McClatchy to Sell the Akron Beacon Journal to Black Press Ltd.

/PRNewswire-FirstCall/ -- The McClatchy Company (NYSE:   MNI) today announced
 a definitive agreement to sell the Akron Beacon Journal to Sound Publishing
 Holdings, Inc. Sound Publishing Holdings, Inc., is a wholly owned
 subsidiary of Black Press Ltd., a Canadian company which produces over 100
 publications in British Columbia, Alberta, Washington State and Hawaii.
 Financial terms of the transaction were not disclosed at the buyer's
 request.
     The purchase covers the Akron Beacon Journal and certain publications
 and web sites related to the newspaper. The Akron Beacon Journal is
 currently owned by Knight Ridder, Inc., which McClatchy has agreed to
 acquire. The parties intend to close the transaction as soon as possible
 after the close of McClatchy's Knight Ridder acquisition, which is expected
 this summer.
     "Our aim throughout the divestiture process was to find the right
 buyers for the right newspapers," said Gary Pruitt, Chief Executive Officer
 of McClatchy. "We believe that Black Press Ltd. and the Akron Beacon
 Journal are a great fit, and we look forward to seeing this relationship
 develop in the future."
     "Under the direction of the Knight family and Knight Ridder, the Akron
 Beacon Journal has been a good community newspaper for a long time. We
 believe in the same focus on local journalism of high quality," said Black
 Press Ltd. CEO David Black.
     Dirks, Van Essen & Murray served as broker to McClatchy in this
 transaction. Wilson Sonsini Goodrich & Rosati served as legal counsel to
 McClatchy, and Patterson Adams served as legal counsel to Black Press Ltd.
     Dirks, Van Essen & Murray served as broker to McClatchy in this
 transaction. Wilson Sonsini Goodrich & Rosati served as legal counsel to
 McClatchy, and Patterson Adams served as legal counsel to Sound Publishing
 Holdings, Inc.
     About The McClatchy Company
     The McClatchy Company, headquartered in Sacramento, CA, is a leading
 newspaper and internet publisher. It publishes 12 daily and 16 non-daily
 newspapers located in western coastal states, North and South Carolina, and
 the Twin Cities of Minneapolis/St. Paul. McClatchy has daily circulation of
 1.4 million and Sunday circulation of 1.8 million. McClatchy's newspapers
 include, among others, the Star Tribune in Minneapolis, The Sacramento Bee,
 The Fresno Bee and The Modesto Bee in California, The News & Observer
 (Raleigh, NC), The News Tribune (Tacoma, WA), the Anchorage Daily News and
 Vida en el Valle, a bilingual Spanish weekly newspaper distributed
 throughout California's Central Valley. McClatchy also operates leading
 local websites in each of its daily newspaper markets, offering readers
 information, comprehensive news, advertising, e-commerce and other
 services, and owns and operates McClatchy Interactive, an interactive
 operation that provides websites with content, publishing tools and
 software development. McClatchy is listed on the New York Stock Exchange
 under the symbol (MNI).
     About Black Press Ltd.
     Black Press Ltd. is a private company that owns and operates 115
 newspapers in western Canada, Washington State and Hawaii. Most of the
 papers are published one to three times per week. Many have controlled
 circulation. The largest daily owned prior to the acquisition of the Akron
 Beacon Journal was the Honolulu Star-Bulletin. Black Press Ltd. is 80%
 owned by the David Black family and 20% by Torstar Corporation.
     Background to the Transaction
     On March 13, 2006, The McClatchy Company announced a definitive
 agreement under which McClatchy will acquire Knight-Ridder, Inc. Knight
 Ridder publishes 32 daily newspapers in 29 U.S. markets, with a circulation
 of 3.4 million daily and 4.5 million Sunday. Knight Ridder has websites in
 all of its markets and a variety of investments in internet and technology
 companies, publishes a growing portfolio of targeted publications and
 maintains investments in two newsprint companies. Knight Ridder's internet
 operation develops and manages the company's online properties. It is the
 founder and operator of Real Cities (www.RealCities.com), the largest
 national network of city and regional websites in more than 110 U.S.
 markets.
     As part of that announcement, McClatchy said it planned to sell 11 of
 the acquired newspapers that do not fit with the company's longstanding
 operating strategies and acquisition criteria, and to sell the St. Paul
 Pioneer Press due to anticipated anti-trust concerns involving McClatchy's
 (Minneapolis) Star Tribune.
     After McClatchy's planned divestitures and the close of the Knight
 Ridder acquisition, The McClatchy Company will become the nation's
 second-largest newspaper company measured by daily circulation
 (approximately 3.2 million), with 32 daily newspapers and approximately 50
 non-dailies. The expanded McClatchy will own leading newspapers in many of
 the fastest-growing markets nationwide, with an enhanced portfolio of
 Internet assets. The transaction is subject to customary terms and
 conditions, including approval by the Knight Ridder shareholders and is
 expected to close this summer.
     On April 26, 2006, the McClatchy Company announced a definitive
 agreement with MediaNews Group, Inc. (MediaNews) and The Hearst Corporation
 (Hearst) under which the companies will pay McClatchy $1.0 billion in cash
 to acquire four newspapers. MediaNews will purchase two northern California
 papers, the San Jose Mercury News and Contra Costa Times, and Hearst will
 acquire the Monterey (CA) Herald, and the St. Paul Pioneer Press in St.
 Paul, Minnesota.
     On May 23, 2006, McClatchy announced a definitive agreement to sell
 Philadelphia Newspapers, Inc. (PNI) to Philadelphia Media Holdings LLC
