Major Market Media

Tribune Company 2000 Annual Report

Albany

Allentown

Atlanta

Baltimore

Boston

Chicago

Dallas

Denver

Fort Lauderdale

Grand Rapids

Greenwich

Harrisburg

Hartford

Houston

Indianapolis

Los Angeles

Miami

New Orleans

New York

Newport News

Orlando

Philadelphia

Sacramento

San Diego

Seattle

Stamford

Washington

Television

Radio Television ProgrammingTribune Entertainment Company, Los Angeles — develops and distributes first-run television programming for the Tribune station group and national syndication

BaseballChicago National League Ball Club Inc. (Chicago Cubs)

Investments The WB Television Network (25% owned); TV Food Network (29%); The Golf Channel (9%); iBlast Networks (25%)

WPIX (WB11)New York

KTLA (WB5)Los Angeles

WGN (WB9)Chicago

WPHL (WB17)Philadelphia

WLVI (WB56)Boston

KDAF (WB33)Dallas

WBDC (WB50)Washington, D.C.

WATL (WB36)Atlanta

KHWB (WB39)Houston

KCPQ (FOX13)Seattle

KTWB (WB22)Seattle

WBZL (WB39)Miami

KWGN (WB2)Denver

KTXL (FOX40)Sacramento, Calif.

KSWB (WB69)San Diego

WXIN (FOX59)Indianapolis

WTIC (FOX61)Hartford, Conn.

WXMI (FOX17)Grand Rapids, Mich.

WGNO (ABC26)New Orleans

WNOL (WB38)New Orleans

WPMT (FOX43)Harrisburg, Pa.

WEWB (WB45)Albany, N.Y.

WGN-AMChicago

KEZW-AMDenver

KOSI-FMDenver

KKHK-FMDenver

Entertainment Listings and Content SyndicationTribune Media Services—national and international print, online and on-air TV and movie information; comics, columnists and features; online and wire services; print and interactive ad networks

Cable ProgrammingCLTV News, Chicago; Central Florida News 13, Orlando (50% owned)

National AdvertisingTribune Media Net—oversees national advertising sales efforts for all Tribune newspapers and coordinates sales of multimedia ad packages

Classified AdvertisingTribune Classified Services—directs overall classified strategy for Tribune,integrating print, interactive and niche products

Other Spanish-Language NewspapersLa Opinión, Los Angeles (50% owned); ¡Exito!, Chicago (weekly)

Specialty Sitesblackvoices.comgo2orlando.commetromix.comchicagosports.comcalendarlive.comshowtimeinteractive.comhrticket.com

Classified Advertising SitesRecruitment—blackvoices.com, brassring.com,* careerbuilder.com,*

siliconprairie.comAutomotive—cars.com*Real estate—apartments.com,* newhomenetwork.com*General merchandise—recycler.com

*affiliate/equity relationship; supported locally and nationally via sales and marketing

*Spanish language

Newspaper Siteslatimes.comchicagotribune.comnewsday.comsunspot.netsun-sentinel.comorlandosentinel.comctnow.commcall.comdailypress.comstamfordadvocate.comgreenwichtime.com

TV and Radio SitesSee inside back cover for complete listing

Los Angeles TimesLos Angeles

Chicago TribuneChicago

NewsdayLong Island, N.Y.

The Baltimore SunBaltimore

South Florida Sun-SentinelFort Lauderdale, Fla.

Orlando SentinelOrlando, Fla.

The Hartford CourantHartford, Conn.

The Morning CallAllentown, Pa.

Daily PressNewport News, Va.

The AdvocateStamford, Conn.

Greenwich TimeGreenwich, Conn.

Hoy*New York

Daily Newspapers

Tribune at a Glance

InvestmentsBrassRing Inc. (24% owned) CareerBuilder Inc. (46%)Classified Ventures (34%)

Operations

Operations

Operations

Tribune Publishing operates market-leading newspapers dedicated to great journalism. It is the second-largest U.S. news-paper group in revenues and thirdin total circulation. The group alsodistributes entertainment listings and syndicated content, and operates two 24-hour cable news channels. Pu

blis

hing

Inte

ract

ive Tribune Interactive operates leading

news and information Web sites in 18 of the nation’s top 30 markets. The sites attract approximately 5 million unique visitors per month,placing Tribune among the top 20online news and information networksin the country.

Tribune Broadcasting owns and operates 22 major-market televisionstations, including national super-station WGN, and reaches 80 percent of U.S. television house-holds. It is the largest TV group notowned by a network. Broadcastingproperties also include four radio stations, Tribune Entertainment andthe Chicago Cubs baseball team.Br

oadc

astin

g

� Broad distribution—our TV stations reach 38% of U.S. television households over the air, and 80% with the cable and satellite coverage of WGN superstation

� Major markets—we have TV stations in 10 of the nation’s top 12 markets and in 16 of the top 30. Tribune is one of only four TV groups with VHF stations in New York, Los Angeles and Chicago (ABC, CBS and NBC are the others)

� Buying power—our TV group’s size provides purchasing advantages in the syndicated programming marketplace

� Local programming excellence—news, sports and special-event coverage attracts viewers and advertisers, and gives Tribune stations distinct identities in their markets

� WGN superstation—we operate one of America’s most-watched cable channels, reaching more than 51 million households outside of Chicago

� Create a leading distribution network in the consolidating television industry by acquiring stations in the nation’s top 40 markets

� Continue track record of exceeding industry averages for revenue growth and margin expansion

� Expand local news programming to grow audience share and increase revenues

� Achieve operating efficiencies in two-station markets and capitalize on further opportunities for dual ownership

� Exploit cross-media opportunities in top three markets to better serve consumers and advertisers

� Enhance ad revenue stream by expanding cable coverage of WGN superstation

� Build out digital broadcast capacity and focus on maximizing the future revenue potential of our digital TV spectrum

� Support the growing WB Television Network, the major source of prime-time programming for our affiliated stations

� Increase Tribune-branded programming through Tribune Entertainment

� Excellent markets—our newspapers are located in dynamic major markets, including New York, Los Angeles and Chicago

� Strong local franchises—our newspapers are the leading sources of news, information and classified advertising, in print and online, in their local markets

� Award-winning journalism—Tribune newspapers have won a combined 90 PulitzerPrizes, and each is a frequent recipient of national and regional awards for investigativereporting, column and feature writing, sports coverage, photography and other categories

� Electronic media alliances—through broadcast TV, radio, cable and the Internet, our newspapers extend their audience reach and brands, positioning themselves as complete, multimedia information sources

� Be the leading provider of local information in the communities where we do business

� Position Tribune’s newspaper brands as multimedia information franchises by buildingcross-media presence

� Capture the majority of local classified advertising dollars, in print and online

� Increase Tribune’s share of the fast-growing national advertising category

� Leverage Tribune’s mass-media assets to accelerate growth and build cross-media sales

� Build readership and circulation through innovative marketing and product enhancements that respond to customer needs

� Sustain operating excellence, including high-quality production and cost efficiency, with equipment and technology upgrades

� Established brands—our newspaper and broadcast Web sites build on the reputations ofTribune’s well-known media brands, which are trusted sources of local news and information

� Scale and scope—we operate a network of leading news and information sites in 18 of the top 30 markets; this strong national reach and access to major markets is important to advertisers

� Cross-promotion ability—Tribune’s TV and publishing assets enable cost-effective marketing of our dot-com brands to local and national audiences

� Content creation—our Web sites draw on Tribune’s vast media network to provide more depth, including multimedia news and features

� Online experience—Tribune was an early leader in adopting interactive technology. Weknow how to build compelling Web sites that provide value for consumers and advertisers

� Be the leading provider of online news, information and classifieds in our markets, leveraging Tribune’s extensive content resources and brand equity

� Focus growth strategy on newspaper Web sites, which attract the most users and hold the greatest revenue potential

� Build the nation’s No.1 network of major-market Web sites

� Develop multiple revenue streams, including advertising and sponsorships, that lead our Internet activities to long-term profitability

� Create and strengthen content partnerships with providers of emerging wireless and broadband platforms to extend our reach

� Invest in leading-edge Internet technology, ensuring that our Web sites have the features and speed that consumers and advertisers value

Competitive Advantages Strategic Priorities

Competitive Advantages Strategic Priorities

Competitive Advantages Strategic Priorities

Financial Highlights

For the Year (in thousands, except per share data) 2000 1999 change

Operating revenues $ 4,910,363 $2,882,284 + 70%

Operating profit $ 1,033,011 $ 732,842 + 41%

Net income Continuing operations before non-operating items $ 403,519 $ 382,358 + 6%

Continuing operations including non-operating items 310,401 1,449,962 – 79%

Discontinued operations (86,015) 21,807 *

Cumulative effect of accounting change, net – (3,060) – 100%

Total $ 224,386 $1,468,709 – 85%

Diluted Continuing operations before non-operating items $ 1.30 $ 1.41 – 8%earnings Continuing operations including non-operating items .99 5.49 – 82%per share Discontinued operations (.29) .08 *

Cumulative effect of accounting change, net – (.01) – 100%

Total $ .70 $ 5.56 – 87%

Common dividends per share $ .40 $ .36 + 11%

Common stock price per share: high $ 55.69 $ 60.88

low $ 27.88 $ 30.16

close $ 42.25 $ 52.56

At Year End Dec. 31, 2000 Dec. 26, 1999 change

Total assets $14,676,212 $8,740,047 + 68%

Total debt (excluding PHONES) $ 3,448,445 $1,396,039 + 147%

Shareholders’equity $ 5,885,916 $3,458,617 + 70%

Common shares outstanding 299,518 237,792 + 26%

* Not meaningful

Operating Revenues(dollars in billions)

96 97 98 99 00

5.0

4.0

3.0

2.0

1.0

Operating Profit(dollars in millions)

96 97 98 99 00

1250

1000

750

500

250

EBITDA(dollars in millions)

96 97 98 99 00

1500

1250

1000

750

500

250

Tribune Company and Subsidiaries

is a media industry leader with operations in major

markets throughout the United States, including 18 of

the top 30. Through television, radio,newspapers and the Internet, we reachmore than 80 percent of U.S.households.

