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  • 1. Good morning, ladies and gentlemen. I’m Marshall Morton, president and chief executive of Media General. We’re pleased to have the opportunity to provide you with a midyear perspective on the company. Presenting with me today are Reid Ashe, executive vice president and chief operating officer, and John Schauss, vice president-finance and chief financial officer. Also with us is Lou Anne Nabhan, vice president of Corporate Communications. This presentation contains forward-looking statements. They are subject to various risks and uncertainties and should be understood in the context of our SEC filings. Our future performance could differ materially from current expectations. For the U.S. economy as a whole, 2007, as we all know, started out much weaker than anticipated. Economic growth in the first quarter was the slowest in four years. This deceleration had a significant impact on advertiser spending. In addition, Media General has been affected by a severe downturn in Florida’s housing market, which has impacted our Tampa operations. The Tampa Tribune, as we announced in April, has implemented a plan to better align expenses with the current revenue environment. The Tribune, along with its associated daily and weekly newspapers, realizes synergies across the group. Tampa’s improvement plan includes centralizing more printing into the Tribune press room, as well as further consolidating the classified call center. They will soon outsource circulation telemarketing and customer service. These actions, plus keeping open positions unfilled – except for sales - will eliminate approximately 115 positions. Our Publishing Division has been a leader in creating operating efficiencies. Since 2001, the division has reduced FTEs by nearly 500, as a result of capital investments and by creating synergies within our newspaper clusters. The Tampa group contributed more than 250 FTEs to this total, which they achieved before the latest re-alignment. Media General is cautious about the remainder of 2007, given the situation in Tampa, as well as the weakness in newsprint pricing, which is affecting the performance of SP Newsprint, in which we have a one-third interest. SP announced in May that it is exploring strategic alternatives to maximize value and that it will make appropriate public disclosures if and when a definitive transaction is approved. John will provide more financial details in his part of our presentation. 1
  • 2. I’d like to turn now to a longer-term perspective and our growth strategy. For more than a dozen years, our strategy has been to focus on being a leading provider of high-quality news, information and entertainment in every market we serve. We’re long past being just a newspaper or broadcast company. We distribute our content over a variety of platforms, including the Internet, mobile devices, and targeted products that reach geographic, demographic and topical communities of interest. At the core of our strategy is the goal of increasing our total audience in all markets. We’re achieving this by creating a strong Internet presence, by introducing new products and services, and by continually enhancing our newspapers and television stations. Strategic acquisitions, such as our purchase last year of four NBC stations in large growth markets, and partnerships, such as our alliance with Yahoo!, are also important elements of our growth strategy. 2
  • 3. We’re pleased with our progress in creating a dynamic Internet presence. All of our newspapers and television stations have associated Web sites. We’re fully leveraging our journalistic resources to provide the online content that users want most from us: breaking and updated local news, weather, sports and entertainment. Our Web sites also provide a robust marketplace for buyers and sellers, and we have a number of programs to further drive online revenue growth. Since we launched our Interactive Media Division in 2001, our online audience has grown significantly. Page views have increased from approximately 200 million in 2001 to about 750 million in 2006. This year, we expect page views to exceed 1 billion. 3
  • 4. Our online audience growth has driven revenue growth. We expect online revenues to reach $40 million in 2007 and increase to $50 million in 2008. Our mix of online revenues is currently weighted to classified advertising. For most local Web sites, Classified advertising, mostly in the form of upsells from newspaper placements, was the early revenue growth driver. This was a great way to build momentum, and our sell-through rate has averaged 80-85%. Going forward, we are focusing increasingly on display and rich media ads from local and national advertisers. These categories have grown 65% and 103%, respectively, in 2007. While we will continue to upsell online advertising, we also have focused more on direct sales. We’re pleased with the growth we’ve seen from this effort. 4
  • 5. Media General is a member of the newspaper consortium partnering with Yahoo! We’re enthusiastic about the prospects for this alliance to help all parties with online revenue and audience growth. We’ve implemented the Yahoo! HotJobs upsell at all of our newspapers. We’ve had this feature in Tampa since January 2006 – before the partnership was formed. Most of our other newspapers implemented the HotJobs upsell in the first quarter of this year. Our North Carolina newspapers activated it in May, as part of their conversion to our new Mactive system. As an aside, Media General began consolidating all of our daily papers on a single advertising platform last year. The Mactive system supports our convergence strategy and strengthens cross-selling. The system also streamlines the sales process, reduces scheduling errors, improves operational efficiencies and enhances customer service. All of our newspapers will be on Mactive by late 2008. 5
