Media General Holds Annual Shareholders Meeting; Directors Elected, Management Reports Company Strong and Growing

Media General Holds Annual Shareholders Meeting; Directors Elected, Management Reports Company Strong and Growing

RICHMOND, Va., April 28 /PRNewswire-FirstCall/ -- Media General (NYSE:MEG) shareholders today elected nine directors, including one new director, Diana F. Cantor, to one-year terms at the company's annual meeting. One director, Wyndham Robertson, retired effective today.

Cantor, 47, is executive director of the Virginia College Savings Plan, an independent agency of the Commonwealth of Virginia, which manages Virginia's three Internal Revenue Code Section 529 qualified tuition plans.

Shareholders re-elected J. Stewart Bryan III, O. Reid Ashe, Jr., Charles A. Davis, C. Boyden Gray, Marshall N. Morton, Thompson L. Rankin, Walter E. Williams and Coleman Wortham III.

"Media General is performing well and the future is bright," Bryan told shareholders. Bryan also said, "Planning for, and helping to effect, change in senior management is among the most important tasks of a chief executive officer, and I take satisfaction in having fulfilled that part of my job. I am delighted to report that your company has never been in better shape, nor had better leadership in the offing."

As previously announced, on July 1, Marshall Morton will become president and chief executive officer, Reid Ashe will become executive vice president and chief operating officer, and John A. Schauss, who is currently treasurer, will assume additional responsibilities as vice president-finance and chief financial officer. Bryan will remain chairman.

Morton told shareholders, "This is an exciting time for Media General, coming off a banner year in 2004 and getting 2005 off to a great start."

In 2004, Media General's revenues grew 7.5 percent, and net income increased 37 percent. All three operating divisions reported record revenues, and the Broadcast Division posted record profit. Broadcast's historically high revenues were fueled largely by record Political advertising revenues of $38 million. Media General benefited more than many of its competitors from political spending because the company operates leading stations that have highly rated newscasts with strong local impact, the environment that political advertisers seek.

For the first quarter of 2005, the company's consolidated revenues increased 4.7 percent, and profit was up 2.2 percent, before an accounting change. The Broadcast and Publishing divisions have continued their track record of performing well above their respective peer group averages.

Describing his thoughts about the future, Morton said, "Inherent in our mission is the concept of growth -- internal, and when appropriate, through acquisition." He said Media General has the necessary financial resources and flexibility to grow. "Our cash flow from operations is strong. It will comfortably support our dividend plans and the majority of this year's elevated capital spending program."

Capital spending in 2005 is expected to be approximately $100 million. The total includes $54 million for the Publishing Division, mostly for three new press projects and for an upgraded advertising database, and $41 million for the Broadcast Division, mostly to replace older equipment and complete the transition to full-power high definition TV. Interactive Media and Corporate expenditures are estimated at $2 million and $3 million, respectively.

Morton said, "Our success resides in being a consequential force in our varied market places. To be of consequence, we must have a close understanding of the needs of our customers -- advertisers, readers and viewers." He said Media General's divisions are working under an initiative that requires 5 percent of their annual revenues be profitably derived from new products, that advertising revenues grow at least as fast the company's peers, and that local market share be maintained or expanded every year.

Reid Ashe discussed divisional performance in 2004 and plans for 2005. "In the Publishing Division, 2004 circulation revenues were up due mainly to rate increases. Although aggregate circulation volume declined slightly, five Media General newspapers finished ahead of 2003 in daily circulation and six were ahead on Sunday. The Tampa Tribune continued its industry-leading circulation growth with increases of 0.9 percent daily and 1.5 percent Sunday," he said.

"We've challenged all of our newspapers to increase circulation in 2005," Ashe said. "Our overall goal is 1 percent daily and 0.8 percent Sunday growth. To achieve this, we've updated our circulation marketing strategies. We are focusing on increasing the number of quality starts, retaining subscribers and revitalizing single copy sales. We are using research to discern and cover readers' interests, redesigning and branding our newspapers, and developing new products for niche audiences," Ashe said.

The Broadcast Division faces the challenge of replacing last year's non- recurring Political and special-events revenues. "We expect a strong TV advertising market to help," Ashe said, "but we're relying on local sales initiatives to cover much of the gap." He said 22 of the company's 26 stations were ranked one or two in their respective markets from sign-on to sign-off in the February 2005 Nielsen ratings.

The Interactive Media Division continued to generate robust double-digit revenue growth, and Web site visitors also continued to increase. In 2005, the company's Web sites will be enhanced with embedded video, new classified advertising functions, content and advertising offerings to visitors based on registration, and a search feature across all advertising categories.

The full slide presentation and remarks will be posted on Media General's Web site, http://www.mediageneral.com/.

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.

Source: Media General

CONTACT: Investor Contact: Lou Anne Nabhan, +1-804-649-6103, or Media Contact:Ray Kozakewicz, +1-804-649-6748, both of Media General

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

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