nine months of fiscal 2009, compared to the respective prior-year periods.

Advertising performance in seven of Meredith's Top 10 categories improved in the third quarter over the first half of fiscal 2009, including food and beverage, prescription and non-prescription drugs, and household supplies. Lacy credited the ongoing initiative to gain market share for the improved performance. "We are seeing stabilization and some improvement in magazine advertising compared to the first half of fiscal 2009," Lacy said. "We expect this trend to continue into the fourth quarter as well."

Both profit contribution and related margin in Meredith's subscription activities increased in the quarter. Meredith's total circulation revenues declined 12 percent, primarily a result of fewer Special Interest Media titles published and continued soft retail sales. Subscription revenues declined 1 percent.

Meredith Interactive Media advertising revenues increased 7 percent in the third quarter, as clients and consumers alike responded positively to the launch of the Meredith Women's Network. Monthly unique visitors increased to approximately 15 million, and page views per month averaged nearly 170 million, an increase of 25 percent.

Meredith Integrated Marketing operating profit increased approximately 10 percent in the third quarter, driven by new business won in the past year, including Kraft's Food & Family custom marketing program, and growth from recent digital acquisitions.

Brand Licensing continued to benefit from the expansion of the Better Homes and Gardens line of home and garden-related products at Wal-Mart Stores Inc. across the country. Wal-Mart plans to nearly double the number of these products available for sale in calendar 2009 to approximately 1,000 SKUs.

"Our national consumer brands continue to demonstrate powerful and enduring appeal to consumers and advertisers alike across multiple platforms, be it print, online or brand licensing at retail," Lacy said.

Broadcasting

For the fiscal 2009 third quarter, Broadcasting operating profit was $1.3 million and revenues were $57 million. This compares to operating profit of $19 million and revenues of $78 million in the prior year period.

For the first nine months of fiscal 2009, Broadcasting operating profit was $34 million, or $36 million excluding the special charge, and revenues were $212 million. This compares to operating profit of $60 million and revenues of $240 million in the prior year period.

Broadcasting operating costs declined 5 percent in the third quarter, and 1 percent for the first nine months of fiscal 2009, compared to the respective prior-year periods. To further reduce expenses and improve efficiencies, Meredith is implementing a plan to centralize certain functions - including master control, traffic and research - across its television stations.

Broadcasting advertising revenues were down 31 percent in the third quarter, led by a significant decline in automotive. However, advertising revenues improved from when Meredith provided its outlook in late January.

To enhance local market performance, Meredith continues to focus on growing and monetizing viewership ratings. "We were pleased to see most of our television stations post stronger ratings during the recently completed March sweeps," said Lacy. "These ratings gains are key to commanding higher revenues for advertising spots in the future."

    Highlights from the March sweeps included:
    --  Viewership gains in late news across most of Meredith's stations,
        including Phoenix (+60%), Greenville (+22%), Atlanta (+20%), Hartford
        (+18%), Las Vegas (+14%) and Kansas City (+14%).
    --  Viewership gains during the morning news in Atlanta (+100%), Kansas
        City (+27%), Las Vegas (+19%) and Greenville (+10%).

    --  Additionally, Meredith's powerhouse Hartford CBS station continued its
        market leadership across all news periods, and its Nashville NBC
        affiliate ranked #1 in all three evening newscasts.

Meredith continued to emphasize other new revenue streams including retransmission fees and Meredith Video Solutions, its in-house video production unit. Revenues from retransmission agreements more than doubled in the fiscal third quarter compared to the year-ago period. Meredith has successfully completed new retransmission agreements with six of seven major cable operators in its markets.

OTHER FINANCIAL INFORMATION

Meredith generated $56 million in cash flow from operations during the fiscal third quarter of 2009 and $139 million during the first nine months of fiscal 2009.

