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TRIBUNE COMPANY
                                           FOURTH QUARTER RESULTS OF OPERATIONS (Unaudited)
                                                    (In thousands, except per share data)


                                                                                              FOURTH QUARTER (A)
                                                                                                                                   2002 vs. 2001
                                                                                                             2001                    Adjusted
                                                                                 2002         Adjusted (B)          Actual          % Change

OPERATING REVENUES                                                           $   1,429,743    $ 1,317,857      $     1,317,857                   8

OPERATING PROFIT BEFORE RESTRUCTURING CHARGES                                $     358,819    $   270,150      $       212,101              33
Restructuring Charges (C)                                                              -           (6,892)              (6,892)           (100)

OPERATING PROFIT                                                                   358,819        263,258              205,209              36

Net Income (Loss) on Equity Investments                                             11,028         (9,632)             (12,396)             NM
Interest Expense, net                                                              (49,677)       (58,716)             (58,716)             (15)

Income Before Taxes and Non-Operating Items                                        320,170        194,910              134,097              64

Income Taxes Related to Operations                                                (124,866)       (76,841)             (65,084)             62

Income Before Non-Operating Items                                                  195,304        118,069               69,013              65

Non-Operating Items, net of tax (D)                                                 (1,757)        37,768               37,768              NM

NET INCOME                                                                         193,547        155,837              106,781              24

Preferred Dividends, net of tax                                                     (6,500)        (6,700)              (6,700)              (3)

Net Income Attributable to Common Shares                                     $     187,047    $   149,137      $       100,081              25

EARNINGS PER SHARE
  Basic:
         Before restructuring charges and non-operating items                $          .62   $       .39      $             .22            59

          Including restructuring charges and non-operating items            $          .61   $       .50      $             .34            22

   Diluted:
          Before restructuring charges and non-operating items (E)           $          .57   $       .36      $             .21            58

          Including restructuring charges and non-operating items (F)        $          .57   $       .47      $             .32            21

DIVIDENDS PER COMMON SHARE                                                   $          .11   $       .11      $             .11             -

Weighted Average Common Shares Outstanding (G)                                     304,985        297,765              297,765                   2




                                                                        Page 7
(A)   2002 quarter: Sept. 30, 2002 to Dec. 29, 2002. (13 weeks)
      2001 quarter: Oct. 1, 2001 to Dec. 30, 2001. (13 weeks)

(B)   Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142, quot;Goodwill and Other Intangible
      Assets,quot; were effective Jan. 1, 2001, instead of Dec. 31, 2001. FAS 142 eliminates the amortization of goodwill and certain
      other intangible assets. As a result, fourth quarter 2001 amortization was reduced from $60.6 million to an adjusted $2.6 million.
      In addition, fourth quarter 2001 equity losses decreased from $12.4 million to an adjusted $9.6 million due to the adoption of
      this new standard by the Company's equity method investees. Also, due to the reduced amortization expense, most of which is
      non-deductible, fourth quarter 2001 income tax expense related to operations increased from $65.1 million to an adjusted $76.8 million.
      In total, fourth quarter 2001 diluted EPS, before restructuring charges and non-operating items, increased from $.21 to an adjusted $.36.

(C)   In the fourth quarter of 2001, the Company recorded pretax restructuring charges of $6.9 million ($4.2 million after-tax)
      primarily for various cost reduction initiatives, which reduced diluted earnings per share by $.01.

(D)   The fourth quarter of 2002 included the following non-operating items:
                                                                                         Pretax              After-tax
                                                                                       Gain (Loss)          Gain (Loss)           Diluted EPS

      Loss on derivatives and related investments (1)                              $         (42,299)      $    (25,887)      $            (.07)
      Gain on sales of investments                                                               541                331                     -
      Income tax settlement adjustment (2)                                                       -               26,376                     .08
      Investment write-downs and other                                                        (4,210)            (2,577)                   (.01)
      Total non-operating items                                                    $         (45,968)      $     (1,757)      $             -

      The fourth quarter of 2001 included the following non-operating items:
                                                                                         Pretax              After-tax
                                                                                       Gain (Loss)          Gain (Loss)           Diluted EPS

      Gain on derivatives and related investments (1)                              $          41,805       $     25,497       $             .08
      Gain on sales of investments (3)                                                        75,380             45,974                     .14
      Investment write-downs and other                                                       (55,260)           (33,703)                   (.10)
      Total non-operating items                                                    $          61,925       $     37,768       $             .12


      (1) Gain (loss) on derivatives and related investments relates primarily to the net change in fair values of the Company's
         PHONES derivatives and related AOL Time Warner shares.

      (2) In the fourth quarter of 2002, the Company reduced its income tax liability by $26 million as a result of
         favorably resolving certain federal income tax issues. This adjustment was recorded as a reduction of income tax expense.

      (3) For the fourth quarter of 2001, gain on sales of investments of $75.4 million ($46.0 million after-tax) relates primarily
         to the sale of AOL Time Warner common stock.




                                                                            Page 8
(E)   Diluted EPS before restructuring charges and non-operating items was computed assuming that the Series B convertible
      preferred shares and the LYONs debt securities were converted into common shares. Also, weighted average common
      shares outstanding was adjusted for the dilutive effect of stock options. The Company has certain other convertible securities
      which were not included in the calculation of diluted EPS because their effects were antidilutive. Following are the
      calculations for the fourth quarter:
                                                                                                        Fourth Quarter
                                                                                                                         2001
                                                                                        2002               Adjusted             Actual

      Income before non-operating items                                          $        195,304      $    118,069       $         69,013
      Add back restructuring charges, net of tax                                              -               4,203                  4,203
      Additional ESOP contribution required assuming Series B
        preferred shares were converted, net of tax                                        (2,476)           (2,670)                (2,670)
      Dividends for Series C, D-1 and D-2 preferred stock                                  (2,047)           (2,014)                (2,014)
      LYONs interest expense, net of tax                                                    1,552             1,550                  1,550
      Adjusted income before restructuring charges and non-operating items       $        192,333      $    119,138       $         70,082

      Weighted average common shares outstanding                                          304,985           297,765                297,765
      Assumed conversion of Series B preferred shares into common                          16,751            18,263                 18,263
      Assumed exercise of stock options, net of common
       shares assumed repurchased                                                           6,999              3,962                 3,962
      Assumed conversion of LYONs debt securities                                           6,988              7,272                 7,272
      Adjusted weighted average common
       shares outstanding                                                                 335,723           327,262                327,262

      Diluted earnings per share before restructuring charges
       and non-operating items                                                   $             .57      $           .36   $              .21

(F)   Following is a reconciliation of income before restructuring charges and non-operating items to net income:

                                                                                        Fourth Quarter 2002
                                                                                                        Diluted
                                                                                     Net Income          EPS

      Income before non-operating items                                          $        195,304       $           .57
      Non-operating items, net of tax                                                      (1,757)                    -
      Net income                                                                 $        193,547       $           .57

                                                                                                          Fourth Quarter 2001
                                                                                      Adjusted          Adjusted           Actual                 Actual
                                                                                     Net Income        Diluted EPS       Net Income            Diluted EPS

      Income before restructuring charges and non-operating items                $        122,272       $        .36      $         73,216     $       .21
      Restructuring charges, net of tax                                                    (4,203)              (.01)               (4,203)           (.01)
      Non-operating items, net of tax                                                      37,768                .12                37,768             .12
      Net income                                                                 $        155,837       $        .47      $        106,781     $       .32

(G)   The number of common shares outstanding, in thousands, at Dec. 29, 2002 was 305,909.




                                                                         Page 9
TRIBUNE COMPANY
                                                FULL YEAR RESULTS OF OPERATIONS (Unaudited)
                                                       (In thousands, except per share data)


                                                                                                    FULL YEAR (A)
                                                                                                                                     2002 vs. 2001
                                                                                                               2001                    Adjusted
                                                                                2002           Adjusted (B)           Actual          % Change

OPERATING REVENUES                                                          $   5,384,428      $ 5,253,366       $     5,253,366                   2

OPERATING PROFIT BEFORE RESTRUCTURING CHARGES                               $   1,275,785      $ 1,033,697       $       802,229               23
Restructuring Charges (C)                                                         (27,253)        (151,892)             (151,892)             (82)

OPERATING PROFIT                                                                1,248,532          881,805               650,337              42

Net Loss on Equity Investments                                                    (40,875)          (49,814)             (60,813)             (18)
Interest Expense, net                                                            (204,491)         (245,668)            (245,668)             (17)

Income Before Taxes and Non-Operating Items                                     1,003,166          586,323               343,856              71

Income Taxes Related to Operations                                               (385,281)         (231,676)            (187,035)             66

Income Before Non-Operating Items and Cumulative Effect of Change
   in Accounting Principle                                                        617,885          354,647               156,821              74

Non-Operating Items, net of tax (D)                                                (9,306)          (45,685)             (45,685)             (80)