 (PMH) in a transaction valued at $562 million. The purchase covers the
 Philadelphia Inquirer and Philadelphia Daily News, both daily newspapers,
 and related media assets including philly.com.
     Separately McClatchy announced today definitive agreements to sell The
 News-Sentinel, a 75% stake in the Fort Wayne Joint Operating Agency and
 certain publications and web sites related to the newspaper to Ogden
 Newspapers, the Duluth News Tribune and the Grand Forks Herald to Forum
 Communications Company and the (Aberdeen) American News to Schurz
 Communications, Inc.
     SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
     Statements in this press release regarding the proposed transactions
 between McClatchy and each of Knight Ridder, MediaNews, Hearst, Schurz
 Communications, Inc., Ogden Newspapers, Forum Communications Company, Sound
 Publishing Holdings, Inc. and Philadelphia Media Holdings LLC, the expected
 timetable for completing the transactions, future financial and operating
 results, benefits and synergies of the transactions, the divestiture plan,
 future opportunities for the company and any other statements about
 management's future expectations, beliefs, goals, plans or prospects
 constitute forward-looking statements within the meaning of the Private
 Securities Litigation Reform Act of 1995. Any statements that are not
 statements of historical fact (including statements containing the words
 "believes," "plans," "anticipates," "expects," estimates and similar
 expressions) should also be considered to be forward-looking statements.
 There are a number of important factors that could cause actual results or
 events to differ materially from those indicated by such forward-looking
 statements, including: the ability to consummate the transactions, the
 ability of McClatchy to successfully integrate Knight Ridder's operations
 and employees; the ability to realize anticipated synergies and cost
 savings; and the other factors described in McClatchy's Annual Report on
 Form 10-K for the year ended December 25, 2005 and the final
 Prospectus/Proxy Statement/Information Statement contained in McClatchy's
 Registration Statement on Form S-4 (Registration No. 333-133321). McClatchy
 disclaims any intention or obligation to update any forward-looking
 statements as a result of developments occurring after the date of this
 document.
     IMPORTANT ADDITIONAL INFORMATION
     On May 10, 2006, McClatchy filed with the SEC a Registration Statement
 on Form S-4 (Registration No. 333-133321) containing a final
 Prospectus/Proxy Statement/Information Statement regarding the proposed
 transaction between McClatchy and Knight Ridder. Investors and security
 holders of McClatchy and Knight Ridder are urged to read the
 Prospectus/Proxy Statement/Information Statement carefully because it
 contains important information about McClatchy, Knight Ridder, the
 transaction and related matters. The Prospectus/Proxy Statement/Information
 Statement is being mailed on or about May 15, 2006 to stockholders of
 McClatchy and shareholders of Knight Ridder. Investors and security holders
 can obtain additional free copies of the Registration Statement and the
 Prospectus/Proxy Statement/Information Statement and other documents filed
 with the SEC by McClatchy and Knight Ridder through the web site maintained
 by the SEC at www.sec.gov. In addition, investors and security holders can
 obtain additional free copies of the Registration Statement and the
 Prospectus/Proxy Statement/Information Statement from McClatchy by
 contacting Investor Relations at www.mcclatchy.com, by mail to 2100 Q
 Street, Sacramento, CA 95816 or by telephone at 916-321-1846 or from Knight
 Ridder by contacting Investor Relations at www.knightridder.com, by mail to
 Suite 1500, 50 W. San Fernando St., San Jose, CA 95113 or by telephone at
 408-938-7838.
     McClatchy and its directors and executive officers may be deemed to be
 participants in the solicitation of proxies from the shareholders of Knight
 Ridder in connection with the proposed transaction between McClatchy and
 Knight Ridder. Information regarding the special interests of these
 directors and executive officers in the transaction described herein is
 included in the Prospectus/Proxy Statement/Information Statement described
 above. Additional information regarding these directors and executive
 officers is also included in McClatchy's proxy statement for its 2006
 Annual Meeting of Stockholders, which was filed with the SEC on or about
 March 29, 2006. This document is available free of charge at the SEC's web
 site at www.sec.gov and from McClatchy by contacting Investor Relations at
 www.mcclatchy.com, by mail to 2100 Q Street, Sacramento, CA 95816 or by
 telephone at 916-321-1846.
     Knight Ridder and its directors and executive officers also may be
 deemed to be participants in the solicitation of proxies from the
 shareholders of Knight Ridder in connection with the proposed transaction
 between McClatchy and Knight Ridder. Information regarding the special
 interests of these directors and executive officers in the proposed
 transaction between McClatchy and Knight Ridder and additional information
 regarding these directors and executive officers is included in the
 Prospectus/Proxy Statement/Information Statement described above, which
 also serves as Knight Ridder's proxy statement for its 2006 Annual Meeting
 of Shareholders and was filed by Knight Ridder on May 11, 2006. This
 document is available free of charge at the SEC's web site at www.sec.gov
 and from Knight Ridder by contacting Investor Relations at
 www.knightridder.com, by mail to Suite 1500, 50 W. San Fernando St., San
 Jose, CA 95113 or by telephone at 408-938-7838.
 
 

SOURCE The McClatchy Company