Meredith's total debt was $455 million at March 31, 2009, $30 million less than the prior fiscal year end. Cash and cash equivalents were $74 million, $37 million greater than the prior fiscal year end. The weighted average interest rate on debt was approximately 4.5 percent as of March 31, 2009. Meredith's debt-to-EBITDA ratio was well under existing debt covenants at a conservative 1.9 to 1.

During the third quarter of fiscal 2009, Meredith reclassified the results of Country Home to discontinued operations. 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 be impacted by the recession.

In Publishing, with two of the quarter's three magazine issues closed, fiscal 2009 fourth quarter advertising revenues are expected to be down approximately 12 percent.

In Broadcasting, with nine weeks left in the fourth quarter of fiscal 2009, advertising pacings are down 32 percent. In the third quarter of fiscal 2009, with nine weeks left to go, pacings were down 40 percent.

Currently, Meredith expects fiscal fourth quarter earnings per share to range from $0.52 to $0.57. Full year fiscal 2009 earnings per share from continuing operations are expected to range from $2.00 to $2.05, excluding the special charge taken in the fiscal second quarter.

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

A number of uncertainties remain that may affect Meredith's outlook for results in the fourth 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 April 29, 2009, at 9:30 a.m. EDT (8:30 a.m. CDT) to discuss fiscal third quarter results. A live webcast will be accessible to the public on the company's Web site, 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 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 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 fourth 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: 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 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. 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.



    Meredith Corporation and Subsidiaries
    Consolidated Statements of Earnings (Unaudited)

                                   -------------         ------------
                                   Three Months          Nine Months
                                   -------------         ------------
    Period Ended March 31,         2009      2008       2009       2008
    ----------------------         ----      ----       ----       ----
    (In thousands except per
     share data)
    Revenues
    Advertising                $184,182  $225,367   $597,808   $708,082
    Circulation                  72,869    83,236    211,086    231,105
    All other                    80,543    83,675    254,054    236,986
    ---------                    ------    ------    -------    -------
      Total revenues            337,594   392,278  1,062,948  1,176,173
      --------------            -------   -------  ---------  ---------
    Operating expenses
    Production,
     distribution, and
     editorial                  159,197   166,822    491,618    501,271
    Selling, general, and
     administrative             124,323   135,638    421,523    435,962
    Depreciation and
     amortization                10,714    11,852     32,346     35,986
    ----------------             ------    ------     ------     ------
      Total operating expenses  294,234   314,312    945,487    973,219
      ------------------------  -------   -------    -------    -------
    Income from operations       43,360    77,966    117,461    202,954
    Interest income                 121       250        348        898
    Interest expense             (4,911)   (5,387)   (15,698)   (17,284)
    ----------------             ------    ------    -------    -------
      Earnings from
       continuing
       operations before
       income taxes              38,570    72,829    102,111    186,568
    Income taxes                 13,696    26,647     40,766     72,157
    ------------                 ------    ------     ------     ------
    Earnings from continuing
     operations                  24,874    46,182     61,345    114,411
    Income (loss) from
     discontinued
     operations, net of
     taxes                          554       (98)    (4,737)     1,102
    -------------------             ---       ---     ------      -----
    Net earnings                $25,428   $46,084    $56,608   $115,513
    ------------                -------   -------    -------   --------

    Basic earnings per share
    Earnings from continuing
     operations                   $0.55     $0.99      $1.36      $2.42
    Discontinued operations        0.01         -      (0.11)      0.02
    -----------------------        ----         -      -----       ----
    Basic earnings per share      $0.56     $0.99      $1.25      $2.44
    ------------------------      -----     -----      -----      -----
    Basic average shares
     outstanding                 44,961    46,672     45,051     47,251
    --------------------         ------    ------     ------     ------

