12.07.2006 12:43:00

Gannett Co., Inc. Releases June Statistical Report

Gannett Co., Inc. (NYSE:GCI) reported today that totalpro forma operating revenues for the sixth period ended June 25, 2006increased 1.1 percent resulting from an increase in ad demand at itsdomestic community newspapers and broadcasting segment offset,partially, by soft ad demand at its UK properties. For comparisonpurposes, the exchange rate of Sterling year-over-year also affectedresults for the company's UK operations. If the exchange rate hadremained constant year-over-year, total pro forma operating revenueswould have been 0.7 percent higher for the period.

June

Pro forma (assuming that all properties presently owned were ownedin both periods) newspaper advertising revenues in June increased 1.0percent compared with the sixth period in 2005. If the exchange ratehad remained constant year-over-year, total pro forma newspaperadvertising revenues would have been up 0.6 percent.

Pro forma local advertising revenues were 4.0 percent higher on a1.4 percent increase in ROP ad volume in June. The performance of thecompany's small and medium-sized advertisers in its domesticnewspapers outpaced the revenue performance of its largestadvertisers. In the U.S., across all products, local ad revenue gainswere achieved in the financial, home improvement and office suppliescategories while the department stores, consumer electronics, groceryand telecommunication categories lagged last year's comparable period.On a constant currency basis, pro forma local advertising would havebeen 3.8 percent higher.

Pro forma classified revenues decreased 0.6 percent in the sixthperiod on a 2.0 percent decline in ROP ad volume. On a constantcurrency basis, pro forma classified revenues would have been 1.3percent lower for June. Real estate revenues were up 13.4 percentwhile employment and automotive revenues declined 4.6 percent and 15.4percent, respectively. On a constant currency basis, real estate wouldhave been 12.5 percent higher, employment would have been down 5.2percent and automotive revenues would have been 15.8 percent lower.Classified results in our domestic community newspapers were betterthan in the UK. In the U.S., pro forma classified revenues increased1.2 percent in the sixth period comprised of an 18.6 percent increasein real estate revenues and a 1.0 percent decline in employmentrevenues, while automotive was 14.6 percent lower.

Pro forma national advertising revenues in June were 2.3 percentlower on a 7.0 percent decline in ad volume. National volume at thecompany's local domestic newspapers was down 7.1 percent in theperiod. At USA TODAY, advertising revenues were 1.2 percent lower on adecline in paid ad pages to 309 from 363. For the sixth period, at USATODAY, strong growth in the financial, telecommunications, home andbuilding, advocacy and real estate categories was offset by weaknessin the automotive, technology, travel, retail and packaged goodscategories.

Pro forma broadcasting revenues, which include Captivate,increased 3.3 percent in the period buoyed by politically related addemand. Television revenues were up 3.8 percent for the sixth period.Local revenues increased 3.1 percent while national revenues were 3.4percent higher.

Second Quarter

For the second quarter of 2006, total pro forma operating revenueswere up 0.5 percent but would have been 0.8 percent higher on aconstant currency basis.

Newspaper advertising revenues, on a pro forma basis, for thesecond quarter were up 0.3 percent and would have been up 0.6 percenton a constant currency basis. The company's U.S. results were strongerthan its UK results as domestic newspaper advertising increased 2.2percent.

For the second quarter, pro forma local advertising was 2.8percent higher and would have been up 3.0 percent on a constantcurrency basis. Local advertising in the U.S. for the quarter was up3.4 percent.

Pro forma classified revenues for the quarter decreased 1.7percent and on a constant currency basis would have been 1.2 percentlower. Real estate revenues were 10.7 percent higher, while employmentwas down 5.1 percent and auto was 15.3 percent lower. On a constantcurrency basis for the quarter, real estate would have been up 11.4percent while employment and auto would have been down 4.6 percent and14.9 percent, respectively. For the quarter, classified revenues wereup 1.9 percent at our domestic community newspapers with increases inreal estate and employment revenues of 16.7 percent and 0.9 percent,respectively. Automotive revenues were 12.7 percent lower.

Pro forma national advertising was down 0.8 percent for the secondquarter. If the exchange rate had remained constant year-over-year,national advertising would have been 0.6 percent lower. At USA TODAYadvertising revenues were 0.7 percent higher in the quarter while paidadvertising pages were 1,107 compared to 1,191 in the year-ago period.

Pro forma broadcasting revenues for the quarter increased 3.8percent and television revenues were 3.2 percent higher reflectingstronger political advertising. Based on current pacings, televisionrevenues for the third quarter of 2006 would be ahead of last year'sthird quarter in the low single digits.

In addition to the revenue and statistical summary, attached is achart which shows the consolidated Gannett Online audience share forJune from Nielson//Net Ratings. In June, Gannett's domestic Websiteshad approximately 22.2 million unique visitors reaching over 14percent of the Internet audience.

