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Press Release

EPS, before special items, is $.46, up 92 percent from 2001 adjusted results

Consolidated EBITDA up 45 percent from 2001 adjusted results

CHICAGO, October 17, 2002 -- Tribune Company (NYSE: TRB) today reported third quarter diluted earnings per share (EPS) of $.46, before non-operating items in 2001 and 2002 and restructuring charges in 2001, compared with $.24 per share (adjusted for intangible amortization) in the 2001 third quarter. Including non-operating items in both years and restructuring charges in 2001, diluted EPS was $.71 in the third quarter of 2002 compared with an adjusted $.31 loss and a reported $.49 loss in 2001.

"Overall, Tribune will deliver more than $1.45 billion in EBITDA this year, and free cash flow of about $650 million -- despite the difficult economic environment," said John Madigan, Tribune chairman and chief executive officer. "We’ve used that free cash flow to significantly reduce our debt and make capital investments necessary to sustain long-term growth."

Dennis FitzSimons, Tribune president and chief operating officer, added, "This year’s third quarter results are continued proof of the strength and resilience of our media businesses and the people who run them. We are making steady progress in recovering from the severe downturn in advertising, and EBITDA margins have improved significantly, due in large part to our continued focus on costs."

THIRD QUARTER RESULTS

The following discussion compares 2002 actual results with adjusted 2001 results. For a more meaningful comparison with 2002 results, the 2001 adjusted results eliminate the amortization of goodwill and certain other intangible assets. The following discussion also excludes restructuring charges and non-operating items. Comparisons with third quarter 2001 adjusted results as well as 2001 actual results are presented in the tables accompanying this release; full year 2001 adjusted tables are available at tribune.com.

CONSOLIDATED

Tribune’s 2002 third quarter operating revenues increased 5 percent to $1.34 billion from
$1.28 billion in the 2001 third quarter. Consolidated cash operating expenses were down
5 percent in the third quarter. EBITDA (earnings before interest, taxes, depreciation, amortization and equity results) was up 45 percent to $378 million, compared with $260 million in the third quarter of 2001. Tribune’s operating profit increased 56 percent to $322 million, compared with $207 million last year.

PUBLISHING

Publishing’s third quarter revenues were $927 million, up 2 percent from last year’s third quarter. Publishing EBITDA was $238 million, up 43 percent from $166 million in 2001, while cash operating expenses were down 7 percent. Publishing operating profit increased 53 percent to $196 million, up from $128 million last year.

Management Discussion

• In the third quarter 2002, publishing EBITDA margin was 26 percent, up
  7 percentage points from third quarter 2001 due primarily to lower costs. EBITDA margins improved in the top three markets with Los Angeles up 11 percentage points, New York up 9 percentage points and Chicago up 6 percentage points.
• Retail advertising was up 7 percent year-over-year. Excluding the recently acquired Chicago magazine, retail advertising revenues increased 6 percent. Preprints, the primary driver of retail advertising growth in the quarter, increased 15 percent with all markets showing increases. In Chicago and Los Angeles, where significant preprint facility projects are nearing completion, preprint revenue was up 17 percent and 20 percent, respectively.
• National was up 5 percent year-over-year. Increases in hi-tech, especially wireless, and entertainment categories were partially offset by a decrease in the financial category.
• Classified was down 3 percent year-over-year. Help wanted revenue for the group was down 20 percent; Chicago fell 29 percent; Los Angeles was off 22 percent; and New York was down 10 percent. Auto advertising increased 10 percent year-over-year; real estate was up 5 percent.
• Cash operating expenses were 7 percent below third quarter 2001. Excluding newsprint, cash operating expenses were down 3 percent. Newsprint and ink expense was 26 percent below 2001 as newsprint cost per ton was down 25 percent and consumption decreased 4 percent. Compensation expense was 3 percent lower due to the voluntary retirement program initiated in 2001, outsourcing of certain circulation operations in Los Angeles and other reductions in workforce.

BROADCASTING AND ENTERTAINMENT

Broadcasting and Entertainment’s third quarter revenues increased 11 percent to
$394 million, up from $354 million in 2001. EBITDA was $148 million, up 39 percent from $107 million in 2001. Broadcasting and Entertainment operating profit increased
44 percent to $137 million from $95 million last year.

Television’s third quarter revenues increased 13 percent to $310 million, up from
$274 million in 2001. Television cash operating expenses were even with last year. Television EBITDA increased 37 percent to $132 million from $97 million last year.

In Radio/Entertainment, revenues increased 5 percent to $84 million and EBITDA increased $6 million, due to five more Cubs home games in the third quarter of 2002.

Management Discussion

• In the third quarter 2002, television EBITDA margin was 43 percent, an increase of 7 percentage points from third quarter 2001.
• Television advertising revenues, excluding acquisitions, increased 18 percent in the quarter, and 36 percent in September.
• Television cash operating expenses, excluding acquisitions, were down 1 percent compared with last year. Programming costs, excluding acquisitions, were up
• 2 percent as the lack of Dodger’s baseball rights fees only partially offset the increases related to the fall 2001 launch of “Everybody Loves Raymond.”
• Other television cash expenses, excluding acquisitions, were down 4 percent compared with last year, with compensation up 2 percent.
• The WB 2002 fall season is off to a strong start. “Everwood,” the breakout hit of the new season, scored record ratings in its fourth week. The returning hits “7th Heaven,” “Gilmore Girls,” “Smallville” and “Charmed” have all scored significant rating gains compared with a year ago.