    Diluted earnings
     per share
    Earnings from continuing
     operations                   $0.55     $0.97      $1.36      $2.38
    Discontinued operations        0.01         -      (0.11)      0.02
    -----------------------        ----         -      -----       ----
    Diluted earnings
     per share                    $0.56     $0.97      $1.25      $2.40
    ----------------              -----     -----      -----      -----
    Diluted average shares
     outstanding                 45,092    47,420     45,177     48,175
    ----------------------       ------    ------     ------     ------

    Dividends paid per share     $0.225    $0.215     $0.655     $0.585
    ------------------------     ------    ------     ------     ------



    Meredith Corporation and Subsidiaries
    Segment Information - Unaudited

                               ------------           -----------
                               Three Months           Nine Months
                               ------------           -----------
    Period Ended March
     31,                      2009      2008        2009        2008
    ------------------        ----      ----        ----        ----
    (In thousands)
    Revenues
    Publishing            $280,320  $314,732    $850,895    $936,439
    Broadcasting
       Non-political
        advertising         51,778    74,016     178,143     231,676
       Political
        advertising            245     1,432      23,121       3,940
       Other revenues        5,251     2,098      10,789       4,118
    -----------------        -----     -----      ------       -----
        Total broadcasting  57,274    77,546     212,053     239,734
    --------------------    ------    ------     -------     -------
    Total revenues        $337,594  $392,278  $1,062,948  $1,176,173
    --------------        --------  --------  ----------  ----------

    Operating profits
    Publishing             $47,971   $64,309    $105,069    $163,513
    Broadcasting             1,348    18,689      34,373      59,830
    Unallocated
     corporate              (5,959)   (5,032)    (21,981)    (20,389)
    -----------             ------    ------     -------     -------
    Income from
     operations            $43,360   $77,966    $117,461    $202,954
    -----------            -------   -------    --------    --------

    Depreciation and
     amortization
    Publishing              $3,789    $5,088     $11,843     $15,584
    Broadcasting             6,471     6,262      18,988      18,969
    Unallocated
     corporate                 454       502       1,515       1,433
    -----------                ---       ---       -----       -----
    Total depreciation
     and amortization      $10,714   $11,852     $32,346     $35,986
    ------------------     -------   -------     -------     -------

    EBITDA(1)
    Publishing             $51,760   $69,397    $116,912    $179,097
    Broadcasting             7,819    24,951      53,361      78,799
    Unallocated
     corporate              (5,505)   (4,530)    (20,466)    (18,956)
    -----------             ------    ------     -------     -------
    Total EBITDA(1)           $54,074   $89,818    $149,807    $238,940
    ------------           -------   -------    --------    --------

    (1) EBITDA is earnings from continuing operations before interest,
        taxes, depreciation, and amortization.



    Meredith Corporation and Subsidiaries
    Condensed Consolidated Balance Sheets (Unaudited)

                                                     -----------  ----------
                                                      March 31,    June 30,
    Assets                                               2009        2008
    ------                                               ----        ----
    (In thousands)
    Current assets
    Cash and cash equivalents                         $74,396     $37,644
    Accounts receivable, net                          210,539     230,978
    Inventories                                        31,629      44,085
    Current portion of subscription acquisition
     costs                                             60,611      59,939
    Current portion of broadcast rights                12,692      10,779
    Other current assets                               17,280      19,665
    --------------------                               ------      ------
    Total current assets                              407,147     403,090
    --------------------                              -------     -------
    Property, plant, and equipment                    453,568     446,935
    Less accumulated depreciation                    (259,304)   (247,147)
    -----------------------------                    --------    --------
    Net property, plant, and equipment                194,264     199,788
    Subscription acquisition costs                     59,234      60,958
    Broadcast rights                                    5,614       7,826
    Other assets                                       73,080      74,472
    Intangible assets, net                            774,913     781,154
    Goodwill                                          531,191     532,332
    --------                                          -------     -------
    Total assets                                   $2,045,443  $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                                    14,635      11,141
    Accounts payable                                   63,940      79,028
    Accrued expenses and other liabilities             91,968     102,707
    Current portion of unearned subscription
     revenues                                         173,522     175,261
    ----------------------------------------          -------     -------
    Total current liabilities                         474,065     443,137
    Long-term debt                                    325,000     410,000
    Long-term broadcast rights payable                 13,709      17,186
    Unearned subscription revenues                    153,384     157,872
    Deferred income taxes                             174,469     139,598
    Other noncurrent liabilities                      103,626     103,972
    ----------------------------                      -------     -------
    Total liabilities                               1,244,253   1,271,765
    -----------------                               ---------   ---------
    Shareholders' equity
    Common stock                                       35,850      36,295
    Class B stock                                       9,149       9,181
    Additional paid-in capital                         52,522      52,693
    Retained earnings                                 715,546     701,205
    Accumulated other comprehensive loss              (11,877)    (11,519)
    ------------------------------------              -------     -------
    Total shareholders' equity                        801,190     787,855
    --------------------------                        -------     -------
    Total liabilities and shareholders' equity     $2,045,443  $2,059,620
    ------------------------------------------     ----------  ----------



