Membership Emphasizes the Multimedia Company’s Leadership Role in Mobile Marketing Industry http://photos.prnewswire.com/prn/20090715/LA46363LOGO The MMA http://www.mmaglobal.com/ (Mobile Marketing Association) and Tribune Company http://www.tribune.com/ (www.tribune.com), one of the United States’ leading media companies operating businesses in broadcasting, publishing, and digital media, recently announced the company has joined the MMA as a Premium Member. Launched in November 2009, MMA’s Premium Membership is the highest-tier membership for companies wishing to establish an advanced global leadership position across the Mobile Marketing Industry. MMA Premium Members currently include Alcatel-Lucent, Microsoft Advertising and The Coca-Cola Company.

As a Premium Member, Tribune Company Co-President and *Los Angeles Times*Publisher and CEO Eddy Hartenstein will be appointed as an honorary member to the MMA Global Board. The MMA also announced today the creation of its new Mobile Publishing Committee, and the appointment of Tribune Company as its chair. The committee is open to all MMA members. Initial goals include:

- Gaining a better understanding of market reaction and consumer engagement and interaction with content across a variety of mobile platforms; – Exploring the development of unique mobile advertising models; – Helping advance and define the future of publishing on mobile platforms while effecting genuine change.

“We are thrilled to welcome Tribune Company as a Premium Member of the MMA,” said Greg Stuart, MMA CEO. “Tribune’s commitment to helping shape the future of the mobile channel will benefit the entire ecosystem and we look forward to their leadership both at the Board and Committee levels.”

“The Tribune Company is deeply committed to determining how best to harness the possibilities the mobile media industry offers,” said Hartenstein. “Joining the MMA ensures we can collaboratively advance development of mobile technology, business models, emerging content distribution channels and industry standards, with a keen eye on raising the awareness for and value of mobile marketing.”

The Premium Membership tier brings together “market-making” companies with the scale, scope, commitment and resources to effect genuine change benefiting the worldwide mobile marketing industry. These companies provide leadership by accelerating innovation, removing critical industry roadblocks and expanding industry awareness regarding the benefits of mobile marketing. Premium Members commit themselves to a long term concerted and collaborative effort through the MMA to help build the industry.

MMA also announced that Andy Vogel, *Los Angeles Times* Vice President of Emerging Media, will represent the Tribune Company on the MMA North American Board.

*About Tribune Company*

Tribune http://www.tribune.com/ is one of the country’s leading multimedia companies, operating businesses in publishing, interactive and broadcasting. In publishing, Tribune’s leading daily newspapers include the *Los Angeles Times*, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press. The company’s broadcasting group operates 23 television stations, WGN America on national cable and Chicago’s WGN-AM. Popular news and information websites complement Tribune’s print and broadcast properties and extend the company’s nationwide audience.

*About the Mobile Marketing Association (MMA)*

The Mobile Marketing Association http://www.mmaglobal.com/ (MMA) is the premier global non-profit trade association representing all players in the mobile marketing value chain. With more than 700 member companies, the MMA is an action-oriented organization with global focus, regional actions and local relevance. The MMA’s primary focus is to establish mobile as an indispensable part of the marketing mix. The MMA works to promote, educate, measure, guide and protect the mobile marketing industry worldwide. The MMA’s global headquarters are located in the United States and it has regional chapters including North America (NA), Europe, Middle East and Africa (EMEA), Latin America (LATAM) and Asia Pacific (APAC) branches. For more information, please visit www.mmaglobal.com.

*IAB Announces Eleven New Board Members*

*Peter Naylor Selected as Vice-Chair of the Board*

PALM SPRINGS, Calif.–(BUSINESS WIRE http://www.businesswire.com/)–The Interactive Advertising Bureau (IAB) announced today the election of eleven new members to its Board of Directors. Peter Naylor, Executive Vice President, Digital Media Sales, NBC Universal, and three-term board member, will also take over as the new Vice Chair of the Board. The announcement was made during IAB’s fourth Annual Leadership Meeting, Ecosystem 2.0: The People vs. Data, at La Quinta Resort & Club, where leaders across the digital media landscape have converged to address the most critical issues facing the industry.

“On behalf of the IAB Board of Directors, I welcome our new colleagues and look forward to working together to represent our industry during this crucial time of innovation and transformation in the media industry”

The new board members include:

- Tom Arrix, VP US Sales, Facebook – Alisa Bowen, General Manager, The Wall Street Journal Digital Network – David Carey, President, Hearst Magazines – Louis Cona, CMO, Condé* *Nast Media Group – Elizabeth Harz, SVP, Global Media Sales, Electronic Arts – Jeff Hirsch, President & CEO, AudienceScience – David Morris, Chief Client Officer, CBS Interactive – Mike Perlis, President & CEO, Forbes Media – James Pitaro, Co-President, Disney Interactive Media Group – Randall Rothenberg, EVP & Chief Digital Officer, Time Inc. – Vivek Shah, CEO, Ziff Davis LLC

Bob Carrigan, Chief Executive Officer of IDG Communications, took on the role of Chairman of the Board of Directors in January 2011. Carrigan has served on the Board of Directors for five years.

“On behalf of the IAB Board of Directors, I welcome our new colleagues and look forward to working together to represent our industry during this crucial time of innovation and transformation in the media industry,” said Bob Carrigan. “Our new members bring varied backgrounds and areas of expertise that will help us continue to be a leading force of change in our industry.”

The eleven new board members will join 30 existing board members. The returning board members include:

- Kevin Arrix, MTV Networks – John Battelle, Federated Media – Jarvis Coffin, Burst Media – Kevin Conroy, Univision Interactive Media – Greg D’Alba, CNN – Jory Des Jardins, BlogHer – Mitch Golub, Cars.com – Kathy Kayse, The Oprah Winfrey Network (Discovery Networks) – Jeff Levick, AOL – Leon Levitt, Cox Newspaper – Chris Ma, The Washington Post Company – Greg McCastle, AT&T Advanced Ad Solutions – Martin Nisenholtz, The New York Times Company – Scott Schiller, Comcast Interactive Media – Tina Sharkey, BabyCenter – Elisa Steele, Yahoo! – Nada Stirratt, MySpace – Bill Todd, ValueClick Media – Lisa Utzschneider, Amazon.com – Lauren Wiener, Meredith – Jeff Wilks, USATODAY.com

The IAB Board of Directors Executive Committee is comprised of:

- Chairman Bob Carrigan, IDG Communications, Inc. – Vice-Chairman Peter Naylor, NBC Universal – Randy Kilgore, Tremor Media – David Moore, 24/7 Real Media, Inc. – Rik van der Kooi, Microsoft – Dennis Woodside, Google

Ex-Officio Board members include:

- Rich LeFurgy, Archer Advisors – Bruce Gordon, Disney Interactive Media Group – Joe Rosenbaum, Reed Smith LLP

*About the IAB*

The Interactive Advertising Bureau (IAB) is comprised of more than 500 leading media and technology companies who are responsible for selling 86% of online advertising in the United States. On behalf of its members, the IAB is dedicated to the growth of the interactive advertising marketplace, of interactive’s share of total marketing spend, and of its members’ share of total marketing spend. The IAB educates marketers, agencies, media companies and the wider business community about the value of interactive advertising. Working with its member companies, the IAB evaluates and recommends standards and practices and fields critical research on interactive advertising. Founded in 1996, the IAB is headquartered in New York City with a Public Policy office in Washington, D.C. For more information, please visit www.iab.net.

*PubMatic Study Finds Internet Users *

*Are More Accepting of Anonymous Data Collection*

*When They Understand How It Is Used*

*Half Who Object to Online Tracking Reconsider After Understanding Value Propositions in New PubMatic White Paper, Audience Selling For Publishers*

* *

Palo Alto, CA (February 28, 2011) PubMatic, which provides online publishers — including the majority of the comScore Top 10 — with the technology and services to significantly increase revenue and better manage their advertising inventory, today announced that a study contained in a new white paper, *Audience Selling for Publishers *found at:

(http://www.pubmatic.com/wp-content/uploads/marketing/publishers.htm)

reveals that when consumers are presented with a more comprehensive explanation of advertising-based data tracking, they are less concerned about targeted advertising using their anonymous data. The white paper, which is one of a two-part series, helps publishers better sell audience-based advertising.

After observing that other studies with user opinions about anonymous data being used for online advertising were incomplete at best and misleading at worst, PubMatic commissioned an independent online research firm, Knowledge Networks, to conduct a survey of 500 U.S. Internet users. The users were asked their opinions about audience-based online advertising in three key stages: Before understanding how anonymous data is collected, after understanding how anonymous data is collected, and after understanding the benefits for that anonymous data collection. The study was conducted in early 2011 and included a representative, random sample of individuals that categorized themselves as “Internet users.”

Among the study findings in the white paper, *Audience Selling for Publishers*:

Unless you tell them, users don’t understand that the 3rd party data used for interest-based advertising is anonymous. For example, when the survey participants were asked if they knew that some of their online behavior might be tracked about them for the purpose of advertising, *71% *acknowledged they knew. But when asked if they knew the online data collected about them for the purpose of advertising was anonymous, only *40% *understood it was anonymous.

* *

Users are far more accepting of interest-based advertising when they understand that 3rd party data is anonymous. The more users understand the benefits associated with audience-based advertising, the more they are supportive of it. When asked without an understanding that only anonymous data is used for audience-based advertising, *64% *disapproved. However, when asked after understanding that only anonymous data is used for interest-based advertising, *40% *of those who had disapproved changed their mind and approved.

When the survey participants understood that the data collection was anonymous they understood the benefits included more relevant advertising AND that it helped subsidize free content, *53% *changed their minds and approved.

According to the PubMatic / Knowledge Networks study, when U.S. Internet users understand the value trade-offs for anonymous browsing behavior tracking – specifically more relevant advertising and access to free content – they are much more supportive of it.

“The Internet user, the online publisher audience, is the center of our data-driven advertising ecosystem and their privacy is paramount. Whether it is through self-regulation or legislation, when given a choice about anonymous tracking, Internet users deserve to have all the facts about how it works and the benefits they derive from it before making a decision,” says PubMatic CEO Rajeev Goel. “Once they are appropriately armed with this information, they should have the means at their disposal to easily implement a ‘do-not-track’ option if they prefer to, or not to.”

The full study within *Audience Selling for Publishers* can be downloaded at http://www.PubMatic.com/AudienceSelling .

*PubMatic:* (http://www.pubmatic.com) PubMatic’s Sell Side Platform provides premium publishers one platform with the technology and services needed to earn the most ad revenue possible while protecting their brands online. Some of the world’s most respected publishers have chosen to work with PubMatic, including The Huffington Post, eBay, United Online, MSNBC, TV Guide, and the majority of the comScore Top 10.

PubMatic is privately held, backed by funding from Draper Fisher Jurvetson, Nexus Venture Partners, and Helion Ventures, and has seven offices around the world in the US, Europe, and Asia.

February 25, 2011 SuperMedia Appoints Matthew J. Stover as Chief Marketing Officer

*Local Search and Advertising Innovator Brings over 20 Years of Executive Leadership in Print, Online, Mobile and Social Media*

DALLAS–(BUSINESS WIRE)– SuperMedia, Inc. (NASDAQ:SPMD) CEO Peter J. McDonald today announced the appointment of Matthew J. Stover as Executive Vice President – Chief Marketing Officer, effective March 7th.

Stover will drive the company’s growth strategy and marketing functions across print, online, mobile and social media, as well as overseeing business development and partnership relationships.

“Mat was a pioneer in creating the first national online yellow pages, and in integrating online search, advertising and shopping in the 1990′s,” said McDonald. “Since then, he has been an officer and director of companies providing online commerce, mobile services, search and advertising solutions, and print and online directories.

“His knowledge of our operations as the former CEO of one of SuperMedia’s predecessor companies, his six years as a director and then chairman of the Yellow Pages Association, his experience overseeing corporate communications advertising and branding for major corporations, and his involvement in negotiating and managing numerous business transactions and partnerships will be great assets for our company.”

“I look forward to partnering with Peter, with the Board, with all the members of the SuperMedia team and, most importantly, with current and future SuperMedia customers, to be at the forefront of helping businesses harness local media solutions to add and retain their customers,” said Stover. “Local commerce is the heart of the U.S. economy, and I share the focus and passion of the SuperMedia team to help small- to medium-sized businesses grow.”

Currently, Stover is Chief Executive Officer of Local Matters, Inc., which provides online search and advertising products and solutions for leading directory publishers and real estate portals in 16 countries. He joined the Local Matters Board of Directors in December 2005, and became CEO in January 2009. From 2005 to 2008, he was Chairman and Chief Executive Officer of ypOne Publishing, LP, a closely held company providing print and online yellow pages directories in the United States and Canada.

Stover served from 1994 through 1999 as group president of Bell Atlantic Directory Group and president and CEO of its predecessor companies, Bell Atlantic Information Services Group and NYNEX Information Resources Company, where he oversaw the $2.4 billion domestic print white and yellow pages publishing business, created the United States’ first national yellow pages on the Internet, BigYellowsm, as well as the successful web@once suite of website creation, copywriting and hosting products; established BellAtlantic.net as a major Internet Service Provider; and created Global Directory Services, Inc., which provided print and online shopping directory services in China, Greece, Poland and the Czech and Slovak Republics. He is a past director and chairman of the board of the Yellow Pages Association.

Earlier in his career, Stover was chairman, president and CEO of AGS Computers, Inc., a provider of software solutions and consulting services; and was vice president — Public Affairs & Corporate Communications for NYNEX Corporation and senior vice president — Communications for American Express Company. He also was a director of Infoseek Corporation (SEEK), Ace Communications (ACEC) and i3 Mobile, Inc. (IIIM).