Our multimedia growth strategy expands the audience

for Tribune content, deepens news coverage and

strengthens our local brands. It also helps us capture incremental

advertising revenues, locally and nationally. In addition, we invest

aggressively in technologies that are important to our future, such

as digital television and innovative online services. Tribune’s

annualized revenues are about $6 billion and we employ more

than 22,000 people.

Tribune Company

and employee owners

To our shareholdersOne key opportunity is to increase our share of national advertising.

Tribune Media Net, our new nationwide sales organization, positions

Tribune as a one-stop solution for advertisers who need to reach a mass

audience quickly and efficiently, particularly in the top three markets.

Sales of cross-media ad programs—featuring any combination

of newspapers, television and the Internet—are gaining momentum.

Our combined television and newspaper reach is a major selling

point: 75 percent of adults in Chicago, 62 percent in Los Angeles

and 42 percent in New York. In addition, Tribune Media Net funnels

national ad dollars to our mid-tier markets like Baltimore, Fort

Lauderdale, Hartford and Orlando, producing incremental newspaper

revenue that was not attainable prior to the merger.

More options for Tribune advertisers are just the beginning. Our

local editorial and newsgathering resources are extraordinary, and

we know how to maximize their value. We’ve proven in Chicago that

cross-promotion and sharing content across media strengthens our

brands and gives our audiences a deeper level of news and information.

It produces operating efficiencies as well. As you’ll see throughout

this report, we’re now extending our unique multimedia growth

strategy to other markets, including New York and Los Angeles.

The integration of Times Mirror has progressed faster than

expected. Merger-related synergies should generate about $130 million

2000 was an extraordinary year for Tribune, highlighted

by our merger with The Times Mirror Company. Valued

at $8.3 billion, it was the largest acquisition in newspaper

industry history. More importantly, it created the only

media company with television, newspaper and Internet

operations in the top three U.S. markets—New York,

Los Angeles and Chicago—and positions Tribune for

accelerated growth.

The benefits of the Times Mirror merger, completed

last June, extend well beyond newspapers. We acquired

the scale that is essential for success in today’s media

environment, and the ability to serve advertisers and

consumers in new ways that add value. That means

more opportunities to grow revenue across Tribune’s

entire network of mass-media businesses.

2

of incremental cash flow in 2001. In fact, a large portion of that amount

has already been realized. Duplicate corporate overhead expenses were

eliminated ahead of schedule, and at the business unit level, we’ve taken

steps to increase operating margins at our newly acquired newspapers.

In particular, our new management team at the Los Angeles Times has

made many positive changes.

After the merger we divested non-core businesses, focusing

Tribune resources exclusively on

broadcasting, publishing and inter-

active. We received excellent value

for our education group and several

companies acquired in the Times

Mirror transaction—about $2 billion

in cash after taxes. This helped off-

set the cost of the merger, and we

applied the funds to reduce debt

and repurchase Tribune stock.

Solid results Financially,

2000 was another strong year for

Tribune. Although reported earnings per share were lower due to dilution

from the Times Mirror merger, cash earnings—defined as income from

continuing operations, excluding non-operating items, plus amortization

expense—rose 12 percent on a per share basis.

In what was a difficult stock market overall, total return on Tribune

common shares was minus 22.5 percent in 2000. We were encouraged,

however, by our stock’s performance following the Times Mirror merger

announcement on March 13. From that day through December 31,

we delivered a positive total return of 14.5 percent while, for the same

period, the S&P 500 Index declined 4.5 percent.

Clearly, our stock price in 2000 did not reflect the progress made

throughout the company. The television group outperformed the

industry, leading Tribune Broadcasting to its ninth consecutive year

of record growth. Once again, combining great markets with excellent

programming proved a winning formula. We continue to benefit from

our affiliation with the popular

WB Network, smart programming

buys in the syndication market

and our stations’ growing local

news franchises.

For Tribune Publishing, margin

expansion is a major focus as we

strive to operate the industry’s

most profitable newspapers.

Installations of new technology

are boosting productivity, and

we’re reducing expenses. For

example, several newspapers have converted to a narrower page size,

cutting newsprint costs significantly. Readers find the new size more

convenient, too. The Chicago Tribune, South Florida Sun-Sentinel and

The Hartford Courant will adopt the new format in 2001.

Our interactive operations continue to grow rapidly, and we expect

the Internet to play a prominent role in Tribune’s future. It complements

and extends our broadcasting and publishing businesses. In 2000, we

tightened our growth strategy to focus on the Tribune newspaper sites,

John W. Madigan Chairman, President and Chief Executive Officer

Dennis J. FitzSimons Executive Vice President

3

which attract the most users and hold the greatest revenue potential.

We also scaled interactive activities to better match online revenue

projections. These steps position Tribune Interactive to be profitable

by the second half of 2002.

Board of Directors We welcomed Enrique Hernandez, Jr. to the

Tribune board earlier this month. Rick is chairman, president and CEO

of Inter-Con Security Systems in Los Angeles and also owns interests in

the television industry. He fills the vacancy created by Donald Rumsfeld,

who last month joined the Bush administra-

tion as Secretary of Defense. Don joined the

Tribune board in 1992 and we wish him

well as he once again serves our nation in a

very important role.

Three of our long-time directors, Diego

Hernandez, Robert La Blanc and Kristie

Miller, will retire from board service in

May. These directors have collectively

served Tribune shareholders for more than

45 years and we appreciate their dedication

and commitment. Thomas Unterman, who

joined our board last June following the Times Mirror merger, will not

be standing for reelection. We thank Tom for his contributions during

the transition and wish him well.

Outlook Even in the face of slower ad trends, Tribune is posi-

tioned for above-average growth. We are only beginning to capture

the full benefits of the merger, including significant economies of

scale. In addition, Tribune Media Net has a national sales team in

place to serve a new class of advertisers and increase our business

with existing ones.

We expect to make more acquisitions, especially in television, where

we are actively searching for opportunities in the nation’s top 40 markets.

As always, the financial measure known as Shareholder Value Added,

or SVA, will help guide our decision-making on acquisitions, capital

expenditures and operating budgets.

We believe high-quality media properties will continue to grow in

value, adding to our confidence in the company’s future. In today’s frag-

mented media environment, advertisers need television and newspapers

more than ever to reach a broad consumer audience—especially in

the major markets, where Tribune is concentrated. We have the right

businesses in the right places.

Tribune’s media brands and financial

strength are a powerful combination. Yet

our greatest asset of all is people. We have

an abundance of motivated, innovative

thinkers at all levels of the organization,

most of whom are Tribune shareholders.

This further distinguishes Tribune and

contributes to our industry leadership.

Even off the job, our employees are excep-

tional, volunteering their time and talent

in the communities where we do business.

This is a time of great optimism at Tribune. Never in our history

have we had so many opportunities to grow, and so many competitive

advantages. The best is yet to come as we build the multimedia

company of the future.

Sincerely,

John W. Madigan

Chairman, President and Chief Executive Officer

February 23, 2001

Develop premier branded content

Build value across multiple media

Apply technology imaginatively

Encourage creativity in a diverse workplace

Use financial resources aggressively to create shareholder value

How we create value

4

The audience for Tribune content swelled in 2000 as we

continued our expansion in the nation’s largest, most lucrative

markets. Our major-market orientation, combined with an

aggressive, multimedia growth strategy, sets Tribune apart

from both local and national competitors.

In four of the five most-populated states, Tribune is the

preeminent local media company. We are the only one with

television, newspaper and Internet operations in New York,

Los Angeles and Chicago, and we are the leading news-

paper publisher in Florida. In these markets and throughout

our national network, Tribune’s broadcasting, publishing and

interactive businesses work together.

Their cooperation — in newsgathering, content creation,

promotion, sales and other areas — strengthens our local

brands, deepens coverage and reduces costs.

Our joint efforts create new revenue streams, too. Tribune

Media Net, established in 2000, is pumping up our share

of the national advertising segment by offering targeted

mass-media options that marketers have never seen before.

Response to our customized, cross-market and cross-media

ad programs has been very positive, and we’ve only begun

to exploit this unique Tribune capability. In 2001, we’ll

create even more value for national advertisers, helping

them succeed in the top three markets and beyond.