    Meredith Corporation and Subsidiaries
    Condensed Consolidated Statements of Cash Flows (Unaudited)


    ---------------------------                    ----      ----
    Nine Months Ended March 31,                    2009      2008
    ---------------------------                    ----      ----
    (In thousands)
    Net cash provided by operating activities  $138,611  $206,371
    -----------------------------------------  --------  --------

    Cash flows from investing activities
      Acquisitions of businesses                 (6,118)  (16,525)
      Additions to property, plant, and
       equipment                                (18,642)  (15,412)
      Proceeds from dispositions of assets          636         -
      ------------------------------------          ---         -
    Net cash used in investing activities       (24,124)  (31,937)
    --------------------------------------      -------   -------

    Cash flows from financing activities
      Proceeds from issuance of long-term debt  120,000   120,000
      Repayments of long-term debt             (150,000) (150,000)
      Purchases of Company stock                (21,763) (123,827)
      Dividends paid                            (29,573)  (27,659)
      Proceeds from common stock issued           3,178    13,218
      Excess tax benefits from share-based
       payments                                     673       205
      Other                                        (250)     (113)
      -----                                        ----      ----
    Net cash used in financing activities       (77,735) (168,176)
    --------------------------------------      -------  --------
    Net increase in cash and cash equivalents    36,752     6,258
    Cash and cash equivalents at beginning of
     period                                      37,644    39,220
    -----------------------------------------    ------    ------
    Cash and cash equivalents at end of period  $74,396   $45,478
    ------------------------------------------  -------   -------



    Meredith Corporation and Subsidiaries                         Table 1
    Supplemental Disclosures Regarding Non-GAAP Financial Measures

    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 March 31, 2009                  Nine Months
    ---------------------------                  ------------
                                      Excluding
                                       Special                      As
                                        Charge   Special Charge   Reported
    -----------------------           ---------  --------------  ---------
    (In thousands except per
     share data)
    Revenues
    Advertising                        $597,808         $-       $597,808
    Circulation                         211,086          -        211,086
    All other                           254,054          -        254,054
    ---------                           -------          -        -------
      Total revenues                  1,062,948          -      1,062,948
      --------------                  ---------          -      ---------
    Operating expenses
    Production, distribution,
     and editorial                      491,618          -        491,618
    Selling, general, and
     administrative                     412,490      9,033  (a)   421,523
    Depreciation and amortization        32,346          -         32,346
    -----------------------------        ------          -         ------
      Total operating expenses          936,454      9,033        945,487
      ------------------------          -------      -----        -------
    Income from operations              126,494     (9,033)       117,461
    Interest income                         348          -            348
    Interest expense                    (15,698)         -        (15,698)
    ----------------                    -------          -        -------
      Earnings before income taxes      111,144     (9,033)       102,111
    Income taxes                         44,288     (3,522)        40,766
    ------------                         ------     ------         ------
    Earnings from continuing
     operations                          66,856     (5,511)        61,345
    Loss from discontinued
     operations, net of taxes              (613)    (4,124) (b)    (4,737)
    -------------------------              ----     ------         ------
    Net earnings                        $66,243    $(9,635)       $56,608
    ------------                        -------    -------        -------