  • 6. Phase B of the Yahoo! HotJobs partnership is being rolled out this summer. All of our online career sections will be powered by Yahoo! HotJobs, and they will be co-branded. TBO.com in Tampa will be our first site to launch Phase B, and they will do so tomorrow. The Richmond Times-Dispatch will launch it on August 1. The majority of our sites will be live by mid-September, and all of our sites will be up and running with the new HotJobs features by November 30. A major expansion of the agreement, announced in April, will create the first real online advertising network for the newspaper industry, and it will significantly expand newspaper companies’ presence on the Internet. The opportunities provided by the expanded partnership include: -- Adopting Yahoo!'s leading-edge ad-serving, targeting and inventory management capabilities on all of our newspaper Web sites. -- Cross-selling - by selling into Yahoo!’s inventory, we can deliver unequaled local online reach. By selling into ours, Yahoo! can deliver a larger local market to its national clients and make it easier for them to buy many newspaper sites. -- We will integrate Yahoo!’s Web Search, Sponsored Search, Content Match and its Toolbar into all of our newspaper Web sites. -- Our local news content will be distributed by Yahoo! on their news, sports and finance pages and also on Yahoo! Messenger and Mail pages. Our news stories will appear as headlines with links back to our Web sites for the full story. This arrangement will drive advertising growth from the larger visitor audience. Media General will begin an early roll-out of selected content and search features over the next few months. By fall, we will begin a pilot phase of cross-selling. Implementation of the expanded features will continue well into 2008. While the initial focus of the partnership is on our newspaper Web sites, in 2008 we will add the Yahoo! ad-serving technology to our television station Web sites. The consortium is in discussions with Yahoo! about additional elements for the partnership, such as real estate and automotive advertising. 6
  • 7. Shifting now to our focus on new products and services, we believe the best way to evolve with changing customers and technology is by understanding and fulfilling unmet needs in a community of interest. In mid-2005, we established a goal of deriving 5% of total revenues each year, profitably, from new products and services. We’re very pleased with our results. Our success has come from serving a number of targeted interest groups. In some of our newspaper markets, we’ve introduced hyper-local print and companion online products that serve particular suburban neighborhoods. One huge demographic community of interest is Spanish-speaking people. We’ve launched successful products in our three markets with the largest Hispanic populations – Tampa, Northern Virginia and Richmond. Other demographic groups we’re serving include women and professionals, such as doctors and business executives. Other new products target topical interests, such as health and fitness, sports, cooking, travel and religion. Our new products are helping to mitigate revenue shortfalls in traditional categories in the current soft environment. Our television stations have launched a number of new products, such as secondary digital channels, and we’re producing more non-news local programming than ever. We have become adept at leveraging the expertise of one business to another, including print to broadcast and vice versa. We’ve also found that a good idea executed in one market can fairly easily be replicated in other markets. 7
  • 8. As I said earlier, enhancing our traditional products is a key focus of our growth strategy. You would expect us to say that we believe newspapers will be a viable source of news and advertising for many years to come, and we do! Much research, commissioned by the NAA and others, shows print readership is still strong, including among young people. Media General has the advantage of publishing newspapers in many smaller markets, where the local paper is very much ingrained into the fabric of the community. Our net-paid circulation has trended much stronger than the industry average for several years running. More importantly, our newspapers are changing dramatically to meet the evolving reader needs. Decisions about content are tied to reader interests as expressed through research. The writing style for many of our stories is more conversational, and we have shifted to easier-to-read-and- understand formats such as Q&A. Our graphics are simpler and more colorful. We’re working to make our Sunday newspapers more useful to readers. In addition to content improvements, we’ve implemented single-copy sales promotions with retail stores and restaurants. On the sales side, our representatives are better trained than ever, and we’ve provided them with sophisticated tools designed to generate new business from existing and new advertisers. We’ve adopted a recruiting system that identifies people who are most likely to be successful in sales. Free Classified programs are in place for private party advertisers in the merchandise classifications in all our major markets for both print and online. We’re also targeting underserved Classified market segments, such as lower wage service jobs and smaller used car dealers. We’re working to further simplify our Web-based self-service order entry tools. Our success is evident here. You can see that we have a strong record of outpacing newspaper industry advertising revenue growth. 8