Multi Media

Major Markets

New

Albany

Allentown

Atlanta

Baltimore

Boston

Chicago

Dallas

Denver

Fort Lauderdale

Grand Rapids

Greenwich

Harrisburg

Hartford

Houston

Indianapolis

Los Angeles

Miami

New Orleans

New York

Newport News

Orlando

Philadelphia

Sacramento

San Diego

Seattle

Stamford

Washington

From Times Square to the eastern tip of Long Island, Tribune has the greater New York

market covered. WPIX-TV extended its local news franchise in 2000, introducing

the WB11 Morning News. The two-hour newscast has pulled in new viewers and

advertisers alike, and, like the station’s flagship 10 p.m. news, benefits from a growing

relationship with Newsday. � WPIX, Newsday and their corresponding Web sites

combined resources on three statewide polls prior to the November election. More

co-branded, content-sharing opportunities will be pursued in 2001, as will bundled

advertising programs that bring together all Tribune media assets in the region.� Newsday and newsday.com are powerful brands on their own. At 54 percent daily and

63 percent on Sundays, Newsday has the highest market penetration of any major

newspaper in the country. In addition, its primary circulation territory includes

Nassau and Suffolk counties on Long Island — high-income areas that most advertisers

need to reach. � Newsday also publishes Hoy, a fast-growing Spanish-language

daily. Just north of the Big Apple, The Advocate (Stamford) and Greenwich Time

serve Connecticut’s affluent Fairfield County. York7

Albany

Allentown

Atlanta

Baltimore

Boston

Chicago

Dallas

Denver

Fort Lauderdale

Grand Rapids

Greenwich

Harrisburg

Hartford

Houston

Indianapolis

Los Angeles

Miami

New Orleans

New York

Newport News

Orlando

Philadelphia

Sacramento

San Diego

Seattle

Stamford

Washington

Los An

The Los Angeles Times and KTLA-TV pack a dynamic one-two punch in the nation’s

second-largest market. Together, they reach approximately 62 percent of adults in the

region every week. The Times and KTLA teamed up in 2000 to deliver enhanced

coverage of the Democratic National Convention in Los Angeles and

breaking news stories such as the Concorde crash in Paris. Content on

latimes.com and ktla.com also reflect Tribune’s cooperative efforts in

Southern California. � The Times earned its 24th Pulitzer Prize in

2000. New weekly sections, “Tech Times” and “Workplace,” and increasing coverage of

L.A.’s Latino community, show the newspaper’s ability to address reader needs and

grow with the market. “Sneaks,” a popular film-preview section published quarterly,

was expanded to the Chicago Tribune and Newsday, generating incremental revenue

from national advertising. � Partnering with the Times deepens KTLA’s established

role as a local news and information leader. The station airs 24.5 hours of local

news programming per week, including the innovative KTLA Morning News — No. 1

with adult viewers ages 25 to 54 — and the award-winning News @ Ten.

geles

9

Albany

Allentown

Atlanta

Baltimore

Boston

Chicago

Dallas

Denver

Fort Lauderdale

Grand Rapids

Greenwich

Harrisburg

Hartford

Houston

Indianapolis

Los Angeles

Miami

New Orleans

New York

Newport News

Orlando

Philadelphia

Sacramento

San Diego

Seattle

Stamford

Washington

Chic

The multimedia model we’re applying in New York and Los Angeles, as well as

Hartford, was developed in Chicago. It is a proven success on three levels: content

sharing, cross-brand promotion and cross-media ad sales. � Our local businesses draw

from each other — a daily process that enriches the news and information appearing

on-air, in print and online. WGN-TV, WGN Radio and CLTV, for example, often use

Chicago Tribune reporters and columnists to augment their own take on a story.

Viewers get more insight; the newspaper gets more exposure. All of our

Chicago outlets promote one another, helping grow Tribune’s regional

audience. � For advertisers, more channels mean more potential exposure.

Our media in Chicago deliver 75 percent of adults every week. We offer

convenience, too — a single point of contact for multimedia packages tailored to

advertisers’ specific needs. � Even in our home market we see plenty of room to grow,

and we’re investing in our local products aggressively. For example, a major expansion

under way at Freedom Center, the Chicago Tribune’s printing facility, will increase

zoning and inserting capacity. Readers will see more community-specific news and

information, and advertisers will have more options for targeting their messages. At

WGN-TV, a new state-of-the-art digital newsroom allows producers to review video

edited for broadcast on their desktop computers. The technology gives the editors

many more options in the use of special effects and provides a framework for greater

content sharing with CLTV.

ago

11

Flo

Albany

Allentown

Atlanta

Baltimore

Boston

Chicago

Dallas

Denver

Fort Lauderdale

Grand Rapids

Greenwich

Harrisburg

Hartford

Houston

Indianapolis

Los Angeles

Miami

New Orleans

New York

Newport News

Orlando

Philadelphia

Sacramento

San Diego

Seattle

Stamford

Washington

The vibrant Florida market is a great place to sell newspapers, and we should know.

The Orlando Sentinel and South Florida Sun-Sentinel are news and information leaders in

the third fastest-growing state, and each employs aggressive multimedia growth strategies.� In 2000, the Orlando Sentinel captured a Pulitzer Prize, increased circulation and

launched a cover-to-cover redesign. Central Florida News 13, our partnership with

Time Warner, extends the Sentinel brand and offers the region’s only 24-hour local news

on television. In print, online and on the air, Orlando Sentinel Communications reaches

88 percent of Central Florida adults. � Likewise, the Sun-Sentinel connects with more

adults than any major daily newspaper in the Broward/South Palm Beach market —

three times more than The Miami Herald. It’s also a hands-on content partner with several

South Florida television and radio stations. � Our Florida newspapers, Web sites, WBZL-TV

(Miami) and News 13 played a pivotal reporting role, nationally and locally, in the

presidential election. Editorial staff shared their local knowledge with the full range of

Tribune media outlets as the ballot controversy unfolded, deepening our

companywide coverage in every medium. Sun-Sentinel editors and reporters

also provided insights for CNN, C-SPAN, the BBC, MSNBC, National Public

Radio and CBS Radio.rida13

Tribune is the country’s fourth-largest broadcaster, operating the largest television group not owned by a network. With stations in 10 of the top 12 markets, and 16 of the top 30, we reach 80 percent of U.S. television households, including the cable and satellite coverage of superstation WGN.

Effective programming strategies combined with our major-market

presence continue to produce strong financial results. Tribune

Broadcasting — including the television group, four radio stations,

Tribune Entertainment and the Chicago Cubs — achieved record operating

profit and operating revenues in 2000, up 19 percent and 13 percent,

respectively. Television operating cash flow margins improved a full point

in 2000, to 42 percent, and have more than doubled over the past 10 years.

We are a leading consolidator in the television industry, focusing

on acquisition opportunities in the nation’s top 40 markets. Expanding

our national footprint gives us greater scale to stay competitive and

increase cash flow. Besides entering new markets, we look to grow in

our existing markets by acquiring second stations as we have done in

Seattle and New Orleans.

In addition to scale, building viewership is fundamental to our television

success. Tribune’s main source of prime-time programming is The WB

Television Network, in which we hold a 25 percent equity stake. Fifteen of

our 22 stations are WB affiliates and together they comprise the major-

market backbone of the network. We also operate six strong Fox affiliates.

TV stations in10 of the top

Broa

dcas

ting

14

The WB’s popularity with teen and young-adult viewers was never

more apparent than in 2000. In the critical November “sweeps” period,

The WB scored the highest year-to-year ratings increase of any television

network in the demographic segments most coveted by advertisers.

Overall ratings jumped 28 percent among adults ages 18-34, and 19

percent for adults 18-49. 7th Heaven, The WB’s signature series, had its

best-ever sweeps average with gains of more than 40 percent in both the

18-34 and 18-49 adult groups. Angel, Dawson’s Creek and Felicity also

achieved impressive audience growth. Gilmore Girls, a new series,

performed even better than expected.

Programming during the “fringe” periods that surround prime time

also plays a key role in our success. The size of our station group gives

us a buying advantage in the syndication market and investments in

off-network comedy series have produced excellent returns. Friends,

for example, continues to yield solid ratings and revenue growth for

our stations, attracting viewers whom advertisers will pay a premium

to reach. We believe Everybody Loves Raymond — one of the top-rated

shows on CBS and launching on most Tribune stations this fall —

will generate similar benefits. The Tribune group will add another

proven winner, Will & Grace, in 2002.

Gene Roddenberry’s Andromeda, introduced by Tribune Entertainment

last fall, looks like a winner, too. It is the No. 1-rated action drama

in first-run syndication and demonstrates the value of Tribune

Entertainment on multiple levels. With Andromeda, Tribune television

stations received a highly rated, first-run show at no cash cost. Tribune

Entertainment, in turn, benefited from having one of the nation’s

strongest station groups as a launch platform. A further plus is the extra

revenue potential for programs that reach four seasons of production

via the sale of re-run rights. In 2000, Tribune Entertainment sold

rights for 88 episodes of Gene Roddenberry’s Earth: Final Conflict to

cable’s Sci-Fi Channel.

In February 2001, Tribune Entertainment announced the formation of

Tribune Studios. The project includes a complete renovation of the historic

10-acre KTLA-TV studio lot and answers the exploding demand for digital

production facilities from the Hollywood creative community.

Tribune television stations enjoy close ties with their communities.

Local news and sports programming strengthens those ties and distin-

guishes our channels from a sea of basic cable networks. Tribune stations

broadcast more than 200 hours of local news every week. The programming

appeals to viewers and advertisers alike, supporting our goal to increase

local market shares.

We’ve been especially aggressive in the morning news category. In

2000, morning shows debuted in New York, Boston, Seattle and Denver.

Like our popular morning newscasts in Los Angeles and Chicago, the

new shows feature an entertaining blend of news, information and

personalities. The overriding goal is to give viewers something they

can’t get anywhere else, and our morning shows frequently outperform

the national broadcasts by traditional networks.

We continue to expand our digital broadcast capacity in anticipation

of growing consumer demand for high-definition television. Eight of our

stations now deliver a digital signal. In addition, Tribune Broadcasting

is a leading investor in iBlast Networks, a new company that uses the

digital-television spectrum to distribute broadband content and services

to consumers. iBlast has aggregated part of the spectrum from local

television stations in 246 markets covering 93 percent of the United

States. The service represents a potential new revenue stream for

Tribune television stations.

12 U.S.markets

NATIONAL REACH Tribune’s 22 stations reach 38 percent of U.S. television households.* Under FCC rules, which discount coverage for UHF stations, we’re well under the regulatory cap of 35 percent and have plenty of room to grow.