Income Before Cumulative Effect of Change in Accounting Principle                 608,579          308,962               111,136              97

Cumulative Effect of Change in Accounting Principle, net of tax (E)              (165,587)              -                      -              NM

NET INCOME                                                                        442,992          308,962               111,136              43

Preferred Dividends, net of tax                                                   (26,199)          (26,800)             (26,800)              (2)

Net Income Attributable to Common Shares                                    $     416,793      $   282,162       $        84,336              48

EARNINGS PER SHARE
  Basic:
         Before restructuring charges and non-operating items               $          2.01    $       1.41      $             .75            43

          Including restructuring charges and non-operating items           $          1.93    $        .95      $             .28           103
          Cumulative effect of change in accounting principle, net                     (.55)            -                      -             NM
          Total                                                             $          1.38    $        .95      $             .28            45

   Diluted:
          Before restructuring charges and non-operating items (F)          $          1.87    $       1.32      $             .72            42

          Including restructuring charges and non-operating items           $          1.80    $        .90      $             .28           100
          Cumulative effect of change in accounting principle, net                     (.50)            -                      -             NM
          Total (G)                                                         $          1.30    $        .90      $             .28            44

DIVIDENDS PER COMMON SHARE                                                  $           .44    $        .44      $             .44             -

Weighted Average Common Shares Outstanding (H)                                    301,932          298,295               298,295                   1




                                                                      Page 10
(A)   2002 full year: Dec. 31, 2001 to Dec. 29, 2002. (52 weeks)
      2001 full year: Jan. 1, 2001 to Dec. 30, 2001. (52 weeks)

(B)   Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142, quot;Goodwill and Other Intangible
      Assets,quot; were effective Jan. 1, 2001, instead of Dec. 31, 2001. FAS 142 eliminates the amortization of goodwill and certain
      other intangible assets. As a result, the full year 2001 amortization was reduced from $241.0 million to an adjusted $9.6 million.
      In addition, full year 2001 equity losses decreased from $60.8 million to an adjusted $49.8 million due to the adoption of
      this new standard by the Company's equity method investees. Also, due to the reduced amortization expense, most of which is
      non-deductible, full year 2001 income tax expense related to operations increased from $187.0 million to an adjusted $231.7 million. In
      total, full year 2001 diluted EPS, before non-operating items and restructuring charges, increased from $.72 to an adjusted $1.32.

(C)   In the first quarter of 2002, the Company recorded pretax restructuring charges of $27.3 million ($16.7 million after-tax)
      primarily for various cost reduction initiatives, which reduced diluted earnings per share by $.05. For the full
      year 2001, the Company recorded pretax restructuring charges of $151.9 million ($92.6 million after-tax), which
      reduced adjusted diluted earnings per share by $.28.

(D)   The full year 2002 included the following non-operating items:
                                                                                        Pretax              After-tax
                                                                                      Gain (Loss)          Gain (Loss)          Diluted EPS

      Loss on derivatives and related investments (1)                             $        (165,100)      $   (101,041)     $             (.31)
      Gain on sales of subsidiaries and investments (2)                                     110,088             67,374                     .21
      Income tax settlement adjustment (3)                                                      -               29,379                     .09
      Investment write-downs and other                                                       (8,199)            (5,018)                   (.01)
      Total non-operating items                                                   $         (63,211)      $     (9,306)     $             (.02)

      The full year 2001 included the following non-operating items:
                                                                                        Pretax              After-tax
                                                                                      Gain (Loss)          Gain (Loss)          Diluted EPS

      Loss on derivatives and related investments (1)                             $          (7,682)      $     (4,685)     $             (.01)
      Gain on sales of subsidiaries and investments (2)                                      78,358             47,791                     .15
      Investment write-downs and other                                                     (145,581)           (88,791)                   (.28)
      Total non-operating items                                                   $         (74,905)      $    (45,685)     $             (.14)

      (1) Loss on derivatives and related investments relates primarily to the net change in fair values of the Company's
         PHONES derivatives and related AOL Time Warner shares.

      (2) For the full year 2002, gain on sales of subsidiaries and investments of $110.1 million ($67.4 million after-tax) relates primarily
         to the divestiture of two Denver radio stations, KOSI-FM and KEZW-AM, which were exchanged for the assets of two television
         stations, WTTV, Indianapolis, and its satellite station WTTK, Kokomo, Indiana, from Sinclair Broadcast Group. For the
         full year 2001, gain on sales of subsidiaries and investments of $78.4 million ($47.8 million after-tax) relates primarily
         to the sale of AOL Time Warner common stock.

      (3) In full year 2002, the Company reduced its income tax liability by $29 million as a result of favorably
         resolving certain federal and state income tax issues. This adjustment was recorded as a reduction of income tax expense.


(E)   As a result of initially applying the new impairment provisions of FAS 142, the Company recorded a pretax charge of $271
      million ($166 million after-tax) in the first quarter of 2002, which decreased diluted EPS by $.50. This cumulative effect
      relates to certain of the Company's newspaper mastheads, a FCC license and a television network affiliation agreement.




                                                                          Page 11
(F)   For 2002 and adjusted 2001, diluted EPS before restructuring charges, non-operating items and the cumulative effect of change
      in accounting principle was computed assuming that the Series B convertible preferred shares and the LYONs debt securities
      were converted into common shares. Also, weighted average common shares outstanding was adjusted for the dilutive effect
      of stock options. For actual 2001, the conversion of the LYONs debt securities was not assumed because their effect was antidilutive.
      The Company has certain other convertible securities which were not included in the calculation of diluted EPS because
      their effects were antidilutive. Following are the calculations for the full year:

                                                                                                            Full Year
                                                                                                                          2001
                                                                                        2002                Adjusted             Actual
      Income before non-operating items and the cumulative effect
        of change in accounting principle                                        $         617,885      $     354,647       $         156,821
      Add back restructuring charges, net of tax                                            16,679             92,639                  92,639
      Additional ESOP contribution required assuming Series B
        preferred shares were converted, net of tax                                         (9,599)            (10,413)               (10,413)
      Dividends for Series C, D-1 and D-2 preferred stock                                   (8,189)             (8,056)                (8,056)
      LYONs interest expense, net of tax                                                     6,218               6,127                    -
      Adjusted income before restructuring charges, non-operating items
        and the cumulative effect of change in accounting principle              $         622,994      $     434,944       $         230,991

      Weighted average common shares outstanding                                           301,932            298,295                 298,295
      Assumed conversion of Series B preferred shares into common                           17,132             18,263                  18,263
      Assumed exercise of stock options, net of common
       shares assumed repurchased                                                              6,313             5,685                  5,685
      Assumed conversion of LYONs debt securities                                              7,089             7,272                    -
      Adjusted weighted average common
       shares outstanding                                                                  332,466            329,515                 322,243

      Diluted earnings per share before restructuring charges, non-operating
       items and the cumulative effect of change in accounting principle         $              1.87    $         1.32      $             .72

(G)   Following is a reconciliation of income before restructuring charges, non-operating items and the cumulative effect of change
      in accounting principle to net income:

                                                                                            Full Year 2002
                                                                                                          Diluted
                                                                                     Net Income            EPS

      Income before restructuring charges, non-operating items
        and the cumulative effect of change in accounting principle              $         634,564      $         1.87
      Restructuring charges, net of tax                                                    (16,679)               (.05)
      Non-operating items, net of tax                                                       (9,306)               (.02)
      Cumulative effect of change in accounting principle, net of tax                     (165,587)               (.50)
      Net income                                                                 $         442,992      $         1.30


                                                                                                              Full Year 2001
                                                                                      Adjusted           Adjusted            Actual                 Actual
                                                                                     Net Income         Diluted EPS        Net Income            Diluted EPS

      Income before restructuring charges and non-operating items                $         447,286      $         1.32      $         249,460    $       .72
      Restructuring charges, net of tax                                                    (92,639)               (.28)               (92,639)          (.29)
      Non-operating items, net of tax                                                      (45,685)               (.14)               (45,685)          (.15)
      Net income                                                                 $         308,962      $          .90      $         111,136    $       .28



(H)   The number of common shares outstanding, in thousands, at Dec. 29, 2002 was 305,909.




