Media General Reports February Revenues, Provides First-Quarter Earnings Guidance

Media General Reports February Revenues, Provides First-Quarter Earnings Guidance

RICHMOND, Va., March 17 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE:MEG) today reported that total revenues for February 2005 increased 6.5 percent, to $69 million, from February 2004. On a divisional basis, Publishing revenues increased 7.2 percent, Broadcast revenues grew 3.4 percent, and Interactive Media Division revenues rose 52.2 percent.

"The Publishing Division reported an exceptional month in February, and the strength of its results exceeded our expectations. All major newspaper revenue categories showed healthy growth, and Classified and National advertising revenue increases were outstanding. Publishing's overall results were fueled especially by double-digit growth in advertising revenue at The Tampa Tribune, the Richmond Times-Dispatch and at several of our community newspapers," said J. Stewart Bryan III, chairman and chief executive. "In the Broadcast Division, aggressive sales development initiatives helped drive strong growth in Local time sales, which more than offset declines in Political spot revenues and softness in National time sales," said Bryan.

Newspaper advertising revenues increased $3.2 million, or 9.2 percent, over last February. Advertising revenues rose 12.6 percent at The Tampa Tribune and 10.3 percent at the Richmond Times-Dispatch. When online revenues from Media General's newspaper Web sites are included, total publishing revenues increased 7.9 percent for the month and newspaper advertising revenues rose 10.1 percent.

Classified revenues increased $1.9 million, or 13.2 percent, over February 2004 and many markets experienced double-digit gains. The Tampa Tribune was up over last year by 14.7 percent, the Richmond Times-Dispatch reported classified growth of 13.4 percent, and the Winston-Salem Journal saw growth of 6.8 percent. Community newspaper classified growth was 14 percent, reflecting continued strength from employment and real estate linage gains as well as new product launches and new classified sales initiatives. Including online advertising, the overall increase in Classified revenues reached nearly 15 percent.

These healthy Classified increases reflected the benefit of significantly higher help-wanted revenues, including a 21 percent increase at The Tampa Tribune. Employment linage for the company's three metropolitan newspapers rose more than 13 percent, including increases of 26.5 percent at the Richmond Times-Dispatch, 2.4 percent at The Tampa Tribune, and 3.5 percent at the Winston-Salem Journal. Tampa's help-wanted revenues increased at a faster pace than its linage due to a larger proportion of higher-rated Sunday linage, up 18.4 percent. Real estate linage at the three newspapers was also strong. Automotive linage at the company's newspapers in February was mixed except for Tampa, which has had continued solid gains since January.

Retail revenues increased $410,000, or 2.4 percent, compared to last year's same period, reflecting increases at The Tampa Tribune and Richmond Times-Dispatch. The Richmond Times-Dispatch retail revenues increased 3.9 percent on the strength of preprint revenue and grocery advertising. The Tampa Tribune reported a 3.4 percent rise in retail revenue. The company's community newspapers posted a 2.9 percent increase in retail advertising for the month.

National ROP revenues improved $945,000, or 33 percent. This performance reflected significant increases in automotive, telecommunications and issues advertising related to proposed changes in Social Security, as well as a variety of national preprint advertisers. The largest improvement in this category was reported by The Tampa Tribune, up 34 percent, while the Richmond Times-Dispatch reported 32 percent growth, and the Winston-Salem Journal posted a 14 percent increase. Tampa's results reflected increases in the automotive, travel, health care and telecommunications categories. Several community newspapers also posted solid gains.

Daily newspaper circulation volumes were down only 0.3 percent for the month and Sunday decreased 1.2 percent. Eleven Media General newspapers were above last year for daily circulation, including The Tampa Tribune and the Winston-Salem Journal, and nine were ahead of last year on Sunday. Circulation revenues were down $140,000, or 1.9 percent. The decline is mostly related to a change in wholesale rates to independent carriers in several markets and is offset by a corresponding decrease in circulation expense.

As announced last month, Preprint revenue has been classified both for the current and prior periods into the applicable Retail, National or Classified category. Color and comics revenues also have been classified in the applicable category instead of in Other advertising. This press release includes a table with the reclassified amounts for each month of 2004 for the selected categories.

In the Broadcast Division, increased Local time sales and stronger revenues from the division's broadcast equipment subsidiary more than offset the near absence of Political revenues, continued softness in National time sales and lower network compensation.