Market YearStation Market Size Affiliation Acquired

WPIX New York 1 WB11 1948**KTLA Los Angeles 2 WB5 1985WGN Chicago 3 WB9 1948**WPHL Philadelphia 4 WB17 1992WLVI Boston 6 WB56 1994KDAF Dallas 7 WB33 1997WBDC Washington, D.C. 8 WB50 1999WATL Atlanta 10 WB36 2000KHWB Houston 11 WB39 1996KCPQ Seattle 12 FOX13 1999KTWB Seattle 12 WB22 1998WBZL Miami 16 WB39 1997KWGN Denver 18 WB2 1966KTXL Sacramento, Calif. 19 FOX40 1997KSWB San Diego 25 WB69 1996WXIN Indianapolis 26 FOX59 1997WTIC Hartford, Conn. 27 FOX61 1997WXMI Grand Rapids, Mich. 38 FOX17 1998WGNO New Orleans 42 ABC26 1983WNOL New Orleans 42 WB38 2000WPMT Harrisburg, Pa. 46 FOX43 1997WEWB Albany, N.Y. 56 WB45 1999

*Nielsen Media Research, 2000 HH estimates **Founded by Tribune

15

In 2000, Tribune strengthened its position as one ofAmerica’s premier newspaper publishers. The mergerwith Times Mirror tripled our circulation and marketingreach and doubled publishing revenues to more than $4 billion annually. Tribune is now the nation’s second-largest newspaper publisher measured by revenue and operating cash flow, and third in total circulation.

11 market-leading newspapers

Publ

ishi

ng

The addition of the Los Angeles Times, Newsday (New York), The Baltimore

Sun, The Hartford Courant and other former Times Mirror newspapers

significantly enhances Tribune’s network of major-market media assets.

The Times, Chicago Tribune and Newsday are each among the nation’s

10 largest metropolitan daily newspapers, giving us the scale and scope

to attract national advertising. In fact, our Los Angeles, Chicago and

New York papers have a combined daily circulation of 2.2 million —

a reach unmatched by The Wall Street Journal, USA Today or The New

York Times. For national advertisers, our circulation on a market-by-

market basis is even more compelling.

In 2000, we established Tribune Media Net to execute an aggressive

growth strategy in the national advertising segment. The group’s goal is

to boost national ad revenue for all Tribune newspapers and leverage

Tribune’s unique multimedia position in the nation’s top three markets.

Our message to national ad buyers is simple: Tribune can help you target

16

a broad audience in the most critical markets, quickly and cost-effectively.

We can do it with newspapers alone, or with a combination of newspapers,

television and the Internet.

Tribune Media Net generates revenue that is mostly incremental —

sales that were not possible prior to the merger. Special sections that

share content and run in multiple markets are a key revenue driver. The

sections offer national advertisers a common editorial platform and high

readership — a great combination for those targeting a specialized audience.

Tribune published three cross-market special sections in 2000: two

explored technology themes and one previewed the holiday movie scene.

Capturing the majority of classified advertising revenues in our local

markets remains a top priority. With the Internet playing a greater role

in the classified marketplace, our print and online strategies must be

integrated, and our product development efforts accelerated. In 2000,

we created Tribune Classified Services to carry out both objectives.

The new organization ensures that sales and marketing resources are

maximized as we grow this vital part of our business. Classified adver-

tising — primarily in the jobs, cars and real estate areas — accounts for

about 30 percent of Tribune Publishing’s revenue.

More and more advertisers are realizing the benefits of our “full-service”

classified model, where integrated solutions are offered using a combination

of the newspaper, the Web and niche publications. Initiatives in the

Chicago market illustrate this approach. In early 2001, the Chicago Tribune

upgraded its classified sections, adding more information for readers and

making the pages easier to use. A new section, “Working,” offers tips for

job searchers and points to the CareerBuilder area on chicagotribune.com.

Likewise, the newspaper’s twice weekly “Cars” section shares content

with the cars.com area online. Specialty publications like Auto Finder,

Job Finder and New Homes Guide round out our Chicago classified line,

making the Tribune a true one-stop shop for local advertisers.

Market-leading classifieds are only part of what readers find in

Tribune newspapers. They also get award-winning journalism packaged

with the most in-depth news and information available. Engaging content

is our daily mission, and we’re constantly changing to better inform

and entertain readers. Our bureau in Havana, Cuba, opened in January

2001, exemplifies how we strive to deepen news coverage and address

important reader interests. The bureau will enhance content in all

Tribune newspapers and benefit Tribune’s broadcast units as well.

The Times Mirror merger added two Spanish-language newspapers

to our publishing mix: La Opinión in Los Angeles and Hoy in New York.

La Opinión, 50-percent-owned by Tribune, is the nation’s largest Spanish-

language daily, reaching 600,000 readers every day. Hoy was launched by

Newsday in 1998 and already has a paid distribution of 54,000. Together

with ¡Exito!, the Chicago Tribune’s free weekly, Tribune Publishing reaches

Hispanic readers in the nation’s top three markets. We are exploring

opportunities for national advertising sales and content sharing between

all three publications in this high-growth market.

and 90 Pulitzers

LEADING BRANDS Tribune’s daily newspapers are known for award-winning journalism, multimedia reporting and technological innovation. They are read by more than 9 million people on weekdays and 12 million on Sundays.

Circulation*Newspaper Daily Sunday Primary Market(s)

Los Angeles Times 1,033,399 1,379,564 Southern California

Chicago Tribune 620,600** 1,007,236 Greater Chicagoland

Newsday 576,345 674,662 Long Island/Queens, N.Y.

The Baltimore Sun 315,306 471,387 Central Maryland

Orlando Sentinel 252,057 373,901 Central Florida

South Florida Sun-Sentinel 238,096 351,189 South Florida

The Hartford Courant 202,509 296,713 Greater Hartford/Connecticut

The Morning Call 127,175 170,744 Allentown, Pa./Lehigh Valley

Daily Press 93,174 114,376 Virginia Peninsula

The Advocate 28,499 35,654 Stamford, Conn./Fairfield County

Greenwich Time 12,384 13,810 Greenwich, Conn./Fairfield County

*ABC report for six-months ended 9/24/00 ** Wed.-Fri. average for the period was 661,699.

17

Tribune Interactive operates leading news and informationWeb sites in Tribune’s 23 local media markets, along with other branded sites targeting specific communities ofinterest. In 2000, we accelerated Tribune’s growth online,advancing our goal to develop profitable businesses in the new medium.In

tera

ctiv

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The Times Mirror merger gave a boost to our online efforts, elevating

Tribune to the top tier of local news, information and classified advertising

providers on the Web. Our sites attract approximately 5 million unique

visitors per month, placing us among the top 20 online news and infor-

mation networks in the country.

The content and promotion resources of Tribune newspapers and

television stations give Tribune Interactive a unique ability to deliver large

online audiences in the nation’s top three markets. Likewise, Tribune’s

strong local brands throughout the country and long-term relationships

with consumers and advertisers provide a distinct competitive advantage

as we build our interactive businesses.

Like most other Internet companies, Tribune Interactive experienced

growing pains in 2000. We responded aggressively, taking steps to scale

our online operations to revenue projections. Cost reductions will save

more than $15 million annually, which includes operating efficiencies

from a common online publishing platform being introduced in 2001.

The technology facilitates content sharing and national advertising sales

while allowing each of our sites to retain a unique design.

Content-rich Web

18

Tribune Interactive pro forma revenues were $48 million in 2000,

up 41 percent from 1999. (Pro forma assumes the Times Mirror merger

occurred at the beginning of 1999.) Strong revenue growth is projected for

2001, and the group is targeting profitability by the second half of 2002.

We are keenly focused on applying our interactive resources to areas

that offer the greatest potential for hard dollar returns. In particular, that

means exploiting opportunities to speed revenue growth at our flagship

newspaper Web sites. Our sites feature breaking news throughout the

day and in-depth information not available elsewhere. In most of our

newspaper markets we also operate the leading online marketplaces for

jobs, cars and homes.

Classified advertising is our highest priority, accounting for nearly

70 percent of online revenues. We established Tribune Classified Services

in 2000 to further integrate our print and interactive classified operations

and to capture ad revenues moving from print to the Internet. In

addition, we reconfigured our newspaper Web sites to better showcase

classified content.

We continue to utilize strategic partnerships with other newspaper

publishers to build nationally-branded sites like cars.com — sites that

complement our own local sales efforts. In 2000, we greatly improved

our position in the jobs category by partnering with Knight Ridder to

acquire CareerBuilder, a national leader in online recruiting. Tribune

newspaper sites now offer the full range of CareerBuilder services.

Targeting new audience segments with sites that “build community”

helps increase Tribune’s reach, locally and nationally, and helps develop new

revenue streams. In 2000, for example, we launched ChicagoSports.com,

a site that taps Tribune’s Chicago-based print, broadcast and interactive

resources to give local fans the richest possible online experience. Our

most successful online community is BlackVoices.com, which recently

entered a major strategic marketing alliance with General Motors.

The wide-ranging agreement demonstrates our belief in the power of

the Internet as a medium for creative marketing solutions that go well

beyond standard banner-type advertisements.

We also believe increasing bandwidth will play an important role in our

interactive growth. High-speed broadband technology promises to make

the Internet more compelling for consumers and advertisers alike, and

Tribune’s vast multimedia capabilities position us well for the changing

online environment. In fact, we are already partnering with AT&T’s cable

modem service in several of our most important markets, providing

customized multimedia content for distribution via PCs, digital cable

TV set-top boxes and wireless handheld devices.

POPULAR SITES IN MAJOR MARKETS Tribune Interactive operates a nationalnetwork of Web sites featuring in-depth news and information. The group’s high-trafficnewspaper sites are the foundation for current and future online success.

sites serving 23 U.S.markets

Newspaper Sites Affiliation

latimes.com Los Angeles Timeschicagotribune.com Chicago Tribunenewsday.com Newsday, Long Island, N.Y.sunspot.net The Baltimore Sunsun-sentinel.com South Florida Sun-Sentinelorlandosentinel.com Orlando Sentinelctnow.com The Hartford Courantmcall.com The Morning Call, Allentown, Pa.dailypress.com Daily Press, Newport News, Va.stamfordadvocate.com The Advocate, Stamford, Conn.greenwichtime.com Greenwich Time, Greenwich, Conn.