  • 9. Our broadcast business has been equally successful, as shown by our time sales growth in the top line. You can readily see the impact of Political and Olympics advertising in even-numbered years. Later this year, there is the potential for higher Political revenues than we would normally expect in an off-election year. The wide-open race for President, and the move of so many primaries to earlier dates in 2008, could push some Political campaign and issues spending into the latter months of 2007. The major reason we attract Political advertising dollars is that most of our stations have top-rated local news programs. Our television news is focused on expressed audience interests as identified through research, and our branding strategies are targeted to specific viewer interests. 17 of our 23 television stations are ranked number one or two in their respective markets, from sign-on to sign-off. 9
  • 10. We see tremendous opportunities for long-term value creation from our purchase last year of four NBC stations in large and growing markets. We’re very pleased to have entered the dynamic and fast-growing Raleigh/Durham/Chapel Hill, North Carolina market, the 29th largest in the country. Our new station ranks #3 in the market as of the May ratings. We can be successful there with a #3 rating overall, but we’re working to make the station even stronger. In Raleigh, we’re trying some new approaches. For example, we launched a 7 o’clock evening newscast about a year ago. Compared to the previous programming we ran in that time slot, viewership is up 55%. We’re also implementing a plan to provide an innovative Web-integrated approach that we believe has the potential to set a new standard for a television station’s use of the Internet. 10
  • 11. In Birmingham, we purchased a station that reaches more households than the station we previously owned there. Our new station is rated #4 overall and #3 in news. We have completed two major research projects in Birmingham. Over the next 18 months, this data will enable us to lay out a course of action that will result in dramatic changes in our product. This station been #2 before, and our goal is to restore the station at least to that position over time. Our new stations in Columbus and Providence operate in state capitals, with large university communities, and generate significant Political revenues in election years. The Columbus station is a strong #2 in its market. Currently, its performance is being impacted by significant spending declines by automotive and telecommunications advertisers. To counter that, the station has launched several initiatives to help drive revenue growth. In November, this station will open a new downtown studio that is expected to further increase ratings. The new studio will be located in a highly visible, heavy volume traffic area. The combination of a still-strong Today Show, along with the buzz of a live city studio, plus high-definition local news, will help drive viewership. 11
  • 12. Our Providence station is far and away the #1 station in its market and in the state. This station also is currently being affected by the downturn in automotive advertising and by a slowdown in the entertainment and financial categories. To counter that, WJAR is pursuing several new revenue development initiatives and is attracting new accounts. We completed our first research project in Providence and found opportunities for growth in its weather coverage. As a result, we installed VIPIR radar and a new weather set and graphics. We rebranded from “Weather-Plus” to “Storm Team 10,” an identity that has worked extremely well for us in other markets, including Tampa. We expect to realize operating synergies of $3 million annually by 2008, as a result of fully integrating the four stations into Media General’s systems. These stations operated quite differently as NBC owned- and-operated stations, where they were far more focused on network products and promotions, and they could rely more on the network’s selling power. A major upside opportunity we saw in purchasing them was to refocus their sales efforts to local advertisers. We are implementing our proven sales training and tools, and have added these stations to our Central Traffic Operation, which enables us to optimize spot inventory management and pricing. In April, we completed a Central Master Control operation for our nine NBC stations, located in Columbus. This operation is similar to the master control center we built for our CBS stations in Spartanburg. 12
  • 13. As we pursue new ways of operating, creating a culture of innovation is more critical than ever. We’ve taken the principles of “Newspaper Next,” an initiative developed by the American Press Institute, adapted them to our own program and introduced it across all of our platforms. We’re very encouraged by the response of our employees to our drive for innovation, and we believe their enthusiasm for trying new things will propel significant growth for Media General going forward. At this point, I’d like to ask Reid to elaborate on how we are executing our growth strategy. Thank you, Marshall. Innovation is very important to us. It’s one of our core values and we’re infusing it deeply into our culture. Part of innovating, of course, is allowing for mistakes and learning from them. I like to tell our folks that it’s okay to fail, but make your failures fast, cheap and original! When we find that a new idea isn’t working, we quickly correct it or move on to the next one. The survivors of this process are a growing body of successful new businesses. Many of those, as you might expect, involve the Internet. We’re getting a lot smarter about interactive media. We’re finding new ways to attract traffic and new ways to build revenue. In many ways, the Internet is no longer an add-on. For many applications, such as breaking news or, increasingly, classified advertising, it’s now our primary medium. I’d like to share with you now some of the innovations that have taken root within our multifaceted growth strategy. 13
