Full Description

Gannett Co., Inc., incorporated in 1923, is an international news and information company. In the United States, the Company publishes 85 daily newspapers, including USA TODAY, and nearly 850 non-daily publications. Along with each of its daily newspapers, the Company operates Websites offering news, information and advertising that is customized for the market served and integrated with its publishing operations. Newspaper publishing operations in the United Kingdom, operating as Newsquest, include 17 paid-for daily newspapers, almost 200 non-daily publications, locally integrated Websites and classified business Websites with national reach. The Company has three principal business segments: publishing, digital and broadcasting.

In November 2008, Gannett Co., Inc. announced that it has acquired Ripple6, Inc., a provider of social media services. In September 2008, Gannett Co., Inc. announced that it has acquired an additional 10% stake in CareerBuilder from Tribune. The acquisition gives the Company a 50.8% controlling interest in CareerBuilder, an online job site in the United States. In July 2008, the Company purchased a minority stake in Mogulus, LLC, a company that provides Internet broadcasting services. Also in July 2008, the Company increased its investment in 4INFO maintaining its approximate ownership interest. In August 2008, the Company purchased 100% of the outstanding shares of Pearls Review, Inc., an online nursing certification and continuing education review site. In March 2008, the Company purchased a minority stake in Fantasy Sports Ventures (FSV). FSV owns a set of fantasy sports content sites and manages advertising across a network of affiliated sites.

Newspaper Publishing

The Company’s United States newspapers, including USA TODAY, reach 14 million readers every weekday and 12.6 million readers every Sunday providing news and information from their customers’ neighborhoods and from around the globe. As of December 31, 2008, the Company operated 85 United States daily newspapers, including USA TODAY, and almost 850 non-daily local publications in 31 states and Guam. The Company’s local newspapers are managed through its United States Newspaper Division. Gannett publishes in major markets, such as Phoenix, Ariz.; Indianapolis, Ind.; Cincinnati, Ohio; Des Moines, Iowa; Nashville, Tenn.; Asbury Park; Louisville, and Westchester. During the year ended December 31, 2008, USATODAY.com launched in-depth social communities and more than 200,000 topics pages highlighting content around the Web, continuing to develop its focus on users, their conversations and preferences. All of the Company’s local newspapers and affiliated Websites are operated on an integrated basis.

Other businesses that complement, support or are managed and reported within the newspaper segment include USA WEEKEND, Clipper Magazine, Army Times Publishing, Gannett Healthcare Group and Gannett Offset. In addition, Gannett News Service provides news services for Company newspaper operations and sells its services to independent newspapers; Gannett Retail Advertising Group represents the Company’s local newspapers in the sale of advertising to national and regional franchise businesses; Gannett Direct Marketing offers direct-marketing services, and Gannett Media Technologies International develops and markets software and other products for the publishing industry, and provides technology support for the Company’s newspaper and Web operations. The Company’s domestic daily newspapers receive Gannett News Service (GNS) and subscribe to The Associated Press, and some receive various supplemental news services and syndicated features.

The Company’s online business activities also include efforts to register users of Gannett Websites in order to obtain zip code, age and gender. Gannett Media Technologies International (GMTI) provides technological support and products for the Company’s domestic newspapers and Internet activities, including ad software and database management, editorial production and archiving, and Website hosting. In addition, GMTI provides similar services to other newspaper companies. Newsquest publishes 17 daily paid-for newspapers and almost 200 non-daily publications in the United Kingdom. Newsquest operates its publishing activities around regional centers to maximize the use of management, finance, printing and personnel resources.

Digital

The Company’s digital segment includes CareerBuilder and ShopLocal, as well as PointRoll, Planet Discover, Schedule Star and Ripple6. As of December 31, 2008, CareerBuilder operated in 15 countries outside the United States, including the United Kingdom, France, Spain, Germany, India and Greece. CareerBuilder revenue sources primarily include job postings and related products sold to employers. CareerBuilder’s other minority interest owners include The McClatchy Company, Tribune Company and Microsoft. ShopLocal provides multi-channel shopping and advertising services, and offers a suite of solutions that connect advertisers and consumers online and in-store. PointRoll enables advertisers, agencies and publishers to create engaging advertising that connects with consumers by creating an interactive online environment that generates conversation. Planet Discover provides hosted search and advertising services that allow clients to offer consumers robust local information through search. Schedule Star LLC is a scheduling solution for high school athletic directors that accurately generates and updates school’s schedules, scores, stats, and game directions. Ripple6 is a provider of social media services.

Broadcasting

The Company’s broadcasting division, headquartered in McLean, Virginia, included 23 television stations in markets with a total of more than 20.8 million households. The broadcasting division also includes Captivate Network. Broadcasting revenues accounted for approximately 11% of the Company’s reported operating revenues in 2008. The principal sources of the Company’s television revenues are local advertising focusing on the immediate geographic area of the stations, national advertising, retransmission of its television signals on satellite and cable networks, advertising on the stations’ Websites, and payments by advertisers to television stations for other services, such as the production of advertising material. As of December 31, 2008, Captivate had over 8,800 video screens located in 25 major cities across North America.