New Haven Independent

From: Talk to Sam [mailto:talktoSam@Tribune.com]
Sent: Monday, December 08, 2008 1:53 PM
Subject: Today’s Announcement

Partners,

We just announced that Tribune is restructuring its debt under Chapter
11 protection. I’m sure you saw the speculative coverage last night and
this morning. I would have preferred everyone get the news from me
first, but since our debt is publicly traded, we had to keep this
decision confidential until we had a formal board decision. The Cubs
franchise is not part of the filing.

Most importantly, I want to stress that we will continue to operate our
business as usual. That includes meeting payroll and covering benefits
(such as healthcare, disability and others), and paying vendors for all
goods and services they provide to us going forward.

As is routine with Chapter 11 filings, we have filed “First-Day Motions”
to get court approval on these and many other programs that are
essential to continuing our businesses without disruption. We expect to
get approval on these motions within the next few days.

You are also most likely wondering about the other aspects of your
compensation. The 401(k) is unaffected by the filing, and in general,
the existing benefits in the pension and cash balance plans are also
unaffected by the filing. The ESOP is part of the ownership structure,
so its value and role long-term will be determined in the restructuring.
We believe the structure is a valuable asset to the company and that
there are strong reasons to preserve it.

So, how did we get here? It has been, to say the least, the perfect
storm. A precipitous decline in revenue and a tough economy have coupled
with a credit crisis, making it extremely difficult to support our debt.
All of our major advertising categories have been dramatically impacted.

By restructuring our debt, we will reduce the pressure on the company’s
operating businesses, enabling us to pursue our vision of creating a
sustainable, cutting-edge media company that is valued by our readers,
viewers, and advertisers, and that plays a vital role in the communities
we serve.

This filing should not impact the way you do your jobs on a day-to-day
basis. We will continue to operate responsibly in a challenging
environment - aggressively managing costs and maximizing revenue
opportunities. These are all things we would do whether or not we were
restructuring our debt.

Our challenges are consistent with those facing all media companies, and
an increasing number of companies across a variety of industries today.
The reality is that we - along with the rest of the country - have very
little visibility on where the economy is headed and how our businesses
will perform given the recession.

The good news is that we have great brands, and we produce great
products every day. It’s up to all of us to continue to focus on what it
is we do best.

As your Chairman and CEO, I will continue to be actively engaged in the
business and I remain committed to the company, to you and to our
lenders. Randy, Gerry and the rest of the management team are equally
dedicated to moving this company forward.

I’m sure you have a lot of questions that this email doesn’t cover. I
encourage you to visit TribLink where we’ve posted some anticipated Q&A,
or call the toll-free number we’ve established - 888-287-7568. We’ll
also have information posted on Tribune.com. But, recognize that there
is quite a bit we don’t know - or that we cannot confirm - at this
point.

I am proud of the work we have done at Tribune in the last year. I’ve
seen strong determination to take hold of this company and put it on a
new course. As a result, we’ve reduced costs, gained market share, and
laid the groundwork for creating a new business model out of traditional
media. This restructuring
will give us the time we need to build that model, to secure sustainable
and growing cash flow, and to achieve the success the talented partners
in this company deserve.

Sam

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