                                                                          Page 12
TRIBUNE COMPANY
                                          BUSINESS SEGMENT DATA (Unaudited)
                                                     (In thousands)

                                                                        FOURTH QUARTER
                                                                                                               2002 vs. 2001
                                                                                       2001                      Adjusted
                                                               2002         Adjusted (A)          Actual        % Change
PUBLISHING
   Operating Revenues                                     $ 1,039,520       $    982,753      $    982,753                 6
   Cash Operating Expenses (B)                               (754,466)          (759,795)         (759,795)               (1)
   EBITDA before Restructuring Charges (C)                    285,054            222,958           222,958                28
   Depreciation and Amortization Expense                      (43,204)           (38,942)          (76,611)               11
   Operating Profit before Restructuring Charges              241,850            184,016           146,347                31
   Restructuring Charges                                          -               (4,465)           (4,465)             (100)
   Total Operating Profit                                 $   241,850       $    179,551      $    141,882                35

BROADCASTING AND ENTERTAINMENT
  Operating Revenues
   Television                                             $     339,483     $    278,791      $    278,791                22
   Radio/Entertainment                                           31,697           40,011            40,011               (21)
   Total Operating Revenues                                     371,180          318,802           318,802                16

    Cash Operating Expenses (B)
     Television                                                (196,916)        (179,751)         (179,751)               10
     Radio/Entertainment                                        (30,580)         (28,113)          (28,113)                9
     Total Cash Operating Expenses                             (227,496)        (207,864)         (207,864)                9

    EBITDA before Restructuring Charges (C)
     Television                                                 142,567           99,040            99,040                44
     Radio/Entertainment                                          1,117           11,898            11,898               (91)
     Total EBITDA before Restructuring Charges                  143,684          110,938           110,938                30

    Depreciation and Amortization Expense
     Television                                                 (11,037)          (9,995)          (28,511)               10
     Radio/Entertainment                                         (1,533)          (1,085)           (1,191)               41
     Total Depreciation and Amortization Expense                (12,570)         (11,080)          (29,702)               13

    Operating Profit (Loss)
     Television                                                 131,530           89,045            70,529                48
     Radio/Entertainment                                           (416)          10,813            10,707               NM
     Total before Restructuring Charges                         131,114           99,858            81,236                31
     Restructuring Charges                                          -             (2,210)           (2,210)             (100)
     Total Operating Profit                               $     131,114     $     97,648      $     79,026                34

INTERACTIVE
   Operating Revenues                                     $      19,043     $     16,302      $     16,302                17
   Cash Operating Expenses (B)                                  (19,260)         (19,994)          (19,994)               (4)
   EBITDA before Restructuring Charges (C)                         (217)          (3,692)           (3,692)              (94)
   Depreciation and Amortization Expense                         (1,351)          (1,304)           (3,062)                4
   Operating Loss before Restructuring Charges                   (1,568)          (4,996)           (6,754)              (69)
   Restructuring Charges                                            -                 (5)               (5)             (100)
   Total Operating Loss                                   $      (1,568)    $     (5,001)     $     (6,759)              (69)

CORPORATE EXPENSES
  EBITDA before Restructuring Charges (C)                 $     (12,056)    $     (8,292)     $     (8,292)               45
  Depreciation and Amortization Expense                            (521)            (436)             (436)               19
  Operating Loss before Restructuring Charges                   (12,577)          (8,728)           (8,728)               44
  Restructuring Charges                                             -               (212)             (212)             (100)
  Total Operating Loss                                    $     (12,577)    $     (8,940)     $     (8,940)               41

CONSOLIDATED
  Operating Revenues                                      $ 1,429,743       $ 1,317,857       $ 1,317,857                  8
  Cash Operating Expenses (B)                               (1,013,278)        (995,945)         (995,945)                 2
  EBITDA before Restructuring Charges (C)                      416,465          321,912           321,912                 29
  Depreciation and Amortization Expense                        (57,646)         (51,762)         (109,811)                11
  Operating Profit before Restructuring Charges                358,819          270,150           212,101                 33
  Restructuring Charges                                            -             (6,892)           (6,892)              (100)
  Total Operating Profit                                  $    358,819      $   263,258       $ 205,209                   36

(A) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142 were
    effective Jan. 1, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets.
(B) Cash operating expenses exclude restructuring charges.
(C) EBITDA is earnings before interest, taxes, depreciation, amortization of intangible assets, equity
    results and non-operating items. The Company's definition of EBITDA may not be consistent with that of other
    companies. EBITDA does not represent cash provided by operating activities as reflected in the Company's consolidated
    statements of cash flows, is not a measure of financial performance under generally accepted accounting principles (quot;GAAPquot;)
    and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.




                                                              Page 13
TRIBUNE COMPANY
                                          BUSINESS SEGMENT DATA (Unaudited)
                                                     (In thousands)

                                                                           FULL YEAR
                                                                                                               2002 vs. 2001
                                                                                       2001                      Adjusted
                                                               2002         Adjusted (A)          Actual        % Change
PUBLISHING
   Operating Revenues                                     $ 3,863,779       $ 3,843,949       $ 3,843,949                  1
   Cash Operating Expenses (B)                              (2,847,012)       (2,993,219)      (2,993,219)                (5)
   EBITDA before Restructuring Charges (C)                   1,016,767           850,730          850,730                 20
   Depreciation and Amortization Expense                      (168,484)         (157,306)        (307,788)                 7
   Operating Profit before Restructuring Charges               848,283           693,424          542,942                 22
   Restructuring Charges                                       (24,760)         (140,409)        (140,409)               (82)
   Total Operating Profit                                 $    823,523      $    553,015      $ 402,533                   49

BROADCASTING AND ENTERTAINMENT
  Operating Revenues
   Television                                             $ 1,221,637       $ 1,130,125       $ 1,130,125                  8
   Radio/Entertainment                                        222,313           219,810           219,810                  1
   Total Operating Revenues                                 1,443,950         1,349,935         1,349,935                  7

    Cash Operating Expenses (B)
     Television                                                (727,544)        (704,150)         (704,150)                3
     Radio/Entertainment                                       (199,471)        (193,417)         (193,417)                3
     Total Cash Operating Expenses                             (927,015)        (897,567)         (897,567)                3

    EBITDA before Restructuring Charges (C)
     Television                                                 494,093          425,975           425,975                16
     Radio/Entertainment                                         22,842           26,393            26,393               (13)
     Total EBITDA before Restructuring Charges                  516,935          452,368           452,368                14

    Depreciation and Amortization Expense
     Television                                                 (40,646)         (40,499)         (114,034)                    -
     Radio/Entertainment                                         (6,151)          (4,650)           (5,069)               32
     Total Depreciation and Amortization Expense                (46,797)         (45,149)         (119,103)                4

    Operating Profit
     Television                                                 453,447          385,476           311,941                18
     Radio/Entertainment                                         16,691           21,743            21,324               (23)
     Total before Restructuring Charges                         470,138          407,219           333,265                15
     Restructuring Charges                                       (1,087)          (6,567)           (6,567)              (83)
     Total Operating Profit                               $     469,051     $    400,652      $    326,698                17

INTERACTIVE
   Operating Revenues                                   $        76,699     $     59,482      $     59,482                29
   Cash Operating Expenses (B)                                  (67,979)         (79,429)          (79,429)              (14)
   EBITDA before Restructuring Charges (C)                        8,720          (19,947)          (19,947)              NM
   Depreciation and Amortization Expense                         (5,586)          (5,359)          (12,391)                4
   Operating Profit (Loss) before Restructuring Charges           3,134          (25,306)          (32,338)              NM
   Restructuring Charges                                           (163)          (2,922)           (2,922)              (94)
   Total Operating Profit (Loss)                        $         2,971     $    (28,228)     $    (35,260)              NM

CORPORATE EXPENSES
  EBITDA before Restructuring Charges (C)                 $     (43,383)    $    (39,056)     $    (39,056)               11
  Depreciation and Amortization Expense                          (2,387)          (2,584)           (2,584)               (8)
  Operating Loss before Restructuring Charges                   (45,770)         (41,640)          (41,640)               10
  Restructuring Charges                                          (1,243)          (1,994)           (1,994)              (38)
  Total Operating Loss                                    $     (47,013)    $    (43,634)     $    (43,634)                8

CONSOLIDATED
  Operating Revenues                                      $ 5,384,428       $ 5,253,366       $ 5,253,366                  2
  Cash Operating Expenses (B)                               (3,885,389)       (4,009,271)      (4,009,271)                (3)
  EBITDA before Restructuring Charges (C)                    1,499,039         1,244,095        1,244,095                 20
  Depreciation and Amortization Expense                       (223,254)         (210,398)        (441,866)                 6
  Operating Profit before Restructuring Charges              1,275,785         1,033,697          802,229                 23
  Restructuring Charges                                        (27,253)         (151,892)        (151,892)               (82)
  Total Operating Profit                                  $ 1,248,532       $    881,805      $ 650,337                   42

(A) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142 were
    effective Jan. 1, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets.
(B) Cash operating expenses exclude restructuring charges.
(C) EBITDA is earnings before interest, taxes, depreciation, amortization of intangible assets, equity
    results and non-operating items. The Company's definition of EBITDA may not be consistent with that of other
    companies. EBITDA does not represent cash provided by operating activities as reflected in the Company's consolidated
    statements of cash flows, is not a measure of financial performance under generally accepted accounting principles (quot;GAAPquot;)
    and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.