Entertainment and Specialty Sites (partial list) Description

blackvoices.com Leading online destination for African-Americansrecycler.com General classifieds site serving Southern Californiachicagosports.com Multimedia site for local fans, launched in 2000metromix.com Chicago’s No.1 online entertainment guidego2orlando.com Travel guide for Central Floridawb11.com Internet home of WPIX-TV, New Yorkktla.com Internet home of KTLA-TV, Los Angeleswgntv.com Internet home of WGN-TV, Chicago

19

The idea for Tribune Ventures originated in 1991 when Tribune acquired

a 10 percent stake in America Online. Our objective was to explore the

online services business in its formative stage. Over the years, partnering

with creative young companies like AOL (now AOL Time Warner) has

proven helpful in growing our own businesses. We gain an inside track

on new technologies, industries and business models.

Tribune Ventures is an active investor. We maximize the strategic

benefits of our investments by forming operating relationships with

our portfolio companies. For example, in 2000, Ventures invested in

The Feedroom, a broadband news network, and agreed to license

the news video from Tribune’s television stations to their network.

The Feedroom, in turn, will develop customized, broadband-driven

Web sites for our stations that enhance their current online efforts.

The major areas of Tribune Ventures’ investment activity are:

� Internet-based media and electronic commerce

� digital and interactive television

� broadband infrastructure and services

� online marketing services

� wireless applications and services

The acquisition of The Times Mirror Company in 2000 heightened

Tribune’s national identity and strengthened our strategic leverage in

making venture investments. The merger also added new companies to

the Tribune Ventures portfolio, and extended our investment network on

the West Coast through a stake in Rustic Canyon, a venture capital fund.

Tribune Ventures further expanded in 2000 by opening a New York

office and broadening its focus in Chicago to include seed-stage investing.

The Manhattan office facilitates our work with existing portfolio companies

on the East Coast, and enables us to focus more closely on new investment

opportunities in the region. Recent East Coast investments include

MarketResearch.com and Upoc. In Chicago, our seed-stage initiative aims

to identify and help develop young businesses that can benefit from our

team’s experience, time and attention. This has so far led to investments

in Performics, Legacy.com, iExplore and Eppraisals.com.

Tribune also has important strategic investments that are managed

outside of Tribune Ventures. In 2000, the company acquired a 46 percent

stake in CareerBuilder Inc. — a leading provider of online recruitment

services for employers and job seekers — in partnership with

KnightRidder.com. Tribune also is an equity partner in BrassRing Inc.,

another recruitment services start-up, and Classified Ventures, a network

of classified advertising Web sites that includes cars.com.

Tribune Broadcasting holds a 25 percent stake in The WB Television

Network and, in the cable arena, owns 29 percent of TV Food Network and

9 percent of The Golf Channel. We are also a lead investor in iBlast Networks,

an early innovator in “datacasting” via the digital television spectrum.

Tribune invests strategically in areas that are important to our businesses. As the pace of change quickens in the media industry, we aim to participate in emerging technologies and business models that could shapeTribune’s growth. Our primary investment vehicle is TribuneVentures, which partners with new-media companies thathave solid business plans and high growth potential.

BUILDING PARTNERSHIPS Tribune Ventures invests in companies that have a strategic connection with one or more Tribune business areas. Listed below are Ventures’ investments made in 2000 or early 2001.

Trib

une

Vent

ures

and

othe

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Company Description

DailyShopper retail promotion network

Dotcast datacasting over analog spectrum

Eppraisals.com online valuation for art, collectibles

Legacy.com online memorials and related services

MarketResearch.com online market research sales

NextDoor Networks online services marketplace

Performics online performance marketing services

RespondTV interactive television enabler

The FeedRoom broadband, interactive news network

TrueAdvantage sales-lead services

Upoc wireless instant messaging service

20

Most of our business units participate in the communities program of

the Robert R. McCormick Tribune Foundation. In-kind contributions

from Tribune units help raise funds from the public, which are matched

by the Foundation. This enables our businesses to increase their impact

in the community. In 2000, charitable funds sponsored by Tribune

businesses and supported by the Foundation awarded grants totaling

$41 million. Dollars are directed to agencies dedicated to helping

children, improving health care or alleviating homelessness and hunger.

Tribune’s merger with Times Mirror expands our opportunities

for community development. We’ll be an even greater contributor

in Southern California, where we operate KTLA-TV, Los Angeles;

KSWB-TV, San Diego; and the Los Angeles Times. Likewise, our

newspaper/television combinations in New York and Hartford

will help raise our support level in those communities.

Throughout Tribune, the depth of our community service activities

and the range of causes we support are best shown by example:

� “Reading by 9” is an ongoing literacy program for kindergarten

through third-grade classes administered by The Baltimore Sun and the

Los Angeles Times. Complemented by news coverage on early childhood

reading issues and daily features, the program includes public and

private partnerships, as well as volunteer and community outreach.

� Tribune television stations, working with BlackVoices.com, launched

an innovative Black History Month initiative in 2001. The companywide

multimedia project honored African-Americans who are making history

today through outstanding contributions to their local communities.

� More than 300 Chicago-area Tribune employees, working with the

Chicago Park District and local residents, spent a full day last August

building a playground for the children of Englewood, an impoverished

South Side neighborhood.

� The Orlando Sentinel, partnering with the YMCA, established a

mentoring program in 2000 to foster development of Hispanic leaders

in the community. The program, with youth and adult components,

is modeled after Black Achievers, another Sentinel initiative.

� Newsday’s FutureCorps, founded in 1999, is the largest student public

service project ever undertaken on Long Island and in Queens, N.Y. The

program introduces students to volunteerism and demonstrates how

they can bring about positive change.

Trib

une

in th

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omm

unity

Tribune gives back to the communities we serve. Our busi-nesses support a wide range of nonprofit organizations thathelp people in need, and Tribune employees generouslydonate their time, talent and money in these efforts.

21

22

Management’s Responsibility for Financial Statements

Financial Statements Management is responsible for the preparation, integrity and fair presentation of theCompany’s consolidated financial statements and related financial information included in the Annual Report onForm 10-K to shareholders. The consolidated financial statements have been prepared in accordance with accountingprinciples generally accepted in the United States and necessarily include certain amounts that are based on management’s best estimates and judgments.

The consolidated financial statements were audited by PricewaterhouseCoopers LLP, independent accountants.PricewaterhouseCoopers LLP was given unrestricted access to all financial records and related data, includingminutes of all meetings of shareholders, the Board of Directors and committees of the Board. The Company believesthat all representations made to the independent accountants during their audits were valid and appropriate.

Internal Control System Management is also responsible for establishing and maintaining a system of internalcontrol, designed to provide reasonable assurance to the Company’s management and Board of Directors regardingthe preparation of reliable published financial statements. The system of internal controls is continually reviewedfor its effectiveness and is augmented by written policies and procedures, the careful selection and training of qualifiedpersonnel and a program of internal audit. Each year, the Company’s independent accountants conduct a review ofinternal accounting controls to the extent required by generally accepted auditing standards and perform such testsand related procedures as they deem necessary to arrive at an opinion on the fairness of the financial statements.

The Audit Committee of the Board of Directors is responsible for reviewing and monitoring the Company’sfinancial reporting and accounting practices. The Audit Committee consists of six independent directors. TheCommittee meets with representatives of management, the independent accountants and internal auditors to discuss financial reporting, accounting and internal control matters. PricewaterhouseCoopers LLP and theinternal auditors have direct access to the Audit Committee.

John W. Madigan Donald C. GreneskoChairman, President and Chief Executive Officer Senior Vice President/Finance and Administration

Tribune Company and Subsidiaries

To the Board of Directors and Shareholders of Tribune Company We have audited, in accordancewith auditing standards generally accepted in the United States of America, the consolidated balance sheets ofTribune Company as of December 31, 2000 and December 26, 1999 and the related consolidated statements ofincome, of cash flows and of shareholders’ equity for each of the three years in the period ended December 31, 2000(not presented herein); and in our report dated January 26, 2001, we expressed an unqualified opinion on thoseconsolidated financial statements.

In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairlystated, in all material respects, in relation to the consolidated financial statements from which it has been derived.

Chicago, IllinoisJanuary 26, 2001

Report of Independent Accountants

23

Five Year Financial Summary

(in thousands of dollars, except per share data) 2000 1999 1998 1997 1996

Operating RevenuesPublishing $ 3,403,028 $1,559,192 $1,481,324 $1,423,947 $1,334,032Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006 1,057,529 876,750Interactive 41,782 21,034 17,249 12,771 2,607

Total operating revenues $ 4,910,363 $2,882,284 $2,651,579 $2,494,247 $2,213,389

Operating ProfitPublishing $ 700,932 $ 426,515 $ 398,846 $ 371,135 $ 304,844Broadcasting and Entertainment 449,057 378,036 317,355 285,896 203,531Interactive (52,606) (32,203) (21,709) (16,550) (13,587)Corporate expenses (64,372) (39,506) (35,435) (34,426) (30,935)

Total operating profit 1,033,011 732,842 659,057 606,055 463,853

Net loss on equity investments (79,374) (40,083) (33,980) (34,696) (13,281)Net interest expense (207,584) (65,595) (82,339) (60,159) (15,663)Non-operating items and minority interest expense (165,301) 1,756,779 119,119 111,824 –

Income from Continuing Operations Before Income Taxes 580,752 2,383,943 661,857 623,024 434,909Income taxes (270,351) (933,981) (272,660) (250,265) (175,071)

Income from Continuing OperationsBefore Accounting Change 310,401 1,449,962 389,197 372,759 259,838

Discontinued Operations of Education Segment, net of tax (86,015) 21,807 25,075 20,866 22,912Discontinued Operations of QUNO, net of tax – – – – 89,317Cumulative effect of change in accounting principle (1) – (3,060) – – –

Net Income (2) $ 224,386 $1,468,709 $ 414,272 $ 393,625 $ 372,067

Share InformationBasic EPS

Continuing operationsBefore non-operating items $ 1.40 $ 1.53 $ 1.27 $ 1.16 $ .96Total 1.06 6.03 1.53 1.44 .98

