Pulitzer Inc. Announces Changes From Results Presented In Its October 27, 2003 Earnings Release to Present Third-Quarter Earning

Pulitzer Inc. Announces Changes From Results Presented In Its October 27, 2003
Earnings Release to Present Third-Quarter Earnings in Compliance with FASB Staff
Position No. 150-3 


ST. LOUIS, Nov. 11  /PRNewswire-FirstCall/ -- On October 27, 2003, Pulitzer Inc.
 ("Pulitzer" or the "Company") released its results for the third quarter and
first nine months of 2003, which included the adoption of SFAS No. 150,
Accounting for Certain Financial Instruments with Characteristics of both
Liabilities and Equity ("SFAS No. 150").  On November 7, 2003, the FASB issued
Staff Position No. 150-3 that requires the indefinite deferral of certain
provisions of SFAS No. 150 related to mandatorily redeemable non-controlling
interests.  In order to comply with the changed FASB position, Pulitzer must now
reissue its results solely to remove those items associated with the previous
adoption of SFAS No. 150.  There have been no other changes in the Company's
determination of its operating results, financial position, cash flows or
prospects.

  GAAP RESULTS

  Previous Recognition of SFAS No. 150


As more fully discussed in the footnotes of this press release, SFAS No. 150
required the Company to recognize a liability associated with the liquidation of
the capital accounts of The Herald Company, Inc. ("Herald"), reflecting Herald's
minority interest in two of the Company's subsidiaries, St. Louis Post-Dispatch
LLC and STL Distribution Services LLC.  FASB Staff Position No. 150-3
indefinitely defers implementation of these provisions.

Current Results

As now determined, third-quarter 2003 net income was $9.4 million, or $0.43 per
diluted share.  Net income for the first nine months of 2003 was $27.9 million,
or $1.29 per diluted share.  Net income for the third quarter and first nine
months of 2002 were $8.7 million, or $0.40 per diluted share, and $22.5 million,
or $1.05 per diluted share, respectively.

Reconciliation of Net Income (Loss) from October 27 Press Release to this Press
Release

The following table presents a reconciliation of the third-quarter and
first-nine-month results for 2003 as they appeared in the October 27 release
(which reflected the adoption of SFAS No. 150), to those that Pulitzer will
incorporate in its consolidated financial statements to be filed with the
Securities and Exchange Commission for the third-quarter and first-nine-month
periods of 2003 (after removing the impact of SFAS No. 150).

                                Third Quarter      First Nine Months
                             Sept. 28, Sept. 29,  Sept. 28, Sept. 29,
                                2003      2002       2003      2002
  (in thousands)

  Net income (loss) after
   cumulative effect of a
   change in accounting
   principle, net of tax,
   in the October 27 press
   release (reflects the
   adoption of SFAS No. 150) $(16,616)   $8,872    $ 1,867   $22,468
  Remove provisions of
   SFAS No. 150 (net of tax):
    Remove cumulative effect
     of a change in
     accounting principle      26,940         0     26,940         0
    Remove interest credit
     recognized under the
     provisions of SFAS No. 150  (562)        0       (562)        0
    Include minority interest
     in net earnings of
     subsidiaries (1)            (382)        0       (382)        0
  Subtotal - effect of removing
   provisions of SFAS No. 150
   (net of tax)                25,996         0     25,996         0

  Net income reported in this
   press release (reflects
   the deferral of SFAS
   No. 150) (2)              $  9,380    $8,872    $27,863   $22,468



(1) As a result of removing the interest credit recognized under the provisions
of SFAS No. 150, interest expense, net of interest income, for the third quarter
and first nine months of 2003 increased to $4.0 million and $12.9 million,
respectively, compared to $3.4 million and $12.2 million in the respective 2002
periods.  The increase in the 2003 third quarter and first nine month periods
was due, principally, to the absence, in 2003, of capitalized interest present
in 2002 and lower yields on invested funds. These expense increases were
partially offset by savings from the Company's interest rate swaps.