                                                              Page 14
TRIBUNE COMPANY
                                                  SUMMARY OF REVENUES (Unaudited)
                                                 For Fourth Quarter Ended December 29, 2002
                                                               (In thousands)

                                                              Fourth Quarter (13 weeks)                           Year-to-Date (52 weeks)
                                                                                          %                                                   %
                                                           2002              2001       Change             2002             2001            Change
Publishing
    Advertising
                                                        $ 380,154       $ 358,513                      $ 1,269,188       $ 1,230,608
         Retail                                                                               6                                                 3
                                                                                                           703,837           675,281
         National                                         200,249         175,519            14                                                 4
                                                                                                           975,374         1,041,429
         Classified                                       225,224         217,320             4                                                (6)

                                                           805,627           751,352                     2,948,399         2,947,318
         Sub-Total                                                                            7                                                    -
                                                                                                           669,471           662,377
     Circulation                                           168,021           167,670          -                                                    1
                                                                                                           245,909           234,254
     Other                                                  65,872            63,731          3                                                    5

     Segment Total (A) (B)                                1,039,520          982,753          6          3,863,779         3,843,949               1

Broadcasting & Entertainment
                                                                                                         1,221,637         1,130,125
    Television (C)                                         339,483           278,791         22                                                    8
                                                                                                           222,313           219,810
    Radio/Entertainment                                     31,697            40,011        (21)                                                   1

     Segment Total (D)                                     371,180           318,802         16          1,443,950         1,349,935               7

                                                                                                            76,699            59,482
                                                             19,043           16,302         17                                                29
Interactive

                                                        $ 1,429,743     $ 1,317,857           8        $ 5,384,428       $ 5,253,366               2
Consolidated Revenues (E)


(A) Publishing revenues for 2001 have been reclassified to conform with the 2002 presentation. There was no effect on total revenues.
(B) Includes Virginia Gazette , acquired in February 2001, TV Data, acquired in May 2001, and Chicago magazine, acquired in July 2002.
    Excluding these acquisitions, publishing revenues increased 5% for the quarter and were flat for the year-to-date. Excluding these
    acquisitions, retail revenues increased 5% for the quarter and 3% for the year-to-date. Excluding these acquisitions, national revenues
    increased 14% for the quarter and 4% for the year-to-date. Excluding these acquisitions, total advertising revenues increased 7% for the
    quarter and were flat for the year-to-date.
(C) Includes Tower Distribution (formerly United Video), WGN Cable's distribution entity, which was acquired in April 2001, WTXX-Hartford,
    acquired in August 2001, and WTTV-Indianapolis, acquired in July 2002. Excluding these acquisitions, television revenues increased 21%
    for the quarter and 7% for the year-to-date. Fourth quarter includes copyright royalties of $1.0 million in 2002 and $1.6 million in 2001.
    Year-to-date includes copyright royalties of $4.2 million in 2002 and $29.9 million in 2001. Excluding acquisitions and copyright royalties,
    television revenues increased 21% for the quarter and 9% for the year-to-date.
(D) Excluding acquisitions and copyright royalties, broadcasting and entertainment revenues increased 15% for the quarter and 8% for the
    year-to-date.
(E) Excluding acquisitions and copyright royalties, consolidated revenues increased 8% for the quarter and 2% for the year-to-date.

                                                                        15
TRIBUNE COMPANY
                           SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited) (A)
                                    For Fourth Quarter Ended December 29, 2002
                                                  (In thousands)

                                                     Fourth Quarter (13 weeks)                       Year-to-Date (52 weeks)
                                                                               %                                             %
                                                  2002           2001        Change           2002            2001         Change
Full Run
                                                      737            707                         2,587          2,677
     L.A. Times                                                                     4                                           (3)
                                                      616            553                         2,191          2,169
     Chicago Tribune                                                               11                                            1
                                                      396            423                         1,588          1,683
     Newsday                                                                       (6)                                          (6)
                                                    3,556          3,587                        13,514         13,905
     Other Daily Newspapers (B)                                                    (1)                                          (3)
                                                    5,305          5,270                        19,880         20,434
     Total                                                                          1                                           (3)

Part Run
                                                    1,485          1,411                         5,687          5,201
     L.A. Times                                                                     5                                            9
                                                    1,383          1,337                         5,475          5,545
     Chicago Tribune                                                                3                                           (1)
                                                      459            430                         1,711          1,650
     Newsday                                                                        7                                            4
                                                    1,508          1,481                         6,056          6,033
     Other Daily Newspapers (B)                                                     2                                            -
                                                    4,835          4,659                        18,929         18,429
     Total                                                                          4                                            3

Total Advertising Inches
    Full Run
                                                    1,861          1,917                         6,258          6,580
          Retail                                                                   (3)                                          (5)
                                                      972            874                         3,406          3,347
          National                                                                 11                                            2
                                                    2,472          2,479                        10,216         10,507
          Classified                                                                -                                           (3)
                                                    5,305          5,270                        19,880         20,434
          Sub-Total                                                                 1                                           (3)
    Part Run                                        4,835          4,659            4           18,929         18,429            3
    Total                                          10,140          9,929            2           38,809         38,863            -

Preprint Pieces
                                                  605,700        584,402                    1,985,563       1,882,891
    L.A. Times                                                                      4                                            5
                                                  933,758        774,547                    3,138,907       2,718,692
    Chicago Tribune                                                                21                                           15
                                                  828,932        757,073                    2,823,513       2,713,323
    Newsday                                                                         9                                            4
                                                1,086,226      1,008,104                    3,700,712       3,433,500
    Other Daily Newspapers (B)                                                      8                                            8
                                                3,454,616      3,124,126
    Total                                                                          11      11,648,695      10,748,406            8

(A) Volume for 2001 has been modified to conform with the 2002 presentation. Volume is based on preliminary internal data,
    which may be updated in subsequent reports. Advertising volume is presented only for daily newspapers.
(B) Other daily newspapers include The Baltimore Sun, South Florida Sun-Sentinel, Orlando Sentinel, The Hartford Courant, The
    Morning Call, Daily Press, The Advocate and Greenwich Time.

                                                                 16
TRIBUNE COMPANY
                                                   SUMMARY OF REVENUES (Unaudited)
                                                    For Period 12 Ended December 29, 2002
                                                                (In thousands)

                                                                  Period 12 (5 weeks)                             Year-to-Date (52 weeks)
                                                                                          %                                                   %
                                                           2002              2001       Change             2002             2001            Change
Publishing
    Advertising
                                                        $ 167,949       $ 146,134                      $ 1,269,188       $ 1,230,608
         Retail                                                                              15                                                 3
                                                                                                           703,837           675,281
         National                                          79,289          68,061            16                                                 4
                                                                                                           975,374         1,041,429
         Classified                                        72,612          70,667             3                                                (6)

                                                           319,850           284,862                     2,948,399         2,947,318
         Sub-Total                                                                           12                                                    -
                                                            63,758            63,401                       669,471           662,377
     Circulation                                                                              1                                                    1
                                                                                                           245,909           234,254
     Other                                                  23,880            22,859          4                                                    5

     Segment Total (A) (B)                                 407,488           371,122         10          3,863,779         3,843,949               1

Broadcasting & Entertainment
                                                           122,200            97,859                     1,221,637         1,130,125
    Television (C)                                                                           25                                                    8
                                                            12,441            15,134                       222,313           219,810
    Radio/Entertainment                                                                     (18)                                                   1

     Segment Total (D)                                     134,641           112,993         19          1,443,950         1,349,935               7

                                                                                                            76,699            59,482
                                                              6,131            5,573         10                                                29
Interactive

                                                        $ 548,260       $ 489,688            12        $ 5,384,428       $ 5,253,366               2
Consolidated Revenues (E)


(A) Publishing revenues for 2001 have been reclassified to conform with the 2002 presentation. There was no effect on total revenues.
(B) Includes Virginia Gazette , acquired in February 2001, TV Data, acquired in May 2001, and Chicago magazine, acquired in July 2002.
    Excluding these acquisitions, publishing revenues increased 9% for the period and were flat for the year-to-date. Excluding these
    acquisitions, retail revenues increased 14% for the period and 3% for the year-to-date. Excluding these acquisitions, national revenues
    increased 16% for the period and 4% for the year-to-date. Excluding these acquisitions, total advertising revenues increased 12% for the
    period and were flat for the year-to-date.
(C) Includes Tower Distribution (formerly United Video), WGN Cable's distribution entity, which was acquired in April 2001, WTXX-Hartford,
    acquired in August 2001, and WTTV-Indianapolis, acquired in July 2002. Excluding these acquisitions, television revenues increased 23%
    for the period and 7% for the year-to-date. Period 12 includes copyright royalties of $0.4 million in 2002 and $1.0 million in 2001.
    Year-to-date includes copyright royalties of $4.2 million in 2002 and $29.9 million in 2001. Excluding acquisitions and copyright royalties,
    television revenues increased 24% for the period and 9% for the year-to-date.
(D) Excluding acquisitions and copyright royalties, broadcasting and entertainment revenues increased 18% for the period and 8% for the
    year-to-date.
(E) Excluding acquisitions and copyright royalties, consolidated revenues increased 11% for the period and 2% for the year-to-date.

