Profile: Lee Enterprises, Incorporated (LEE)

Lee Enterprises, Incorporated, incorporated in 1950, is a provider of local news, information and advertising in primarily midsize markets, with 49 daily newspapers and a joint interest in four other online sites and nearly 300 weekly newspapers and specialty publications in 23 states. The Company owns Pulitzer Inc. (Pulitzer), which owns a 50% interest in TNI Partners (TNI). Pulitzer newspaper operations include St. Louis, Missouri, where its subsidiary, St. Louis Post-Dispatch LLC (PD LLC), publishes the St. Louis Post-Dispatch, the daily newspaper serving the greater St. Louis metropolitan area and a range of specialty publications, and operates its related Websites. St. Louis newspaper operations also include the Suburban Journals of Greater St. Louis, a group of weekly newspapers and niche publications that focus on separate communities within the metropolitan area. Pulitzer and its subsidiaries and affiliates publish 12 daily newspapers and operate the related Websites, as well as publish approximately 75 weekly newspapers, shoppers and niche publications that serve markets in the Midwest, Southwest and West.

TNI Partners

TNI, acting as agent for the Company’s subsidiary, Star Publishing Company (Star Publishing) and the owner of the remaining 50%, Citizen Publishing Company (Citizen), a subsidiary of Gannett Co., Inc., (Gannett) is responsible for printing, delivery, advertising and circulation of the Arizona Daily Star and until May 2009, the Tucson Citizen, as well as their related online operations and specialty publications. In May 2009, Citizen discontinued print publication of the Tucson Citizen. Under the amended and restated joint operating agreement between Star Publishing and Citizen (the Agency Agreement), The Arizona Daily Star remains the separate property of Star Publishing.

Madison Newspapers

The Company owns 50% of Madison Newspapers, Inc. (MNI) and 17% of The Capital Times Company (TCT). TCT owns the remaining 50% of the capital stock of MNI. MNI publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin and other Wisconsin locations, and operates their online sites. MNI conducts business under the trade name Capital Newspapers. The Company has a contract to furnish the editorial and news content for the Wisconsin State Journal, which is published by MNI and periodically provides other services to MNI.

Advertising

The Company's has five categories of advertising: retail advertising, national advertising, classified advertising, niche publications and online advertising. Retail advertising is revenue earned from sales of display advertising space in the publication or for preprinted advertising inserted in the publication, to local accounts or regional and national businesses with local retail operations.

Classified advertising, which includes employment, automotive, real estate for sale or rent, legal and other categories, is revenue earned from sales of advertising space in the classified section of the publication or from publications consisting primarily of such advertising. Classified publications are periodic advertising publications available in racks or delivered free, by carriers or third-class mail, to all, or selected households in a particular geographic area.

Online advertising consists of display, banner, classified or other advertising on Websites associated and integrated with the Company's print publications or on third party affiliated Websites, such as Yahoo! Inc. (Yahoo!). National advertising is revenue earned from display advertising space or for preprinted advertising inserted in the publication, to national accounts if there is no local retailer representing the account in the market. Niche publications are specialty publications, such as lifestyle, business, health or home improvement publications that contain significant amounts of advertising.

Online Advertising and Services

The Company's online activities include Websites supporting each of its daily newspapers and certain of its other publications. Internet activities of the newspapers, except for TNI and MNI, are reported and managed as a part of the Company’s publishing operations. The Company also owns 82.5% of an Internet service company, INN Partners, L.C. (doing business as TownNews.com), which provides online infrastructure for more than 1500 daily and weekly newspapers and shoppers.

Commercial Printing

Lee Enterprises, Incorporated offers commercial printing services through entities, such as Selma Enterprises, William Street Press, Hawkeye Printing, Platen Press, Farcountry Press, Journal Star Commercial Printing, Triangle Press and Wingra Printing. Certain of the Company's newspapers also directly provide commercial printing services.

Newsprint

The basic raw material of newspapers, and classified and specialty publications, is newsprint. The Company and its subsidiaries purchase newsprint from United States and Canadian producers. The Company has not entered into derivative contracts for newsprint.