*The New York Times Company Reports 2011 Fourth-Quarter and Full-Year Results*

NEW YORK–(BUSINESS WIRE)–Feb. 2, 2012– The New York Times Company (NYSE: NYT) announced today 2011 fourth-quarter diluted earnings per share from continuing operations of $.39 compared with $.44 in the same period of 2010. Excluding severance and the special items discussed below, diluted earnings per share from continuing operations were $.45 in the fourth quarter of 2011 compared with $.46 in the fourth quarter of 2010.

The Company had an operating profit of $106.7 million in the fourth quarter of 2011 compared with $111.6 million in the same period of 2010. Excluding depreciation, amortization, severance and the special items discussed below, operating profit increased 3.1 percent to $151.0 million from $146.4 million in the fourth quarter of 2010.

“In 2011 we made significant strides in our strategy to transform and rebalance our Company,” said Arthur Sulzberger, Jr., chairman and chief executive officer, The New York Times Company. “Our fourth-quarter results demonstrate the continued focus on building The Times’s digital subscription base and developing a new robust consumer revenue stream, while maintaining its significant digital advertising business.

“In the second half of the year, our digital initiatives also included the launch of the new pay site, BostonGlobe.com, and digital subscription packages at the International Herald Tribune. As of quarter end, paid subscribers to all of the Company’s digital subscription packages, e-readers and replica editions totaled about 406,000.

“While the economic environment remained challenging during the fourth quarter, the News Media Group saw print advertising trends improve modestly from third-quarter levels. In the fourth quarter, circulation revenues rose 5 percent for the total News Media Group and 8 percent at The New York Times Media Group led by growth in digital subscribers to NYTimes.com.

“The About Group’s fourth-quarter performance continued to reflect the competitive and cyclical challenges that it faced through much of 2011. The Group has made progress in its efforts to grow its content and traffic and to roll out its new display advertising sales plan.

“Operating costs declined 4 percent as we remained diligent in managing our expenses even while we have invested in our digital operations and high-quality news and information across the Company.

“We continued to manage our asset portfolio to maintain its alignment with our strategic initiatives, resulting in the sale of ourRegional Media Group in early January 2012. This sale enables us to continue our transformation to a multiplatform media company and our pursuit of a strategy that focuses on the development and diversification of our brands on a global scale. We have also entered into agreements to sell 100 of our remaining units in Fenway Sports Group for an aggregate purchase price of $30 million, subject to receipt of approvals from Major League Baseball.

“Looking ahead, we remain committed to maximizing shareholder value through the disciplined implementation of our digital strategy and our ongoing efforts to become an even more agile and competitive organization. These efforts include looking for new innovative approaches to expand our reach on new devices, in new markets and through social media.”

*Comparisons*

Unless otherwise noted all comparisons are for the fourth quarter of 2011 to the fourth quarter of 2010. This release includes non-GAAP financial measures, a discussion of management’s reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures.

The fourth-quarter 2011 results included the following special items:

· A $4.5 million ($2.6 million after tax or $.02 per share) charge for a retirement and consulting agreement in connection with the retirement of the Company’s chief executive officer at the end of 2011.

· A $3.1 million ($1.9 million after tax or $.01 per share) non-cash charge for a write-down of an intangible asset atConsumerSearch, Inc., which is part of the About Group.

There were no special items in the fourth quarter of 2010.

In addition to these special items, the Company had $7.9 million ($4.7 million after tax or $.03 per share) in severance costs in the fourth quarter of 2011 compared with $4.7 million ($2.8 million after tax or $.02 per share) in the fourth quarter of 2010.

*Sale of Regional Media Group*

On January 6, 2012, the Company completed the sale of its Regional Media Group, consisting of 16 regional newspapers, other print publications and related businesses, for $143 million in cash, subject to certain adjustments. It will record an after-tax gain estimated to be approximately $32 million on the sale in the first quarter of 2012. The Company estimates the net after-tax proceeds from the sale, including a tax benefit, will be approximately $150 million, which it intends to use for general corporate purposes. The results of the Regional Media Group for each quarter and annual period of 2011 and 2010 continue to be included in the News Media Group reportable segment and are summarized in the exhibits to this release. Beginning in 2012, the Regional Media Group will be reported as a discontinued operation.