                                                                        17
TRIBUNE COMPANY
                           SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited) (A)
                                       For Period 12 Ended December 29, 2002
                                                   (In thousands)

                                                         Period 12 (5 weeks)                         Year-to-Date (52 weeks)
                                                                                 %                                           %
                                                  2002           2001          Change         2002            2001         Change
Full Run
                                                      329            295                         2,587          2,677
     L.A. Times                                                                    12                                           (3)
                                                      246            206                         2,191          2,169
     Chicago Tribune                                                               19                                            1
                                                      144            152                         1,588          1,683
     Newsday                                                                       (5)                                          (6)
                                                    1,381          1,323                        13,514         13,905
     Other Daily Newspapers (B)                                                     4                                           (3)
                                                    2,100          1,976                        19,880         20,434
     Total                                                                          6                                           (3)

Part Run
                                                      562            527                         5,687          5,201
     L.A. Times                                                                     7                                            9
                                                      465            433                         5,475          5,545
     Chicago Tribune                                                                7                                           (1)
                                                      160            155                         1,711          1,650
     Newsday                                                                        3                                            4
                                                      553            553                         6,056          6,033
     Other Daily Newspapers (B)                                                     -                                            -
                                                    1,740          1,668                        18,929         18,429
     Total                                                                          4                                            3

Total Advertising Inches
    Full Run
                                                      840            788                         6,258          6,580
          Retail                                                                    7                                           (5)
                                                      392            335                         3,406          3,347
          National                                                                 17                                            2
                                                      868            853                        10,216         10,507
          Classified                                                                2                                           (3)
                                                    2,100          1,976                        19,880         20,434
          Sub-Total                                                                 6                                           (3)
    Part Run                                        1,740          1,668            4           18,929         18,429            3
    Total                                           3,840          3,644            5           38,809         38,863            -

Preprint Pieces
                                                  283,148        252,304                    1,985,563       1,882,891
    L.A. Times                                                                     12                                            5
                                                  396,610        305,144                    3,138,907       2,718,692
    Chicago Tribune                                                                30                                           15
                                                  352,261        298,518                    2,823,513       2,713,323
    Newsday                                                                        18                                            4
                                                  471,079        407,691                    3,700,712       3,433,500
    Other Daily Newspapers (B)                                                     16                                            8
                                                1,503,098      1,263,657
    Total                                                                          19      11,648,695      10,748,406            8

(A) Volume for 2001 has been modified to conform with the 2002 presentation. Volume is based on preliminary internal data,
    which may be updated in subsequent reports. Advertising volume is presented only for daily newspapers.
(B) Other daily newspapers include The Baltimore Sun, South Florida Sun-Sentinel, Orlando Sentinel, The Hartford Courant, The
    Morning Call, Daily Press, The Advocate and Greenwich Time.

                                                                 18

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tribune earnings_q4_02_tables