INTERACTIVE

Interactive’s third quarter revenues increased 32 percent to $20 million, up from
$15 million in 2001. Interactive EBITDA was $4.9 million, compared with a loss of
$4.1 million in 2001. Interactive operating profit increased to $3.5 million from a loss of $5.4 million last year.

Management Discussion

• Third quarter revenue growth was due primarily to higher classified revenues: recruitment was up 31 percent, auto rose 30 percent and real estate increased 37 percent.
• Cash operating expenses were down 22 percent due to lower compensation and promotion costs.
• Interactive was cash flow positive in the third quarter due largely to higher revenues and cost control initiatives.

EQUITY RESULTS

Equity losses for the 2002 third quarter were $28 million, up from $10 million in 2001. The losses primarily reflect Tribune’s ownership interests in The WB Network, CareerBuilder, BrassRing and Classified Ventures and represent Tribune’s portion of their operating losses. The higher losses reflect a one-time charge for Tribune’s $18 million share of CareerBuilder’s tax liability resulting from its conversion to a Limited Liability Corporation in September 2002. However, this conversion from a standard
"C Corporation" will generate significant tax savings in the future.

On Oct. 2, 2002, Tribune and Knight Ridder sold a one-third interest in CareerBuilder to Gannett, making it an equal owner. The addition of more than 90 Gannett newspapers strengthens CareerBuilder’s position as the most powerful integrated job solution in the United States. In print, CareerBuilder will now deliver local help wanted ads to a combined Sunday circulation of 15 million through more than 130 newspapers. Online, CareerBuilder will be exposed to nearly 26 million monthly unique visitors through the Gannett, Knight Ridder and Tribune newspaper Web sites, and through USATODAY.com and CareerBuilder.com, according to August 2002 Nielsen//NetRatings.

INTEREST AND TAXES

Net interest expense for the 2002 third quarter decreased to $50 million, down 18 percent from $61 million in 2001. The decrease was due to a reduction in outstanding debt and lower interest rates. Debt at the end of the third quarter, excluding the PHONES, was approximately $2.9 billion and is expected to continue to decline to about $2.8 billion by the end of 2002. Debt at the end of 2001, excluding the PHONES, was $3.4 billion.

The effective tax rate in the 2002 third quarter was 36.5 percent, compared with a rate of 39.4 percent in the third quarter of 2001 and 39 percent in the first half of 2002. The effective tax rate in the third quarter of 2002 was lower due to a one-time credit of $6 million resulting from the favorable resolution of certain state income tax issues.

NON-OPERATING ITEMS

In the 2002 third quarter, Tribune recorded a pre-tax gain on derivatives and related investments of $22 million primarily from marking-to-market the company’s PHONES derivatives and related AOL Time Warner investment. Tribune also recorded a gain on sales of subsidiaries and investments of $103 million ($63 million after-tax) related primarily to the divestiture of two Denver radio stations, KOSI-FM and KEZW-AM, which were exchanged for the assets of two television stations, WTTV-TV, Indianapolis, and its satellite station WTTK-TV, Kokomo, Indiana.

CAPITAL EXPENDITURES

Capital expenditures in the third quarter were approximately $38 million. Two significant preprint facility projects in Los Angeles and Chicago as well as digital TV upgrades are nearing completion. Capital expenditures should be approximately $200 million for the full year.

OUTLOOK

Diluted EPS for the fourth quarter and the full year 2002 are expected to be within the current range of analyst estimates, which are $.46 to $.56 and $1.65 to $1.80, respectively.

WEBCAST OF CONFERENCE CALL

Today at 8 a.m. (CDT), a live Webcast of the 2002 third quarter conference call will be accessible through www.tribune.com and www.ccbn.com. An archive of the Webcast will be available on these sites from Oct. 17 through Nov. 7. More information about Tribune is available at www.tribune.com or by calling 800/757-1694.

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TRIBUNE (NYSE: TRB) is one of the country’s premier media companies, operating businesses in broadcasting, publishing and on the Internet. It reaches more than 80 percent of U.S. households, and is the only media company with television stations, newspapers and Web sites in the nation’s top three markets. Tribune media outlets span 24 television stations including national “superstation” WGN-TV; 12 market-leading daily newspapers such as the Los Angeles Times, Chicago Tribune and Newsday; and news and information Web sites in 18 of the nation’s top 30 markets.

This press release contains certain comments or forward-looking statements that are based largely on the company’s current expectations and are subject to certain risks, trends and uncertainties. Such comments and statements should be understood in the context of Tribune’s publicly available reports filed with the SEC, including the most current annual report, 10-K and 10-Q, which contain a discussion of various factors that may affect the company’s business. These factors could cause actual future performance to differ materially from current expectations. Tribune Company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet service providers.