The pro forma advertising and circulation revenue statisticsinclude the results for Exchange & Mart and Auto Exchange (acquired inSeptember 2005), Tallahassee (acquired August 29, 2005), 100 percentof the Detroit Newspaper Partnership (established August 2005), MintMagazine (acquired in July 2005) and Hometown Communications (acquiredMarch 31, 2005). The pro forma other revenue statistics include theresults for PointRoll, Inc. (acquired in June 2005). Ad linage forNewsquest, Clipper and Nursing Spectrum/NurseWeek are not included inthe ad volume statistics. Circulation volume numbers for Newsquest'spaid daily newspapers are included in the enclosed statistics, butvolume from unpaid daily and non-daily publications is not included inthe circulation volume statistics. The revenue and statistical datarelated to the former Gannett owned newspapers in Bellingham (WA),Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix,which was contributed to the Gannett Foundation in April 2006, hasbeen excluded from all periods presented.

Gannett Co., Inc. is a leading international news and informationcompany that publishes 90 daily newspapers in the USA, including USATODAY, the nation's largest-selling daily newspaper. The company alsoowns nearly 1,000 non-daily publications in the USA and USA WEEKEND, aweekly newspaper magazine. Gannett subsidiary Newsquest is the UnitedKingdom's second largest regional newspaper company. Newsquestpublishes more than 300 titles, including 17 daily newspapers, and anetwork of prize-winning Web sites. Gannett also operates 22television stations in the United States and is an Internet leaderwith sites sponsored by its TV stations and newspapers includingUSATODAY.com, one of the most popular news sites on the Web.

Certain statements in this press release may be forward looking innature or "forward looking statements" as defined in the PrivateSecurities Litigation Reform Act of 1995. The forward lookingstatements contained in this press release are subject to a number ofrisks, trends and uncertainties that could cause actual performance todiffer materially from these forward looking statements. A number ofthose risks, trends and uncertainties are discussed in the company'sSEC reports, including the company's annual report on Form 10-K andquarterly reports on Form 10-Q. Any forward looking statements in thispress release should be evaluated in light of these important riskfactors.

Gannett is not responsible for updating the information containedin this press release beyond the published date, or for changes madeto this press release by wire services, Internet service providers orother media.


GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY

Period 6 (May 29, 2006 - June 25, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 188,422,000 $ 181,153,000 $ 7,269,000 4.0
National 68,114,000 69,747,000 (1,633,000) (2.3)
Classified 196,442,000 197,649,000 (1,207,000) (0.6)
------------- ------------- ----------- ----
Total
Advertising $ 452,978,000 $ 448,549,000 $ 4,429,000 1.0
============= ============= =========== ====
Circulation 101,605,000 104,764,000 (3,159,000) (3.0)
Other revenue 40,546,000 36,650,000 3,896,000 10.6
Broadcasting 60,266,000 58,332,000 1,934,000 3.3
------------- ------------- ----------- ----
Total Revenue $ 655,395,000 $ 648,295,000 $ 7,100,000 1.1
============= ============= =========== ====

VOLUME:
Newspaper Inches:
Local 2,732,469 2,694,682 37,787 1.4
National 310,557 333,986 (23,429) (7.0)
Classified 4,552,495 4,644,381 (91,886) (2.0)
------------- ------------- ----------- ----
Total ROP 7,595,521 7,673,049 (77,528) (1.0)
============= ============= =========== ====
Preprint
Distribution
(in thousands) 934,991 991,102 (56,111) (5.7)
============= ============= =========== ====

NET PAID
CIRCULATION:
Morning (w/USAT) 6,786,687 6,933,312 (146,625) (2.1)
Evening 864,360 903,148 (38,788) (4.3)
------------- ------------- ----------- ----
Total Daily 7,651,047 7,836,460 (185,413) (2.4)
============= ============= =========== ====
Sunday 6,177,065 6,329,203 (152,138) (2.4)
============= ============= =========== ====



Year-to-Date through June 25, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,110,485,000 $ 1,103,217,000 $ 7,268,000 0.7
National 418,600,000 423,738,000 (5,138,000) (1.2)
Classified 1,113,129,000 1,134,495,000 (21,366,000) (1.9)
------------- ------------- ----------- ----
Total
Advertising $ 2,642,214,000 $ 2,661,450,000 $ (19,236,000) (0.7)
============= ============= =========== ====
Circulation 644,764,000 663,775,000 (19,011,000) (2.9)
Other revenue 233,183,000 219,840,000 13,343,000 6.1
Broadcasting 387,995,000 362,445,000 25,550,000 7.0
------------- ------------- ----------- ----
Total Revenue $ 3,908,156,000 $ 3,907,510,000 $ 646,000 0.0
============= ============= =========== ====

VOLUME:
Newspaper Inches:
Local 16,952,704 17,078,082 (125,378) (0.7)
National 1,990,464 2,082,413 (91,949) (4.4)
Classified 27,696,080 28,159,595 (463,515) (1.6)
------------- ------------- ----------- ----
Total ROP 46,639,248 47,320,090 (680,842) (1.4)
============= ============= =========== ====
Preprint
Distribution
(in thousands) 5,913,703 6,044,081 (130,378) (2.2)
============= ============= =========== ====

