Media General Reports August Revenues; Provides Third-Quarter Earnings Guidance

Media General Reports August Revenues; Provides Third-Quarter Earnings Guidance

RICHMOND, Va., Sept. 15 /PRNewswire-FirstCall/ -- Media General, Inc. (NYSE:MEG) today reported total revenues for August 2005 of $69.1 million, a decline of $766,000, or 1.1 percent, from August 2004. On a divisional basis, Publishing revenues increased 2.9 percent, Broadcast revenues declined 9.3 percent, and Interactive Media Division revenues rose 52.3 percent.

"In our Publishing business, we were pleased that newspaper advertising revenues grew 4.5 percent," said Marshall N. Morton, president and chief executive officer. "This growth reflected higher Classified advertising revenues, while Retail and Circulation revenues declined compared to last August, and National advertising was about even. On the Broadcast side, a 9.1 percent increase in Local advertising revenues could not offset lower Political and National advertising revenues," said Morton. The August 2004 period included $3.5 million from Political advertising revenues and $5 million from Summer Olympics advertising.

"We are proud that our Publishing and Broadcast divisions continue to be among the top performers in their respective industries for revenue growth. At the same time, we are disappointed that overall business conditions have weakened in the past few months," said Morton.

"Publishing's rate of revenue growth in July and August was lower than expected, mostly because of reduced advertiser spending in the Retail category. While we expected Broadcast revenues to be down somewhat in the face of difficult comparisons to last year's strong Political and Olympics spending, a very weak National advertising market is driving greater declines than expected. Several Media General television stations have experienced revenue losses and higher news coverage expenses related to hurricanes Dennis, Katrina and Ophelia, and the recent jump in energy prices has significantly affected Media General and SP Newsprint operations. As a result of all these factors, our earnings expectations for the third quarter are significantly lower now than they were a month ago," said Morton. Details regarding the company's third-quarter expectations are provided in the Outlook section below.

For the month of August, newspaper advertising revenues increased $1.6 million, or 4.5 percent, compared to August 2004. Including revenues from the company's newspaper Web sites, newspaper advertising revenues rose 5.1 percent for the month and Publishing revenues increased 3.4 percent.

Classified revenues increased $1.8 million, or 11.8 percent, despite weak automotive advertising. Total Classified advertising increased 22.3 percent at The Tampa Tribune compared to last August when Hurricane Charley caused a significant reduction in Classified, especially help-wanted. The Richmond Times-Dispatch and the Winston-Salem Journal were up 4.7 percent and 8.3 percent, respectively. The company's Community newspapers improved 5.2 percent. Including online advertising, Classified revenues increased 13.4 percent overall in August.

At the company's three metro newspapers, employment linage increased 15.7 percent, including growth of 33.1 percent at The Tampa Tribune, 7.7 percent at the Richmond Times-Dispatch and 5.8 percent at the Winston-Salem Journal. Real estate linage increased nearly 32 percent for the three markets, while automotive linage was down 13.4 percent.

Retail revenues declined $320,000, or 1.9 percent. The Tampa Tribune reported a 3.5 percent decrease. Retail revenues at the Richmond Times- Dispatch declined 1.8 percent and the Winston-Salem Journal was down 6.1 percent. These declines were due to various categories, especially department stores and furniture. Retail advertising at the Community newspapers declined 2.2 percent.

National revenues were even with last year. The Tampa Tribune reported a 3.5 percent decrease, the Winston-Salem Journal was up 6.3 percent, and the Richmond Times-Dispatch was about even with last August.

Due primarily to a change in wholesale rates to independent carriers, for which there was a corresponding expense decrease, circulation revenues were $370,000, or 5.6 percent below last year. While some Media General newspapers experienced circulation volume declines in August, six newspapers reported Daily circulation volume growth and seven did so for Sunday.

In the Broadcast Division, gross time sales declined $3.5 million, or 13.2 percent, mostly due to a sharp decline in Political spot sales in this off- election year. Local time sales grew by $1.3 million, or 9.1 percent, driven by new business development initiatives. Gains in the financial, fast food, service, and health care categories more than offset declines in the automotive and grocery store categories.

National time sales declined $1.5 million, or 16.4 percent, mostly due to lower spending levels in the automotive, telecommunications, financial and fast food categories.

Political revenues of $140,000 mostly reflected advertising spending in a local election in Mobile, Ala., and compared with revenues of $3.5 million in August 2004.

Interactive Media Division revenues rose 52.3 percent to $1.7 million. This growth was driven by a 57.3 percent increase in Classified advertising and a 15.3 percent increase in Local advertising.

Outlook

Media General expects Publishing revenue growth in the third quarter of 2005 of approximately 3 percent, compared with its previous outlook of 5 to 6 percent growth as of July 12. Broadcast time sales for the quarter are expected to be 4 to 4.5 percent below last year, compared with the previous outlook of 1 to 1.5 percent below last year. During the first two months of the third quarter, Publishing revenue growth has softened, primarily due to lower Retail advertising, especially in the Richmond and Winston-Salem markets. In Broadcast, an already soft National advertising market has been exacerbated by a significant decline in automotive spending, as well as lower spending in the telecommunications, financial and fast food categories. In the third quarter of 2004, Media General's Political revenues were $8.5 million.

In addition to sharply higher energy costs, certain other expenses are higher than expected, including new business development initiatives, the launch of new Spanish-language products in Tampa, and wall-to-wall news coverage during the hurricanes. Media General, which is providing third- quarter 2005 earnings guidance for the first time, expects earnings per share for the period to be in the range of 38 to 41 cents. The company earned 66 cents per share in the 2004 third quarter.

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, Richmond Times-Dispatch, and 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 33 percent interest in SP Newsprint Company.