Stover is a graduate of Yale University and the Executive Program of the Colgate Darden Graduate School of Business Administration at the University of Virginia. He is a director of Local Matters, Inc., Telmetrics, Inc. and Mobile Search Security, LLC, as well as on the advisory boards of several private businesses. He is vice chairman of the Board of Trustees of Chester College of New England, a trustee of the Committee for Economic Development and an elected member of the School Board in Chester, New Hampshire.

*About SuperMedia Inc.*

SuperMedia (NASDAQ:SPMD) is the advertising company for local small- to medium-sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.

SuperMedia’s advertising products and services include: the SuperGuarantee ® and SuperTradeExchange *®* programs, Verizon® SuperYellowPages, FairPoint® SuperYellowPages and Frontier® SuperYellowPages, Superpages.com®, EveryCarListed.com *SM*, Switchboard.com SM, LocalSearch.com SM, Superpages MobileSM and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com.

*HUD LAUNCHES “EVIDENCE MATTERS,” A NEW INDEPENDENT QUARTERLY PUBLICATION FOCUSED ON RESEARCH-BASED POLICY * *Research journal underscores movement toward data-driven policymaking*

WASHINGTON – In an effort to promote a new generation of data-driven and evidence-based policymaking, U.S. Housing and Urban Development Secretary Shaun Donovan today unveiled a new quarterly publication intended to inform housing and community development advocates, state and local policymakers, Congress and researchers on new approaches to issues related to housing and community development. *Evidence Matters* is an objective, unbiased publication intended to inform the broad housing and community development field on future policy directions based on research and data – in short, the evidence.

“As a self-professed policy wonk, I’m excited that HUD is focused on having an honest and informed discussion about what works and what doesn’t,” said Donovan. “Evidence does indeed matter when it comes to making policy that impacts people’s lives and this publication will help frame the discussion around what the data means.”

The inaugural issue of *Evidence Matters* (Choice Neighborhoods: History and HOPE)focuses on strategies to revitalize neighborhoods of concentrated poverty including HUD’s *HOPE VI* program. One central observation is that while *HOPE VI *can show significant positive impacts, one of the program’s main challenges is its inability to consistently improve multi-facteted problems in residents’ lives as it has in improving housing conditions and surrounding communities.

As HUD’s Assistant Secretary for Policy Development and Research, Dr. Raphael Bostic said, “We know that neighborhoods of concentrated poverty struggle with unemployment, crime, and poor schools and health care. Many federal interventions focus on assisting poor households in particular neighborhoods but have failed to take a broader community-based approach. The evidence points to the need for a more holistic strategy to redevelopment if we hope to improve the lives of residents as well as the places where they live.”

*Read the inaugural issue of Evidence Matters. *Coming up next issue: “Balancing our Nation’s Housing Policy.” **

*The Washington Post Company Reports 2010 and Fourth Quarter Earnings*

WASHINGTON, Feb 23, 2011 (BUSINESS WIRE) — The Washington Post Company (NYSE: WPO) today reported net income available for common shares of $277.2 million ($31.04 per share) for the fiscal year ended January 2, 2011, up from net income available for common shares of $91.8 million ($9.78 per share) for the fiscal year ended January 3, 2010. Net income includes $28.8 million ($3.22 per share) and $45.1 million ($4.80 per share) in losses from discontinued operations for fiscal year 2010 and 2009, respectively. Income from continuing operations available for common shares was $306.0 million ($34.26 per share) for fiscal year 2010, compared to $136.9 million ($14.58 per share) for fiscal year 2009. As a result of the Company’s share repurchases, there were fewer diluted average shares outstanding in 2010.

For the fourth quarter of 2010, the Company reported net income available for common shares of $79.0 million ($9.42 per share), compared to net income available for common shares of $81.7 million ($8.71 per share) for the same period of 2009. Net income includes $9.6 million ($1.03 per share) in losses from discontinued operations for the fourth quarter of 2009. Income from continuing operations available for common shares was $91.4 million ($9.74 per share) for the fourth quarter of 2009.

Kaplan’s higher education businesses are subject to a number of recently enacted and pending regulations by the U.S. Department of Education. Also, Kaplan implemented a new program, the Kaplan Commitment, in the fourth quarter of 2010 that includes a “risk-free period” of enrollment. The recent and potential rulemaking activities and the Kaplan Commitment could have a material adverse effect on Kaplan’s future operating results.

On September 30, 2010, the Company completed the sale of Newsweek. Consequently, the Company’s income from continuing operations for the fourth quarter and year-to-date periods excludes Newsweek results, which have been reclassified to discontinued operations.

Items included in the Company’s income from continuing operations for 2010 and related fourth quarter activity:

– A $20.4 million charge recorded at The Washington Post in connection with the withdrawal from a multiemployer pension plan (after-tax impact of $12.7 million, or $1.38 per share); – A $27.5 million goodwill and other long-lived assets impairment charge at the Company’s online lead generation business, included in other businesses (after-tax impact of $26.3 million, or $2.96 per share); – $31.2 million in fourth quarter severance and restructuring charges (after-tax impact of $19.3 million, or $2.31 per share); and – $6.7 million in non-operating unrealized foreign currency gains arising from the weakening of the U.S. dollar (after-tax impact of $4.2 million, or $0.47 per share); $1.9 million in gains were recorded in the fourth quarter (after-tax impact of $1.2 million, or $0.14 per share).

Items included in the Company’s income from continuing operations for 2009 and related fourth quarter activity:

– $57.9 million in early retirement program expense at the newspaper publishing division (after-tax impact of $35.9 million, or $3.82 per share);

- $33.2 million in restructuring charges related to Kaplan’s Score and Test Preparation operations (after-tax impact of $20.6 million, or $2.19 per share); $0.2 million of these charges were recorded in the fourth quarter (after-tax impact of $0.1 million, or $0.01 per share); – $33.8 million in accelerated depreciation at The Washington Post (after-tax impact of $21.0 million, or $2.23 per share); – A $25.4 million goodwill and other long-lived assets impairment charge related to Kaplan Ventures (after-tax impact of $18.8 million, or $2.00 per share); – A $29.0 million decline in equity in earnings (losses) of affiliates associated with impairment charges at two of the Company’s affiliates (after-tax impact of $18.8 million, or $2.00 per share); and – $16.9 million in non-operating unrealized foreign currency gains arising from the weakening of the U.S. dollar (after-tax impact of $10.3 million, or $1.10 per share); $1.5 million in losses were recorded in the fourth quarter (after-tax impact of $0.9 million, or $0.10 per share).

Revenue for 2010 was $4,723.6 million, up 8% compared to revenue of $4,386.5 million in 2009. The increase is due to strong revenue growth at the education and television broadcasting divisions, and increased revenue at the cable television division. Operating income for 2010 increased to $546.8 million, from $257.9 million in 2009, due to improved results at the education, newspaper publishing and television broadcasting divisions.

For the fourth quarter of 2010, revenue was $1,190.0 million, up slightly from $1,186.2 million in 2009. The increase is due to strong revenue growth at the television broadcasting division, offset by declines at the education and newspaper publishing divisions. Operating income declined in the fourth quarter of 2010 to $149.7 million, from $154.8 million in 2009. Excluding the items discussed above that are included in operating income, results improved at the television broadcasting, newspaper publishing and education divisions, offset by a decline at the cable television division.

Division Results

*Education*

Education division revenue in 2010 increased to $2,901.8 million, a 10% increase from $2,636.6 million in 2009. For the fourth quarter of 2010, education division revenue totaled $699.8 million, a 1% decline from $709.3 million for the same period of 2009.

Kaplan reported operating income of $330.9 million for 2010, compared to $194.8 million in 2009; operating income for the fourth quarter of 2010 was $64.9 million, compared to $79.6 million in the fourth quarter of 2009. Kaplan’s results for 2010 and 2009 were impacted by several charges or credits (discussed below).

A summary of Kaplan’s operating results for 2010 and the fourth quarter of 2010 compared to 2009 is as follows:

Fourth Quarter

YTD

(In thousands)

%

%

2010

2009

Change

2010

2009

Change

Revenue

Higher education $ 405,642

$ 420,225

(3 ) $ 1,789,038

$ 1,539,196

16 Test preparation, excluding Score

102,672

101,265

1

415,678

433,579

(4 ) Score -

-

-

-

8,557

- Kaplan international

163,342

155,172

5

585,924

537,238

9 Kaplan ventures

28,126

34,790

(19 )

114,029

126,418

(10 ) Kaplan corporate

1,588

495

-

5,537

2,436

- Intersegment elimination

(1,583 )

(2,678 ) -

(8,395 )

(10,786 ) -

$ 699,787

$ 709,269

(1 ) $ 2,901,811

$ 2,636,638

10

Operating income (loss)

Higher education $ 66,738

$ 76,021

(12 ) $ 396,193

$ 279,765

42 Test preparation, excluding Score

(14,313 )

(4,990 ) -

(24,044 )

15,892

- Score -

(248 ) -

-

(36,787 ) – Kaplan international

23,776

26,468

(10 )

56,152

53,772

4 Kaplan ventures

(5,372 )

(2,287 ) -

(30,723 )

(16,421 ) (87 ) Kaplan corporate

(617 )

(14,692 ) 96

(45,765 )

(53,227 ) 14 Kaplan stock compensation

(131 )

4,222

-

1,179

(933 ) – Amortization of intangible assets

(5,226 )

(4,976 ) (5 )

(21,855 )

(22,223 ) 2 Impairment of goodwill and other

long-lived assets -

-

-

-

(25,387 ) – Intersegment elimination

18

74

-

(234 )

310

-

$ 64,873

$ 79,592

(18 ) $ 330,903

$ 194,761

70

Kaplan Higher Education (KHE) includes Kaplan’s domestic postsecondary education businesses, made up of fixed-facility colleges and online postsecondary and career programs. Higher education revenue and operating income grew in 2010 due to enrollment growth, improved student retention and increased margins during most of 2010. In the fourth quarter of 2010, higher education revenue declined 3% due to a decline in average enrollment and the implementation of the Kaplan Commitment program (discussed below). Operating income decreased 12% in the fourth quarter due to lower revenue, $9.3 million in severance costs associated with a workforce reduction, and increased regulatory compliance costs.

During the fourth quarter of 2010, KHE phased in a new program, the Kaplan Commitment. Under this program, new students of Kaplan University, Kaplan College and other Kaplan Higher Education schools enroll in classes for several weeks and assess whether their educational experience meets their needs and expectations before incurring any significant financial obligation. Kaplan also conducts academic assessments to help determine whether students are likely to be successful in their chosen course of study. Students who choose to withdraw from the program during this time frame (“risk-free period”) and students who do not pass the academic evaluation do not have to pay for the coursework. In general, the risk-free period is approximately four weeks for diploma programs and five weeks for associate’s and bachelor’s degrees. Based on historical student withdrawal and performance patterns and assuming students who withdrew during early academic terms would have instead availed themselves of the Kaplan Commitment, management estimates that KHE revenues would have been approximately $140 million less in 2010 had the Kaplan Commitment commenced on January 1, 2010.

At December 31, 2010, about 2,200 students in attendance were within their respective risk-free periods, during which KHE does not recognize tuition revenue. For all students enrolled to date under the Kaplan Commitment program, the attrition rate during the entire risk-free period has been approximately 28%, a majority of which is due to Kaplan’s dismissal of students from the program because of the student’s lack of academic progress during the period. KHE revenues and operating results will continue to be impacted by the Kaplan Commitment, overall economic conditions and changes in regulations and business practices. Management is not yet able to estimate whether the Kaplan Commitment and these other factors will cause student retention patterns to differ from historical levels or whether additional students will be attracted to Kaplan as a result of the risk-free offering.

Total KHE enrollments (exclusive of students within the risk-free period) declined 8% compared to enrollments at December 31, 2009. A summary of KHE student enrollments at December 31, 2010, and December 31, 2009, is as follows:

As of December 31, %

2010

2009

Change

Kaplan University 58,217 60,388 (4) Kaplan Higher Education Campuses 38,484 44,499 (14)

96,701 104,887 (8)

In response to the enacted and proposed regulations, KHE has proactively implemented a number of marketing and admission changes, the effect of which raises student selectivity. New student enrollments at KHE declined 47% in the fourth quarter of 2010 compared to the same period of 2009, mostly due to these marketing and admission changes, along with overall weaker demand. New student enrollments were also adversely impacted by the number of students that did not continue beyond the risk-free period (students that withdraw during the Kaplan Commitment period are not counted as official starts). Management believes that the impact of fewer new enrollments will be offset in part by improved student retention.

Kaplan University and Kaplan Higher Education Campuses enrollments at December 31, 2010, and December 31, 2009, by degree and certificate programs are as follows:

As of December 31,

2010

2009

Certificate 23.6 % 27.6 % Associate’s 33.8 % 33.0 % Bachelor’s 35.1 % 34.7 % Master’s 7.5 % 4.7 %

100 % 100 %

In October 2010, the U.S. Department of Education released rules that address program integrity issues for postsecondary education institutions that participate in Title IV programs. The rules include, among other items, state approval processes, Department of Education program approval processes, revised standards governing the payment of incentive compensation to admissions and financial aid advisors, standards around misrepresentation and the definition of “credit hour.” The Company is taking steps to fully comply with these rules, but cannot currently predict the impact that these rules will have on its operations in the future and related operating results.