NET PAID
CIRCULATION:
Morning (w/USAT) 7,046,609 7,157,560 (110,951) (1.6)
Evening 895,400 933,402 (38,002) (4.1)
------------- ------------- ----------- ----
Total Daily 7,942,009 8,090,962 (148,953) (1.8)
============= ============= =========== ====
Sunday 6,337,080 6,482,042 (144,962) (2.2)
============= ============= =========== ====

Note: The above revenue amounts and statistics have been restated to
include all companies presently owned, including the Exchange & Mart
and Auto Exchange (non-daily publications acquired in September 2005),
the Tallahassee Democrat (acquired August 29, 2005), 100% of the
Detroit Newspaper Partnership (established August 2005), Mint Magazine
(acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and
Hometown Communications (acquired in late March 2005). PointRoll is a
marketing services company with a suite of media products that
delivers enhanced online marketing opportunities for advertisers,
agencies and online publishers. PointRoll is included above in Other
revenue. Hometown is a community publishing company with one daily
newspaper, 62 non-daily community newspapers, 24 community telephone
directories and other specialty and niche publications. The revenue
and statistical data related to the former Gannett owned newspapers in
Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee
(OK) Phoenix which was contributed to the Gannett Foundation in April
2006, has been excluded from all periods presented.

Operating results from the company's newspaper in Tucson, which
participates in a joint operating agency, are accounted for under the
equity method of accounting and are reported as a single amount in
other operating revenues. Advertising linage statistics from this
newspaper are not included above, however, circulation volume
statistics are included.

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

Circulation volume statistics for Detroit Free Press, a morning
newspaper, are reflected above. Circulation volume statistics for The
Detroit News, an evening newspaper, are not reflected above.
Circulation volume and advertising linage statistics for non-daily
products, including Nursing Spectrum/NurseWeek and Clipper Magazine
are not reflected above.






GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY

2nd Quarter 2006 (Mar. 27, 2006 - June 25, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 587,565,000 $ 571,816,000 $ 15,749,000 2.8
National 216,277,000 217,934,000 (1,657,000) (0.8)
Classified 573,042,000 583,097,000 (10,055,000) (1.7)
------------- ------------- ----------- ----
Total
Advertising $ 1,376,884,000 $ 1,372,847,000 $ 4,037,000 0.3
============= ============= =========== ====
Circulation 321,173,000 331,873,000 (10,700,000) (3.2)
Other revenue 124,255,000 114,704,000 9,551,000 8.3
Broadcasting 205,420,000 197,888,000 7,532,000 3.8
------------- ------------- ----------- ----
Total Revenue $ 2,027,732,000 $ 2,017,312,000 $ 10,420,000 0.5
============= ============= =========== ====

VOLUME:
Newspaper Inches:
Local 8,859,660 8,779,044 80,616 0.9
National 1,029,986 1,067,802 (37,816) (3.5)
Classified 14,340,866 14,547,091 (206,225) (1.4)
------------- ------------- ----------- ----
Total ROP 24,230,512 24,393,937 (163,425) (0.7)
============= ============= =========== ====
Preprint
Distribution
(in thousands) 3,009,473 3,089,609 (80,136) (2.6)
============= ============= =========== ====

NET PAID
CIRCULATION:
Morning (w/USAT) 7,001,220 7,130,126 (128,906) (1.8)
Evening 884,842 924,525 (39,684) (4.3)
------------- ------------- ----------- ----
Total Daily 7,886,062 8,054,651 (168,590) (2.1)
============= ============= =========== ====
Sunday 6,266,183 6,426,758 (160,575) (2.5)
============= ============= =========== ====


Note: The above revenue amounts and statistics have been restated to
include all companies presently owned, including the Exchange & Mart
and Auto Exchange (non-daily publications acquired in September 2005),
the Tallahassee Democrat (acquired August 29, 2005), 100% of the
Detroit Newspaper Partnership (established August 2005), Mint Magazine
(acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and
Hometown Communications (acquired in late March 2005). PointRoll is a
marketing services company with a suite of media products that
delivers enhanced online marketing opportunities for advertisers,
agencies and online publishers. PointRoll is included above in Other
revenue. Hometown is a community publishing company with one daily
newspaper, 62 non-daily community newspapers, 24 community telephone
directories and other specialty and niche publications. The revenue
and statistical data related to the former Gannett owned newspapers in
Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee
(OK) Phoenix which was contributed to the Gannett Foundation in April
2006, has been excluded from all periods presented.

Operating results from the company's newspaper in Tucson, which
participates in a joint operating agency, are accounted for under the
equity method of accounting and are reported as a single amount in
other operating revenues. Advertising linage statistics from this
newspaper are not included above, however, circulation volume
statistics are included.

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

Circulation volume statistics for Detroit Free Press, a morning
newspaper, are reflected above. Circulation volume statistics for The
Detroit News, an evening newspaper, are not reflected above.
Circulation volume and advertising linage statistics for non-daily
products, including Nursing Spectrum/NurseWeek and Clipper Magazine
are not reflected above.





Gannett Online Internet Audience
June 2006


Nielsen//Net Ratings

Home/Work Panel Combined

Unique Visitors Percentage Reach of
Per Month Internet Audience

Gannett Online 22,238,000 14.2%

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