Discontinued operations (.32) .09 .10 .09 .46Cumulative effect of accounting change – (.01) – – –

Net income $ .74 $ 6.11 $ 1.63 $ 1.53 $ 1.44

Diluted EPSContinuing operations

Before non-operating items $ 1.30 $ 1.41 $ 1.17 $ 1.07 $ .89Total .99 5.49 1.41 1.33 .91

Discontinued operations (.29) .08 .09 .07 .41Cumulative effect of accounting change – (.01) – – –

Net income $ .70 $ 5.56 $ 1.50 $ 1.40 $ 1.32

Common dividends per share $ .40 $ .36 $ .34 $ .32 $ .30Weighted average common shares outstanding (000’s) 271,951 237,367 242,428 245,758 245,684

Financial RatiosOperating profit margin 21.0% 25.4% 24.9% 24.3% 21.0%Debt to capital (3) 34% 37% 35% 41% 37%

Financial Position and Other DataTotal assets $14,676,212 $8,740,047 $5,824,037 $4,665,821 $3,629,151Long-term debt (4) 4,007,041 2,694,073 1,615,955 1,520,646 979,754Shareholders’ equity 5,885,916 3,458,617 2,356,617 1,826,004 1,539,506Capital expenditures $ 302,471 $ 125,578 $ 128,800 $ 98,319 $ 87,171

This summary should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2000 Annual Report on Form 10-K.(1) The cumulative effect of adopting a new accounting pronouncement for derivative instruments decreased net income by $3.1 million in 1999. (2) Includes non-operating items as follows: loss on change in fair values of derivatives and related investments of $62.6 million and loss on sales of subsidiaries and investments, net of write-downs of

$30.5 million, totaling $93.1 million in 2000; gain on change in fair values of derivatives and related investments of $131.2 million, gain on reclassification of investments of $666.2 million, and gain on sales of subsidiary and investments of $270.1 million, totaling $1.1 billion in 1999; gain on sales of subsidiary and investments, net of write-downs, totaling $63.5 million in 1998; gain on sales ofinvestments, net of write-downs, totaling $68.9 million in 1997; and equity income related to Qwest Broadcasting of $6.0 million in 1996.

(3) Capital comprises total debt, deferred taxes and shareholders’ equity.(4) Long-term debt includes the PHONES in 2000 and 1999.

Tribune Company and Subsidiaries

24

Business SegmentsTribune Company and Subsidiaries

(in thousands of dollars) 2000 1999 1998

Operating Publishing $ 3,403,028 $1,559,192 $1,481,324Revenues Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006

Interactive 41,782 21,034 17,249

Total operating revenues $ 4,910,363 $2,882,284 $2,651,579

Operating Publishing $ 700,932 $ 426,515 $ 398,846Profit Broadcasting and Entertainment 449,057 378,036 317,355

Interactive (52,606) (32,203) (21,709)

Corporate expenses (64,372) (39,506) (35,435)

Total operating profit $ 1,033,011 $ 732,842 $ 659,057

Depreciation Publishing $ 138,702 $ 77,768 $ 71,927

Broadcasting and Entertainment 42,850 38,864 33,362

Interactive 4,091 3,378 2,592

Corporate 5,822 2,711 2,761

Total depreciation $ 191,465 $ 122,721 $ 110,642

Amortization Publishing $ 102,187 $ 8,612 $ 5,175of Intangible Broadcasting and Entertainment 72,579 63,209 54,357Assets Interactive 4,396 93 –

Total amortization of intangible assets $ 179,162 $ 71,914 $ 59,532

Capital Publishing $ 211,536 $ 61,710 $ 63,387Expenditures Broadcasting and Entertainment 43,569 41,730 44,055

Interactive 11,868 4,966 2,190

Corporate 35,498 17,172 19,168

Total capital expenditures $ 302,471 $ 125,578 $ 128,800

Assets Publishing $ 8,653,011 $ 899,295 $ 720,077

Broadcasting and Entertainment 3,870,720 3,724,621 3,148,814

Interactive 312,446 108,096 80,776

Corporate 1,840,035 3,317,094 1,191,241

Net assets of discontinued operations – 690,941 683,129

Total assets $14,676,212 $8,740,047 $5,824,037

25

Consolidated Statements of IncomeTribune Company and Subsidiaries

(in thousands of dollars, except per share data) year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998

Operating Publishing Revenues Advertising $2,689,304 $1,184,779 $1,150,073

Circulation 531,267 241,258 243,842

Other 182,457 133,155 87,409

Total 3,403,028 1,559,192 1,481,324

Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006

Interactive 41,782 21,034 17,249

Total operating revenues 4,910,363 2,882,284 2,651,579

Operating Cost of sales (exclusive of items shown below) 2,127,352 1,328,893 1,265,787Expenses Selling, general and administrative 1,379,373 625,914 556,561

Depreciation 191,465 122,721 110,642

Amortization of intangible assets 179,162 71,914 59,532

Total operating expenses 3,877,352 2,149,442 1,992,522

Operating Profit 1,033,011 732,842 659,057

Net loss on equity investments (79,374) (40,083) (33,980)

Interest income 33,124 47,436 6,112

Interest expense (240,708) (113,031) (88,451)

Gain (loss) on change in fair values of derivatives & related investments (100,965) 215,876 –

Gain (loss) on sales of subsidiaries & investments, net of write-downs (48,001) 444,927 119,119

Gain on reclassification of investments – 1,095,976 –

Income From Continuing Operations Before Income Taxes, Minority Interest and Cumulative Effect of Change in Accounting Principle 597,087 2,383,943 661,857

Income taxes (270,351) (933,981) (272,660)

Minority interest expense, net of tax (16,335) – –

Income From Continuing Operations Before Cumulative Effect of Change in Accounting Principle 310,401 1,449,962 389,197

Income (loss) from discontinued operations, net of tax (86,015) 21,807 25,075

Income Before Cumulative Effect of Change in Accounting Principle 224,386 1,471,769 414,272

Cumulative effect of change in accounting principle, net of tax – (3,060) –

Net Income 224,386 1,468,709 414,272

Preferred dividends, net of tax (22,984) (18,639) (18,782)

Net Income Attributable to Common Shares $ 201,402 $1,450,070 $ 395,490

Earnings Basic: Continuing operations before cumulative effect ofPer Share change in accounting principle $ 1.06 $ 6.03 $ 1.53

Discontinued operations (.32) .09 .10

Cumulative effect of accounting change, net – (.01) –

Net income $ .74 $ 6.11 $ 1.63

Diluted: Continuing operations before cumulative effect ofchange in accounting principle $ .99 $ 5.49 $ 1.41

Discontinued operations (.29) .08 .09

Cumulative effect of accounting change, net – (.01) –

Net income $ .70 $ 5.56 $ 1.50

See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K.

26

Consolidated Balance Sheets

Assets (in thousands) Dec. 31, 2000 Dec. 26, 1999

Current Cash and cash equivalents $ 115,788 $ 631,018Assets Short-term investments 79,709 435,770

Accounts receivable (less allowances of $60,348 and $37,744) 813,739 524,443

Inventories 51,332 23,530

Broadcast rights 268,176 253,129

Deferred income taxes 120,116 73,365

Prepaid expenses and other 42,306 16,275

Total current assets 1,491,166 1,957,530

Properties Machinery, equipment and furniture 1,895,155 1,183,791

Buildings and leasehold improvements 750,491 383,661

2,645,646 1,567,452

Accumulated depreciation (1,180,906) (1,055,300)

1,464,740 512,152

Land 117,109 97,341

Construction in progress 161,998 69,879

Net properties 1,743,847 679,372

Other Broadcast rights 278,630 192,070Assets Net assets of discontinued operations – 690,941

Intangible assets (less accumulated amortization of $566,414 and $386,283) 8,496,782 2,616,688

AOL Time Warner stock related to PHONES debt 556,800 1,304,000

Other investments 1,084,439 1,154,969

Prepaid pension costs 803,100 48,108

Other 221,448 96,369

Total other assets 11,441,199 6,103,145

Total assets $14,676,212 $8,740,047

See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K.

27

Tribune Company and Subsidiaries

Liabilities & Shareholders’ Equity (in thousands of dollars, except share data) Dec. 31, 2000 Dec. 26, 1999

Current Long-term debt due within one year $ 141,404 $ 30,446Liabilities Accounts payable 298,175 153,256

Employee compensation and benefits 231,684 110,203

Contracts payable for broadcast rights 271,510 276,307

Deferred income 90,421 62,737

Income taxes 129,954 24,140

Other 286,076 158,405

Total current liabilities 1,449,224 815,494

Long-Term PHONES debt related to AOL Time Warner stock 700,000 1,328,480Debt Other long-term debt (less portions due within one year) 3,307,041 1,365,593

Other Deferred income taxes 2,146,416 1,186,272Non-Current Contracts payable for broadcast rights 390,657 269,698Liabilities Deferred compensation and benefits 329,509 108,015

Other obligations 467,449 207,878

Total other non-current liabilities 3,334,031 1,771,863

Commitments and Contingent Liabilities – –

Shareholders’ Series B convertible preferred stock (without par value)Equity Authorized: 1,600,000 shares;

Issued and outstanding: 1,212,834 shares in 2000 and 1,282,665 shares in 1999 (liquidation value $220 per share) 265,790 281,093

Series C convertible preferred stockAuthorized: 900,000 shares;Issued and outstanding: 88,519 shares (net of 354,077 treasury shares)

(liquidation value $500 per share) 44,284 –

Series D-1 convertible preferred stockAuthorized: 400,000 shares;Issued and outstanding: 76,194 shares (net of 304,778 treasury shares)

(liquidation value $500 per share) 38,097 –

Series D-2 convertible preferred stockAuthorized: 300,000 shares;Issued and outstanding: 49,020 shares (net of 196,080 treasury shares)

(liquidation value $500 per share) 24,510 –

Common stock ($0.01 par value in 2000, without par value in 1999)Authorized: 1,400,000,000 shares; 536,886,513 shares issued in 2000and 327,086,632 shares issued in 1999 3,116 1,018

Additional paid-in capital 8,190,811 136,108

Retained earnings 4,278,464 4,184,037

Treasury common stock (at cost)236,727,470 shares in 2000 and 88,071,818 shares in 1999 (6,970,703) (1,430,900)

Treasury common stock held by Tribune Stock Compensation Fund (at cost) 641,094 shares in 2000 and 1,223,384 shares in 1999 (26,707) (61,909)

Unearned compensation related to ESOP (97,517) (127,595)

Accumulated other comprehensive income 135,771 476,765

Total shareholders’ equity 5,885,916 3,458,617

Total liabilities and shareholders’ equity $14,676,212 $8,740,047

See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K.