    Basic earnings per share
    Earnings from continuing
     operations                           $1.48     $(0.12)         $1.36
    Discontinued operations               (0.02)     (0.09)         (0.11)
    -----------------------               -----      -----          -----
    Basic earnings per share              $1.46     $(0.21)         $1.25
    ------------------------              -----     ------          -----
    Basic average shares outstanding     45,051     45,051         45,051
    --------------------------------     ------     ------         ------

    Diluted earnings per share
    Earnings from continuing
     operations                           $1.48     $(0.12)         $1.36
    Discontinued operations               (0.02)     (0.09)         (0.11)
    -----------------------               -----      -----          -----
    Diluted earnings per share            $1.46     $(0.21)         $1.25
    --------------------------            -----     ------          -----
    Diluted average shares
     outstanding                         45,177     45,177         45,177
    ----------------------               ------     ------         ------

    Notes
    (a) Severance expense
    (b) Severance expense and the write-down of art and manuscript inventory
        and subscription acquisition costs, net of taxes



    Meredith Corporation and Subsidiaries                       Table 2
    Segment Information (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 March 31, 2009                Nine Months
    ---------------------------                ------------
                                   Excluding
                                    Special
                                     Charge   Special Charge  As Reported
    -------------                  ---------  --------------  -----------
    (In thousands)
    Revenues
    Publishing                      $850,895         $-        $850,895
    Broadcasting
       Non-political advertising     178,143          -         178,143
       Political advertising          23,121          -          23,121
       Other revenues                 10,789          -          10,789
    -----------------                 ------          -          ------
        Total broadcasting           212,053          -         212,053
        ------------------           -------          -         -------
    Total revenues                $1,062,948         $-      $1,062,948
    --------------                ----------         --      ----------

    Operating profit
    Publishing                      $111,109    $(6,040) (a)   $105,069
    Broadcasting                      36,386     (2,013) (b)     34,373
    Unallocated corporate            (21,001)      (980) (c)    (21,981)
    ----------------------           -------       ----         -------
    Income from operations          $126,494    $(9,033)       $117,461
    ----------------------          --------    -------        --------

    Depreciation and amortization
    Publishing                       $11,843         $-         $11,843
    Broadcasting                      18,988          -          18,988
    Unallocated corporate              1,515          -           1,515
    ----------------------             -----          -           -----
    Total depreciation and
     amortization                    $32,346         $-         $32,346
    ----------------------           -------         --         -------

    EBITDA(1)
    Publishing                      $122,952    $(6,040)       $116,912
    Broadcasting                      55,374     (2,013)         53,361
    Unallocated corporate            (19,486)      (980)        (20,466)
    ----------------------           -------       ----         -------
    Total EBITDA(1)                 $158,840    $(9,033)       $149,807
    -------------                   --------    -------        --------

    (1) EBITDA is earnings from continuing operations before interest, taxes,
        depreciation, and amortization.

    Notes
    (a) 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

    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 March 31, 2009
                                   ---------------------------------
                                                     Unallocated
                          Publishing  Broadcasting    Corporate      Total
    -------------         ----------  ------------   -----------     -----
    (In thousands)
    Revenues                $280,320       $57,274            $-    $337,594
                            --------       -------            --    --------

    Operating profit         $47,971        $1,348       $(5,959)    $43,360
    Depreciation and
     amortization              3,789         6,471           454      10,714
                               -----         -----           ---
    EBITDA                   $51,760        $7,819       $(5,505)     54,074
                             -------        ------       -------
    Less:
    Depreciation and
     amortization                                                    (10,714)
    Net interest expense                                              (4,790)
    Income taxes                                                     (13,696)
                                                                     -------
    Earnings from
     continuing
     operations                                                      $24,874
                                                                     -------

