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Gannett Co., Inc. Releases June Statistical Report

MCLEAN, Va.--(BUSINESS WIRE)--July 16, 2008--Gannett Co., Inc. (NYSE:GCI) reported today that total pro forma operating revenues for the sixth period ended June 29, 2008 declined 12.1 percent compared with the same period in 2007. For comparison purposes, the exchange rate of the British pound decreased slightly compared to last year. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have been 12.0 percent lower.

June

Publishing advertising revenues in June were down 16.3 percent compared with the same period a year ago. On a constant currency basis publishing advertising revenues would have declined 16.1 percent.

Retail advertising revenues declined 9.6 percent in June. In the U.S., across all products, the decline was led by softness in the department stores, furniture and telecommunications categories.

Classified revenues were down 21.6 percent in the sixth period. Real estate revenues declined 33.9 percent, employment revenues were 25.6 percent lower and automotive revenues were down 13.9 percent. On a constant currency basis, real estate revenues would have declined 33.7 percent, employment revenues would have been down 25.4 percent and automotive revenues would have been 13.7 percent lower. For U.S. community publishing, classified revenues were 22.5 percent lower in the sixth period comprised of declines of 31.4 percent in real estate revenues, 30.4 percent in employment revenues and 13.3 percent in automotive revenues. Classified revenues at our operations in the UK were 19.3 percent lower, in pounds, reflecting declines of 36.8 percent in real estate, 17.3 percent in employment and 14.9 percent in automotive.

National advertising revenues for the sixth period were down 19.4 percent. At USA TODAY, advertising revenues were 26.5 percent lower on paid ad pages of 236 versus 329 last year. At USA TODAY, the travel, advocacy and restaurant categories were positive in the sixth period while the entertainment, automotive, technology, financial, home and building and telecommunications categories lagged last year.

Broadcasting revenues, which include Captivate, declined 7.9 percent. Television revenues were 8.1 percent lower in the period as local and national revenues were down 10.8 percent and 8.5 percent, respectively.

Second Quarter

For the second quarter of 2008, total pro forma operating revenues were 10.1 percent lower and would have declined 10.0 percent on a constant currency basis.

Publishing advertising revenues for the quarter declined 13.5 percent. Retail advertising revenues were down 8.3 percent. Classified revenues were 18.7 percent lower for the quarter. Real estate revenues declined 29.5 percent, employment revenues were down 23.2 percent and automotive revenues declined 13.4 percent. Classified revenues were 21.0 percent lower for U.S. community publishing comprised of declines of 30.4 percent in real estate, 28.9 percent in employment and 11.6 percent in automotive revenues. Classified revenues in the UK, in pounds, were 13.8 percent lower in the quarter. Real estate revenues were 27.5 percent lower, employment revenues were down 10.7 percent and automotive revenues declined 18.7 percent.

National advertising revenues were 14.0 percent lower for the quarter. At USA TODAY, advertising revenues were down 16.6 percent. Paid advertising pages totaled 831 compared with 1,034 in the year-ago period.

Broadcasting revenues declined 5.9 percent and television revenues were 6.5 percent lower in the quarter. Significantly higher politically related advertising was offset by softness in other categories, particularly automotive. Based on where we are today, we would expect television revenues for the third quarter to be up in the mid to high single digits.

In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for June from Nielsen//Net Ratings. In June, Gannett's domestic Web sites had 23.1 million unique visitors reaching 14.1 percent of the Internet audience.

On May 7, 2007, the company completed its sale of the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV. In addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21, 2007. The revenue and statistical data related to these properties has been excluded from all periods presented.

To conform with current year presentation, the company's equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have been reclassified from "Other revenue" and are reflected in a separate line in the Non-Operating section of the Statement of Income titled "Equity income (losses) in unconsolidated investees, net." Other revenue is now comprised principally of commercial printing revenues and revenue from PointRoll.

Circulation volume numbers for Newsquest's paid daily newspapers are included in the enclosed statistics, but volume from unpaid daily and non-daily publications is not included in the circulation volume statistics.

Gannett Co., Inc. is a leading international news and information company that publishes 85 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 900 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom's second largest regional newspaper company. Newsquest publishes nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.

Certain statements in this press release may be forward looking in nature or "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company's SEC reports, including the company's annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.

Gannett is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this press release by wire services, Internet service providers or other media.