In July 2010, the Department of Education released a notice of proposed rulemaking addressing substantive measurements for whether an educational program leads to gainful employment in a recognized occupation for purposes of that program’s eligibility for Title IV funds. The proposed rulemaking addressing the definition of gainful employment includes provisions whereby students at a program level must demonstrate certain levels of student loan repayment and/or a program’s graduates must achieve certain debt-to-income ratios for the institution’s program to remain eligible for participation in the Title IV program. If a program fails to meet some or all of these proposed requirements, then the program’s eligibility to participate in the Title IV program may be restricted or lost entirely. Some of the data needed to compute program eligibility under this proposed regulation are not readily accessible to the institutions, but are compiled by the Department of Education.

The Company cannot currently predict with reasonable accuracy the impact the proposed regulation would have on its program offerings if it were enacted in its current form. However, the Company expects that this regulation, if enacted as proposed, would significantly impact Kaplan’s operating results as some or all institutions owned by Kaplan might be required to limit program offerings to ensure compliance with the restrictions of the proposed gainful employment rule. The Company has filed public comments related to the proposed rulemaking on gainful employment. The Department of Education has stated it plans to issue final rules in 2011 for an effective date on July 1, 2012.

Test preparation includes Kaplan’s standardized test preparation and tutoring offerings, as well as the domestic professional training business, K12 and other businesses. In the first quarter of 2010, the Company discontinued certain offerings of the K12 business; $7.8 million in severance, asset write-offs and other closure costs were recorded in connection with this plan. In the fourth quarter of 2009, a $4.6 million charge was recorded for product development and other write-downs at the K12 business. In the fourth quarter of 2010, Kaplan Test Preparation announced a plan to reorganize its business consistent with the migration of students to Kaplan’s online and hybrid test preparation offerings. In conjunction with this plan, in the fourth quarter of 2010, Kaplan Test Preparation began to reduce the number of leased test preparation centers and incurred $10.4 million in costs, mostly comprised of charges related to early lease termination and property, plant and equipment write-downs. The plan is expected to be largely completed by the end of 2011, and the Company estimates that an additional $10.0 million in costs will be incurred.

Test preparation revenue declined 4% in 2010 and increased 1% in the fourth quarter of 2010. Excluding acquisitions, test preparation revenue declined 8% and 3% for 2010 and the fourth quarter of 2010, respectively, due mostly to the termination of certain K12 offerings. Revenue at the traditional test preparation programs in 2010 was essentially flat. Strong enrollment increases, particularly in the Pre-College and Nursing programs, were offset by reduced prices for many programs related to increased competition and increased demand for lower priced online test preparation offerings.

Test preparation operating results were down in 2010 and the fourth quarter of 2010 due to the termination of certain K12 offerings and $7.8 million in related closure costs in 2010, reduced prices at the traditional test preparation programs and higher spending to expand online offerings and innovate various programs, as well as $10.4 million in fourth quarter 2010 restructuring-related charges. The declines were offset by improved results at test preparation’s domestic professional training businesses due to expense reductions. In 2009, total restructuring-related expenses of $8.3 million were recorded in conjunction with the professional training businesses. Test preparation operating results in the fourth quarter of 2009 were also adversely affected by a $4.6 million charge at the K12 business for product development and other write-downs.

In March 2009, the Company approved a plan to close its Score tutoring centers. The Company recorded charges of $24.9 million in asset write-downs, lease terminations, severance and accelerated depreciation of fixed assets in the first half of 2009.

Kaplan International includes professional training and postsecondary education businesses outside the United States, as well as English-language programs. Kaplan International revenue increased 9% in 2010 and operating income rose 4% due to enrollment growth in the pathway and other higher education programs in the U.K. and Singapore. The rise in revenue is also due to increased English-language program revenue and favorable exchange rates in Australia and Singapore. Kaplan International operating income declined in the fourth quarter of 2010 due to weaker operating results at its Australian and Asian operations.

Kaplan Ventures is made up of a number of businesses in various stages of development that are managed separately from the other education businesses. Revenue at Kaplan Ventures declined 10% and 19% in 2010 and the fourth quarter of 2010, respectively; these revenue comparisons were adversely impacted by the April 2010 sale of a business unit within the division. Kaplan Ventures reported operating losses of $30.7 million and $5.4 million in 2010 and the fourth quarter of 2010, respectively, compared to operating losses of $16.4 million and $2.3 million in 2009 and the fourth quarter of 2009, respectively. The decline in results for 2010 is due to the sale of the above-noted business, decreased operating margins at several of Kaplan Ventures’ established businesses and increased investment in certain developing business units. A goodwill and other long-lived assets impairment charge of $25.4 million was recorded at Kaplan in the third quarter of 2009 related to certain Kaplan Ventures’ businesses, as the book value of these businesses exceeded their estimated fair value.

Corporate represents unallocated expenses of Kaplan, Inc.’s corporate office and other minor shared activities. Corporate expenses declined in 2010 and the fourth quarter of 2010, due largely to the reversal of incentive compensation accruals.

Stock compensation relates to incentive compensation arising from equity awards under the Kaplan stock option plan. Kaplan recorded a stock compensation credit of $1.2 million in 2010, compared to stock compensation expense of $0.9 million in 2009. For the fourth quarter of 2010, Kaplan recorded stock compensation expense of $0.1 million, compared to a stock compensation credit of $4.2 million in 2009. The stock compensation credit for 2010 relates to an estimated decline in the fair value of Kaplan common stock since the end of 2009.

*Cable Television*

Cable television division revenue of $759.9 million for 2010 represents a 1% increase from $750.4 million in 2009; revenue totaled $191.3 million for the fourth quarter of 2010, a slight increase from $190.6 million for the fourth quarter of 2009. The revenue increase in 2010 is due to continued growth of the division’s cable modem and telephone revenues.

Cable television division operating income in 2010 decreased to $163.9 million, from $169.1 million in 2009; operating income for the fourth quarter of 2010 decreased to $37.4 million, from $46.9 million in the fourth quarter of 2009. The cable division’s operating results in the fourth quarter of 2009 included a $7.7 million gain arising from changes to the cable division retiree health care benefits program. Excluding this gain, the cable division’s operating income in 2010 increased due to the division’s revenue growth, offset by increased technical and sales costs; the division’s operating income declined in the fourth quarter of 2010 due primarily to increased technical and sales costs.

At December 31, 2010, Revenue Generating Units (RGUs) were up 4% from the prior year-end due to growth in high-speed data and telephony subscribers, offset by a decrease in basic and digital subscribers. A summary of RGUs is as follows:

Cable Television Division Subscribers

December 31, 2010

December 31, 2009

Basic 648,413 668,986 Digital 215,284 219,062 High-speed data 425,402 392,832 Telephony 153,044 109,619 Total 1,442,143 1,390,499

*Newspaper Publishing*

For most of the newspaper division’s print publications, operating results in 2010 included 52 weeks, compared to 53 weeks in 2009 (fourth quarter 2010 included 13 weeks, compared to 14 weeks in 2009). Newspaper publishing division revenue in 2010 increased slightly to $680.4 million, from $679.3 million in 2009; revenue totaled $188.4 million for the fourth quarter of 2010, a 3% decrease from $193.3 million for the fourth quarter of 2009. Print advertising revenue at The Washington Post in 2010 declined 6% to $297.9 million, from $317.0 million in 2009, and decreased 12% to $82.0 million for the fourth quarter of 2010, from $92.6 million for the fourth quarter of 2009. The print revenue declines in 2010 and the fourth quarter of 2010 are due to reductions in general, classified and retail advertising, along with one less week in 2010 versus 2009. Revenue generated by the Company’s newspaper online publishing activities at washingtonpost.com and Slate increased 14% to $113.0 million, from $99.6 million in 2009; revenue increased 13% to $35.5 million in the fourth quarter of 2010, versus $31.5 million for the fourth quarter of 2009. Display online advertising revenue grew 18% in 2010, and 12% for the fourth quarter of 2010. Online classified advertising revenue on washingtonpost.com increased slightly in 2010 and increased 5% for the fourth quarter of 2010.

Daily circulation at The Washington Post declined 7.5% and Sunday circulation declined 8.2% in 2010. For 2010, average daily circulation at the Post totaled 550,900 and average Sunday circulation totaled 763,100.

As previously disclosed, The Washington Post contributes to multiemployer plans on behalf of three union-represented employee groups. The Post has negotiated in collective bargaining the contractual right to withdraw from two of these plans; the right to withdraw from the CWA-ITU Negotiated Pension Plan (CWA-ITU Plan) was the subject of contract negotiations that reached an impasse. In July 2010, the Post notified the union and the CWA-ITU Plan of its unilateral withdrawal from the Plan, effective November 30, 2010. In connection with this action, The Washington Post recorded a $20.4 million charge based on an estimate of the withdrawal liability.

As previously reported, The Washington Post recorded early retirement program expense of $56.8 million in the second quarter of 2009, and Robinson Terminal Warehouse Corporation recorded early retirement program expense of $1.1 million in the third quarter of 2009. The costs of these early retirement programs are funded mostly from the assets of the Company’s pension plans. Also as previously reported, the Post closed a printing plant in July 2009 and consolidated its printing operations. The Post also completed the consolidation of certain other operations in Washington, DC, in the first quarter of 2010. In connection with these activities, accelerated depreciation of $33.8 million was recorded in 2009, along with $3.9 million in shutdown costs and lease losses ($3.1 million of these costs were recorded in the fourth quarter of 2009). An additional $3.1 million loss on an office lease was recorded by the Company in the first quarter of 2010.

The newspaper division reported an operating loss of $9.8 million in 2010, compared to an operating loss of $163.5 million in 2009. For the fourth quarter of 2010, the newspaper division reported operating income of $19.9 million, compared to operating income of $3.2 million in the fourth quarter of 2009. Excluding the multiemployer pension plan charge, early retirement program expense and accelerated depreciation, operating results improved in 2010 due to expense reductions in payroll, newsprint, depreciation, bad debt and agency fees, and expense reductions at washingtonpost.com. Newsprint expense decreased 16% in 2010 and 15% in the fourth quarter of 2010, respectively, due to a decline in newsprint consumption, offset by an increase in newsprint prices.

A summary of newspaper division operating results for 2010 and the fourth quarter of 2010 compared to 2009 is as follows:

Fourth Quarter YTD (In thousands)

2010

2009

% Change

2010

2009

% Change

Operating revenues $188,425

$193,345

(3 ) $680,373

$679,282

0 Operating expenses, excluding special charges (168,484 ) (190,173 ) (11 )

(669,844)*

(751,115)* (11 )

19,941

3,172

-

10,529* (71,833)* – Multiemployer pension

plan charge

-

-

-

(20,355 ) -

- Early retirement program expense -

-

-

-

(57,924 ) – Accelerated depreciation -

-

-

-

(33,792 ) – Operating income (loss) $19,941

$3,172

-

$(9,826 ) $(163,549 ) 94

*Non-GAAP measure

*Television Broadcasting*

Revenue for the television broadcasting division increased 25% to $342.2 million in 2010, from $272.7 million in 2009; for the fourth quarter of 2010, revenue increased 28% to $102.9 million, from $80.2 million in 2009. Television broadcasting division operating income for 2010 increased 72% to $121.3 million, from $70.5 million in 2009. For the fourth quarter of 2010, operating income increased 56% to $45.3 million, from $29.0 million for the fourth quarter of 2009.

The increase in revenue and operating income is due to improved advertising demand in all markets and most product categories, particularly automotive. The increased revenue and operating income also includes $4.7 million in incremental winter Olympics-related advertising at the Company’s NBC affiliates in the first quarter of 2010, and a $32.2 million and $17.6 million increase in political advertising revenue for 2010 and the fourth quarter of 2010, respectively.

*Other Businesses*

Other businesses includes the operating results of Avenue100 Media Solutions and other small businesses.

In the third quarter of 2010, a goodwill and other long-lived assets impairment charge of $27.5 million was recorded at Avenue100 Media Solutions, the Company’s digital marketing business that sources leads for academic institutions and recruiting organizations.

*Corporate Office*

Corporate office includes the expenses of the Company’s corporate office and the pension credit previously reported in the magazine publishing division (refer to Discontinued Operations discussion below).

In the fourth quarter of 2010, certain Kaplan operations moved to the former Newsweek headquarters facility. In connection with this move, $11.5 million in lease termination and other charges were recorded by the corporate office.

Equity in (Losses) Earnings of Affiliates

The Company’s equity in losses of affiliates for 2010 was $4.1 million, compared to $29.4 million in losses for 2009. For the fourth quarter of 2010, the Company’s equity in losses of affiliates totaled $0.2 million, compared to losses of $1.3 million for the fourth quarter of 2009. Results for 2009 included $29.0 million in write-downs at two of the Company’s affiliate investments; most of the loss related to an impairment charge recorded on the Company’s interest in Bowater Mersey Paper Company as a result of the challenging economic environment for newsprint producers in 2009.

The Company holds a 49% interest in Bowater Mersey Paper Company, a 16.5% interest in Classified Ventures, LLC and interests in several other affiliates.

Other Non-Operating Income (Expense)

The Company recorded other non-operating income, net, of $8.7 million in 2010, compared to other non-operating income, net, of $13.2 million in 2009. For the fourth quarter of 2010, the Company recorded other non-operating income, net, of $4.7 million, compared to other non-operating expense, net, of $2.6 million for the fourth quarter of 2009.

The 2010 non-operating income, net, included $6.7 million in unrealized foreign currency gains ($1.9 million in unrealized foreign currency gains in the fourth quarter) and other items. The 2009 non-operating income, net, included $16.9 million in unrealized foreign currency gains ($1.5 million in unrealized foreign currency losses in the fourth quarter), offset by $3.8 million in impairment write-downs on cost method investments and other items.