    Segment EBITDA margin       18.5%         13.7%
                                ----          ----


                                   --------------------------------
                                   Nine Months Ended March 31, 2009
                                   --------------------------------
                                                     Unallocated
                          Publishing  Broadcasting    Corporate      Total
    -------------         ----------  ------------   -----------     -----
    (In thousands)
    Revenues                $850,895      $212,053            $-  $1,062,948
                            --------      --------            --  ----------

    Operating profit        $105,069       $34,373      $(21,981)   $117,461
    Depreciation and
     amortization             11,843        18,988         1,515      32,346
                              ------        ------         -----
    EBITDA                  $116,912       $53,361      $(20,466)    149,807
                            --------       -------      --------
    Less:
    Depreciation and
     amortization                                                    (32,346)
    Net interest
     expense                                                         (15,350)
    Income taxes                                                     (40,766)
                                                                     -------
    Earnings from
     continuing
     operations                                                      $61,345
                                                                     -------

    Segment EBITDA margin       13.7%         25.2%
                                ----          ----




                              ---------------------------------
                              Three Months Ended March 31, 2008
                              ---------------------------------
                                                Unallocated
                     Publishing  Broadcasting    Corporate      Total
    -------------    ----------  ------------   -----------     -----
    (In thousands)
    Revenues           $314,732       $77,546            $-    $392,278
                       --------       -------            --    --------

    Operating profit    $64,309       $18,689       $(5,032)    $77,966
    Depreciation and
     amortization         5,088         6,262           502      11,852
                          -----         -----           ---
    EBITDA              $69,397       $24,951       $(4,530)     89,818
                        -------       -------       -------
    Less:
    Depreciation and
     amortization                                               (11,852)
    Net interest
     expense                                                     (5,137)
    Income taxes                                                (26,647)
                                                                -------
    Earnings from
     continuing
     operations                                                 $46,182
                                                                -------

    Segment EBITDA
     margin                22.0%         32.2%
    --------------         ----          ----



                              Nine Months Ended March 31, 2008
                              --------------------------------
                                                Unallocated
                     Publishing  Broadcasting    Corporate      Total
    -------------    ----------  ------------   -----------     -----
    (In thousands)
    Revenues           $936,439      $239,734            $-  $1,176,173
                       --------      --------            --  ----------

    Operating profit   $163,513       $59,830      $(20,389)   $202,954
    Depreciation and
     amortization        15,584        18,969         1,433      35,986
                         ------        ------         -----
    EBITDA             $179,097       $78,799      $(18,956)    238,940
                       --------       -------      --------
    Less:
    Depreciation and
     amortization                                               (35,986)
    Net interest
     expense                                                    (16,386)
    Income taxes                                                (72,157)
                                                                -------
    Earnings from
     continuing
     operations                                                $114,411
                                                               --------

    Segment EBITDA
     margin                19.1%         32.9%
    --------------         ----          ----



                                                                  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       Nine Months
                               ------------       -----------
    Period Ended March 31,      2009     2008     2009      2008
    -----------------------     ----     ----     ----      ----
    (In thousands)
    Free cash flow           $32,131  $52,832  $75,049  $134,985
    Depreciation and
     amortization            (10,714) (11,852) (32,346)  (35,986)
    Capital expenditures       3,457    5,202   18,642    15,412
    --------------------       -----    -----   ------    ------
    Earnings from
     continuing operations   $24,874  $46,182  $61,345  $114,411
    ----------------------   -------  -------  -------  --------




SOURCE: Meredith Corporation - 04/29/2009

CONTACT: Analyst, 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,
all of Meredith Corporation
Web Site: http://www.meredith.com
(MDP)

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