  • 14. You probably know us best for convergence. We pioneered this approach in Tampa, where we produce The Tampa Tribune, WFLA-TV, TBO.com and a number of other products under one roof. While each entity ultimately produces its own news products, they collaborate behind the scenes. They share coverage plans, sources, research and other valuable resources. Some years ago, we began with the idea that we’d deliver the same information through multiple media. Now we’ve come to understand that each re-telling needs to add unique value. As audiences move with us through different media, we need to move the story forward with fresh information, added detail and new angles. We need to give people reasons to come back. By doing so, we manage to attract the largest audience - and keep it. In addition to The Tampa Tribune, we publish two smaller daily and 17 weekly newspapers in the Tampa area. These expand our total audience and extend our reach for advertisers. This spring, The Tampa Tribune folded the content of its zoned sections into these community newspapers and gave each of them an interactive website. We believe this provides better, deeper hyper-local coverage and better connects advertisers to their targets. 14
  • 15. We produce a number of targeted products in Tampa, including a Spanish-language newspaper, Centro mi Diario, which is the largest such publication in the area. It’s the only Spanish paper in the Tampa market backed by the credibility of an ABC audit. Centro is profitable and growing. We also operate a Centro Web site. This spring the Centro team introduced the market’s first guide to Quinceanera - the traditional Spanish celebration marking a girl’s transition to adulthood. Advertiser response was positive and the project earned a profit. TBO.com, our regional Internet portal, sources content from all of our Tampa products. 15
  • 16. Through its association with the market’s top-rated television station, TBO.com can offer the best in online video news. TBO.com has led in development of user-generated content. In its first year, TBO’s photo-sharing feature, called Snap, has attracted more than 25,000 reader submissions. Today all of our Web sites offer a similar feature. 16
  • 17. The Tampa Tribune is making changes to connect more closely than ever with its readers. Rather than repeat information that readers may have already heard, we strive to provide unique context and to anticipate coming events. We present the news in easy-to-read formats such as Q&A, lists and compelling graphics. On Mondays, Tampa’s front page is entirely promotional. Instead of traditional stories, the cover features summaries, quick hits, pointers to inside content and looks ahead to coming events. It’s designed to launch your week with a quick briefing and guide to the week ahead. 17
  • 18. On Sunday, the front page focuses on the biggest story of the week. Surrounding this centerpiece are snapshots of the rich content readers can find inside. The redesigned Business section focuses on careers and the workplace. It features a column of briefs, often written with more bite and humor than traditional business stories. 18
  • 19. An entertainment tab, Friday Extra, has been combined with a Friday features section to put all the entertainment and things-to-do information in one place, including comics, puzzles and games. 4you, a health and fitness tab inserted into the Saturday paper, is a hit with both readers and advertisers. 19
  • 20. A monthly glossy magazine called Flair is distributed in the Sunday paper in selected neighborhoods. With high readership and strong advertiser support, it’s a good contributor to profit. Several other Media General properties are planning to launch a Flair product. Our Tampa team introduced a new real estate section, WeekendHomeSeeker, this spring to serve advertisers in a weak resale market. Advertisers build their own ads on-line. We price the section competitively and it’s solidly profitable. 20
  • 21. Since February 2007, The Tampa Tribune has printed USA Today for distribution in Central Florida. This is another source of new revenue. The combination of our efforts in Tampa yields an unduplicated reach of 76% of all homes in the market – a figure unmatched by any competitor. 21
  • 22. Now let’s look at another of our leading innovators, the Richmond Times-Dispatch. On June 5, when Richmond converted to a 48-inch web, it simultaneously introduced a number of content and design changes to make the paper quicker to read and easier to use. Let me also note that The Tampa Tribune will convert to a 48-inch web in October. The Winston-Salem Journal and all but two of our community papers have already reduced their web width. Our Lynchburg, Virginia, newspaper will convert when we commission its new press early next year. In Richmond, as in Tampa, we’ve embraced a hyper-local strategy. We publish several weekly newspapers, with companion websites, in suburban areas. Neighborhood news builds strong community bonds and creates a powerful, targeted advertising vehicle. 22
  • 23. In Richmond, our demographically targeted products are Centro, the Spanish-language weekly and its Web site, and an alternative weekly and its Web site, called Brick. It focuses on entertainment, pop culture and live music. Both are attracting new readers and advertisers. In April, our former timesdispatch.com Web site gave way to a new regional portal called inRich.com. Modeled in part on our highly successful TBO.com portal in Tampa, inRich.com offers the best in breaking news and information from a number of sources. The Richmond Times-Dispatch is the primary provider, along with our hyper-local and specialty products, as well as outside sources of Richmond-area news and information. Its goal is to become the first place you look for local information of all sorts. 23