MEDIA GENERAL INC. Revenues and Page Views

August 2005 2004 % Change

Revenues (000) $69,110 $69,876 (1.1)% Publishing 43,959 42,732 2.9 % Broadcast 23,831 26,279 (9.3)% Interactive Media 1,719 1,129 52.3 % Eliminations (399) (264) (51.1)%

Selected Publishing Revenues (000) By Category Advertising 36,671 $35,086 4.5 % Classified 17,000 15,210 11.8 % Retail 15,898 16,214 (1.9)% National 3,120 3,118 0.1 % Other 653 544 20.0 % Circulation 6,318 6,692 (5.6)% By Property Richmond 10,460 10,544 (0.8)% Tampa 13,880 12,878 7.8 % Winston-Salem 4,078 4,035 1.1 % Community Newspapers 15,345 15,099 1.6 %

Advertising Revenues (000) Richmond $8,193 $8,071 1.5 % Tampa 12,575 11,576 8.6 % Winston-Salem 3,263 3,234 0.9 % Community Newspapers 12,313 12,032 2.3 %

Broadcast Time Sales (gross) (000) $23,133 $26,637 (13.2)% Local 15,479 14,182 9.1 % National 7,512 8,982 (16.4)% Political 142 3,473 (95.9)%

Selected Online Total Page Views TBO.com 23,858,158 31,718,074 (24.8)% (Tampa, Fla.) TimesDispatch.com 10,196,941 7,552,051 35.0 % (Richmond, Va.) JournalNow.com 4,225,369 3,183,606 32.7 % (Winston-Salem, N.C.)

Notes: All data are subject to later adjustment.

MEDIA GENERAL INC. Revenues and Page Views

Year-to-Date 2005 2004 % Change

Revenues (000) $601,058 $581,448 3.4 % Publishing 386,253 370,028 4.4 % Broadcast 204,850 204,877 --- Interactive Media 13,068 8,906 46.7 % Eliminations (3,113) (2,363) (31.7)%

Selected Publishing Revenues (000) By Category Advertising $320,173 $302,098 6.0 % Classified 141,887 130,672 8.6 % Retail 143,622 139,356 3.1 % National 29,811 27,406 8.8 % Other 4,853 4,664 4.1 % Circulation 57,617 59,951 (3.9)% By Property Richmond 92,072 90,569 1.7 % Tampa 125,525 116,023 8.2 % Winston-Salem 35,437 34,878 1.6 % Community Newspapers 131,795 127,129 3.7 %

Advertising Revenues (000) Richmond $71,244 $68,463 4.1 % Tampa 113,067 103,872 8.9 % Winston-Salem 28,546 28,228 1.1 % Community Newspapers 105,149 100,188 5.0 %

Broadcast Time Sales (gross) (000) $202,949 $205,089 (1.0)% Local 133,079 121,602 9.4 % National 68,719 69,831 (1.6)% Political 1,151 13,656 (91.6)%

Selected Online Total Page Views TBO.com 152,377,024 138,765,096 9.8 % (Tampa, Fla.) TimesDispatch.com 69,685,939 52,138,447 33.7 % (Richmond, Va.) JournalNow.com 29,324,800 22,748,314 28.9 % (Winston-Salem, N.C.)

Notes: All data are subject to later adjustment.

MEDIA GENERAL INC. Daily Newspapers Advertising Linage*

August 2005 2004 % Change RICHMOND TIMES-DISPATCH Retail 26,755 29,511 (9.3)% National 8,574 8,731 (1.8)% Classified 70,529 72,371 (2.5)% Total 105,858 110,613 (4.3)% TAMPA TRIBUNE Retail 36,168 38,608 (6.3)% National 13,610 11,463 18.7 % Classified 128,350 128,059 0.2 % Total 178,128 178,130 --- WINSTON-SALEM JOURNAL Retail 32,241 36,438 (11.5)% National 7,826 6,688 17.0 % Classified 58,995 56,784 3.9 % Total 99,062 99,910 (0.8)% COMMUNITY & ASSOCIATES DAILIES Retail 305,340 319,078 (4.3)% National 26,520 27,091 (2.1)% Classified 433,234 431,969 0.3 % Total 765,094 778,138 (1.7)% MEDIA GENERAL DAILIES TOTAL Retail 400,504 423,635 (5.5)% National 56,530 53,973 4.7 % Classified 691,108 689,183 0.3 % Total 1,148,142 1,166,791 (1.6)%

* Advertising is in column inches - full run only

MEDIA GENERAL INC. Daily Newspapers Advertising Linage*

Year-to-Date 2005 2004 % Change RICHMOND TIMES-DISPATCH Retail 245,844 262,507 (6.3)% National 82,497 84,228 (2.1)% Classified 627,209 625,891 0.2 % Total 955,550 972,626 (1.8)% TAMPA TRIBUNE Retail 361,378 344,965 4.8 % National 123,696 113,934 8.6 % Classified 1,115,576 1,118,061 (0.2)% Total 1,600,650 1,576,960 1.5 % WINSTON-SALEM JOURNAL Retail 287,276 299,159 (4.0)% National 71,316 66,308 7.6 % Classified 506,024 499,602 1.3 % Total 864,616 865,069 (0.1)% COMMUNITY & ASSOCIATES DAILIES Retail 2,629,557 2,633,805 (0.2)% National 236,506 229,263 3.2 % Classified 3,664,807 3,777,508 (3.0)% Total 6,530,870 6,640,576 (1.7)% MEDIA GENERAL DAILIES TOTAL Retail 3,524,055 3,540,436 (0.5)% National 514,015 493,733 4.1 % Classified 5,913,616 6,021,062 (1.8)% Total 9,951,686 10,055,231 (1.0)%

* Advertising is in column inches - full run only

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/

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