*Fourth-Quarter Results from Continuing Operations*

*Revenues*

Total revenues decreased 2.8 percent to $643.0 million from $661.7 million. Advertising revenues decreased 7.1 percent, circulation revenues increased 4.7 percent and other revenues decreased 5.1 percent.

Print advertising revenues decreased 7.8 percent. Digital advertising revenues decreased 4.9 percent as higher revenues at theNews Media Group were more than offset by declines at the About Group. Circulation revenues rose as the addition of digital subscription offerings at The Times offset a decline in print copies sold across the News Media Group.

*Operating Costs*

Operating costs decreased 3.9 percent to $528.7 million from $550.0 million. Depreciation and amortization decreased to $28.9 million from $30.1 million.

Excluding depreciation, amortization and severance, operating costs decreased 4.5 percent to $491.9 million from $515.2 millionmainly due to lower variable compensation costs and newsprint expense.

Newsprint expense decreased 6 percent primarily due to lower consumption.

*Fourth-Quarter Business Segment Results*

* *

*News Media Group*

Total News Media Group revenues decreased 1.5 percent to $616.8 million from $626.5 million. Advertising revenues declined 5.3 percent, circulation revenues increased 4.7 percent and other revenues decreased 4.0 percent.

Digital advertising revenues increased 5.3 percent but only partially offset a 7.8 percent decrease in print advertising revenues. Circulation revenues rose as the addition of digital subscription offerings at The Times offset a decline in print copies sold across the News Media Group. In addition, the rate of home-delivery circulation declines moderated at The Times due to an increase in new orders and improved retention following the launch of its digital subscriptions.

Operating costs decreased 3.1 percent to $500.1 million from $516.1 million. Excluding depreciation, amortization and severance, operating costs decreased 3.9 percent to $465.7 million from $484.5 million mainly due to lower variable compensation costs and newsprint expense.

Operating profit increased 5.9 percent to $116.8 million compared with $110.3 million. Excluding depreciation, amortization and severance, operating profit increased 6.5 percent to $151.2 million from $141.9 million due to lower costs.

*About Group*

About Group revenues decreased 25.9 percent to $26.1 million from $35.2 million mainly due to declines in both cost-per-click and display advertising. The declines in cost-per-click advertising were primarily due to lower click-through rates and cost-per-click advertising rates.

About Group operating costs decreased 6.9 percent to $17.7 million from $19.1 million. Excluding depreciation, amortization and severance, operating costs decreased 4.6 percent to $15.4 million from $16.1 million mainly because of lower marketing expenses and compensation costs.

Operating profit decreased 67.4 percent to $5.3 million from $16.2 million. Excluding depreciation, amortization, severance and a special item, operating profit decreased 43.8 percent to $10.7 million from $19.1 million, due to lower advertising revenues.

*Corporate*

Corporate operating costs decreased 26.6 percent to $10.9 million from $14.9 million primarily due to lower variable compensation costs.

*Other Financial Data*

*Digital*

Digital businesses include NYTimes.com, BostonGlobe.com, Boston.com, About.com, other Company Web sites and related digital products. In the fourth quarter of 2011, total digital advertising revenues decreased 4.9 percent to $95.7 million from$100.6 million due primarily to declines in cost-per-click and display advertising at the About Group. Digital advertising revenues at the News Media Group increased 5.3 percent to $71.1 million from $67.5 million due to growth in national and retail display advertising. Digital advertising revenues as a percentage of total Company advertising revenues were 26.7 percent for the fourth quarter of 2011 compared with 26.1 percent in the fourth quarter of 2010.