  • 24. InRich.com is our first site to invite users to upload and share their short videos. Right now, we are inviting users to post travel videos. More of our Web sites will introduce this feature later this year. inRich.com also provides our own video reports on a variety of topics. One example is a Weekend Webcast, produced every Wednesday by entertainment reporters at the Richmond Times-Dispatch. It ties in with the Weekend section in Thursday’s newspaper. 24
  • 25. Our Richmond properties, like their counterparts in Tampa, have a strong combined print and online reach. In Richmond we reach 71% of adults in the market, placing us fourth in this measure among America’s top 50 newspapers. New broadcast programming is another key element of our new products and growth strategy. We’ve invested $50 million to equip our stations for digital transmission. One of the benefits is that we can now carry multiple channels simultaneously. Last year we launched a number of new companion channels. For the most part, Nielsen doesn’t yet measure their audience and that makes them a tough sale to traditional media buyers. We think they have great potential, though, to increase our audience and revenue, especially after February 2009, when all of America converts to digital television. Meanwhile, we’re pleased to be generating some new revenues from these channels, and we are confident they will grow over time. 25
  • 26. A common example is a 24/7 weather channel, which provide a valuable service while extending our weather brand. 11 of our stations have launched this kind programming and more plan to do so. In Charleston, South Carolina, and Greenville, North Carolina, we have launched CW-Plus channels. In Savannah, Georgia, and Florence/Myrtle Beach, South Carolina, we have added MyNetwork TV. Both these networks attract that younger audience that’s so appealing to advertisers. 26
  • 27. On January 1, we added a CBS channel to our NBC station in Alexandria, Louisiana. This is our first station to affiliate with two major networks and, so far as we know, it’s the first station to carry two networks’ high-def signals simultaneously over the same transmitter. We’re producing more local non-news programming. In Tampa, we have a daily morning variety show, called Daytime. It features our talent and provides information on personal finance, food, home improvement and entertainment. Advertisers can make personal appearances in 5-minute live segments. They like this unusual opportunity to present themselves in depth and distinguish themselves from competitors. Of course, we’re careful to label the paid content. Daytime delivers nearly twice the audience of its competing shows. This year five other Media General television stations are carrying a syndicated version of Daytime. They can program their own local segments and have a number of ad spots to sell. Other local programming in Tampa deals with golf, fishing, music and movies. Several of our other TV stations produce local sports and music programs. 27
  • 28. Our television stations are also doing an excellent job developing their Web presence. Many provide Web-exclusive news programs and others stream their regular newscasts live. Our television stations also leverage their meteorology resources with online weather reports. 28
  • 29. Another fast-growing service for us is advergames. Two years ago, we purchased Blockdot, a leading creator of this type of advertising. Advergames deliver advertising messages, develop brand awareness and deepen advertisers’ customer relationships. This business is small, but it’s profitable and it’s growing remarkably fast. That concludes my overview of our growth strategy – built on a growing internet presence, new products and services and enhanced traditional products. Now I’ll turn our presentation over to John. Thank you, Reid. We are pleased with the excellent progress being made throughout Media General on the operating front and the contribution those efforts will make to our long-term growth. At the same time, we are in a difficult economic environment, driven by weak advertiser spending in a number of categories and markets. Therefore, we are taking action on a number of fronts to better align expenses with revenues. In addition to Tampa’s performance improvement plan, we have frozen hiring on most open positions – except for sales jobs, which we are accelerating our efforts to fill. We are also reducing discretionary spending wherever possible. We have asked all of our properties to accelerate new product introductions and to intensify their focus on new revenue development. The Publishing Division continues to pursue synergies in call centers, clustered printing, and product and distribution processes. The Broadcast Division plans to centralize its graphics operations in Richmond this year. 29