Gross time sales increased $410,000, or nearly 2 percent. Local time sales increased $1.2 million, or 9 percent, and reflected gains in services, furniture, and specialty store advertising. National time sales decreased $190,000, or 2.7 percent, due to declines in new product promotions in the telecommunications and entertainment categories.

Interactive Media Division revenues rose 52.2 percent to $1.4 million. The performance was driven by a 52.8 percent increase in Classified advertising, reflecting continued strong liner upsell activity and special product revenue.

Outlook

For the first quarter of 2005, analyst earnings estimates currently range from 38 cents per share to 46 cents per share. At this time, Media General expects first-quarter earnings per share to be 36 cents per share to 38 cents per share. Broadcast Division revenue growth for the first quarter is not as strong as expected in this off-election year, despite aggressive sales development initiatives, and the rate of increase in newsprint prices has not occurred as quickly as anticipated. Media General earned 38 cents per share in the 2004 first quarter.

Also in the first quarter, Media General will adopt SEC Topic D-108, Use of the Residual Method to Value Acquired Assets Other than Goodwill. The new rule will result in a material reduction in the carrying value of intangible assets related to its FCC licenses because the company must now use a direct method, rather than the previously accepted residual method, to value acquired assets other than goodwill. Since the new approach caps expected future performance of each station to that of an average market participant, the company will be more unfavorably affected than many broadcasters because most Media General television stations are ranked first or second in their markets. When the process is completed, the company expects the non-cash charge will be in the range of $250 to 350 million.

The company plans to release first-quarter earnings on April 12 before the market opens.

Forward-Looking Statements

This news release contains forward-looking statements that are subject to various risks and uncertainties and should be understood in the context of the company's publicly available reports filed with the Securities and Exchange Commission. Media General's future performance could differ materially from its current expectations.

About Media General

Media General is a diversified communications company operating leading newspapers, television stations and online enterprises, primarily in the Southeastern United States. The company's publishing assets include three metropolitan newspapers, The Tampa Tribune, the Richmond Times-Dispatch, and the Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 100 weekly newspapers and other publications. The company's broadcasting assets include 26 network-affiliated television stations that reach more than 30 percent of the television households in the Southeast and nearly 8 percent of those in the United States. The company's interactive media assets include more than 50 online enterprises that are associated with its newspapers and television stations. Media General also owns a 20 percent interest in The Denver Post and a 33 percent interest in SP Newsprint Company.

MEDIA GENERAL INC. Revenues and Page Views

February

2005 2004 % Change

Revenues (000) $69,001 $64,803 6.5 % Publishing 45,794 42,732 7.2 % Broadcast 22,127 21,391 3.4 % Interactive Media 1,437 944 52.2 % Eliminations (357) (264) (35.2)%

Selected Publishing Revenues (000) By Category Advertising $37,935 $34,729 9.2 % Classified 16,466 14,541 13.2 % Retail 17,198 16,791 2.4 % National 3,804 2,861 33.0 % Other 467 536 (12.9)% Circulation 6,890 7,027 (1.9)% By Property Richmond 10,909 10,239 6.5 % Tampa 15,342 13,689 12.1 % Winston-Salem 4,087 4,059 0.7 % Community Newspapers 15,324 14,484 5.8 %

Advertising Revenues (Dailies) (000) Richmond $8,467 $7,675 10.3 % Tampa 13,774 12,233 12.6 % Winston-Salem 3,312 3,287 0.8 % Community Newspapers 10,727 9,708 10.5 %

Broadcast Time Sales (gross) (000) $21,633 $21,221 1.9 % Local 14,640 13,446 8.9 % National 6,949 7,141 (2.7)% Political 44 634 (93.1)%

Selected Online Total Page Views TBO.com 15,290,654 14,257,168 7.2 % (Tampa, Fla.) timesdispatch.com 8,285,803 6,117,986 35.4 % (Richmond, Va.) JournalNow.com 3,329,640 2,675,967 24.4 % (Winston-Salem, N.C.)