  • 1. TRIBUNE COMPANY FOURTH QUARTER RESULTS OF OPERATIONS (Unaudited) (In thousands, except per share data) FOURTH QUARTER (A) 2002 vs. 2001 2001 Adjusted 2002 Adjusted (B) Actual % Change OPERATING REVENUES $ 1,429,743 $ 1,317,857 $ 1,317,857 8 OPERATING PROFIT BEFORE RESTRUCTURING CHARGES $ 358,819 $ 270,150 $ 212,101 33 Restructuring Charges (C) - (6,892) (6,892) (100) OPERATING PROFIT 358,819 263,258 205,209 36 Net Income (Loss) on Equity Investments 11,028 (9,632) (12,396) NM Interest Expense, net (49,677) (58,716) (58,716) (15) Income Before Taxes and Non-Operating Items 320,170 194,910 134,097 64 Income Taxes Related to Operations (124,866) (76,841) (65,084) 62 Income Before Non-Operating Items 195,304 118,069 69,013 65 Non-Operating Items, net of tax (D) (1,757) 37,768 37,768 NM NET INCOME 193,547 155,837 106,781 24 Preferred Dividends, net of tax (6,500) (6,700) (6,700) (3) Net Income Attributable to Common Shares $ 187,047 $ 149,137 $ 100,081 25 EARNINGS PER SHARE Basic: Before restructuring charges and non-operating items $ .62 $ .39 $ .22 59 Including restructuring charges and non-operating items $ .61 $ .50 $ .34 22 Diluted: Before restructuring charges and non-operating items (E) $ .57 $ .36 $ .21 58 Including restructuring charges and non-operating items (F) $ .57 $ .47 $ .32 21 DIVIDENDS PER COMMON SHARE $ .11 $ .11 $ .11 - Weighted Average Common Shares Outstanding (G) 304,985 297,765 297,765 2 Page 7
  • 2. (A) 2002 quarter: Sept. 30, 2002 to Dec. 29, 2002. (13 weeks) 2001 quarter: Oct. 1, 2001 to Dec. 30, 2001. (13 weeks) (B) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142, quot;Goodwill and Other Intangible Assets,quot; were effective Jan. 1, 2001, instead of Dec. 31, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets. As a result, fourth quarter 2001 amortization was reduced from $60.6 million to an adjusted $2.6 million. In addition, fourth quarter 2001 equity losses decreased from $12.4 million to an adjusted $9.6 million due to the adoption of this new standard by the Company's equity method investees. Also, due to the reduced amortization expense, most of which is non-deductible, fourth quarter 2001 income tax expense related to operations increased from $65.1 million to an adjusted $76.8 million. In total, fourth quarter 2001 diluted EPS, before restructuring charges and non-operating items, increased from $.21 to an adjusted $.36. (C) In the fourth quarter of 2001, the Company recorded pretax restructuring charges of $6.9 million ($4.2 million after-tax) primarily for various cost reduction initiatives, which reduced diluted earnings per share by $.01. (D) The fourth quarter of 2002 included the following non-operating items: Pretax After-tax Gain (Loss) Gain (Loss) Diluted EPS Loss on derivatives and related investments (1) $ (42,299) $ (25,887) $ (.07) Gain on sales of investments 541 331 - Income tax settlement adjustment (2) - 26,376 .08 Investment write-downs and other (4,210) (2,577) (.01) Total non-operating items $ (45,968) $ (1,757) $ - The fourth quarter of 2001 included the following non-operating items: Pretax After-tax Gain (Loss) Gain (Loss) Diluted EPS Gain on derivatives and related investments (1) $ 41,805 $ 25,497 $ .08 Gain on sales of investments (3) 75,380 45,974 .14 Investment write-downs and other (55,260) (33,703) (.10) Total non-operating items $ 61,925 $ 37,768 $ .12 (1) Gain (loss) on derivatives and related investments relates primarily to the net change in fair values of the Company's PHONES derivatives and related AOL Time Warner shares. (2) In the fourth quarter of 2002, the Company reduced its income tax liability by $26 million as a result of favorably resolving certain federal income tax issues. This adjustment was recorded as a reduction of income tax expense. (3) For the fourth quarter of 2001, gain on sales of investments of $75.4 million ($46.0 million after-tax) relates primarily to the sale of AOL Time Warner common stock. Page 8
  • 3. (E) Diluted EPS before restructuring charges and non-operating items was computed assuming that the Series B convertible preferred shares and the LYONs debt securities were converted into common shares. Also, weighted average common shares outstanding was adjusted for the dilutive effect of stock options. The Company has certain other convertible securities which were not included in the calculation of diluted EPS because their effects were antidilutive. Following are the calculations for the fourth quarter: Fourth Quarter 2001 2002 Adjusted Actual Income before non-operating items $ 195,304 $ 118,069 $ 69,013 Add back restructuring charges, net of tax - 4,203 4,203 Additional ESOP contribution required assuming Series B preferred shares were converted, net of tax (2,476) (2,670) (2,670) Dividends for Series C, D-1 and D-2 preferred stock (2,047) (2,014) (2,014) LYONs interest expense, net of tax 1,552 1,550 1,550 Adjusted income before restructuring charges and non-operating items $ 192,333 $ 119,138 $ 70,082 Weighted average common shares outstanding 304,985 297,765 297,765 Assumed conversion of Series B preferred shares into common 16,751 18,263 18,263 Assumed exercise of stock options, net of common shares assumed repurchased 6,999 3,962 3,962 Assumed conversion of LYONs debt securities 6,988 7,272 7,272 Adjusted weighted average common shares outstanding 335,723 327,262 327,262 Diluted earnings per share before restructuring charges and non-operating items $ .57 $ .36 $ .21 (F) Following is a reconciliation of income before restructuring charges and non-operating items to net income: Fourth Quarter 2002 Diluted Net Income EPS Income before non-operating items $ 195,304 $ .57 Non-operating items, net of tax (1,757) - Net income $ 193,547 $ .57 Fourth Quarter 2001 Adjusted Adjusted Actual Actual Net Income Diluted EPS Net Income Diluted EPS Income before restructuring charges and non-operating items $ 122,272 $ .36 $ 73,216 $ .21 Restructuring charges, net of tax (4,203) (.01) (4,203) (.01) Non-operating items, net of tax 37,768 .12 37,768 .12 Net income $ 155,837 $ .47 $ 106,781 $ .32 (G) The number of common shares outstanding, in thousands, at Dec. 29, 2002 was 305,909. Page 9
  • 4. TRIBUNE COMPANY FULL YEAR RESULTS OF OPERATIONS (Unaudited) (In thousands, except per share data) FULL YEAR (A) 2002 vs. 2001 2001 Adjusted 2002 Adjusted (B) Actual % Change OPERATING REVENUES $ 5,384,428 $ 5,253,366 $ 5,253,366 2 OPERATING PROFIT BEFORE RESTRUCTURING CHARGES $ 1,275,785 $ 1,033,697 $ 802,229 23 Restructuring Charges (C) (27,253) (151,892) (151,892) (82) OPERATING PROFIT 1,248,532 881,805 650,337 42 Net Loss on Equity Investments (40,875) (49,814) (60,813) (18) Interest Expense, net (204,491) (245,668) (245,668) (17) Income Before Taxes and Non-Operating Items 1,003,166 586,323 343,856 71 Income Taxes Related to Operations (385,281) (231,676) (187,035) 66 Income Before Non-Operating Items and Cumulative Effect of Change in Accounting Principle 617,885 354,647 156,821 74 Non-Operating Items, net of tax (D) (9,306) (45,685) (45,685) (80) Income Before Cumulative Effect of Change in Accounting Principle 608,579 308,962 111,136 97 Cumulative Effect of Change in Accounting Principle, net of tax (E) (165,587) - - NM NET INCOME 442,992 308,962 111,136 43 Preferred Dividends, net of tax (26,199) (26,800) (26,800) (2) Net Income Attributable to Common Shares $ 416,793 $ 282,162 $ 84,336 48 EARNINGS PER SHARE Basic: Before restructuring charges and non-operating items $ 2.01 $ 1.41 $ .75 43 Including restructuring charges and non-operating items $ 1.93 $ .95 $ .28 103 Cumulative effect of change in accounting principle, net (.55) - - NM Total $ 1.38 $ .95 $ .28 45 Diluted: Before restructuring charges and non-operating items (F) $ 1.87 $ 1.32 $ .72 42 Including restructuring charges and non-operating items $ 1.80 $ .90 $ .28 100 Cumulative effect of change in accounting principle, net (.50) - - NM Total (G) $ 1.30 $ .90 $ .28 44 DIVIDENDS PER COMMON SHARE $ .44 $ .44 $ .44 - Weighted Average Common Shares Outstanding (H) 301,932 298,295 298,295 1 Page 10
  • 5. (A) 2002 full year: Dec. 31, 2001 to Dec. 29, 2002. (52 weeks) 2001 full year: Jan. 1, 2001 to Dec. 30, 2001. (52 weeks) (B) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142, quot;Goodwill and Other Intangible Assets,quot; were effective Jan. 1, 2001, instead of Dec. 31, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets. As a result, the full year 2001 amortization was reduced from $241.0 million to an adjusted $9.6 million. In addition, full year 2001 equity losses decreased from $60.8 million to an adjusted $49.8 million due to the adoption of this new standard by the Company's equity method investees. Also, due to the reduced amortization expense, most of which is non-deductible, full year 2001 income tax expense related to operations increased from $187.0 million to an adjusted $231.7 million. In total, full year 2001 diluted EPS, before non-operating items and restructuring charges, increased from $.72 to an adjusted $1.32. (C) In the first quarter of 2002, the Company recorded pretax restructuring charges of $27.3 million ($16.7 million after-tax) primarily for various cost reduction initiatives, which reduced diluted earnings per share by $.05. For the full year 2001, the Company recorded pretax restructuring charges of $151.9 million ($92.6 million after-tax), which reduced adjusted diluted earnings per share by $.28. (D) The full year 2002 included the following non-operating items: Pretax After-tax Gain (Loss) Gain (Loss) Diluted EPS Loss on derivatives and related investments (1) $ (165,100) $ (101,041) $ (.31) Gain on sales of subsidiaries and investments (2) 110,088 67,374 .21 Income tax settlement adjustment (3) - 29,379 .09 Investment write-downs and other (8,199) (5,018) (.01) Total non-operating items $ (63,211) $ (9,306) $ (.02) The full year 2001 included the following non-operating items: Pretax After-tax Gain (Loss) Gain (Loss) Diluted EPS Loss on derivatives and related investments (1) $ (7,682) $ (4,685) $ (.01) Gain on sales of subsidiaries and investments (2) 78,358 47,791 .15 Investment write-downs and other (145,581) (88,791) (.28) Total non-operating items $ (74,905) $ (45,685) $ (.14) (1) Loss on derivatives and related investments relates primarily to the net change in fair values of the Company's PHONES derivatives and related AOL Time Warner shares. (2) For the full year 2002, gain on sales of subsidiaries and investments of $110.1 million ($67.4 million after-tax) relates primarily to the divestiture of two Denver radio stations, KOSI-FM and KEZW-AM, which were exchanged for the assets of two television stations, WTTV, Indianapolis, and its satellite station WTTK, Kokomo, Indiana, from Sinclair Broadcast Group. For the full year 2001, gain on sales of subsidiaries and investments of $78.4 million ($47.8 million after-tax) relates primarily to the sale of AOL Time Warner common stock. (3) In full year 2002, the Company reduced its income tax liability by $29 million as a result of favorably resolving certain federal and state income tax issues. This adjustment was recorded as a reduction of income tax expense. (E) As a result of initially applying the new impairment provisions of FAS 142, the Company recorded a pretax charge of $271 million ($166 million after-tax) in the first quarter of 2002, which decreased diluted EPS by $.50. This cumulative effect relates to certain of the Company's newspaper mastheads, a FCC license and a television network affiliation agreement. Page 11
  • 6. (F) For 2002 and adjusted 2001, diluted EPS before restructuring charges, non-operating items and the cumulative effect of change in accounting principle was computed assuming that the Series B convertible preferred shares and the LYONs debt securities were converted into common shares. Also, weighted average common shares outstanding was adjusted for the dilutive effect of stock options. For actual 2001, the conversion of the LYONs debt securities was not assumed because their effect was antidilutive. The Company has certain other convertible securities which were not included in the calculation of diluted EPS because their effects were antidilutive. Following are the calculations for the full year: Full Year 2001 2002 Adjusted Actual Income before non-operating items and the cumulative effect of change in accounting principle $ 617,885 $ 354,647 $ 156,821 Add back restructuring charges, net of tax 16,679 92,639 92,639 Additional ESOP contribution required assuming Series B preferred shares were converted, net of tax (9,599) (10,413) (10,413) Dividends for Series C, D-1 and D-2 preferred stock (8,189) (8,056) (8,056) LYONs interest expense, net of tax 6,218 6,127 - Adjusted income before restructuring charges, non-operating items and the cumulative effect of change in accounting principle $ 622,994 $ 434,944 $ 230,991 Weighted average common shares outstanding 301,932 298,295 298,295 Assumed conversion of Series B preferred shares into common 17,132 18,263 18,263 Assumed exercise of stock options, net of common shares assumed repurchased 6,313 5,685 5,685 Assumed conversion of LYONs debt securities 7,089 7,272 - Adjusted weighted average common shares outstanding 332,466 329,515 322,243 Diluted earnings per share before restructuring charges, non-operating items and the cumulative effect of change in accounting principle $ 1.87 $ 1.32 $ .72 (G) Following is a reconciliation of income before restructuring charges, non-operating items and the cumulative effect of change in accounting principle to net income: Full Year 2002 Diluted Net Income EPS Income before restructuring charges, non-operating items and the cumulative effect of change in accounting principle $ 634,564 $ 1.87 Restructuring charges, net of tax (16,679) (.05) Non-operating items, net of tax (9,306) (.02) Cumulative effect of change in accounting principle, net of tax (165,587) (.50) Net income $ 442,992 $ 1.30 Full Year 2001 Adjusted Adjusted Actual Actual Net Income Diluted EPS Net Income Diluted EPS Income before restructuring charges and non-operating items $ 447,286 $ 1.32 $ 249,460 $ .72 Restructuring charges, net of tax (92,639) (.28) (92,639) (.29) Non-operating items, net of tax (45,685) (.14) (45,685) (.15) Net income $ 308,962 $ .90 $ 111,136 $ .28 (H) The number of common shares outstanding, in thousands, at Dec. 29, 2002 was 305,909. Page 12
  • 7. TRIBUNE COMPANY BUSINESS SEGMENT DATA (Unaudited) (In thousands) FOURTH QUARTER 2002 vs. 2001 2001 Adjusted 2002 Adjusted (A) Actual % Change PUBLISHING Operating Revenues $ 1,039,520 $ 982,753 $ 982,753 6 Cash Operating Expenses (B) (754,466) (759,795) (759,795) (1) EBITDA before Restructuring Charges (C) 285,054 222,958 222,958 28 Depreciation and Amortization Expense (43,204) (38,942) (76,611) 11 Operating Profit before Restructuring Charges 241,850 184,016 146,347 31 Restructuring Charges - (4,465) (4,465) (100) Total Operating Profit $ 241,850 $ 179,551 $ 141,882 35 BROADCASTING AND ENTERTAINMENT Operating Revenues Television $ 339,483 $ 278,791 $ 278,791 22 Radio/Entertainment 31,697 40,011 40,011 (21) Total Operating Revenues 371,180 318,802 318,802 16 Cash Operating Expenses (B) Television (196,916) (179,751) (179,751) 10 Radio/Entertainment (30,580) (28,113) (28,113) 9 Total Cash Operating Expenses (227,496) (207,864) (207,864) 9 EBITDA before Restructuring Charges (C) Television 142,567 99,040 99,040 44 Radio/Entertainment 1,117 11,898 11,898 (91) Total EBITDA before Restructuring Charges 143,684 110,938 110,938 30 Depreciation and Amortization Expense Television (11,037) (9,995) (28,511) 10 Radio/Entertainment (1,533) (1,085) (1,191) 41 Total Depreciation and Amortization Expense (12,570) (11,080) (29,702) 13 Operating Profit (Loss) Television 131,530 89,045 70,529 48 Radio/Entertainment (416) 10,813 10,707 NM Total before Restructuring Charges 131,114 99,858 81,236 31 Restructuring Charges - (2,210) (2,210) (100) Total Operating Profit $ 131,114 $ 97,648 $ 79,026 34 INTERACTIVE Operating Revenues $ 19,043 $ 16,302 $ 16,302 17 Cash Operating Expenses (B) (19,260) (19,994) (19,994) (4) EBITDA before Restructuring Charges (C) (217) (3,692) (3,692) (94) Depreciation and Amortization Expense (1,351) (1,304) (3,062) 4 Operating Loss before Restructuring Charges (1,568) (4,996) (6,754) (69) Restructuring Charges - (5) (5) (100) Total Operating Loss $ (1,568) $ (5,001) $ (6,759) (69) CORPORATE EXPENSES EBITDA before Restructuring Charges (C) $ (12,056) $ (8,292) $ (8,292) 45 Depreciation and Amortization Expense (521) (436) (436) 19 Operating Loss before Restructuring Charges (12,577) (8,728) (8,728) 44 Restructuring Charges - (212) (212) (100) Total Operating Loss $ (12,577) $ (8,940) $ (8,940) 41 CONSOLIDATED Operating Revenues $ 1,429,743 $ 1,317,857 $ 1,317,857 8 Cash Operating Expenses (B) (1,013,278) (995,945) (995,945) 2 EBITDA before Restructuring Charges (C) 416,465 321,912 321,912 29 Depreciation and Amortization Expense (57,646) (51,762) (109,811) 11 Operating Profit before Restructuring Charges 358,819 270,150 212,101 33 Restructuring Charges - (6,892) (6,892) (100) Total Operating Profit $ 358,819 $ 263,258 $ 205,209 36 (A) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142 were effective Jan. 1, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets. (B) Cash operating expenses exclude restructuring charges. (C) EBITDA is earnings before interest, taxes, depreciation, amortization of intangible assets, equity results and non-operating items. The Company's definition of EBITDA may not be consistent with that of other companies. EBITDA does not represent cash provided by operating activities as reflected in the Company's consolidated statements of cash flows, is not a measure of financial performance under generally accepted accounting principles (quot;GAAPquot;) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Page 13
  • 8. TRIBUNE COMPANY BUSINESS SEGMENT DATA (Unaudited) (In thousands) FULL YEAR 2002 vs. 2001 2001 Adjusted 2002 Adjusted (A) Actual % Change PUBLISHING Operating Revenues $ 3,863,779 $ 3,843,949 $ 3,843,949 1 Cash Operating Expenses (B) (2,847,012) (2,993,219) (2,993,219) (5) EBITDA before Restructuring Charges (C) 1,016,767 850,730 850,730 20 Depreciation and Amortization Expense (168,484) (157,306) (307,788) 7 Operating Profit before Restructuring Charges 848,283 693,424 542,942 22 Restructuring Charges (24,760) (140,409) (140,409) (82) Total Operating Profit $ 823,523 $ 553,015 $ 402,533 49 BROADCASTING AND ENTERTAINMENT Operating Revenues Television $ 1,221,637 $ 1,130,125 $ 1,130,125 8 Radio/Entertainment 222,313 219,810 219,810 1 Total Operating Revenues 1,443,950 1,349,935 1,349,935 7 Cash Operating Expenses (B) Television (727,544) (704,150) (704,150) 3 Radio/Entertainment (199,471) (193,417) (193,417) 3 Total Cash Operating Expenses (927,015) (897,567) (897,567) 3 EBITDA before Restructuring Charges (C) Television 494,093 425,975 425,975 16 Radio/Entertainment 22,842 26,393 26,393 (13) Total EBITDA before Restructuring Charges 516,935 452,368 452,368 14 Depreciation and Amortization Expense Television (40,646) (40,499) (114,034) - Radio/Entertainment (6,151) (4,650) (5,069) 32 Total Depreciation and Amortization Expense (46,797) (45,149) (119,103) 4 Operating Profit Television 453,447 385,476 311,941 18 Radio/Entertainment 16,691 21,743 21,324 (23) Total before Restructuring Charges 470,138 407,219 333,265 15 Restructuring Charges (1,087) (6,567) (6,567) (83) Total Operating Profit $ 469,051 $ 400,652 $ 326,698 17 INTERACTIVE Operating Revenues $ 76,699 $ 59,482 $ 59,482 29 Cash Operating Expenses (B) (67,979) (79,429) (79,429) (14) EBITDA before Restructuring Charges (C) 8,720 (19,947) (19,947) NM Depreciation and Amortization Expense (5,586) (5,359) (12,391) 4 Operating Profit (Loss) before Restructuring Charges 3,134 (25,306) (32,338) NM Restructuring Charges (163) (2,922) (2,922) (94) Total Operating Profit (Loss) $ 2,971 $ (28,228) $ (35,260) NM CORPORATE EXPENSES EBITDA before Restructuring Charges (C) $ (43,383) $ (39,056) $ (39,056) 11 Depreciation and Amortization Expense (2,387) (2,584) (2,584) (8) Operating Loss before Restructuring Charges (45,770) (41,640) (41,640) 10 Restructuring Charges (1,243) (1,994) (1,994) (38) Total Operating Loss $ (47,013) $ (43,634) $ (43,634) 8 CONSOLIDATED Operating Revenues $ 5,384,428 $ 5,253,366 $ 5,253,366 2 Cash Operating Expenses (B) (3,885,389) (4,009,271) (4,009,271) (3) EBITDA before Restructuring Charges (C) 1,499,039 1,244,095 1,244,095 20 Depreciation and Amortization Expense (223,254) (210,398) (441,866) 6 Operating Profit before Restructuring Charges 1,275,785 1,033,697 802,229 23 Restructuring Charges (27,253) (151,892) (151,892) (82) Total Operating Profit $ 1,248,532 $ 881,805 $ 650,337 42 (A) Adjusted results assume the provisions of Financial Accounting Standard (quot;FASquot;) No. 142 were effective Jan. 1, 2001. FAS 142 eliminates the amortization of goodwill and certain other intangible assets. (B) Cash operating expenses exclude restructuring charges. (C) EBITDA is earnings before interest, taxes, depreciation, amortization of intangible assets, equity results and non-operating items. The Company's definition of EBITDA may not be consistent with that of other companies. EBITDA does not represent cash provided by operating activities as reflected in the Company's consolidated statements of cash flows, is not a measure of financial performance under generally accepted accounting principles (quot;GAAPquot;) and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Page 14
  • 9. TRIBUNE COMPANY SUMMARY OF REVENUES (Unaudited) For Fourth Quarter Ended December 29, 2002 (In thousands) Fourth Quarter (13 weeks) Year-to-Date (52 weeks) % % 2002 2001 Change 2002 2001 Change Publishing Advertising $ 380,154 $ 358,513 $ 1,269,188 $ 1,230,608 Retail 6 3 703,837 675,281 National 200,249 175,519 14 4 975,374 1,041,429 Classified 225,224 217,320 4 (6) 805,627 751,352 2,948,399 2,947,318 Sub-Total 7 - 669,471 662,377 Circulation 168,021 167,670 - 1 245,909 234,254 Other 65,872 63,731 3 5 Segment Total (A) (B) 1,039,520 982,753 6 3,863,779 3,843,949 1 Broadcasting & Entertainment 1,221,637 1,130,125 Television (C) 339,483 278,791 22 8 222,313 219,810 Radio/Entertainment 31,697 40,011 (21) 1 Segment Total (D) 371,180 318,802 16 1,443,950 1,349,935 7 76,699 59,482 19,043 16,302 17 29 Interactive $ 1,429,743 $ 1,317,857 8 $ 5,384,428 $ 5,253,366 2 Consolidated Revenues (E) (A) Publishing revenues for 2001 have been reclassified to conform with the 2002 presentation. There was no effect on total revenues. (B) Includes Virginia Gazette , acquired in February 2001, TV Data, acquired in May 2001, and Chicago magazine, acquired in July 2002. Excluding these acquisitions, publishing revenues increased 5% for the quarter and were flat for the year-to-date. Excluding these acquisitions, retail revenues increased 5% for the quarter and 3% for the year-to-date. Excluding these acquisitions, national revenues increased 14% for the quarter and 4% for the year-to-date. Excluding these acquisitions, total advertising revenues increased 7% for the quarter and were flat for the year-to-date. (C) Includes Tower Distribution (formerly United Video), WGN Cable's distribution entity, which was acquired in April 2001, WTXX-Hartford, acquired in August 2001, and WTTV-Indianapolis, acquired in July 2002. Excluding these acquisitions, television revenues increased 21% for the quarter and 7% for the year-to-date. Fourth quarter includes copyright royalties of $1.0 million in 2002 and $1.6 million in 2001. Year-to-date includes copyright royalties of $4.2 million in 2002 and $29.9 million in 2001. Excluding acquisitions and copyright royalties, television revenues increased 21% for the quarter and 9% for the year-to-date. (D) Excluding acquisitions and copyright royalties, broadcasting and entertainment revenues increased 15% for the quarter and 8% for the year-to-date. (E) Excluding acquisitions and copyright royalties, consolidated revenues increased 8% for the quarter and 2% for the year-to-date. 15
  • 10. TRIBUNE COMPANY SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited) (A) For Fourth Quarter Ended December 29, 2002 (In thousands) Fourth Quarter (13 weeks) Year-to-Date (52 weeks) % % 2002 2001 Change 2002 2001 Change Full Run 737 707 2,587 2,677 L.A. Times 4 (3) 616 553 2,191 2,169 Chicago Tribune 11 1 396 423 1,588 1,683 Newsday (6) (6) 3,556 3,587 13,514 13,905 Other Daily Newspapers (B) (1) (3) 5,305 5,270 19,880 20,434 Total 1 (3) Part Run 1,485 1,411 5,687 5,201 L.A. Times 5 9 1,383 1,337 5,475 5,545 Chicago Tribune 3 (1) 459 430 1,711 1,650 Newsday 7 4 1,508 1,481 6,056 6,033 Other Daily Newspapers (B) 2 - 4,835 4,659 18,929 18,429 Total 4 3 Total Advertising Inches Full Run 1,861 1,917 6,258 6,580 Retail (3) (5) 972 874 3,406 3,347 National 11 2 2,472 2,479 10,216 10,507 Classified - (3) 5,305 5,270 19,880 20,434 Sub-Total 1 (3) Part Run 4,835 4,659 4 18,929 18,429 3 Total 10,140 9,929 2 38,809 38,863 - Preprint Pieces 605,700 584,402 1,985,563 1,882,891 L.A. Times 4 5 933,758 774,547 3,138,907 2,718,692 Chicago Tribune 21 15 828,932 757,073 2,823,513 2,713,323 Newsday 9 4 1,086,226 1,008,104 3,700,712 3,433,500 Other Daily Newspapers (B) 8 8 3,454,616 3,124,126 Total 11 11,648,695 10,748,406 8 (A) Volume for 2001 has been modified to conform with the 2002 presentation. Volume is based on preliminary internal data, which may be updated in subsequent reports. Advertising volume is presented only for daily newspapers. (B) Other daily newspapers include The Baltimore Sun, South Florida Sun-Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call, Daily Press, The Advocate and Greenwich Time. 16
  • 11. TRIBUNE COMPANY SUMMARY OF REVENUES (Unaudited) For Period 12 Ended December 29, 2002 (In thousands) Period 12 (5 weeks) Year-to-Date (52 weeks) % % 2002 2001 Change 2002 2001 Change Publishing Advertising $ 167,949 $ 146,134 $ 1,269,188 $ 1,230,608 Retail 15 3 703,837 675,281 National 79,289 68,061 16 4 975,374 1,041,429 Classified 72,612 70,667 3 (6) 319,850 284,862 2,948,399 2,947,318 Sub-Total 12 - 63,758 63,401 669,471 662,377 Circulation 1 1 245,909 234,254 Other 23,880 22,859 4 5 Segment Total (A) (B) 407,488 371,122 10 3,863,779 3,843,949 1 Broadcasting & Entertainment 122,200 97,859 1,221,637 1,130,125 Television (C) 25 8 12,441 15,134 222,313 219,810 Radio/Entertainment (18) 1 Segment Total (D) 134,641 112,993 19 1,443,950 1,349,935 7 76,699 59,482 6,131 5,573 10 29 Interactive $ 548,260 $ 489,688 12 $ 5,384,428 $ 5,253,366 2 Consolidated Revenues (E) (A) Publishing revenues for 2001 have been reclassified to conform with the 2002 presentation. There was no effect on total revenues. (B) Includes Virginia Gazette , acquired in February 2001, TV Data, acquired in May 2001, and Chicago magazine, acquired in July 2002. Excluding these acquisitions, publishing revenues increased 9% for the period and were flat for the year-to-date. Excluding these acquisitions, retail revenues increased 14% for the period and 3% for the year-to-date. Excluding these acquisitions, national revenues increased 16% for the period and 4% for the year-to-date. Excluding these acquisitions, total advertising revenues increased 12% for the period and were flat for the year-to-date. (C) Includes Tower Distribution (formerly United Video), WGN Cable's distribution entity, which was acquired in April 2001, WTXX-Hartford, acquired in August 2001, and WTTV-Indianapolis, acquired in July 2002. Excluding these acquisitions, television revenues increased 23% for the period and 7% for the year-to-date. Period 12 includes copyright royalties of $0.4 million in 2002 and $1.0 million in 2001. Year-to-date includes copyright royalties of $4.2 million in 2002 and $29.9 million in 2001. Excluding acquisitions and copyright royalties, television revenues increased 24% for the period and 9% for the year-to-date. (D) Excluding acquisitions and copyright royalties, broadcasting and entertainment revenues increased 18% for the period and 8% for the year-to-date. (E) Excluding acquisitions and copyright royalties, consolidated revenues increased 11% for the period and 2% for the year-to-date. 17
  • 12. TRIBUNE COMPANY SUMMARY OF NEWSPAPER ADVERTISING VOLUME (Unaudited) (A) For Period 12 Ended December 29, 2002 (In thousands) Period 12 (5 weeks) Year-to-Date (52 weeks) % % 2002 2001 Change 2002 2001 Change Full Run 329 295 2,587 2,677 L.A. Times 12 (3) 246 206 2,191 2,169 Chicago Tribune 19 1 144 152 1,588 1,683 Newsday (5) (6) 1,381 1,323 13,514 13,905 Other Daily Newspapers (B) 4 (3) 2,100 1,976 19,880 20,434 Total 6 (3) Part Run 562 527 5,687 5,201 L.A. Times 7 9 465 433 5,475 5,545 Chicago Tribune 7 (1) 160 155 1,711 1,650 Newsday 3 4 553 553 6,056 6,033 Other Daily Newspapers (B) - - 1,740 1,668 18,929 18,429 Total 4 3 Total Advertising Inches Full Run 840 788 6,258 6,580 Retail 7 (5) 392 335 3,406 3,347 National 17 2 868 853 10,216 10,507 Classified 2 (3) 2,100 1,976 19,880 20,434 Sub-Total 6 (3) Part Run 1,740 1,668 4 18,929 18,429 3 Total 3,840 3,644 5 38,809 38,863 - Preprint Pieces 283,148 252,304 1,985,563 1,882,891 L.A. Times 12 5 396,610 305,144 3,138,907 2,718,692 Chicago Tribune 30 15 352,261 298,518 2,823,513 2,713,323 Newsday 18 4 471,079 407,691 3,700,712 3,433,500 Other Daily Newspapers (B) 16 8 1,503,098 1,263,657 Total 19 11,648,695 10,748,406 8 (A) Volume for 2001 has been modified to conform with the 2002 presentation. Volume is based on preliminary internal data, which may be updated in subsequent reports. Advertising volume is presented only for daily newspapers. (B) Other daily newspapers include The Baltimore Sun, South Florida Sun-Sentinel, Orlando Sentinel, The Hartford Courant, The Morning Call, Daily Press, The Advocate and Greenwich Time. 18