As noted above, a large part of the Company’s non-operating income (expense) is from unrealized foreign currency gains or losses arising from the translation of British pound and Australian dollar denominated intercompany loans into U.S. dollars.

Net Interest Expense

The Company incurred net interest expense of $27.9 million in 2010, compared to $29.0 million in 2009; net interest expense totaled $6.6 million for the fourth quarter of 2010, versus $7.7 million for the fourth quarter of 2009. At January 2, 2011, the Company had $399.7 million in borrowings outstanding at an average interest rate of 7.2%; at January 3, 2010, the Company had $399.3 million in borrowings outstanding at an average interest rate of 7.2%.

Provision for Income Taxes

The effective tax rate for income from continuing operations in 2010 was 41.4%. This effective tax rate was adversely impacted by $13.9 million in noncash valuation allowances provided against deferred state and local income tax benefits, net of U.S. Federal income taxes, and $9.1 million from nondeductible goodwill in connection with an impairment charge recorded in the third quarter of 2010; these items were offset by permanent U.S. Federal tax benefit items and tax benefits with respect to jurisdictions outside the United States.

The effective tax rate for income from continuing operations in 2009 was 35.9%. This effective tax rate was adversely impacted by $7.4 million in noncash valuation allowances provided against deferred state and local income tax benefits, net of U.S. Federal income taxes, and $3.3 million from nondeductible goodwill in connection with impairment charges recorded in 2009; these items were offset by favorable adjustments recorded for a reduction in state income taxes and for prior-year permanent U.S. Federal tax deductions.

Discontinued Operations

On September 30, 2010, the Company completed the sale of Newsweek. Consequently, the Company’s income from continuing operations for the fourth quarter and year-to-date periods excludes magazine publishing operations, which have been reclassified to discontinued operations, net of tax. Under the terms of the asset purchase agreement, The Washington Post Company retained the pension assets and liabilities, certain employee obligations arising prior to the sale and other items. A loss of $11.5 million from the Newsweek sale is included in discontinued operations.

Newsweek employees were participants in The Washington Post Company Retirement Plan, and Newsweek was historically allocated a net pension credit. Since this net pension credit will be included in income from continuing operations in the future, it has been excluded from the reclassification of Newsweek results to discontinued operations. The pension cost arising from early retirement programs at Newsweek, however, is included in discontinued operations.

Earnings Per Share

The calculations of diluted earnings per share for 2010 and the fourth quarter of 2010 were based on 8,930,608 and 8,384,755 weighted average shares, respectively, compared to 9,391,958 and 9,372,396 weighted average shares, respectively, for 2009 and the fourth quarter of 2009. The Company repurchased 1,057,940 shares of its Class B common stock at a cost of $404.8 million during 2010. At January 2, 2011, there were 8,193,856 shares outstanding.

Forward-Looking Statements

This report contains certain forward-looking statements that are based largely on the Company’s current expectations. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results and achievements to differ materially from those expressed in the forward-looking statements. For more information about these forward-looking statements and related risks, please refer to the section titled “Forward-Looking Statements” in Part I of the Company’s Annual Report on Form 10-K.

THE WASHINGTON POST COMPANY

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except share and per share amounts)

*Fourth Quarter* *%*

*2010* *2009* *Change*

Operating revenues $ 1,190,007

$ 1,186,243

0

Operating expenses

(969,787 )

(962,673 ) 1

Depreciation

(64,005 )

(62,705 ) 2

Amortization of intangible assets

(6,550 )

(6,036 ) 9

Operating income

149,665

154,829

(3 ) Equity in losses of affiliates, net

(191 )

(1,261 ) (85 ) Interest income

1,051

759

38

Interest expense

(7,693 )

(8,451 ) (9 ) Other income (expense), net

4,657

(2,582 )

HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own HomeGain’s For Sale By Owner (FSBO) vs. REALTOR® survey reveals home sellers’ success rates and satisfaction; Home sellers have greater success and higher satisfaction with the home sale process using a REALTOR® than going FSBO

Emeryville, CA – February 24, 2011 – HomeGain.com http://www.homegain.com/, a leading online real estate resource that connects home buyers and sellers with real estate professionals, today announced the results of its For Sale By Owner (FSBO) vs. REALTOR® survey.

HomeGain surveyed over 1,000 homeowners asking whether they used a REALTOR® to sell their home or whether they attempted to sell it themselves. Eighty-three percent said they used a REALTOR® to sell their home and 17 percent said they tried to sell their home on their own.

Fifty-nine percent of homeowners that used a REALTOR® to sell their home were successful vs. 39 percent of FSBO’s, reflecting a 50 percent higher closing rate for those home sellers using a REALTOR®.

Eighty-one percent of homeowners that used a REALTOR® to try and sell their homes said they would use a REALTOR® again for their real estate needs.

Eighty-eight percent of home owners who sold their homes using a REALTOR® said they would use a REALTOR® again.

Seventy-one percent of FSBOs who managed to sell their homes on their own said they would try and sell their home on their own again.

“It is especially striking that homeowners fare significantly better in selling their homes using a REALTOR® than selling on their own.” said Louis Cammarosano, General Manager at HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”

Twenty-four percent of FSBOs eventually enlisted the aid of a REALTOR® to help sell their homes.

To see the complete survey results, visit the HomeGain Real Estate Blog .

The survey was conducted from February 7-15, 2011.

About HomeGain

HomeGain is a leading provider of online marketing solutions that connect real estate agents and brokers with home buyers and sellers. HomeGain offers free services to find and compare real estate agents, research home values http://www.homegain.com/homevalues, and view homes for sale http://www.homegain.com/housead/homes_for_sale/index. Since 1999 REALTORS® have used HomeGain’s real estate marketing programsto connect with consumers, promote their services and grow their business. HomeGain.com has been a top visited real estate website since 1999. HomeGain is your real estate connection.

The Hellenic Voice Expands Online Marketplace and Connects Greek Americans to Jobs and Homes**

CARLSBAD, CA, USA/BOSTON, MA, USA (February 23, 2011) – Adicio Inc., the leading provider of interactive classified advertising software solutions for media companies, and The Hellenic Voice, the largest and most widely accepted English weekly dedicated to Hellenic Americans, are working together to help connect Greek Americans with viable job opportunities and new homes.

These new initiatives are designed to facilitate the connection between Greek Americans who are seeking employment opportunities with Greek-owned or operated companies, as well as assist prospective Hellenic American home buyers with agents and brokers who specialize in working with Greek Americans on their next home purchase.

The Greek American Career Center (www.greekamericancareers.com) facilitates the connection between Greek Americans who are seeking employment opportunities with Greek-owned or operated companies. Employers have the ability to showcase their company via company profiles and highlight their job openings nationwide to extend their reach to prospective candidates. The Greek American Career Center offers a variety of cost-effective sponsorship packages for employers so they can increase their visibility and exposure with featured and spotlight listings, as well as a range of other ad enhancement options.

The Greek American Career Center has also developed partnerships with organizations like the National Hellenic Students Association (NHSA) to coordinate outreach to Greek American students and recent graduates who are entering the job market. NHSA will promote the Greek American Career Center’s job seeker tools, career advice and networking opportunities to their membership.

”Our careers site enables us to reach out to the Greek American community and help connect relevant candidates with quality companies looking to hire,” says John T. Baglaneas, Executive Editor and Managing Director of The Hellenic Voice. “We chose technology partner Adicio because they could deliver the tools both job seekers and employers need, as well as multiple advertising options that can boost employer job listings.”

The Hellenic Voice Homes Site (www.hellenicvoicehomes.com) connects Hellenic American home buyers with a robust directory of agents and brokers dedicated to the Greek American lifestyle. Site visitors can quickly and easily refine and expand searches using multi-select options to drill down to the properties they are most interested in reviewing. Agents and brokers have a variety of options to increase their visibility including featured, spotlight and open house listings. Agents and brokers can showcase their services with the additional purchase of a featured agent or agent directory listing on a monthly or annual basis.

“As a Greek American, it’s exciting to be instrumental in expanding The Hellenic Voice’s reach,” said George Dratelis of Adicio. “With the launch of their Careers and Homes sites, The Hellenic Voice is reinforcing its position as a national player that can facilitate connections between Greek Americans across the U.S.”

*About The Hellenic Voice *The Hellenic Voice* *is a publication of Mosaic Communications Group LLC and is the largest and most widely accepted English language weekly dedicated to the Greek American community. The Hellenic Voice is dedicated to the values and virtues of Hellenism, to the lively and majestic Greek American spirit and to the piety and holiness of Orthodox Christianity. For more information please visit www.thehellenicvoice.com or call 781-402-0027.

*About Adicio, Inc. * Adicio develops interactive classified advertising software solutions for the careers, real estate, and motors markets, which serve the Internet’s leading media companies and web portals. With its award-winning technology and enterprise-class software platforms, domain expertise, and customer service, Adicio delivers a private-label application that seamlessly integrates within online classified advertising offerings, enabling clients to generate revenue and retain their brand while building and managing their online classified efforts. Clients can deploy Adicio’s software as a turnkey solution or customize Adicio’s application to leverage existing brand strategy and support online sales and marketing objectives. Adicio also powers CareerCast.com http://www.careercast.com/, a job search portal and JobsRated.com http://www.jobsrated.com/, where 200 jobs across North America are ranked based on detailed analysis of specific careers factors. For more information, please visit www.adicio.com, or call 760.602.9502, +31 (0)20 894 6014 or 800.276.1332.

###

Media Contact: Beth Brody

Brody PR (for Adicio)

609.397.3737

Beth@BrodyPR.com

_______________________________________________

February 23, 2011 SuperMedia Announces 2010 Full Year Results

DALLAS–(BUSINESS WIRE)– SuperMedia (NASDAQ:SPMD) today announced its financial results for the year ended December 31, 2010.

Highlights for 2010 include:

- The company reduced total debt obligations by $579 million in 2010, including the utilization of $185 million of cash in the fourth quarter to reduce total debt obligations by $264 million under an amendment to the term loan agreement allowing a below par debt repurchase; – adjusted pro forma earnings before interest, taxes, depreciation and amortization (EBITDA) was $651 million1; and – continued aggressive cost management.

SuperMedia’s Chief Executive Officer, Peter McDonald, who joined the company in October 2010 said, “As we move into 2011, our focus will be on improving our revenue trends and continuing to manage expenses.”

*Financial Summary*

SuperMedia reports financial results on a generally accepted accounting principles (“GAAP”) and non-GAAP basis, referred to as “adjusted pro forma”. The adjusted pro forma basis measures are described and reconciled to the corresponding GAAP measures in the accompanying financial schedules. These results were adjusted for the impacts of fresh start accounting and certain unique costs including reorganization items, restructuring costs and certain other non-recurring costs.

Reported GAAP operating revenue for Q4 2010 was $426 million. Adjusted pro forma operating revenue for Q4 2010 was $468 million, versus $576 million for Q4 2009, a decline of 18.8 percent.

Reported GAAP full year operating revenue for 2010 was $1,176 million. Adjusted pro forma full year operating revenue for 2010 was $2,002 million, versus $2,512 million in 2009, a decline of 20.3 percent.

Reported Q4 2010 earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP measure, was $126 million. On an adjusted pro forma basis, Q4 2010 EBITDA was $151 million with an EBITDA margin of 32.3 percent compared to Q4 2009 EBITDA of $195 million with an EBITDA margin of 33.9 percent.

Reported full year 2010 EBITDA, a non-GAAP measure, was $90 million. On an adjusted pro forma basis, full year 2010 EBITDA was $651 million with an EBITDA margin of 32.5 percent compared to full year 2009 EBITDA of $856 million with an EBITDA margin of 34.1 percent. Results for 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims.

Advertising sales in Q4 2010 declined 15.1 percent, compared to a decline of 20.9 percent reported for the same period in 2009. Full year 2010 advertising sales declined 17.2 percent compared to a full year 2009 decline of 18.8 percent.

Free cash flow, a non-GAAP measure, for 2010 was $464 million representing cash from operating activities of $509 million, less capital expenditures (including capitalized software) of $45 million. In the second quarter, the company received a net federal income tax refund of $94 million.

SuperMedia made debt principal payments of $61 million in the fourth quarter, in accordance with the mandatory cash sweep provisions of the company’s loan agreement. Cash on hand at the end of the quarter totaled $174 million, reflecting the net cash benefits of the items noted above.

Also in the fourth quarter, an amendment was approved by the holders of the company’s term loan allowing the company to repurchase $264 million of debt at 70 percent of par, utilizing $185M in cash. For the year ending December 31, 2010, the company utilized cash of $500 million to reduce total debt obligations in the amount of $579 million.

*Webcast Information*

Individuals within the United States can access the earnings call by dialing 888/603-6873* begin_of_the_skype_highlighting 888/603-6873 end_of_the_skype_highlighting*. International participants should dial 973/582-2706* begin_of_the_skype_highlighting 973/582-2706 end_of_the_skype_highlighting*. The pass code for the call is: 37480660. In order to ensure a prompt start time, please dial into the call by 9:50am (Eastern). A replay of the teleconference will be available at 800/642-1687*begin_of_the_skype_highlighting 800/642-1687 end_of_the_skype_highlighting*. International callers can access the replay by calling 706/645-9291*begin_of_the_skype_highlighting 706/645-9291 end_of_the_skype_highlighting*. The replay pass code is: 37480660. The replay will be available through March 9, 2011. In addition, a live Web cast will be available on SuperMedia’s Web site in the Investor Relations section at www.supermedia.com.