Year-to-Date

2005 2004 % Change

Revenues (000) $145,808 $139,688 4.4 % Publishing 96,975 91,323 6.2 % Broadcast 46,541 46,896 (0.8)% Interactive Media 2,985 1,973 51.3 % Eliminations (693) (504) 37.5 %

Selected Publishing Revenues (000) By Category Advertising $79,594 $73,645 8.1 % Classified 35,118 31,325 12.1 % Retail 35,020 34,037 2.9 % National 8,359 6,864 21.8 % Other 1,097 1,419 (22.7)% Circulation 15,384 15,734 (2.2)% By Property Richmond 23,393 22,417 4.4 % Tampa 32,317 29,188 10.7 % Winston-Salem 8,793 8,620 2.0 % Community Newspapers 32,099 30,678 4.6 %

Advertising Revenues (Dailies) (000) Richmond $17,933 $16,714 7.3 % Tampa 28,982 25,928 11.8 % Winston-Salem 7,059 6,907 2.2 % Community Newspapers 22,154 20,473 8.2 %

Broadcast Time Sales (gross) (000) $45,241 $46,583 (2.9)% Local 29,866 28,517 4.7 % National 15,303 15,978 (4.2)% Political 72 2,088 (96.6)%

Selected Online Total Page Views TBO.com 32,230,537 27,944,539 15.3 % (Tampa, Fla.) timesdispatch.com 16,824,500 12,262,143 37.2 % (Richmond, Va.) JournalNow.com 6,876,784 5,359,042 28.3 % (Winston-Salem, N.C.)

Note: All data are subject to later adjustment.

MEDIA GENERAL INC. Daily Newspapers Advertising Linage*

February

2005 2004 % Change RICHMOND TIMES-DISPATCH Retail 29,410 30,563 (3.8)% National 10,739 10,618 1.1 % Classified 71,441 70,685 1.1 % Total 111,590 111,866 (0.2)%

TAMPA TRIBUNE Retail 42,023 43,304 (3.0)% National 17,471 12,893 35.5 % Classified 130,153 127,806 1.8 % Total 189,647 184,003 3.1 %

WINSTON-SALEM JOURNAL Retail 30,593 37,503 (18.4)% National 8,899 8,556 4.0 % Classified 57,129 55,256 3.4 % Total 96,621 101,315 (4.6)%

COMMUNITY DAILIES Retail 303,013 300,873 0.7 % National 32,441 25,497 27.2 % Classified 420,013 416,164 0.9 % Total 755,467 742,534 1.7 %

MEDIA GENERAL DAILIES TOTAL Retail 405,039 412,243 (1.7)% National 69,550 57,564 20.8 % Classified 678,736 669,911 1.3 % Total 1,153,325 1,139,718 1.2 %

Year-to-Date

2005 2004 % Change RICHMOND TIMES-DISPATCH Retail 63,137 63,658 (0.8)% National 24,036 25,602 (6.1)% Classified 155,326 154,150 0.8 % Total 242,499 243,410 (0.4)%

TAMPA TRIBUNE Retail 88,746 88,239 0.6 % National 33,377 27,985 19.3 % Classified 287,024 283,168 1.4 % Total 409,147 399,392 2.4 %

WINSTON-SALEM JOURNAL Retail 61,595 74,793 (17.6)% National 17,411 17,342 0.4 % Classified 128,321 122,701 4.6 % Total 207,327 214,836 (3.5)%

COMMUNITY DAILIES Retail 618,619 615,041 0.6 % National 65,754 52,507 25.2 % Classified 900,411 900,355 0.0 % Total 1,584,784 1,567,903 1.1 %

MEDIA GENERAL DAILIES TOTAL Retail 832,097 841,731 (1.1)% National 140,578 123,436 13.9 % Classified 1,471,082 1,460,374 0.7 % Total 2,443,757 2,425,541 0.8 %

* Advertising is in column inches -- full run only

MEDIA GENERAL PUBLISHING DIVISION

2004 Advertising Revenues Selected Categories Reclassified $ in thousands

Month Classified Retail National Other

January 16,784 17,246 4,003 884 February 14,541 16,791 2,861 536 March 15,739 16,926 2,989 501 April 18,665 21,144 4,176 584 May 15,440 16,654 3,104 483 June 15,580 15,654 3,393 554 July 18,713 18,727 3,762 577 August 15,210 16,214 3,118 544 September 15,046 16,917 3,515 627 October 20,174 21,929 4,907 683 November 15,033 21,170 4,204 497 December 13,017 20,367 4,131 925

Preprints reclassified into applicable category

Source: Media General, Inc.

CONTACT: Investors: Lou Anne J. Nabhan, +1-804-649-6103, or Media: Ray Kozakewicz, +1-804-649-6748, both of Media General, Inc.

Web site: http://www.mediageneral.com/

------- Profile: Ent