                          GANNETT CO., INC.
                    REVENUE & STATISTICAL SUMMARY



                         Period 6 (June 2, 2008 - June 29, 2008)
                                                                  %
                        2008           2007          CHANGE     CHANGE
REVENUES:
Advertising:
   Retail          $  156,982,000 $  173,624,000 $ (16,642,000)  (9.6)
   National            49,796,000     61,748,000   (11,952,000) (19.4)
   Classified         143,508,000    183,020,000   (39,512,000) (21.6)
                    -------------  -------------  ------------- ------
   Total
    Advertising    $  350,286,000 $  418,392,000 $ (68,106,000) (16.3)

   Circulation         98,291,000    100,768,000    (2,477,000)  (2.5)
   Other revenue       37,208,000     36,499,000       709,000    1.9
   Broadcasting        56,511,000     61,371,000    (4,860,000)  (7.9)
                    -------------  -------------  ------------- ------

      Total
       Revenue     $  542,296,000 $  617,030,000 $ (74,734,000) (12.1)
                    -------------  -------------  ------------- ------


NET PAID
 CIRCULATION:
   Morning
    (w/USAT)            6,642,464      6,898,926      (256,462)  (3.7)
   Evening                425,407        453,763       (28,356)  (6.2)
                    -------------  -------------  ------------- ------

      Total Daily       7,067,871      7,352,689      (284,818)  (3.9)
                    -------------  -------------  ------------- ------

   Sunday               5,440,043      5,706,078      (266,035)  (4.7)
                    -------------  -------------  ------------- ------



                           Year-to-Date through June 29, 2008
                                                                  %
                        2008           2007          CHANGE     CHANGE
REVENUES:
Advertising:
   Retail          $  984,219,000 $1,070,451,000 $ (86,232,000)  (8.1)
   National           343,752,000    371,204,000   (27,452,000)  (7.4)
   Classified         877,113,000  1,061,662,000  (184,549,000) (17.4)
                    -------------  -------------  ------------- ------
   Total
    Advertising    $2,205,084,000 $2,503,317,000 $(298,233,000) (11.9)

   Circulation        615,172,000    630,040,000   (14,868,000)  (2.4)
   Other revenue      210,287,000    219,966,000    (9,679,000)  (4.4)
   Broadcasting       362,748,000    387,725,000   (24,977,000)  (6.4)
                    -------------  -------------  ------------- ------

      Total
       Revenue     $3,393,291,000 $3,741,048,000 $(347,757,000)  (9.3)
                    -------------  -------------  ------------- ------


NET PAID
 CIRCULATION:
   Morning
    (w/USAT)            6,854,222      7,166,226      (312,004)  (4.4)
   Evening                442,687        469,370       (26,683)  (5.7)
                    -------------  -------------  ------------- ------

      Total Daily       7,296,909      7,635,596      (338,687)  (4.4)
                    -------------  -------------  ------------- ------

   Sunday               5,606,260      5,917,198      (310,938)  (5.3)
                    -------------  -------------  ------------- ------


Note: To conform with current year presentation, the company's equity
       share of operating results for 2007 from its newspaper
       partnerships, including Tucson, which participates in a joint
       operating agency, the California Newspapers Partnership and the
       Texas-New Mexico Newspapers Partnership have been reclassified
       from "Other revenue" above and are reflected in a separate line
       in the Non-Operating section of the Statement of Income (Loss)
       titled "Equity income (losses) in unconsolidated investees,
       net." Other revenue is now comprised principally of commercial
       printing revenues and revenue from PointRoll.

      The above revenue amounts and statistics have been restated to
       include all companies presently owned. In May 2007, Gannett
       sold the Norwich (CT) Bulletin, the Rockford (IL) Register
       Star, the Observer-Dispatch in Utica, NY and The Herald-
       Dispatch in Huntington, WV. In May 2007, Gannett contributed
       the Chronicle-Tribune in Marion, IN to the Gannett Foundation.
       All revenue amounts and statistics related to the sold and
       donated properties are excluded from all periods presented.

      Circulation volume statistics from the company's newspaper in
       Tucson, which participates in a joint operating agency, are
       included above.

      Newsquest is a regional newspaper publisher in the United
       Kingdom with nearly 300 titles, including paid and unpaid daily
       and non-daily products. Circulation volume statistics for
       Newsquest's 17 paid-for daily newspapers are included above.
       Circulation volume statistics for the Sunday Herald are
       included above in the Sunday statistics. Circulation volume
       statistics for Newsquest's unpaid daily and non-daily
       publications are not reflected above.