28

Consolidated Statements of Cash FlowsTribune Company and Subsidiaries

(in thousands of dollars) year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998

Operations Income from continuing operations, net of cumulative effect of change in accounting principle $310,401 $1,446,902 $389,197

Adjustments to reconcile income from continuing operationsto net cash provided by continuing operations:

Loss (gain) on change in fair values of derivatives & related investments 100,965 (215,876) –

Loss (gain) on sales of subsidiaries and investments, net of write-downs 48,001 (444,927) (119,119)

Minority interest expense, net of tax 16,335 – –

Gain on reclassification of investments – (1,095,976) –

Cumulative effect of accounting change, net of tax – 3,060 –

Depreciation and amortization of intangible assets 370,627 194,635 170,174

Net loss on equity investments 79,374 40,083 33,980

Deferred income taxes (43,972) 711,872 25,384

Changes in working capital items excluding effects from acquisitions:Accounts receivable 23,155 (87,837) (33,690)

Inventories, prepaid expenses and other current assets 27,850 (3,308) (2,891)

Accounts payable, employee compensation and benefits,deferred income and accrued liabilities (20,401) (25,712) 22,203

Income taxes 122,714 (49,412) 42,844

Change in broadcast rights, net of liabilities 7,778 5,528 (1,072)

Other, net 50,540 38,169 (64)

Net cash provided by continuing operations 1,093,367 517,201 526,946

Net cash provided by assets held for sale and discontinued operations 10,607 42,393 16,990

Net cash provided by operations 1,103,974 559,594 543,936

Investments Capital expenditures (302,471) (125,578) (128,800)

Acquisition of Times Mirror, net of cash acquired (excluding stock issued) (2,793,052) – –

Other acquisitions (excluding stock issued) (111,723) (189,473) (98,436)

Investments (224,700) (211,590) (40,245)

Net maturities (purchases) of marketable securities 344,541 (344,541) –

Proceeds from sale of discontinued operations, net of tax 642,253 – –

Proceeds from sales of assets held for sale, net of tax 1,340,000 – –

Proceeds from sales of investments and subsidiaries 161,751 98,595 51,585

Net (increase) decrease in advances to investee (162) 51,908 (52,244)

Other, net (1,139) 16,168 (7,801)

Net cash used for investments of continuing operations (944,702) (704,511) (275,941)

Net cash used for investments of assets held for sale and discontinued operations (60,270) (29,575) (71,226)

Net cash used for investments (1,004,972) (734,086) (347,167)

Financing Net proceeds from issuance of PHONES debt – 1,230,880 –

Proceeds from issuance of other long-term debt 513,605 – 469,878

Repayments of long-term debt (187,445) (183,020) (335,723)

Sales of common stock to employees, net 122,497 53,960 46,129

Purchases of treasury common stock (870,646) (37,015) (261,160)

Purchases of treasury common stock by Tribune Stock Compensation Fund (52,453) (167,582) (68,988)

Dividends (139,790) (104,146) (101,090)

Net cash provided by (used for) financing of continuing operations (614,232) 793,077 (250,954)

Net Increase (Decrease) in Cash and Cash Equivalents (515,230) 618,585 (54,185)

Cash and cash equivalents, beginning of year 631,018 12,433 66,618

Cash and cash equivalents, end of year $115,788 $ 631,018 $ 12,433

See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K.

29

Board of Directors

Andrew J. McKennaChairman and Chief Executive Officer, SchwarzWorldwide, an international distributor of paper packaging and related products and a printer, producerand converter. Age 71. Director since 1982.

Kristie MillerAuthor; Journalist, The Daily News-Tribune, Inc. of LaSalle, Illinois. Age 56. Director since 1981.

James J. O’ConnorRetired Chairman and Chief Executive Officer ofUnicom Corporation, a holding company, andCommonwealth Edison Company, an electric utility.Age 64. Director since 1985.

Patrick G. RyanChairman, Chief Executive Officer and Director, Aon Corporation, a broad-based insurance holdingcompany. Age 63. Director since 1997.

William Stinehart, Jr.Partner, Gibson, Dunn & Crutcher LLP, a law firm. Age 56. Director since 2000.

Dudley S. TaftPresident and Director, Taft Broadcasting Company, an investor in media and entertainment companies. Age 60. Director since 1996.

Thomas UntermanManaging Partner and Chief Executive Officer, Rustic Canyon Group, a private equity investment firm. Age 56. Director since 2000.

Arnold R. WeberPresident-Emeritus, Northwestern University. Age 71. Director since 1989.

Jeffrey ChandlerPresident and Chief Executive Officer, Chandler Ranch Co., an avocado producer; President and ChiefExecutive Officer, Western Telecommunications, Inc.Age 59. Director since 2000.

Dennis J. FitzSimonsExecutive Vice President, Tribune Company. President, Tribune Broadcasting Company. Age 50. Director since 2000.

Roger E. GoodanVice President of Marketing, Schlumberger OilfieldServices North America. Age 54. Director since 2000.

Diego E. HernandezVice Admiral, U.S. Navy (Retired); President, MarineTechnology Group, Inc., a technical consulting service.Age 66. Director since 1991.

Enrique Hernandez, Jr. Chairman, President and Chief Executive Officer, Inter-Con Security Systems, Inc., an international security services firm. Age 45. Director since 2001.

Robert E. La BlancPresident, Robert E. La Blanc Associates, Inc., consultants in information technology. Age 67. Director since 1982.

John W. MadiganChairman, President and Chief Executive Officer,Tribune Company. Age 63. Director since 1975.

Nancy Hicks MaynardPresident, Maynard Partners Incorporated, consultantsin news media economics. Age 54. Director since 1995.

30

TRIBUNE BROADCASTING COMPANYChicagoDennis J. FitzSimonsPresident

Gerald W. AgemaVice President/Administration and Chief Financial Officer

James L. EllisVice President/GroupOperations

Ira H. GoldstoneVice President/Engineeringand Technology

John F. PoelkingVice President/Controller

Myrna G. RamirezVice President/Human Resources

Marc S. SchacherVice President/Programming and Development

Television

Tribune TelevisionPatrick J. MullenPresident

Michael EignerPresident/Tribune Cable

Peter S. WalkerSenior Vice President

WPIX (WB11)New YorkBetty Ellen BerlaminoGeneral Manager

KTLA (WB5)Los AngelesJohn E. ReardonGeneral Managerand Vice President/Tribune Television–West Coast Region

WGN (WB9)ChicagoJohn. J. VitanovecGeneral Manager

Broadcasting

Principal Businesses and Management

John W. MadiganChairman, President and Chief Executive Officer

Dennis J. FitzSimonsExecutive Vice President

Donald C. GreneskoSenior Vice PresidentFinance and Administration

Crane H. KenneySenior Vice President, General Counsel and Secretary

Luis E. LewinSenior Vice PresidentHuman Resources

Andrew J. OleszczukSenior Vice PresidentDevelopment

Jeff R. ScherbSenior Vice President andChief Technology Officer

H. Kathleen AmecheVice President and Chief Information Officer

Irene M. FreutelVice President Compensation and Benefits

David J. GranatVice President and Treasurer

Mark W. HianikVice President, AssistantGeneral Counsel andAssistant Secretary

Thomas D. LeachVice PresidentDevelopment

R. Mark MalloryVice President and Controller

Ruthellyn MusilVice PresidentCorporate Relations

Linda Riley MitchellVice PresidentFinance Service Center

Shaun M. SheehanVice PresidentWashington

David L. Underhill Vice PresidentIntergroup Development

Gary WeitmanVice PresidentCommunications

Venture Investments

Randall S. GleinVice President

David W. KniffinVice PresidentNew York

Lisa L. WiersmaVice President

WPHL (WB17)PhiladelphiaLeslie GlennGeneral Manager

WLVI (WB56)BostonVincent ManziGeneral Manager

KDAF (WB33)DallasJoseph A. YoungGeneral Manager

WBDC (WB50)Washington, D.C.Jerome P. MartinGeneral Manager

WATL (WB36)AtlantaDaniel J. BerkeryGeneral Manager

KHWB (WB39)HoustonThomas E. EhlmannGeneral Manager

KCPQ (FOX13)KTWB (WB22)SeattlePamela S. PearsonGeneral Manager

WBZL (WB39)MiamiJames D. ZerwekhGeneral Manager

KWGN (WB2)DenverDerek M. DaltonGeneral Manager

KTXL (FOX40)Sacramento, Calif.Audrey FarringtonGeneral Manager

KSWB (WB69)San DiegoLisé M. MarkhamGeneral Manager

WXIN (FOX59)IndianapolisLinda GrayGeneral Manager

WTIC (FOX61)Hartford, Conn.Gary G. ZenobiGeneral Manager

WXMI (FOX17)Grand Rapids, Mich.Eduardo B. FernandezGeneral Manager

WGNO (ABC26)WNOL (WB38)New OrleansMichael C. LaBoniaGeneral Manager

WPMT (FOX43)Harrisburg, Pa.John A. RiggleGeneral Manager

WEWB (WB45)Albany, N.Y.Diana-Marie HowardGeneral Manager

WGN CableChicagoKevin P. MurphyGeneral Manager

Radio

WGN (720 AM)ChicagoStephen D. CarverGeneral Managerand Vice President/Radio Group

KKHK (99.5 FM)KOSI (101.1 FM)KEZW (1430 AM)DenverJane E. BartschGeneral Manager

TV Programming

Tribune Entertainment CompanyLos AngelesRichard H. Askin, Jr.President

Baseball

Chicago CubsChicagoAndrew B. MacPhailPresident

Corporate Management

31

Publishing Interactive

TRIBUNE INTERACTIVEChicagoDavid D. HillerPresident

Timothy J. LandonPresident/Classified Services

Dana J. HayesVice President/Sales and eCommerce

Brigid E. KenneyVice President/Chief Financial Officer

Michael O. PlonskiVice President/ChiefTechnology Officer

Michael A. Silver Vice President/Strategy and Development

Barbara WeeksVice President/Market Operations

See inside back cover for a complete list of Tribune Web sites.

