Belo Announces Non-Cash Goodwill Impairment Charge

SEC declares Form 10 effective related to spin-off

DALLAS, Jan. 24 /PRNewswire-FirstCall/ -- Belo Corp. (NYSE: BLC) announced
today that the Company completed its annual impairment testing of goodwill and
other intangible assets using the methodology prescribed by Statement of
Financial Accounting Standards No. 142. As a result of the testing, the
Company will incur a total non-cash charge to goodwill of approximately $370
million in the fourth quarter of 2007 related to goodwill impairment at The
Providence Journal, The Press-Enterprise in Riverside, CA and, to a lesser
extent, WHAS-TV in Louisville, which represents approximately $22 million of
the total charge. There is no tax effect related to the impairment charge and
the Company estimates the EPS impact to be approximately $3.60 per share.
Belo also announced today that the Securities and Exchange Commission has
declared A. H. Belo Corporation's (NYSE: AHC) information statement on Form 10
effective in connection with the planned spin-off of the Company's newspaper
businesses and related assets. The New York Stock Exchange began "when
issued" trading in the AHC Series A common stock yesterday.
As with similar impairment charges announced by several of Belo's peer
companies over the past two years, the impairment is a non-cash charge to
earnings, and it will not affect the Company's liquidity, cash flows from
operating activities or debt covenants, or have any impact on future
operations.
"Despite challenging industry conditions for all media companies, these
required goodwill impairment charges are not reflective of our positive view
of the value of Belo's underlying businesses," said Robert W. Decherd,
chairman and Chief Executive Officer. "We remain optimistic and encouraged
about the future success and value of our businesses -- both as to newspapers
and television."
About Belo
Belo Corp. is one of the nation's largest media companies with a
diversified group of market-leading television, newspaper, cable and
interactive media assets.
A Fortune 1000 company with 7,000 employees and approximately $1.6 billion
in annual revenues, Belo operates in some of America's most dynamic markets in
Texas, the Northwest, the Southwest, the Mid-Atlantic and Rhode Island. Belo
owns 20 television stations, six of which are in the 15 largest U.S. broadcast
markets. The Company also owns or operates six cable news stations and
manages one television station through a local marketing agreement. Belo's
daily newspapers are The Dallas Morning News, The Providence Journal, The
Press-Enterprise (Riverside, CA) and the Denton Record-Chronicle (Denton, TX).
The Company also publishes specialty publications targeting young adults, and
the fast-growing Hispanic market, including Quick and Al Dia in Dallas/Fort
Worth, and El D and La Prensa in Riverside. Belo operates more than 30 Web
sites associated with its operating companies. Additional information is
available at www.belo.com or by contacting Paul Fry, vice
president/Investor Relations & Corporate Communications, at 214-977-6835.
Statements in this communication concerning Belo's business outlook or
future economic performance, anticipated profitability, revenue, expenses,
dividends, capital expenditures, investments, future financings, or other
financial and non-financial items that are not historical facts, are
"forward-looking statements" as the term is defined under applicable federal
securities laws. Forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from those statements.
Such risks, uncertainties and factors include, but are not limited to,
uncertainties regarding the execution, timing, costs, consequences (including
tax consequences), and other effects of the spin-off of the newspaper business
of Belo; changes in capital market conditions and prospects, and other factors
such as changes in advertising demand, interest rates and newsprint prices;
newspaper circulation matters, including changes in readership patterns and
demography, and audits and related actions by the Audit Bureau of
Circulations; technological changes, including the transition to digital
television and the development of new systems to distribute television and
other audio-visual content; development of Internet commerce; industry cycles;
changes in pricing or other actions by competitors and suppliers; Federal
Communications Commission and other regulatory changes; adoption of new
accounting standards or changes in existing accounting standards by the
Financial Accounting Standards Board or other accounting standard-setting
bodies or authorities; the effects of Company acquisitions and dispositions;
general economic conditions; and significant armed conflict, as well as other
risks detailed in Belo's other public disclosures, and filings with the
Securities and Exchange Commission ("SEC") including the Annual Report on Form
10-K.
SOURCE Belo Corp.

Paul Fry, vice president|Investor Relations & Corporate Communications of Belo
Corp., +1-214-977-6835