(2) Earnings per diluted share are $0.43 and $1.29 for the third quarter and
first nine months of 2003, compared to $(0.77) and $0.09 for the third quarter
and first nine months of 2003 as reported in the October 27, 2003 press
release.

BASE EARNINGS (See Notes)

Third-quarter 2003 base earnings per diluted share were $0.44, compared with a
similarly determined $0.46 per diluted share for the third quarter of 2002. 
Base earnings per diluted share for the first nine months of 2003 were $1.33,
compared with $1.27 for the first nine months of 2002.

Reconciliation of GAAP Earnings per Diluted Share to Base Earnings per Diluted
Share and Reconciliation of Base Earnings (Loss) per Diluted Share from the
October 27 Press Release to this Press Release (See Notes)

The following table presents a reconciliation of the third quarter and first
nine-month base results for 2003 as they appeared in the October 27 release,
which reflected the adoption of SFAS No. 150, to those that Pulitzer now reports
after removing the impact of the adoption of SFAS No. 150.

                                Third Quarter      First Nine Months
                             Sept. 28, Sept. 29,  Sept. 28, Sept. 29,
                                2003      2002       2003      2002

  Base earnings (loss) per
   diluted share after
   cumulative effect of a
   change in accounting
   principle, in the
   October 27 press release
   (reflects the adoption of
   SFAS No. 150)               $(0.77)    $0.40      $0.09     $1.05

  Remove provisions of
  SFAS No. 150:
   Remove cumulative effect of
    a change in accounting
    principle                    1.25      0.00       1.25      0.00
   Remove interest credit
    recognized under the
    provisions of SFAS No. 150  (0.03)     0.00      (0.03)     0.00
   Include minority interest
    in net earnings of
    subsidiaries                (0.02)     0.00      (0.02)     0.00
  Subtotal -- effect of
   removing provisions
   of SFAS No. 150               1.20      0.00       1.20      0.00
  GAAP earnings per diluted
   share                         0.43      0.40       1.29      1.05
  Losses from certain
   non-operating investments     0.01      0.06       0.04      0.21
  Employment termination
   inducements                   0.00      0.00       0.00      0.01
  Base earnings per diluted
   share in this press release
   (reflects the deferral of
   SFAS No. 150)                $0.44     $0.46      $1.33     $1.27

  Base Earnings Forecast for 2003 (See Notes)


The Company reaffirms its guidance for full-year 2003 base earnings per diluted
share, initially presented in December 2002, of at least $1.95.  This forecast
differs from the guidance presented in the Company's October 27 release of at
least $2.00 per diluted share only by adjusting for the elimination of SFAS No.
150.  The Company's current forecast for full-year 2003 base earnings per
diluted share of at least $1.95 does not reflect any change in its underlying
operations.  However, and as stated in the October 27 press release, continued
weakness from recruitment, automotive and major retail advertisers, and the
fourth-quarter ramp-up in costs associated with implementing the upcoming
purchase of the St. Louis distribution businesses make achieving this level of
base earnings more challenging than originally anticipated.  Further, the
grocery store strike in St. Louis, which was having a negative impact on Sunday
single copy sales of the St. Louis Post-Dispatch, has recently been settled.

Reconciliation of Forecast for 2003 Full Year Base Earnings per Diluted Share
and 2002 Base Earnings per Diluted Share from the October 27 Press Release to
this Press Release (See Notes)

The following table presents a reconciliation of the 2003 forecast for full-year
base earnings per diluted share and the 2002 presentation of base earnings per
diluted share as they appeared in the October 27 press release to those Pulitzer
now presents:

                                                        Full-year
                                                     forecast/results
                                                     2003        2002
  BASE EARNINGS PER DILUTED SHARE

  Forecast or reported in the
   October 27 press release                At least  $2.00       $1.93
  Recognize minority interest in net
   earnings of subsidiaries (eliminated
   in accordance with SFAS No. 150, now
   included in GAAP and Base Earnings)               (0.05)      (0.05)
  Base earnings forecast and results       At least  $1.95       $1.88



Other than removing the impact of the adoption of SFAS No. 150, there are no
changes to the Company's 2003 full-year base earnings forecast from those
described in our October 27 press release.