*Basis of Presentation and Non-GAAP Measures*

In connection with SuperMedia’s emergence from bankruptcy on December 31, 2009, and the application of fresh start accounting, the post-emergence results of the successor company and the pre-emergence results of the predecessor company are presented separately as successor and predecessor results in the financial statements presented in accordance with GAAP. This presentation is required by GAAP as the successor company is considered to be a new entity and the results of the new entity reflect the application of fresh start accounting. For the readers’ convenience, the financial information accompanying this release provides a reconciliation of GAAP to non-GAAP results.

*Forward-Looking Statements*

Certain statements included in this annual report constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Statements that include the words “may,” “will,” “could,” “should,” “would,” “believe,” “anticipate,” “forecast,” “estimate,” “expect,” “preliminary,” “intend,” “plan,” “project,” “outlook” and similar statements of a future or forward-looking nature identify forward-looking statements. You should not place undue reliance on these statements. These forward-looking statements include statements that reflect the current views of our senior management with respect to our financial performance and future events with respect to our business and industry in general. Forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following:

- the inability to provide assurance for the long-term continued viability of our business; – reduced advertising spending and contract cancellations by our clients, which drives reduced revenue; – declining use of print yellow pages directories by consumers; – competition from other yellow pages directory publishers and other traditional and new media and our ability to anticipate or respond to changes in technology and user preferences; – changes in our operating performance; – our post-restructuring financial condition, financing requirements and cash flow; – limitations on our operating and strategic flexibility and the ability to operate our business, finance our capital needs or expand business strategies under the terms of our debt agreements; – failure to comply with the financial covenants and other restrictive covenants in our debt agreements; – limited access to capital markets and increased borrowing costs resulting from our leveraged capital structure and debt ratings; – our ability to resolve any remaining bankruptcy claims; – changes in the availability and cost of paper and other raw materials used to print our directories and our reliance on third-party providers for printing, publishing and distribution services; – credit risk associated with our reliance on small- and medium-sized businesses as clients; – our ability to attract and retain qualified key personnel; – our ability to maintain good relations with our unionized employees; – changes in labor, business, political and economic conditions; – changes in governmental regulations and policies and actions of regulatory bodies; and – the outcome of pending or future litigation and other claims.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this and other reports we file with the Securities and Exchange Commission, including the information in “Item 1A. Risk Factors” in Part I of our Annual Report on Form 10-K for the year ended December 31, 2010. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. All forward-looking statements included in this report are expressly qualified in their entirety by these cautionary statements. The forward-looking statements speak only as of the date made and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*About SuperMedia Inc.*

SuperMedia (NASDAQ:SPMD) is the advertising company for local small- to medium-sized businesses across the United States. SuperMedia specializes in results. Click-here results. Ring-the-phone results. Knock-on-the-door results.

SuperMedia’s advertising products and services include: the SuperGuarantee ® and SuperTradeExchange *®* programs, Verizon® SuperYellowPages, FairPoint® SuperYellowPages and Frontier® SuperYellowPages, Superpages.com®, EveryCarListed.com *SM*, Switchboard.com SM, LocalSearch.com SM, Superpages MobileSM and SuperpagesDirect® direct mail products. For more information, visit www.supermedia.com.

1 includes a favorable non-recurring non-cash benefit of $40 million associated with the resolution of state operating tax claims

SPMD-G

*SuperMedia Inc.* *Consolidated Statements of Operations* *Reported (GAAP)* *Year Ended December 31, 2010 Compared to Year Ended December 31, 2009** (2)* (dollars in millions, except per share amounts) *Successor Company* *Predecessor Company* Year Ended Year Ended Unaudited 12/31/10 12/31/09 % Change *Operating Revenue* $ 1,176 $ 2,512 (53.2) *Operating Expense* Selling 470 677 (30.6) Cost of sales (exclusive of depreciation and amortization) 418 581 (28.1) General and administrative 198 445 (55.5) Depreciation and amortization 186 68 173.5 *Total Operating Expense* 1,272 1,771 (28.2) *Operating Income (Loss)* (96) 741 NM Interest expense, net 278 145 91.7

*Income (Loss) Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes*

(374) 596 NM Reorganization items (5) 8,035 NM Gain on early extinguishment of debt 76 – NM

*Income (Loss) Before Provision (Benefit) for Income Taxes*

(303) 8,631 NM Provision (benefit) for income taxes (107) 374 NM *Net Income (Loss)* $ (196) $ 8,257 NM *Basic and Diluted Earnings (Loss) per Common Share **(1)* $ (13.04) $ 56.32 NM Basic and diluted weighted-average common

shares outstanding 15.0 146.6

These schedules are preliminary and subject to change pending the Company’s filing of its Form 10-K. As a result of our adoption of fresh start accounting in December 2009, our Successor Company financial results are not comparable to our Predecessor Company financial results. *Note:* (1) Equity based awards granted had no impact on the calculation of diluted earnings per common share. (2) Results for the year ended December 31, 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reported (GAAP)* *Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009* (dollars in millions, except per share amounts) *Successor Company* *Predecessor Company* 3 Mos. Ended 3 Mos. Ended Unaudited 12/31/10 12/31/09 % Change *Operating Revenue* $ 426 $ 576 (26.0 ) *Operating Expense* Selling 126 149 (15.4 ) Cost of sales (exclusive of depreciation and amortization) 118 145 (18.6 ) General and administrative 56 111 (49.5 ) Depreciation and amortization 46 17 170.6 *Total Operating Expense* 346 422 (18.0 ) *Operating Income* 80 154 (48.1 ) Interest expense (income), net 66 (3 ) NM

*Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes* 14 157 (91.1 ) Reorganization items – 8,475 (100.0 ) Gain on early extinguishment of debt 76 – NM *Income Before Provision for Income Taxes*

90 8,632 (99.0 ) Provision for income taxes 34 375 (90.9 ) *Net Income* $ 56 $ 8,257 (99.3 ) *Basic and Diluted Earnings per Common Share **(1)* $ 3.67 $ 56.32 (93.5 ) Basic and diluted weighted-average common

shares outstanding 15.0 146.7 *Note:* (1) Equity based awards granted had no impact on the calculation of diluted earnings per common share. *SuperMedia Inc.* *Consolidated Statements of Operations* *Adjusted Pro Forma and Adjusted (Non-GAAP) **(1)* *Year Ended December 31, 2010 Compared to Year Ended December 31, 2009** (3)* (dollars in millions, except per share amounts) *Successor Company* *Predecessor Company* Year Ended Year Ended Unaudited 12/31/10 12/31/09 % Change *Operating Revenue* $ 2,002 $ 2,512 (20.3) *Operating Expense* Selling 578 677 (14.6) Cost of sales (exclusive of depreciation and amortization) 523 581 (10.0) General and administrative 250 398 (37.2) Depreciation and amortization 186 68 173.5 *Total Operating Expense* 1,537 1,724 (10.8) *Operating Income* 465 788 (41.0) Interest expense, net 278 147 89.1

*Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes* 187 641 (70.8) Reorganization items – – NM Gain on early extinguishment of debt – – NM *Income Before Provision for Income Taxes*

187 641 (70.8) Provision for income taxes 70 202 (65.3) *Net Income* $ 117 $ 439 (73.3) *Basic and Diluted Earnings per Common Share **(2) * $ 7.82 $ 3.00 160.7 Basic and diluted weighted-average common

shares outstanding 15.0 146.6 *Notes:* (1) These consolidated statements of operations provide a comparison of the twelve months ended December 31, 2010 adjusted pro forma results to the twelve months ended December 31, 2009 adjusted results. The following schedules provide reconciliations from our reported GAAP results to adjusted pro forma and adjusted non-GAAP results for the periods shown above. (2) Equity based awards granted had no impact on the calculation of diluted earnings per common share. (3) Results for the twelve months ended December 31, 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims. *SuperMedia Inc.* *Consolidated Statements of Operations* *Adjusted Pro Forma and Adjusted (Non-GAAP) **(1)* *Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009* (dollars in millions, except per share amounts) *Successor Company* *Predecessor Company* 3 Mos. Ended 3 Mos. Ended Unaudited 12/31/10 12/31/09 % Change *Operating Revenue* $ 468 $ 576 (18.8) *Operating Expense* Selling 136 149 (8.7) Cost of sales (exclusive of depreciation and amortization) 123 145 (15.2) General and administrative 58 87 (33.3) Depreciation and amortization 46 17 170.6 *Total Operating Expense* 363 398 (8.8) *Operating Income* 105 178 (41.0) Interest expense (income), net 66 (3) NM

*Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes* 39 181 (78.5) Reorganization items – – NM Gain on early extinguishment of debt – – NM *Income Before Provision for Income Taxes*

39 181 (78.5) Provision for income taxes 16 33 (51.5) *Net Income* $ 23 $ 148 (84.5) *Basic and Diluted Earnings per Common Share **(2)* $ 1.51 $ 1.01 49.5 Basic and diluted weighted-average common

shares outstanding 15.0 146.7 *Notes:* (1) These consolidated statements of operations provide a comparison of the three months ended December 31, 2010 adjusted pro forma results to the three months ended December 31, 2009 adjusted results. The following schedules provide reconciliations from our reported GAAP results to adjusted pro forma and adjusted non-GAAP results for the periods shown above. (2) Equity based awards granted had no impact on the calculation of diluted earnings per common share. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reported (GAAP)* *Three Months Ended December 31, 2010 Compared to Three Months Ended September 30, 2010** (2)* (dollars in millions, except per share amounts) 3 Mos. Ended 3 Mos. Ended Unaudited 12/31/10 9/30/10 % Change *Operating Revenue* $ 426 $ 349 22.1 *Operating Expense* Selling 126 122 3.3 Cost of sales (exclusive of depreciation and amortization) 118 108 9.3 General and administrative 56 45 24.4 Depreciation and amortization 46 45 2.2 *Total Operating Expense* 346 320 8.1 *Operating Income* 80 29 175.9 Interest expense, net 66 69 (4.3)

*Income (Loss) Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes* 14 (40) NM Reorganization items – (2) (100.0) Gain on early extinguishment of debt 76 – NM

*Income (Loss) Before Provision (Benefit) for Income Taxes* 90 (42) NM Provision (benefit) for income taxes 34 (16) NM *Net Income (Loss)* $ 56 $ (26) NM *Basic and Diluted Earnings (Loss) per Common Share **(1)* $ 3.67 $ (1.73) NM Basic and diluted weighted-average common

shares outstanding 15.0 15.0 *Note:* (1) Equity based awards granted had no impact on the calculation of diluted earnings per common share. (2)Results for the three months ended September 30, 2010 include a general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims of $24 million. *SuperMedia Inc.* *Consolidated Statements of Operations* *Adjusted Pro Forma (Non-GAAP) **(1)* *Three Months Ended December 31, 2010 Compared to Three Months Ended September 30, 2010** (3)* (dollars in millions, except per share amounts) 3 Mos. Ended 3 Mos. Ended Unaudited 12/31/10 9/30/10 % Change *Operating Revenue* $ 468 $ 489 (4.3) *Operating Expense* Selling 136 144 (5.6) Cost of sales (exclusive of depreciation and amortization) 123 126 (2.4) General and administrative 58 47 23.4 Depreciation and amortization 46 45 2.2 *Total Operating Expense* 363 362 0.3 *Operating Income* 105 127 (17.3) Interest expense, net 66 69 (4.3) *Income Before Reorganization Items, Gain on Early*

*Extinguishment of Debt and Provision for Income Taxes*

39 58 (32.8) Reorganization items – – NM Gain on early extinguishment of debt – – NM

*Income Before Provision for Income Taxes*

39 58 (32.8) Provision for income taxes 16 22 (27.3) *Net Income* $ 23 $ 36 (36.1) *Basic and Diluted Earnings per Common Share ** (2)* $ 1.51 $ 2.44 (38.1) Basic and diluted weighted-average common

shares outstanding 15.0 15.0 *Notes:* (1) These consolidated statements of operations provide a comparison of the three months ended December 31, 2010 adjusted pro forma results to the three months ended September 30, 2010 adjusted pro forma results. The following schedules provide reconciliations from our reported GAAP results to adjusted pro forma non-GAAP results for the periods shown above. (2) Equity based awards granted had no impact on the calculation of diluted earnings per common share. (3) Results for the three months ended September 30, 2010 include a general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims of $24 million. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reconciliation from Reported (GAAP) to Adjusted Pro Forma (Non-GAAP)** (8) * *Year Ended December 31, 2010* (dollars in millions, except per share amounts) *Successor Company* *Adjustments* *Pro Forma Items* Year Ended 12/31/10 Restructuring and Other Severance Costs (3) Reorganization Items (4) Health Care Reform Act (5) Gain on Early Extinguishment of Debt (6) Year Ended 12/31/10 Fresh Start Accounting Items (7) Year Ended 12/31/10 Unaudited *Reported*

*(GAAP)* *Adjusted *

*(Non-GAAP)* *Adjusted *

*Pro Forma *

SuperMedia Inc.
Consolidated Statements of Operations
Reported (GAAP)
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009 (2)
(dollars in millions, except per share amounts)
		Successor Company		Predecessor Company
		Year Ended		Year Ended
Unaudited		12/31/10		12/31/09	% Change
Operating Revenue		$ 1,176		$ 2,512	(53.2)
Operating Expense
Selling		470		677	(30.6)
Cost of sales (exclusive of depreciation and amortization)		418		581	(28.1)
General and administrative		198		445	(55.5)
Depreciation and amortization		186		68	173.5
Total Operating Expense		1,272		1,771	(28.2)
Operating Income (Loss)		(96)		741	NM
Interest expense, net		278		145	91.7
Income (Loss) Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes		(374)		596	NM
Reorganization items		(5)		8,035	NM
Gain on early extinguishment of debt		76		-	NM
Income (Loss) Before Provision (Benefit) for Income Taxes		(303)		8,631	NM
Provision (benefit) for income taxes		(107)		374	NM
Net Income (Loss)		$ (196)		$ 8,257	NM
Basic and Diluted Earnings (Loss) per Common Share (1)		$ (13.04)		$ 56.32	NM
Basic and diluted weighted-average commonshares outstanding		15.0		146.6
These schedules are preliminary and subject to change pending the Company’s filing of its Form 10-K. As a result of our adoption of fresh start accounting in December 2009, our Successor Company financial results are not comparable to our Predecessor Company financial results.
Note:
(1) Equity based awards granted had no impact on the calculation of diluted earnings per common share.
(2) Results for the year ended December 31, 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims.