National Advertising Sales

Tribune Media NetChicagoDavid P. Murphy President

Cable Programming

CLTV NewsOak Brook, Ill.Denise E. PalmerPresident

Central Florida News 13*Orlando, Fla.Robin A. SmytheGeneral Manager*partnership with Time Warner

Communications

Entertainment Listings and Content Syndication

Tribune Media ServicesChicagoDavid D. WilliamsPresident

Other Products and Services

Tribune newspaper companies produce a wide range of niche publications in addition to their flagship products.These include communitynewspapers, lifestyle magazines and numerouspublications devoted to themajor classified advertisingcategories. Direct marketing, commercial printing andrelated services also areoffered.

TRIBUNE PUBLISHING COMPANYChicagoJack FullerPresident

Raymond A. JansenSenior Vice President

Timothy J. LandonPresident/Classified Services

Richard A. CasonVice President/Newsprint Procurement

Philip B. DohertyVice President/Finance

Timothy R. KennedyVice President/Strategy and Development

Sharon M. MandellVice President/Technology

James E. O’DellVice President/Operationsand Technology

Howard A. TynerVice President/Editorial

Daily Newspapers

Los Angeles TimesLos AngelesJohn P. PuernerPresident

Chicago TribuneChicagoScott C. SmithPresident

NewsdayMelville, N.Y.Raymond A. JansenPresident

The Baltimore SunBaltimoreMichael E. WallerPresident

South Florida Sun-SentinelFt. Lauderdale, Fla.Robert J. GremillionPresident

Orlando SentinelOrlando, Fla.Kathleen M. WaltzPresident

The Hartford CourantHartford, Conn.Jack W. Davis, Jr.President

The Morning CallAllentown, Pa.Guy L. GilmorePresident

Daily PressNewport News, Va.Rondra J. MatthewsPresident

The AdvocateStamford, Conn.Greenwich TimeGreenwich, Conn.Durham J. MonsmaPresident

Spanish-LanguageNewspapers

Hoy (daily)New YorkLouis SitoPresident

¡Exito! (weekly)ChicagoLiza E. GrossPresident

La Opinión* (daily)Los AngelesJosé LozanoPresident*partnership with Lozano

Communications

32

Shareholder Information

Corporate HeadquartersTribune Company435 N. Michigan Ave.Chicago, Illinois 60611312/222-9100www.tribune.com

Investor InformationThis report contains only summary financial information.The complete 2000 consolidated financial statements andfinancial review are contained in Tribune’s Form 10-KAnnual Report to the Securities and Exchange Commission.The 10-K was mailed with this report to all shareholders.

Current and prospective Tribune investors can receivethe annual report, proxy statement, 10-K, earnings announce-ments and other reports and publications at no cost by calling 800/757-1694. The annual report and related financialinformation also are available on Tribune’s Web site.

The contact for securities analysts, portfolio managersand individual investors is Ruthellyn Musil, VicePresident/Corporate Relations. Call 312/222-3787, or send e-mail to rmusil@tribune.com.

Stock InformationTribune common stock is listed on the New York, Chicagoand Pacific stock exchanges. Our ticker symbol is TRB.Tribune has increased its cash dividend for eight consecu-tive years. The current rate is $.11 per share per quarter.

Independent AccountantsPricewaterhouseCoopers LLP, Chicago

Transfer Agent and RegistrarFirst Chicago Trust Company, a division of EquiServe,maintains shareholder records. For assistance on matterssuch as lost shares, name changes on shares or transfers of ownership, please contact:EquiServe, First Chicago DivisionShareholder ServicesP.O. Box 2500Jersey City, N.J. 07303-2500800/446-2617www.equiserve.com

Direct Stock Purchase PlanTribune’s DirectSERVICE Investment Program enables both registered shareholders and new investors to buy and sell shares of Tribune common stock directly throughEquiServe. Please contact EquiServe for more information.

Annual MeetingTribune’s Annual Meeting of Shareholders will be held inChicago on May 8, 2001, 11 a.m. Central Time, at the HyattRegency Chicago, 151 East Wacker Drive. The meeting willbe broadcast live via satellite and distributed as follows:

Telstar 5C (C Band)Transponder 23Vertical PolarityDownlink frequency 4160 MHzAudio: left 6.2 MHz; right 6.8 MHz

To confirm satellite reception instructions, please callCorporate Relations, 312/222-4432, the week prior to the annual meeting. Live audio and video from the annualmeeting also will be available at www.tribune.com.

Equal Employment OpportunityTribune believes in equal employment opportunity. TheCompany’s policy is to hire and promote the most qualifiedapplicants and to comply with all federal, state and localequal employment opportunity laws.

Forward-Looking StatementsThis report contains comments and forward-looking statements that are based largely on Tribune’s currentexpectations and are subject to certain risks, trends anduncertainties. Such comments and statements should beunderstood in the context of Tribune’s publicly availablereports filed with the Securities and Exchange Commission,including the most recent 10-K and 10-Q, which discuss various factors that may affect the Company’s business.These factors could cause actual future performance to differ materially from current expectations. Tribune is not responsible for updating the information contained in this report.

PhotographyJames SchnepfCedarburg, Wis.Cover and pages 6, 8, 10 and 12

Christopher WalkerChicago TribunePage 3

Other photo creditsDavid Cotton, Orlando Sentinel

CommunicationsJ. Emilio FloresGlenn Kaupert, Chicago TribuneLee Kissinger Lori Adamski PeekMaryanne Russell Phil Velasquez, Chicago Tribune

DesignPressley Jacobs Design Inc.Chicago

PrintingLitho Inc.St. Paul, Minn.

WPIX-TV, New Yorkwb11.com

KTLA-TV, Los Angelesktla.com

WGN-TV, Chicagowgntv.com

CLTV News, Chicagocltv.com

WPHL-TV, Philadelphiawb17.com

WLVI-TV, Bostonwb56.com

KDAF-TV, Dallaskdaf.com

WBDC-TV, Washingtonwbdc.com

WATL-TV, Atlantawb36.com

KHWB-TV, Houstonkhwbtv.com

KCPQ-TV, Seattlekcpq.com

KTWB-TV, Seattlektwbtv.com

WBZL-TV, Miamiwb39.com

KWGN-TV, Denverwb2.com

KTXL-TV, Sacramentoktxl.com

KSWB-TV, San Diegokswbtv.com

WXIN-TV, Indianapolisfox59.com

WTIC-TV, Hartfordfox61.com

WXMI-TV, Grand Rapidswxmi.com

WGNO-TV, New Orleansabc26.com

WNOL-TV, New Orleanswb38.com

WPMT-TV, Harrisburgfox43.com

WEWB-TV, Albanywewbtv.com

WGN superstationwgncable.com

Tribune Entertainmenttribtv.com

Com

mun

ity &

Lei

sure

Cla

ssifi

eds

Trib

une

Med

ia S

ervi

ces

WGN-AM, Chicagowgnradio.com

KKHK-FM, Denverthehawk.com

KOSI-FM, Denverkosi101.com

KEZW-AM, Denverkezw.com

African-American communityblackvoices.com

Local sportschicagosports.com

Central Florida tourismgo2orlando.com

Chicago guidemetromix.com

Los Angeles guidecalendarlive.com

South Florida guideshowtimeinteractive.com

Hampton Roads guidehrticket.com

Recruitmentcareerbuilder.com*brassring.com*blackvoices.com

Tech jobs (Chicago)siliconprairie.com

Classified Ventures*classifiedventures.comcars.comapartments.comnewhomenetwork.com

General merchandise (Los Angeles)recycler.com

* Operated in partnership with other media companies

Tribune Company’s home page is www.tribune.com. From there, you can link to the sites listed on this page as well as other Tribune-operated sites. The prefix foreach Web address below is www.

Los Angeles Timeslatimes.com

Chicago Tribunechicagotribune.com

Newsday(Long Island, N.Y.)newsday.com

The Baltimore Sunsunspot.net

South Florida Sun-Sentinelsun-sentinel.com

Radi

o

Home pagetms.tribune.com

Comic stripscomicspage.com

TV, movie and Internet informationzap2it.com

Total Market Coverage andspecial sections productsonthemarkmedia.com

Animations, graphics andWeb packagesworkingparts.comworkingstock.com

Trib

une

Web

Site

sTe

levi

sion

New

spap

ers The Advocate

(Stamford, Conn.)stamfordadvocate.com

Greenwich Time (Greenwich, Conn.)greenwichtime.com

La Opinión (Spanish/Los Angeles)laopinion.com

Hoy (Spanish/New York)holahoy.com

Orlando Sentinelorlandosentinel.com

The Hartford Courantctnow.com

The Morning Call (Allentown, Pa.)mcall.com

Daily Press(Newport News, Va.)dailypress.com

Tribune Company 435 North Michigan Avenue Chicago, Illinois 60611 www.tribune.com