For 2011, the Company’s total digital advertising revenues decreased 0.8 percent to $338.7 million from $341.4 million due primarily to declines in cost-per-click and display advertising at the About Group. Digital advertising revenues at the News Media Group increased 10.0 percent to $233.5 million from $212.2 million. Digital advertising revenues as a percentage of total Company advertising revenues were 27.7 percent in 2011 compared with 26.3 percent in 2010.

Paid digital subscribers to digital subscription packages, e-readers and replica editions of The Times and the International Herald Tribune totaled approximately 390,000 as of the end of the fourth quarter of 2011, an increase of approximately 20 percent since the end of the third quarter of 2011. Paid digital subscribers to BostonGlobe.com and The Boston Globe’s e-readers and replica editions totaled approximately 16,000 as of the end of the fourth quarter of 2011.

*Joint Ventures*

Income from joint ventures was $4.1 million in the fourth quarter of 2011 compared with a loss from joint ventures of $3.2 millionin the fourth quarter of 2010. The improved joint venture results in the fourth quarter of 2011 were driven by the Company’s investments in Fenway Sports Group and paper mills.

*Interest Expense, net*

Interest expense, net decreased to $15.5 million from $23.2 million mainly due to the prepayment of the Company’s $250 million14.053 percent senior notes in August 2011 offset in part by the interest expense for its $225 million 6.625 percent senior notes issued in November 2010.

*Income Taxes*

The Company had an effective tax rate of 38.2 percent in the fourth quarter of 2011. Income tax expense was reduced by approximately $8 million in the fourth quarter of 2011 for the reversal of reserves for uncertain tax positions primarily due to the lapse of applicable statutes of limitations. The Company’s effective tax rate for the 2011 full year is not meaningful because a portion of the non-cash charge in the second quarter of 2011 for the write-down of the Regional Media Group’s goodwill was non-deductible.

The Company had an effective tax rate of 21.2 percent in the fourth quarter and 38.7 percent for the full year of 2010. In the fourth quarter of 2010, income tax expense was reduced by approximately $19 million for the reversal of reserves for uncertain tax positions due to the closing of tax audits and the lapse of applicable statutes of limitations. The effective tax rate for the 2010 full year was unfavorably affected by a tax charge of approximately $11 million for the reduction in future tax benefits for retiree health benefits resulting from the federal health care legislation enacted in 2010.

*Capital Expenditures*

Capital expenditures totaled approximately $12 million in the fourth quarter and approximately $45 million for the full year.

*Pension Obligations*

The Company made contributions of approximately $80 million in the fourth quarter and approximately $151 million for the full year to certain qualified pension plans. The majority of these contributions were discretionary. The Company will make mandatory contributions, primarily for contractual contributions in connection with The New York Times Newspaper Guild pension plan, of approximately $44 million in 2012. The Company may make discretionary contributions in 2012 to its Company-sponsored qualified pension plans based on cash flows, pension asset performance, interest rates and other factors.

For accounting purposes on a GAAP basis, based on preliminary results, the underfunded status of the Company’s qualified pension plans as of December 25, 2011, was approximately $525 million. The funded status of the Company’s qualified pension plans was negatively affected primarily by the decline in interest rates.

*Outlook*

Total advertising revenue trends in the first quarter of 2012 are expected to be similar to the level experienced in the fourth quarter of 2011.

Total circulation revenues are projected to increase in the high-single digits in the first quarter of 2012 as the Company expects to benefit from its digital subscription initiatives, as well as from the print circulation price increase at The New York Times implemented in the first quarter of 2012.

The Company expects operating costs to increase in the low-single digits in the first quarter of 2012.

In addition, the Company expects the following on a pre-tax basis in 2012:

· Results from joint ventures: $8 to $10 million,

· Depreciation and amortization: $105 to $110 million,

· Interest expense, net: $60 to $65 million, and

· Capital expenditures: $50 to $60 million.

*The complete press release can be downloaded from www.nytco.com.*