SuperMedia Inc.
Consolidated Statements of Operations
Reported (GAAP)
Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009
(dollars in millions, except per share amounts)
		Successor Company			Predecessor Company
		3 Mos. Ended			3 Mos. Ended
Unaudited			12/31/10			12/31/09			% Change
Operating Revenue		$	426		$	576			(26.0	)
Operating Expense
Selling			126			149			(15.4	)
Cost of sales (exclusive of depreciation and amortization)			118			145			(18.6	)
General and administrative			56			111			(49.5	)
Depreciation and amortization			46			17			170.6
Total Operating Expense			346			422			(18.0	)
Operating Income			80			154			(48.1	)
Interest expense (income), net			66			(3	)		NM
Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes			14			157			(91.1	)
Reorganization items			-			8,475			(100.0	)
Gain on early extinguishment of debt			76			-			NM
Income Before Provision for Income Taxes			90			8,632			(99.0	)
Provision for income taxes			34			375			(90.9	)
Net Income		$	56		$	8,257			(99.3	)
Basic and Diluted Earnings per Common Share (1)		$	3.67		$	56.32			(93.5	)
Basic and diluted weighted-average commonshares outstanding			15.0			146.7
Note:
(1) Equity based awards granted had no impact on the calculation of diluted earnings per common share.

SuperMedia Inc.
Consolidated Statements of Operations
Adjusted Pro Forma and Adjusted (Non-GAAP) (1)
Year Ended December 31, 2010 Compared to Year Ended December 31, 2009 (3)
(dollars in millions, except per share amounts)
		Successor Company		Predecessor Company
		Year Ended		Year Ended
Unaudited		12/31/10		12/31/09	% Change
Operating Revenue		$ 2,002		$ 2,512	(20.3)
Operating Expense
Selling		578		677	(14.6)
Cost of sales (exclusive of depreciation and amortization)		523		581	(10.0)
General and administrative		250		398	(37.2)
Depreciation and amortization		186		68	173.5
Total Operating Expense		1,537		1,724	(10.8)
Operating Income		465		788	(41.0)
Interest expense, net		278		147	89.1
Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes		187		641	(70.8)
Reorganization items		-		-	NM
Gain on early extinguishment of debt		-		-	NM
Income Before Provision for Income Taxes		187		641	(70.8)
Provision for income taxes		70		202	(65.3)
Net Income		$ 117		$ 439	(73.3)
Basic and Diluted Earnings per Common Share(2)		$ 7.82		$ 3.00	160.7
Basic and diluted weighted-average commonshares outstanding		15.0		146.6
Notes:
(1) These consolidated statements of operations provide a comparison of the twelve months ended December 31, 2010 adjusted pro forma results to the twelve months ended December 31, 2009 adjusted results. The following schedules provide reconciliations from our reported GAAP results to adjusted pro forma and adjusted non-GAAP results for the periods shown above.
(2) Equity based awards granted had no impact on the calculation of diluted earnings per common share.
(3) Results for the twelve months ended December 31, 2010 include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims.

SuperMedia Inc.
Consolidated Statements of Operations
Adjusted Pro Forma and Adjusted (Non-GAAP) (1)
Three Months Ended December 31, 2010 Compared to Three Months Ended December 31, 2009
(dollars in millions, except per share amounts)
		Successor Company		Predecessor Company
		3 Mos. Ended		3 Mos. Ended
Unaudited		12/31/10		12/31/09	% Change
Operating Revenue		$ 468		$ 576	(18.8)
Operating Expense
Selling		136		149	(8.7)
Cost of sales (exclusive of depreciation and amortization)		123		145	(15.2)
General and administrative		58		87	(33.3)
Depreciation and amortization		46		17	170.6
Total Operating Expense		363		398	(8.8)
Operating Income		105		178	(41.0)
Interest expense (income), net		66		(3)	NM
Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes		39		181	(78.5)
Reorganization items		-		-	NM
Gain on early extinguishment of debt		-		-	NM
Income Before Provision for Income Taxes		39		181	(78.5)
Provision for income taxes		16		33	(51.5)
Net Income		$ 23		$ 148	(84.5)
Basic and Diluted Earnings per Common Share(2)		$ 1.51		$ 1.01	49.5
Basic and diluted weighted-average commonshares outstanding		15.0		146.7
Notes:
(1) These consolidated statements of operations provide a comparison of the three months ended December 31, 2010 adjusted pro forma results to the three months ended December 31, 2009 adjusted results. The following schedules provide reconciliations from our reported GAAP results to adjusted pro forma and adjusted non-GAAP results for the periods shown above.
(2) Equity based awards granted had no impact on the calculation of diluted earnings per common share.

SuperMedia Inc.
Consolidated Statements of Operations
Reported (GAAP)
Three Months Ended December 31, 2010 Compared to Three Months Ended September 30, 2010 (2)
(dollars in millions, except per share amounts)
		3 Mos. Ended		3 Mos. Ended
Unaudited		12/31/10		9/30/10	% Change
Operating Revenue		$ 426		$ 349	22.1
Operating Expense
Selling		126		122	3.3
Cost of sales (exclusive of depreciation and amortization)		118		108	9.3
General and administrative		56		45	24.4
Depreciation and amortization		46		45	2.2
Total Operating Expense		346		320	8.1
Operating Income		80		29	175.9
Interest expense, net		66		69	(4.3)
Income (Loss) Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision (Benefit) for Income Taxes		14		(40)	NM
Reorganization items		-		(2)	(100.0)
Gain on early extinguishment of debt		76		-	NM
Income (Loss) Before Provision (Benefit) for Income Taxes		90		(42)	NM
Provision (benefit) for income taxes		34		(16)	NM
Net Income (Loss)		$ 56		$ (26)	NM
Basic and Diluted Earnings (Loss) per Common Share (1)		$ 3.67		$ (1.73)	NM
Basic and diluted weighted-average commonshares outstanding		15.0		15.0
Note:
(1) Equity based awards granted had no impact on the calculation of diluted earnings per common share.
(2) Results for the three months ended September 30, 2010 include a general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims of $24 million.

SuperMedia Inc.
Consolidated Statements of Operations
Adjusted Pro Forma (Non-GAAP) (1)
Three Months Ended December 31, 2010 Compared to Three Months Ended September 30, 2010 (3)
(dollars in millions, except per share amounts)
		3 Mos. Ended		3 Mos. Ended
Unaudited		12/31/10		9/30/10		% Change
Operating Revenue		$ 468		$ 489		(4.3)
Operating Expense
Selling		136		144		(5.6)
Cost of sales (exclusive of depreciation and amortization)		123		126		(2.4)
General and administrative		58		47		23.4
Depreciation and amortization		46		45		2.2
Total Operating Expense		363		362		0.3
Operating Income		105		127		(17.3)
Interest expense, net		66		69		(4.3)
Income Before Reorganization Items, Gain on Early
Extinguishment of Debt and Provision for Income Taxes		39		58		(32.8)
Reorganization items		-		-		NM
Gain on early extinguishment of debt		-		-		NM
Income Before Provision for Income Taxes		39		58		(32.8)
Provision for income taxes		16		22		(27.3)
Net Income		$ 23		$ 36		(36.1)
Basic and Diluted Earnings per Common Share(2)		$ 1.51		$ 2.44		(38.1)
Basic and diluted weighted-average commonshares outstanding		15.0		15.0

*Notes:* (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation, and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by operating revenue. (2) Operating income (loss) margin is calculated by dividing operating income (loss) by operating revenue. (3) Restructuring and other severance costs include costs associated with strategic organizational cost savings initiatives of $5 million and costs related to the termination of our former chief executive officer’s employment of $4 million.

(4) Reorganization items represent charges that are directly associated with the process of reorganizing the business under Chapter 11 of the United States Bankruptcy Code.

(5) As a result of the passage of the Health Care Reform Act in March of 2010, the future benefit of certain deferred tax assets was eliminated, resulting in a charge in the current period.

(6) Gain on the early extinguishment of debt represents the gain associated with the purchase of the Company’s debt below par value.

(7) Fresh start accounting items include adjustments for revenue and expense items that would have been otherwise amortized into the Company’s

statement of operations but were written off at December 31, 2009 as prescribed by United States Generally Accepted Accounting Principles.

(8) Results include a $40 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reconciliation from Reported (GAAP) to Adjusted Pro Forma (Non-GAAP)* *Three Months Ended December 31, 2010* (dollars in millions, except per share amounts) *Successor Company* *Adjustments* *Pro Forma Items* 3 Mos. Ended 12/31/10 Gain on Early Extinguishment of Debt and Other (3) 3 Mos. Ended 12/31/10 Fresh Start Accounting Items (4) 3 Mos. Ended 12/31/10 Unaudited *Reported*

*(GAAP)* *Adjusted *

*(Non-GAAP)* *Adjusted *

*Pro Forma *

*(Non-GAAP)* *Operating Revenue* $ 426 $ – $ 426 $ 42 $ 468 *Operating Expense* Selling 126 – 126 10 136 Cost of sales (exclusive of depreciation and amortization) 118 – 118 5 123 General and administrative 56 – 56 2 58 Depreciation and amortization 46 – 46 – 46 *Total Operating Expense* 346 – 346 17 363 *Operating Income* 80 – 80 25 105 Interest expense, net 66 – 66 – 66

*Income Before Reorganization Items, Gain on Early Extinguishment of Debt and Provision for Income Taxes* 14 – 14 25 39 Reorganization items – – – – – Gain on early extinguishment of debt 76 (76) – – – *Income Before Provision for Income Taxes*

90 (76) 14 25 39 Provision for income taxes 34 (28) 6 10 16 *Net Income* $ 56 $ (48) $ 8 $ 15 $ 23 *Basic and Diluted Earnings per Common Share* $ 3.67 $ (3.12) $ 0.55 $ 0.96 $ 1.51 Operating Income $ 80 $ – $ 80 $ 25 $ 105 Depreciation and Amortization 46 – 46 – 46 *EBITDA (non-GAAP) **(1)* $ 126 $ – $ 126 $ 25 $ 151 Operating income margin (2) 18.8% 18.8% 22.5% Impact of depreciation and amortization 10.8% 10.8% 9.8% *EBITDA margin (non-GAAP) **(1)* 29.6% 29.6% 32.3% *Notes:* (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation, and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by operating revenue. (2) Operating income margin is calculated by dividing operating income by operating revenue. (3) Gain on the early extinguishment of debt and other represents the gain associated with the purchase of the Company’s debt below par value and other adjustments of less than $1 million. (4) Fresh start accounting items include adjustments for revenue and expense items that would have been otherwise amortized into the Company’s statement of operations but were written off at December 31, 2009 according to the rules of fresh start accounting. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reconciliation from Reported (GAAP) to Adjusted Pro Forma (Non-GAAP)** (6)* *Three Months Ended September 30, 2010* (dollars in millions, except per share amounts) *Successor Company* *Adjustments* *Pro Forma Items* 3 Mos. Ended 9/30/10 Restructuring and Other Severance Costs (3) Reorganization Items (4) 3 Mos. Ended 9/30/10 Fresh Start Accounting Items (5) 3 Mos. Ended 9/30/10 Unaudited *Reported*

*(GAAP)* *Adjusted *

*(Non-GAAP)* *Adjusted *

*Pro Forma *

*(Non-GAAP)* *Operating Revenue* $ 349 $ – $ – $ 349 $ 140 $ 489 *Operating Expense* Selling 122 – – 122 22 144 Cost of sales (exclusive of depreciation and amortization) 108 – – 108 18 126 General and administrative 45 (5) – 40 7 47 Depreciation and amortization 45 – – 45 – 45 *Total Operating Expense* 320 (5) – 315 47 362 *Operating Income* 29 5 – 34 93 127 Interest expense, net 69 – – 69 – 69

*Income (Loss) Before Reorganization Items and Provision (Benefit) for Income Taxes* (40) 5 – (35) 93 58 Reorganization items (2) – 2 – – – *Income (Loss) Before Provision (Benefit) for Income Taxes*

