The improvement wasmainly due to higher paper prices at the paper mills in which the Company has aninvestment. Interest Expense-netInterest expense-net increased in the first quarter to $18.1 million from $11.7million, primarily due to higher interest rates on the Company`s debt Income TaxesIncome tax benefit was $1.1 million. The tax provision was unfavorably affectedby significant losses at the New England Media Group, for which only a minimumstate tax benefit is recognized due to a recent Massachusetts law change, andvarious nondeductible losses. These items were partially offset by a $12 millionadjustment to reduce the Company`s reserve for uncertain tax positions. In the first quarter of 2008, the Company recognized an income tax benefit of$7.7 million.

Taxes were affected by a $4.6 million adjustment to reduce theCompany`s reserve for uncertain tax positions. Cash and Total DebtOn March 9, 2009, the Company called for redemption all $250 million of itsoutstanding aggregate principal amount of 4.5 percent notes due March 15, 2010.The redemption was completed on April 8, 2009. At the end of the quarter, cashand cash equivalents were approximately $294 million, including $260 million ofcash held in escrow to complete the redemption of the notes. While at quarterend total debt was approximately $1.3 billion, total debt excluding the $250million notes then in the process of redemption was approximately $1 billion. The table below details the maturities and carrying value of the Company’sdebt. (in thousands)2009 $294,5002011220,000201275,000 2015500,0002019250,000Total$1,339,500Unamortized amounts (65,403) Carrying value as of the end of the first quarter$1,274,097Carrying value of notes redeemed(249,544 ) Debt excluding redeemed notes$1,024,553 Included in 2009 is $250 million of notes redeemed effective April 8, 2009, andincluded in 2011 is $220 million outstanding under the Company’s revolvingcredit facility.

In the first quarter, the Company also repurchased approximately $55 million ofthe medium-term notes due in November 2009. The Company has sufficient capacityunder its revolving credit agreement to repay at maturity the $44.5 million innotes due at the end of this year. Capital ExpendituresIn the first quarter, total capital expenditures were approximately $26 million.ExpectationsFor 2009, the Company expects depreciation and amortization to be $140 to $150million, which includes accelerated depreciation of approximately $5 millionrelated to the consolidation of The Boston Globe`s printing plants. It projectscapital expenditures to be approximately $80 million, including about $27million for a plant consolidation and a systems project at the News Media Group.Excluding depreciation, amortization and severance, the Company expectsoperating costs to decrease more than $330 million. Quarterly interest expense for the remainder of the year is expected to behigher than it was in the first quarter because the sale-leaseback occurred atthe end of March.

For the year, the Company expects interest expense to beapproximately $90 million. Conference Call InformationOur earnings conference call will be held on Tuesday, April 21, at 11:00 a.m.E.T. To access the call, dial 877-723-9519 (in the U.S.) and 719-325-4790(international callers). Participants should dial into the conference callapproximately 10 minutes before the start time. Online listeners can link to thelive webcast at Except for the historical information contained herein, the matters discussed inthis press release are forward-looking statements that involve risks anduncertainties that could cause actual results to differ materially from thosepredicted by such forward-looking statements.