  • 30. We announced May revenues last week and were disappointed to report a further softening from April. The situation in Tampa, driven by Florida’s housing-market downturn, is affecting the performance of all three divisions. In addition, the performance of our new NBC stations as a group continues to lag our expectations, and they are not fully up to the level we expect to see by early next year. Overall revenue performance for the month of June so far hasn’t changed substantially from what we experienced in April and May, especially in Tampa. As a result, our outlook for the second quarter is earnings per share in the range of 20 to 25 cents, compared with 77 cents from continuing operations in the second quarter of 2006. Visibility into the full year is limited, so I will discuss our general outlook. The Publishing Division looks for some top-line improvement in the latter two quarters of the year compared with first-half results. We will have more favorable comparisons in the Classified category and have planned for new products to fuel growth. Publishing Division expenses are expected to decrease, reflecting declines in salaries and most other expense lines. Newsprint expenses have declined as the result of reduced consumption and lower prices. Publishing segment profit in 2007 will be down from 2006. In the Broadcast Division, revenues are forecast to increase 8%, including the new NBC stations. We expect same-station revenues to decline 3-3.5%, as the result of soft transactional sales, including much lower spending in the automotive category. Broadcast Division same-station expenses will increase approximately 4.5%, reflecting salary increases and higher costs for employee benefits, depreciation and investments in revenue growth initiatives. Broadcast segment profit will be down from 2006, with its record $50 million of Political revenues. The Interactive Media Division has forecast 40-45% revenue growth and has budgeted a modest profit for the year. If we own SP Newsprint for all of 2007, we expect a loss of approximately $5.5 million. 30
  • 31. Our capital spending plan for this year is $75 million. The Publishing Division plans to spend $39 million, mainly for the new printing facility in Lynchburg, Virginia, and to facilitate web-width reductions at several newspapers. We will have invested $63 million total in the three printing facilities we’ve built in Bristol, Opelika-Auburn, Alabama, and Lynchburg. These projects have enhanced product quality and increased operating efficiencies. All three have a rate of return, derived from more color advertising and from commercial work. We’ve also consolidated printing for many of our weeklies and targeted publications into these new facilities. The Broadcast Division plans capital spending this year of $32 million. Main projects include the completion of a new facility in Myrtle Beach, the new downtown studio in Columbus, the launch of high-definition local newscasts in several markets, and enhancing news gathering and production capabilities at several stations. The Interactive Media Division plans to spend $1 million for infrastructure improvements. Corporate spending should be around $3 million, principally for information technology. In April, we announced an accelerated share repurchase program, under which we retired 1.5 million shares. Shareholders approved the use of 1.5 million shares over several years, in our long-term incentive plan. We borrowed $57 million under our revolving credit agreement to fund the transaction. Goldman Sachs is spearheading the program, which will be completed by year end and is projected to be slightly accretive. The final outcome is subject to a price-adjustment. Our expectations for 2007 have always been that it would be a challenging year and one of integration for our new NBC stations. Consequently, as we indicated in our presentation last December, we did not expect to generate 31
  • 32. significant free cash flow. We are generating sufficient cash flow to manage working capital, pay dividends and finance capital expenditures and still maintain moderate debt repayment for the rest of the year. Total debt at the end of the second quarter is expected to be $973 million, and we expect to reduce that to approximately $950 million by the end of the year. Also as we said last December, we look to 2008 to be a very strong year. We will realize synergies from integrating the new NBC stations, and all nine of our NBC affiliates will benefit from the summer Olympics advertising. Political revenues should be very strong in a Presidential year, and also from state and local races and issues advertising. We’re optimistic about the potential for cable retransmission fees, based on a changing competitive landscape brought about by the payment of carriages fees by satellite companies and Verizon. The vast majority of our cable retransmission contracts expire at the end of December 2008, although some expire as far out as 2011. And now I will turn our presentation back to Marshall. Thank you John. Let me conclude with the key thoughts we’d like for you to take away today. We believe the best way to create long-term value for our shareholders is to invest in the growth of our business. We’ve provided a detailed overview of how we’re doing that. In addition, Media General offers a number of advantages for investors: -- We operate in strong and growing markets.-- Our revenue growth is peer leading because of the strength of our markets and also our internal initiatives. -- Our new Broadcast assets will provide long-term value creation and increased cash flow. -- Strong cash flows in our Publishing segment will help fund growth in all areas. -- A possible SP Newsprint transaction would generate funds for debt reduction. -- We’ve done a good job looking at new ways to use the information we’ve been generating for years and getting it to customers in new ways – when they want it and in the fashion they want it. We understand the present, and, based on the progress that we’ve made in a changing environment, I believe it shows that we understand how to harness the potential of the future. This is a time to be creative and nimble in our thinking and to be willing to try new things in new ways. We know we’ve got the information. We know we’ve got strong markets. What we have to understand is how to take new ideas and put them to work in ways that are profitable. We’ve proven that we know how to do that, and we will continue to do that. And now we’ll be pleased to take any questions. 32

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