(42) 5 2 (35) 93 58 Provision (benefit) for income taxes (16) 3 1 (12) 34 22 *Net Income (Loss)* $ (26) $ 2 $ 1 $ (23) $ 59 $ 36 *Basic and Diluted Earnings (Loss) per Common Share* $ (1.73) $ 0.22 $ 0.07 $ (1.44) $ 3.88 $ 2.44 Operating Income $ 29 $ 5 $ – $ 34 $ 93 $ 127 Depreciation and Amortization 45 – – 45 – 45 *EBITDA (non-GAAP) **(1)* $ 74 $ 5 $ – $ 79 $ 93 $ 172 Operating income margin (2) 8.3% 9.7% 26.0% Impact of depreciation and amortization 12.9% 12.9% 9.2% *EBITDA margin (non-GAAP) ** (1)* 21.2% 22.6% 35.2% *Notes:* (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, depreciation, and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by operating revenue. (2) Operating income margin is calculated by dividing operating income by operating revenue. (3) Restructuring and other severance costs include costs associated with strategic organizational cost savings initiatives of $1 million and costs related to the termination of our former chief executive officer’s employment of $4 million. (4) Reorganization items represent charges that are directly associated with the process of reorganizing the business under Chapter 11 of the United States Bankruptcy Code. (5) Fresh start accounting items include adjustments for revenue and expense items that would have been otherwise amortized into the Company’s statement of operations but were written off at December 31, 2009 according to the rules of fresh start accounting. (6) Results include a $24 million general and administrative expense reduction related to the favorable non-recurring, non-cash resolution of state operating tax claims. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reconciliation from Reported (GAAP) to Adjusted (Non-GAAP)* *Year Ended December 31, 2009* (dollars in millions, except per share amounts) *Predecessor Company* * Adjustments* Year Ended 12/31/09 Stock-Based Compensation and Swap Adjustments(3) Restructuring

Costs (4) Benefit Charges (5) Reorganization Items (6) Year Ended 12/31/09 Unaudited *Reported*

*(GAAP)* *Adjusted *

*(Non-GAAP)* *Operating Revenue* $ 2,512 $ – $ – $ – $ – $ 2,512 *Operating Expense* Selling 677 – – – – 677 Cost of sales (exclusive of depreciation and amortization) 581 – – – – 581 General and administrative 445 (4) (25) (18) – 398 Depreciation and amortization 68 – – – – 68 *Total Operating Expense* 1,771 (4) (25) (18) – 1,724 *Operating Income* 741 4 25 18 – 788 Interest expense, net 145 2 – – – 147

*Income Before Reorganization Items and Provision for Income Taxes* 596 2 25 18 – 641 Reorganization items 8,035 – – – (8,035) -

*Income Before Provision for Income Taxes*

8,631 2 25 18 (8,035) 641 Provision for income taxes 374 1 8 6 (187) 202 *Net Income* $ 8,257 $ 1 $ 17 $ 12 $ (7,848) $ 439 *Basic and Diluted Earnings per Common Share* $ 56.32 $ 0.01 $ 0.12 $ 0.08 $ (53.53) $ 3.00 Operating Income $ 741 $ 4 $ 25 $ 18 $ – $ 788 Depreciation and Amortization 68 – – – – 68 *EBITDA (non-GAAP) **(1)* $ 809 $ 4 $ 25 $ 18 $ – $ 856 Operating income margin (2) 29.5% 31.4% Impact of depreciation and amortization 2.7% 2.7% *EBITDA margin (non-GAAP) **(1)* 32.2% 34.1% *Notes:* (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, reorganization items, depreciation and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by operating revenue. (2) Operating income margin is calculated by dividing operating income by operating revenue. (3) The stock-based compensation reflects costs associated with a one-time incentive compensation award granted to most of the Company’s employees in January 2007. The swap adjustments reflect the changes associated with the discontinuation of hedge accounting. (4) Restructuring costs are associated with strategic organizational cost savings initiatives. (5) Non-recurring true-up of long-term benefit plans. (5) Reorganization items represent charges that are directly associated with the process of reorganizing the business under Chapter 11 of the United States Bankruptcy Code. As required by U.S. GAAP, the Company adopted fresh start accounting effective December 31, 2009. This represents non-recurring reorganization items of $469 million, a pre-emergence gain of $6,035 million resulting from the discharge of liabilities and a gain of $2,469 million associated with fresh start accounting adjustments. *SuperMedia Inc.* *Consolidated Statements of Operations* *Reconciliation from Reported (GAAP) to Adjusted (Non-GAAP)* *Three Months Ended December 31, 2009* (dollars in millions, except per share amounts) *Predecessor Company* *Adjustments* 3 Mos. Ended 12/31/09 Restructuring Costs (3) Benefit Charges (4) Reorganization Items (5) 3 Mos. Ended 12/31/09 Unaudited *Reported*

*(GAAP)* *Adjusted *

*(Non-GAAP)* *Operating Revenue* $ 576 $ – $ – $ – $ 576 *Operating Expense* Selling 149 – – – 149 Cost of sales (exclusive of depreciation and amortization) 145 – – – 145 General and administrative 111 (6) (18) – 87 Depreciation and amortization 17 – – - 17 *Total Operating Expense* 422 (6) (18) – 398 *Operating Income* 154 6 18 – 178 Interest expense (income), net (3) – – – (3)

*Income Before Reorganization Items and Provision for Income Taxes* 157 6 18 – 181 Reorganization items 8,475 – – (8,475) – *Income Before Provision for Income Taxes*

8,632 6 18 (8,475) 181 Provision for income taxes 375 2 6 (350) 33 *Net Income* $ 8,257 $ 4 $ 12 $ (8,125) $ 148 *Basic and Diluted Earnings per Common Share* $ 56.32 $ 0.03 $ 0.08 $ (55.42) $ 1.01 Operating Income $ 154 $ 6 $ 18 $ – $ 178 Depreciation and Amortization 17 – – – 17 *EBITDA (non-GAAP) **(1)* $ 171 $ 6 $ 18 $ – $ 195 Operating Income margin (2) 26.7% 30.9% Impact of depreciation and amortization 3.0% 3.0% *EBITDA margin (non-GAAP) **(1)* 29.7% 33.9% *Notes:* (1) EBITDA is a non-GAAP measure that represents earnings before interest, taxes, reorganization items, depreciation and amortization. EBITDA margin is a non-GAAP measure calculated by dividing EBITDA by operating revenue. (2) Operating income margin is calculated by dividing operating income by operating revenue. (3) Restructuring costs are associated with strategic organizational cost savings initiatives. (4)Non-recurring true-up of long-term benefit plans. (5) Reorganization items represent charges that are directly associated with the process of reorganizing the business under Chapter 11 of the United States Bankruptcy Code. As required by U.S. GAAP, the Company adopted fresh start accounting effective December 31, 2009. This represents a charge for non-recurring reorganization items of $29 million, a pre-emergence gain of $6,035 million resulting from the discharge of liabilities and a gain of $2,469 million associated with fresh start accounting adjustments. *SuperMedia Inc.* *Consolidated Balance Sheets* *Reported (GAAP)* *As of December 31, 2010 and December 31, 2009* (dollars in millions) Unaudited 12/31/2010 12/31/2009 $ Change *Assets* Current assets: Cash and cash equivalents $ 174 $ 212 $ (38) Accounts receivable, net of allowances of $89 and $0 210 319 (109) Unbilled accounts receivable – 627 (627) Accrued taxes receivable – 132 (132) Deferred directory costs 199 24 175 Prepaid expenses and other 13 17 (4) Total current assets 596 1,331 (735) Property, plant and equipment 122 107 15 Less: accumulated depreciation 28 – 28 94 107 (13) Goodwill 1,707 1,707 – Intangible assets, net 481 614 (133) Pension assets 42 65 (23) Other non-current assets 6 10 (4) *Total Assets* $ 2,926 $ 3,834 $ (908) *Liabilities and Stockholders’ Equity (Deficit)* Current liabilities: Accounts payable and accrued liabilities $ 236 $ 232 $ 4 Deferred revenue 114 – 114 Deferred tax liabilities 2 218 (216) Other 17 19 (2) Total current liabilities 369 469 (100) Long-term debt 2,171 2,750 (579) Employee benefit obligations 355 325 30 Non-current deferred tax liabilities 22 55 (33) Unrecognized tax benefits 37 33 4 Other liabilities 2 2 – Stockholders’ equity (deficit):

Common stock ($.01 par value; 60 million shares authorized, 15,489,936 and 14,996,952 shares issued and outstanding in 2010 and 2009, respectively) – – – Additional paid-in capital 206 200 6 Retained earnings (deficit) (196) – (196) Accumulated other comprehensive (loss) (40) – (40) Total stockholders’ equity (deficit) (30) 200 (230) *Total Liabilities and Stockholders’ Equity (Deficit)* $ 2,926 $ 3,834 $ (908) *SuperMedia Inc.* *Consolidated Statements of Cash Flows* *Reported (GAAP) and Non-GAAP Financial Reconciliation – Free Cash Flow* *Year Ended December 31, 2010 Compared to Year Ended December 31, 2009* *Successor Company* *Predecessor Company* Unaudited Year Ended 12/31/10 Year Ended 12/31/09 $ Change *Cash Flows from Operating Activities* Net Income (Loss) $ (196) $ 8,257 $ (8,453) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Non-cash reorganization items – (8,072) 8,072 Gain on early extinguishment of debt (76) – (76) Depreciation and amortization expense 186 68 118 Employee retirement benefits 11 23 (12) Deferred income taxes (225) 323 (548) Provision for uncollectible accounts 61 228 (167) Stock-based compensation expense 6 12 (6) Changes in current assets and liabilities Accounts receivable and unbilled accounts receivable 675 (152) 827 Deferred directory costs (175) 43 (218) Other current assets 4 (132) 136 Accounts payable and accrued liabilities 244 (82) 326 Other, net (6) (80) 74 Net cash provided by operating activities 509 436 73 *Cash Flows from Investing Activities* Capital expenditures (including capitalized software) (45) (52) 7 Acquisitions – (3) 3 Proceeds from sale of assets 1 – 1 Net cash used in investing activities (44) (55) 11 *Cash Flows from Financing Activities* Repayment of long-term debt (500) (679) 179 Other, net (3) – (3) Net cash used in financing activities (503) (679) 176 *Increase in cash and cash equivalents* (38) (298) 260 *Cash and cash equivalents, beginning of year* 212 510 (298) *Cash and cash equivalents, end of year* $ 174 $ 212 $ (38) *Successor Company* *Predecessor Company* *Non-GAAP Financial Reconciliation – Free Cash Flow* Year Ended 12/31/10 Year Ended 12/31/09 $ Change Unaudited Net cash provided by operating activities $ 509 $ 436 $ 73 Less: Capital expenditures (including capitalized software) (45) (52) 7 *Free Cash Flow* $ 464 $ 384 $ 80 *SuperMedia Inc.* *Advertising Sales* (dollars in millions) *Successor Company* *Successor Company* *Predecessor Company* *Predecessor Company* 3 Mos. Ended 3 Mos. Ended 3 Mos. Ended Year Ended Year Ended Year Ended Unaudited 12/31/10 12/31/09 12/31/08 12/31/10 12/31/09 12/31/08 *Net Advertising Sales**(1)* $ 483 $ 569 $ 722 $ 1,842 $ 2,224 $ 2,739 *% Change year-over-year* (15.1%) (21.2%) (17.2%) (18.8%) *Notes:* (1) Net advertising sales is an operating measure used by the Company to compare advertising sales for current advertising periods to corresponding sales for previous periods. It is important to distinguish net advertising sales from operating revenue, which on our financial statements is recognized under the deferral and amortization method.

*A. H. Belo Corporation Reports Fourth Quarter and Full-Year 2010 Financial Results*

DALLAS, Feb 22, 2011 (BUSINESS WIRE) — A. H. Belo Corporation (NYSE: AHC) today reported fourth quarter and full-year 2010 total revenues of $130.8 million and $487.3 million, respectively. The Company recorded a pre-tax $132.3 million pension withdrawal charge in the fourth quarter, and posted a fourth quarter net loss of $5.65 per share. The Company’s full-year 2010 net loss was $5.92 per share.

When pension and impairment charges are added back to EBITDA (“Adjusted EBITDA”) in both periods, the resulting Adjusted EBITDA in the fourth quarter was $15.6 million, a decrease of $4.2 million compared to the prior year. Adjusted EBITDA for the full-year 2010 was $56.5 million, an increase of $23.8 million or 72.5 percent compared to the prior year.

Robert W. Decherd, chairman, president and Chief Executive Officer, said, “Our improved 2010 operating performance reflects the Company’s success in executing a content-first strategy of producing local news and information on a scale that other media cannot match. For 2011, the Company’s top three priorities are executing on revenue initiatives, remaining vigilant on expenses, and maximizing operating cash flow. Although the timing of real estate dispositions and potential proceeds are hard to predict, we are hopeful that results similar to 2010′s will be realized in 2011.”

As of December 31, 2010, A. H. Belo had approximately $86 million of cash and cash equivalents, had no borrowings outstanding under its bank credit facility, and remained in compliance with bank covenants. As the Company announced on January 3, 2011, the Company will make an additional $30 million contribution into the two new defined benefit pension plans created, sponsored and managed by or on behalf of the Company (the “AHC Pension Plans”). The Company anticipates making the additional cash contribution in the first quarter, and this contribution will reduce the Company’s cash and cash equivalents at the end of the quarter compared to the end of 2010.

*Fourth Quarter Results*

Total revenue was $130.8 million in the fourth quarter of 2010, a decrease of 3.4 percent compared to the prior year. Advertising revenue, including print and digital revenues, decreased 6.0 percent, with the smallest decrease at *The Dallas Morning News* followed by *The Press-Enterprise *and * The Providence Journal*. Display advertising revenue decreased 10.7 percent to $33.6 million, and preprint revenue increased 0.3 percent to $27.5 million. Classified revenue decreased 8.8 percent to $15.3 million. Digital revenue was $9.9 million, a decrease of 0.9 percent. Advertising revenue from niche publications, which is included in the display, preprint, classified and digital revenue figures above, increased 33.4 percent to $7.1 million as *Briefing, The Morning News’* free, home-delivered condensed print news product, increased advertising revenue 63.6 percent to $4.8 million. Circulation revenue decreased 3.4 percent to $35.1 million. Commercial printing, distribution and other revenue increased 28.0 percent to $9.5 million due primarily to increases in distribution and commercial printing revenues in Providence and Riverside.