      Circulation volume statistics for non-daily products, including
       Gannett Healthcare Group and Clipper Magazine are not reflected
       above.

      Effective Period 5, 2008, due to certain changes in delivery
       times, Gannett has reclassified some net paid circulation
       figures from evening to morning. All prior periods have been
       restated to conform to the new classification.


                          GANNETT CO., INC.
                    REVENUE & STATISTICAL SUMMARY

          2nd Quarter 2008 (March 31, 2008 - June 29, 2008)
                                                                  %
                        2008           2007          CHANGE     CHANGE
REVENUES:
Advertising:
      Retail       $  505,196,000 $  551,162,000 $ (45,966,000)  (8.3)
      National        168,934,000    196,364,000   (27,430,000) (14.0)
      Classified      434,060,000    534,166,000  (100,106,000) (18.7)
                    -------------  -------------  ------------- ------
   Total
    Advertising    $1,108,190,000 $1,281,692,000 $(173,502,000) (13.5)

   Circulation        305,994,000    312,434,000    (6,440,000)  (2.1)
   Other revenue      110,807,000    112,436,000    (1,629,000)  (1.4)
   Broadcasting       192,568,000    204,666,000   (12,098,000)  (5.9)
                    -------------  -------------  ------------- ------

      Total
       Revenue     $1,717,559,000 $1,911,228,000 $(193,669,000) (10.1)
                    -------------  -------------  ------------- ------



NET PAID
 CIRCULATION:
   Morning
    (w/USAT)            6,827,566      7,088,188      (260,622)  (3.7)
   Evening                437,353        464,728       (27,375)  (5.9)
                    -------------  -------------  ------------- ------

      Total Daily       7,264,919      7,552,916      (287,997)  (3.8)
                    -------------  -------------  ------------- ------

   Sunday               5,535,334      5,804,055      (268,721)  (4.6)
                    -------------  -------------  ------------- ------


Note: To conform with current year presentation, the company's equity
       share of operating results for 2007 from its newspaper
       partnerships, including Tucson, which participates in a joint
       operating agency, the California Newspapers Partnership and the
       Texas-New Mexico Newspapers Partnership have been reclassified
       from "Other revenue" above and are reflected in a separate line
       in the Non-Operating section of the Statement of Income (Loss)
       titled "Equity income (losses) in unconsolidated investees,
       net." Other revenue is now comprised principally of commercial
       printing revenues and revenue from PointRoll.

      The above revenue amounts and statistics have been restated to
       include all companies presently owned. In May 2007, Gannett
       sold the Norwich (CT) Bulletin, the Rockford (IL) Register
       Star, the Observer-Dispatch in Utica, NY and The Herald-
       Dispatch in Huntington, WV. In May 2007, Gannett contributed
       the Chronicle-Tribune in Marion, IN to the Gannett Foundation.
       All revenue amounts and statistics related to the sold and
       donated properties are excluded from all periods presented.

      Circulation volume statistics from the company's newspaper in
       Tucson, which participates in a joint operating agency, are
       included above.

      Newsquest is a regional newspaper publisher in the United
       Kingdom with nearly 300 titles, including paid and unpaid daily
       and non-daily products. Circulation volume statistics for
       Newsquest's 17 paid-for daily newspapers are included above.
       Circulation volume statistics for the Sunday Herald are
       included above in the Sunday statistics. Circulation volume
       statistics for Newsquest's unpaid daily and non-daily
       publications are not reflected above.

      Circulation volume statistics for non-daily products, including
       Gannett Healthcare Group and Clipper Magazine are not reflected
       above.

      Effective Period 5, 2008, due to certain changes in delivery
       times, Gannett has reclassified some net paid circulation
       figures from evening to morning. All prior periods have been
       restated to conform to the new classification.


                   Gannett Online Internet Audience
                              June 2008



Nielsen//Net Ratings
---------------------

Home/Work Panel Combined

                                  Unique Visitors  Percentage Reach of
                                     Per Month      Internet Audience
                                  ---------------  -------------------

Gannett Online                      23,076,000            14.1%

CONTACT: Gannett Co., Inc.
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
SOURCE: Gannett Co., Inc.

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