In large part this is due to the cost reduction measures wehave implemented and those we have underway. This year we plan to save more than$330 million in operating expenses. “During the quarter we took a number of steps to improve our liquidity andextend the maturities of our debt. We completed a private placement of notes,suspended our dividend, completed a sale-leaseback of our headquarters andcalled for the redemption of notes due early next year. These steps haveimproved our financial flexibility and materially extended our debt maturities.Nearly three quarters of our debt matures in 2015 or later.

“At this time, and it is early in the quarter, we believe the rate of decline inad revenues in the second quarter will be similar to that of the first. In time,however, we believe that the economy will grow and the advertising market willimprove. While we are looking forward to that day, we are not waiting for it. Wehave moved aggressively to restructure our cost base in line with our revenuesand continue to develop innovative new digital products that enhance ourfinancial performance.

When advertising improves, we believe we will be wellpositioned to meet the needs of the marketplace and to benefit from ourrestructured cost base.” ComparisonsCity & Suburban (C & S), the Company`s retail and newsstand distributionsubsidiary, was closed on January 4, 2009. The operations of C & S are includedfor the entire first quarter of 2008 and for a few days in January 2009. Theeffect on the Company’s first-quarter results was a decrease in other revenuesof approximately $17 million, circulation revenues of approximately $2 millionand operating costs of approximately $28 million. The first-quarter 2009 results included the following special item:* A loss on leases at C & S of $16.4 million ($9.6 million after tax or $.07 pershare).The first-quarter 2008 results included the following special items:* A non-cash charge for the write-down of assets for a systems project of $18.3million ($10.4 million after tax or $.07 per share).* A favorable tax reserve adjustment of $4.6 million ($.03 per share).In addition to the special items above, the Company had severance costs of $25.0million ($15.3 million after tax or $.11 per share) in the first quarter of2009, primarily at the New England Media Group, and $11.2 million ($6.4 millionafter tax or $.04 per share) in the first quarter of 2008. This release includes non-GAAP financial measures, and the exhibits include adiscussion of management`s use of these non-GAAP financial measures andreconciliations to the most comparable GAAP financial measures.