Investor Relations - News Release

News Release

Gannett Executives Speak at the UBS Media and Communications Conference

NEW YORK--(BUSINESS WIRE)--Dec. 5, 2007--Gannett Co., Inc. (NYSE:GCI) executives at the UBS Media and Communications Conference today reported on the progress of the company's strategic and digital efforts. They also reviewed the company's 2008 outlook.

"Gannett is focused on achieving our strategic goal of becoming the digital destination for local news and information in all our markets," said Craig A. Dubow, chairman, president and chief executive officer of Gannett Co., Inc. "We have made dramatic changes in our operating structure, newsrooms, mindset and culture in a short time - all designed to implement this focused digital strategy. In all, it's been an exciting and challenging year at Gannett, despite the impact of the economy in our markets."

Sue Clark-Johnson, president of the Newspaper Division, said: "We can now serve multiple advertiser-desired audiences news and information on any platform and anytime they wish. The transformative strides we have made this year cannot be understated in their ability to position Gannett solidly in the new media space when the inevitable real estate turnaround occurs."

"In its 25th anniversary year, USA TODAY has stayed true to its roots and the result has been another increase in its circulation volume," said Craig Moon, president and publisher of USA TODAY. "As consumers continue to control and direct so much of the media experience in the 21st century, the USA TODAY brand with its heritage of including our readers in the conversation, is perfectly positioned to be the catalyst for conversation on the Internet."

"Our strong local news position, combined with a very favorable geographic footprint, should result in a record year of political advertising for the company in 2008. The Summer Olympics in Beijing also will be a big opportunity for Gannett," said Dave Lougee, president of Gannett Broadcasting. "In 2007, our digital businesses and online audiences grew in significant numbers. However, the year has been challenging as we were up against significant political and Olympic spending from 2006."

Gracia Martore, executive vice president and chief financial officer noted that company's operations in the UK had rebounded. The key real estate advertising category and online revenue growth were bright spots this year. Martore also reviewed the company's operating assumptions for 2008. The company expects earnings per share to be in the range consistent with many analysts' estimates of $1.26 to $1.29 for the fourth quarter of 2007.

Speeches by the Gannett executives will be available by Webcast for 30 days at www.gannett.com.

Attached to this release and posted on the company's Web site under Investor Relations are Gannett's operating assumptions for 2008.

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 1,000 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 18 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, including the operating assumptions for 2008, may be deemed "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the company's ability to obtain these results include, without limitation, the following factors: (a) increased consolidation among major retailers or other events which may adversely affect business operations of major customers and depress the level of local and national advertising; (b) an economic downturn in some or all of the company's principal newspaper or television markets leading to decreased circulation or local, national or classified advertising; (c) a decline in general newspaper readership and/or advertiser patterns as a result of competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (i) an increase in interest rates; (j) a weakening in the Sterling-to-U.S. dollar exchange rate; and (k) general economic, political and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are disclosed from time to time in the Company's current and periodic SEC reports. 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 these assumptions beyond the published date, or for changes made to the assumptions by wire services, Internet service providers or other media.

                          GANNETT CO., INC.
                     OPERATING ASSUMPTIONS - 2008

                 (Based on 52 weeks in 2007 and 2008)

NEWSPAPERS (Excluding USA TODAY, USA Weekend and Newsquest)

    A.      Newsprint

            1. Consumption is expected to be down in the low teens.
            2. Prices - Budgeted to be up single digits.

    B.      Other Expenses

            1. Total headcount will be down in the low single digits
             with a small reallocation of employees to online revenue
             and content generation.
            2. All other costs will decrease in the low single digits.


NEWSQUEST (in Sterling)

    A.      Total headcount will be down slightly.

    B.      Newsprint costs and prices are both expected to decline in
             the low to mid single digits.


USA TODAY

    A.      Advertising

            1. Rates will be up in the mid single digit range.

    B.      Newsprint

            1. Consumption is expected to be down in the mid single
             digits.
            2. Prices - Budgeted to be up in the single digits.

    C.      Other Expenses

            1. Total headcount will be down in the low single digits.


BROADCAST (Ex. Captivate)

    A.      Costs are expected to be up low single digits as revenues
             will benefit from Olympic and political ad spending.


CONSOLIDATED GANNETT (Including
 Acquisitions)

    A.      Capital Expenditures

            1. 2008 Plan                   $175,000,000
            2. 2007 Estimate               $170,000,000 - $175,000,000

    B.      Depreciation

            1. 2008 Plan                   $250,000,000
            2. 2007 Estimate               $249,000,000

    C.      Amortization of Intangibles (Goodwill and Other)

            1. 2008 Plan                   $34,600,000
            2. 2007 Estimate               $35,900,000

    D.      Benefit Costs

            1. Pension expense will be about flat with 2007.
            2. Health care costs will be up in the low single digits.

    E.      Interest Expense

            We expect our debt at the beginning of the year to be
             about $4.1 billion. For budget purposes only, we have
             assumed that all of our free cash flow will be used to
             pay down debt.

    F.      Tax Rate

            The tax rate for 2008 will be approximately 35.0%,
             depending on the mix of earnings.

    G.      Stock Based Compensation

            Stock based compensation expense will be in the $37
             million to $39 million pre-tax range.

Certain factors affecting forward-looking statements

CONTACT: Gannett Co., Inc.
For investor inquiries, contact:
Jeffrey Heinz
Director, Investor Relations
703-854-6917
or
For media inquiries, contact:
Tara Connell
Vice President of Corporate Communications
703-854-6049
SOURCE: Gannett Co., Inc.