Total consolidated operating expense in the fourth quarter was $259.8 million. Excluding the effect of pension and impairment expenses in both periods, operating expense in the fourth quarter was $123.6 million, a 1.6 percent decrease compared to the prior year. This decrease was primarily driven by lower technology, bad debt and property tax expenses.

The Company’s newsprint expense in the fourth quarter was $11.5 million, an increase of 26.7 percent compared to the prior year. Due to increased demand for commercial printing services and advertising in *Briefing *and* The Press-Enterprise*, newsprint consumption increased 6.2 percent to 18,684 metric tons. Newsprint cost per metric ton increased 19.3 percent. The average purchase price per metric ton for newsprint increased 21.2 percent.

Corporate and non-operating unit expenses in the fourth quarter, net of costs allocated to operating units, were $13.1 million, an increase of 0.8 percent compared to the prior year. Excluding the effect of pension and impairment expenses in both periods, corporate and non-operating unit expenses were $7.5 million, an 18.7 percent decrease, as salaries and wages, technology, computer and communication expenses all decreased.

In the fourth quarter of 2010, A. H. Belo and Belo Corp., pursuant to their Tax Matters Agreement, agreed that Belo Corp. would carry back A. H. Belo’s 2009 taxable net operating loss to a previous tax year, resulting in a net refund to the Company of $3.5 million. The Company expects to receive the refund in the first half of 2011.

The Company received a $3.1 million dividend from Classified Ventures, owner of Cars.com and Apartments.com, in the fourth quarter. Proceeds of $0.5 million were also received from the sale of excess land at the *Denton Record-Chronicle*.

*Full-Year Results*

Total revenue was $487.3 million in 2010, a decrease of 6.0 percent compared to the prior year. Advertising revenue, including print and digital revenues, decreased 11.9 percent, with the smallest decrease at *The Dallas Morning News* followed by *The Press-Enterprise *and* The Providence Journal *. Display advertising revenue decreased 15.4 percent to $119.7 million, and preprint revenue decreased 7.5 percent to $91.2 million. Classified revenue decreased 15.4 percent to $62.8 million. Digital revenue was $36.6 million, a decrease of 4.1 percent. Advertising revenue from niche publications, which is included in the display, preprint, classified and digital revenue figures above, increased 36.8 percent to $23.4 million due primarily to * Briefing*, which increased revenue 66.1 percent to $14.2 million. Circulation revenue increased 3.3 percent to $141.1 million as circulation pricing actions implemented in Dallas and Providence in 2009 continued to cycle through. Commercial printing, distribution and other revenue increased 22.0 percent to $35.9 million as existing and new commercial printing and distribution contracts came on line in Dallas, Providence and Riverside.

Total consolidated operating expense was $625.4 million in 2010. Excluding the effect of pension and impairment expenses in both periods, operating expense in 2010 was $476.0 million, a 10.2 percent decrease compared to the prior year. This decrease was primarily driven by lower salaries and wages, newsprint, technology and bad debt expenses.

In 2010, the Company’s newsprint expense was $39.4 million, a decrease of 15.6 percent compared to the prior year. Newsprint consumption decreased 7.4 percent to 69,255 metric tons. Newsprint cost per metric ton decreased 8.9 percent as decreases in the first half of the year more than offset increases in the second half of the year. The average purchase price per metric ton of newsprint increased of 3.6 percent.

Corporate and non-operating unit expenses in 2010, net of costs allocated to operating units, were $34.2 million, an increase of 0.7 percent compared to the prior year. Excluding the effect of pension and impairment expenses in both periods, corporate and non-operating unit expenses were $27.4 million, a 9.3 percent decrease, as salaries and wages, technology, and computer and communication expenses all decreased.

For the full-year 2010, the Company’s pre-tax cash proceeds from real estate dispositions totaled nearly $10 million.

As of December 31, 2010, A. H. Belo had approximately 2,200 full-time and 280 part-time employees.

*Pension and Impairment Charges*

On January 3, 2011, A. H. Belo and its former parent company, Belo Corp., announced they completed the split of The G. B. Dealey Retirement Pension Plan (“GBD Pension Plan”) into separately-sponsored plans as scheduled. A. H. Belo stated that as a result of the split, the Company would report a significant charge in the fourth quarter of 2010. The $132.3 million charge recorded in the fourth quarter represents A. H. Belo’s net unfunded pension liability for Company employees and retirees that the Company assumed from the GBD Pension Plan as of December 31, 2010. By June 30, 2011, A.H. Belo and Belo Corp. expect to complete a final assessment and reconciliation of the allocations made from the GBD Pension Plan to the AHC Pension Plans based upon final January 1, 2011 participant data.

Under the new AHC Pension Plans, the Company will account for future pension obligations in accordance with accounting guidance for single-employer defined benefit plans. The Company will record the funded or unfunded position of the AHC Pension Plans as an asset or liability each period and certain actuarial gains and losses will be recorded to other comprehensive income and amortized to earnings over future periods. The Company anticipates that required cash pension contributions will total approximately $25 million in 2011. The first quarter cash contribution will be approximately $8.7 million, and $3.4 million of this amount will come from A. H. Belo funds held on deposit by Belo Corp. for pension contributions. In the second, third and fourth quarters, the Company anticipates required cash contributions of approximately $5.4 million each quarter. With these required payments and the additional $30 million contribution to be made in the first quarter, the Company’s cash pension contributions will total approximately $55 million in 2011.

For tax purposes, the Company will deduct cash contributions to the AHC Pension Plans on its federal income tax returns.

Pension expense, which is different than cash contributions, is expected to be $2 million in 2011.

Fourth quarter results also include impairment charges totaling $2.5 million primarily related to investment write-offs.

*Non-GAAP Financial Measures*

Reconciliations of net loss to EBITDA and Adjusted EBITDA are included as exhibits to this release.

*Financial Results Conference Call*

A. H. Belo will conduct a conference call today at 1:30 p.m. CST to discuss financialresults. The conference call will be available via webcast by accessing the Company’s website (www.ahbelo.com/invest) or by dialing 1-800-401-8436 (USA) or 612-333-4911 (International). A replay line will be available at 800-475-6701 (USA) or 320-365-3844 (International) from 3:30 p.m. CST on February 22 until 11:59 p.m. CST on March 1, 2011. The access code for the replay is 189802.

*About A. H. Belo Corporation*

A. H. Belo Corporation (NYSE: AHC), headquartered in Dallas, Texas, is a distinguished newspaper publishing and local news and information company that owns and operates four daily newspapers and a diverse group of websites. A. H. Belo publishes *The Dallas Morning News*, Texas’ leading newspaper and winner of nine Pulitzer Prizes; *The Providence Journal*, the oldest continuously-published daily newspaper in the U.S. and winner of four Pulitzer Prizes; *The Press-Enterprise* (Riverside, CA), serving the Inland Southern California region and winner of one Pulitzer Prize; and the *Denton Record-Chronicle*. The Company publishes various niche publications targeting specific audiences, and its partnerships and/or investments include the Yahoo! Newspaper Consortium and Classified Ventures, owner of cars.com. A. H. Belo also owns and operates commercial printing, distribution and direct mail service businesses. Additional information is available at www.ahbelo.com or by contacting David A. Gross, vice president/Investor Relations and Strategic Analysis, at 214-977-4810.

*Statements in this communication concerning A. H. Belo Corporation’s (the “Company’s”) business outlook or future economic performance, anticipated profitability, revenues, expenses, dividends, capital expenditures, investments, impairments, pension plan contributions, real estate sales, future financings, and other financial and non-financial items that are not historical facts, are “forward-looking statements” as the term is defined under applicable federal securities laws. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those statements.*

*Such risks, uncertainties and factors include, but are not limited to, changes in capital market conditions and prospects, and other factors such as changes in advertising demand and newsprint prices; newspaper circulation trends and other circulation matters, including changes in readership methods, patterns and demography, and audits and related actions by the Audit Bureau of Circulations; challenges implementing increased subscription pricing and new pricing structures; challenges in achieving expense reduction goals, and on schedule, and the resulting potential effects on operations; technological changes; development of Internet commerce; industry cycles; changes in pricing or other actions by existing and new competitors and suppliers; labor relations; regulatory, tax and legal changes; adoption of new accounting standards or changes in existing accounting standards by the Financial Accounting Standards Board or other accounting standard-setting bodies or authorities; the effects of Company acquisitions,**dispositions, co-owned ventures, and investments; pension plan matters; general economic conditions and changes in interest rates; significant armed conflict; and other factors beyond our control, as well as other risks described in the**Company’s Annual Report on Form 10-K for the year ended December 31, 2009, and other public disclosures and filings with the Securities and Exchange Commission.*

*A. H. Belo Corporation* *Condensed Consolidated Statements of Operations*

A. H. Belo Corporation
Condensed Consolidated Statements of Operations
		Three months ended							Twelve months ended
		December 31,							December 31,
In thousands, except per share amounts		2010			2009				2010			2009
		(unaudited)			(unaudited)				(unaudited)
Net operating revenues
Advertising	$	86,237		$	91,731			$	310,309		$	352,368
Circulation		35,121			36,341				141,091			136,549
Printing and distribution		9,489			7,411				35,908			29,431
Total net operating revenues		130,847			135,483				487,308			518,348
Operating Costs and Expenses
Salaries, wages and employee benefits		50,604			48,318				212,998			214,600
Other production, distribution and operating costs		46,677			53,674				183,017			209,327
Newsprint, ink and other supplies		18,478			12,641				55,472			60,987
Depreciation		7,800			9,402				32,901			38,857
Amortization		1,310			1,625				5,239			6,499
Asset impairment		2,543			3,700				3,404			106,389
Pension plan withdrawal		132,346			-				132,346			-
Total operating costs and expenses		259,758			129,360				625,377			636,659
(Loss) income from operations		(128,911)			6,123				(138,069)			(118,311)
Other (expense) income
Interest expense		(203)			(580)				(808)			(1,382)
Other (expense) income, net		(729)			(1,037)				7,067			(677)
Total other (expense) income		(932)			(1,617)				6,259			(2,059)
Earnings
(Loss) earnings before income taxes		(129,843)			4,506				(131,810)			(120,370)
Income tax benefit		(10,336)			(1,143)				(7,575)			(12,475)
Net (loss) earnings	$	(119,507)		$	5,649			$	(124,235)		$	(107,895)
Net (loss) earnings per share
Basic and diluted	$	(5.65)		$	0.27				(5.92)		$	(5.25)
Average shares outstanding
Basic and diluted		21,164			20,598				20,992			20,548

A. H. Belo Corporation
Condensed Consolidated Balance Sheets
		December 31,			December 31,
In thousands		2010			2009
		(unaudited)
Assets
Current assets
Cash and cash equivalents	$	86,291		$	24,503
Accounts receivable, net		56,793			62,977
Other current assets		32,593			34,464
Total current assets		175,677			121,944
Property, plant and equipment, net		176,676			203,329
Intangible assets, net		46,771			52,009
Other assets		21,516			27,145
Total assets	$	420,640		$	404,427
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	29,159		$	19,191
Pension liabilities		54,833			-
Accrued expenses		27,448			29,788
Advance subscription payments		23,057			26,713
Total current liabilities		134,497			75,692
Pension liabilities		77,513			223
Deferred income taxes		591			-
Other liabilities		8,166			6,915
Total shareholders’ equity		199,873			321,597
Total liabilities and shareholders’ equity	$	420,640		$	404,427

A. H. Belo Corporation
Reconciliation of Net Income to EBITDA and Adjusted EBITDA
	Three months ended										Twelve months ended
	December 31,										December 31,
In thousands (unaudited)		2010				2009					2010				2009
AS REPORTED
Net Income/(Loss)	$	(119,507	)		$	5,649				$	(124,235	)		$	(107,895	)
Addback/(Subtract):
Depreciation and amortization		9,110				11,027					38,140				45,356
Interest expense		203				580					808				1,382
Income tax benefit		(10,336	)			(1,143	)				(7,575	)			(12,475	)
EBITDA (1)		(120,530	)			16,113					(92,862	)			(73,632	)
Addback/(Subtract):
Pension expense		133,578				-					145,985				7
Impairments		2,543				3,700					3,404				106,389
Adjusted EBITDA (1)	$	15,591			$	19,813				$	56,527			$	32,764

(1)EBITDA is calculated by adding depreciation and amortization, interest expense and income tax expense recorded to net income (loss). Adjusted EBITDA is calculated by adding pension expense and impairment expense recorded to EBITDA. Neither EBITDA nor Adjusted EBITDA is a measure of financial performance under generally accepted accounting principles (“GAAP”). Management uses EBITDA, Adjusted EBITDA and similar measures in internal analyses as a supplemental measure of the Company’s financial performance and to assist with determining bonus achievement, performance comparisons against its peer group of companies, as well as capital spending and other investing decisions. EBITDA or similar measures are also common alternative measures of performance used by investors, financial analysts and rating agencies to evaluate financial performance. Neither EBITDA nor Adjusted EBITDA should be considered in isolation or as a substitute for cash flows provided by operating activities or other income or cash flow data prepared in accordance with GAAP, and these non-GAAP measures may not be comparable to similarly-titled measures of other companies.

SOURCE: A. H. Belo Corporation