Pulitzer Inc., through various subsidiaries and affiliated entities, is engaged
in newspaper publishing and related new media activities.  The Company's
newspaper operations include two major metropolitan dailies, the St. Louis
Post-Dispatch and the Arizona Daily Star in Tucson, Arizona, and 12 other
dailies: The Pantagraph, Bloomington, Ill.; The Daily Herald, Provo, Utah; the
Santa Maria Times, Santa Maria, Calif.; The Napa Valley Register, Napa, Calif.;
The World, Coos Bay, Ore.; The Sentinel, Hanford, Calif.; the Arizona Daily Sun,
Flagstaff, Ariz.; the Daily Chronicle, DeKalb, Ill.; The Garden Island, Lihue,
Hawaii; the Daily Journal, Park Hills, Mo.; The Lompoc Record, Lompoc, Calif.;
and The Daily News, Rhinelander, Wisc.  The Company's newspaper operations also
include the Suburban Journals of Greater St. Louis, a group of 37 weekly papers
and various niche publications.

The Company's new media and interactive initiatives include STLtoday.com in St.
Louis, azstarnet.com in Tucson, and Web sites for all of its other dailies. 
Pulitzer Inc. is the successor to the company originally founded by Joseph
Pulitzer in St. Louis in 1878.  For further information, visit our Web site at
http://www.pulitzerinc.com/.

NOTES:

The Company's calculation of "Base Earnings" and "Base Earnings per Diluted
Share," including guidance contained herein for full-year 2003 base earnings per
diluted share, exclude gains and losses related to certain non- operating
investments that are not a strategic component of the Company's capital
structure or operating plans (principally, investments in new media companies
and partnerships making similar investments), and employment termination
inducements associated with positions that will not be staffed. Gains or losses
on the sale of marketable securities reflect activity in a strategic component
of the Company's capital structure and are, therefore, included in the
determination of "Base Earnings," and "Base Earnings per Diluted Share."  "Base
Earnings per Diluted Share," calculated on this basis, would have increased to
$1.88 from $1.85 reported for the full year 2002 prior to Pulitzer's October 27,
2003 press release.

The Company can not currently determine full-year 2003 investment gains and
losses, if any, related to certain non-operating investments or future
employment termination inducements, if any.  The Company's calculation of "Base
Earnings" and "Base Earnings per Diluted Share," including guidance contained
herein for full-year 2003 base earnings per diluted share, may not be comparable
to similarly titled measures reported by other companies.  "Base Earnings" and
"Base Earnings per Diluted Share," as defined above, are not measures of
performance under generally accepted accounting principles ("GAAP") and should
not be construed as substitutes for consolidated net income and diluted earnings
per share as a measure of performance.  However, management uses "Base Earnings"
and "Base Earnings per Diluted Share" for comparing the Company's past, current,
and future performance and believes that they provide meaningful and comparable
information to investors to aid in their analysis of the Company's performance
relative to other periods and to its peers.

The Company's calculation of "Comparable" results includes the gross revenues
and expenses of the Company's 50 percent interest in the Tucson Newspaper Agency
("TNI"), and excludes the revenues and expenses associated with 2003
acquisitions absent in 2002.  "Comparable" revenues and expenses, excluding the
results of 2003 acquisitions, and including the gross revenues and expenses of
the Company's 50 percent interest in TNI, are not measures of performance under
GAAP (since the Company records its interest in TNI on the equity method), and
should not be construed as substitutes for consolidated operating revenues and
consolidated operating expenses as a measure of performance.  However,
management uses "Comparable" revenues and expenses for comparing the Company's
past, current, and future performance and believes

that they provide meaningful information to investors regarding the gross
revenues and expenses under the management of the Company.

Statements in this press release concerning the Company's business outlook or
future economic performance, anticipated profitability, revenues, expenses or
other financial items, together with other statements that are not historical
facts, are "forward-looking statements" as that term is defined under the
Federal Securities Laws.  Forward-looking statements are subject to risks,
uncertainties and other factors, which could cause actual results to differ
materially from those stated in such statements.  Such risks, uncertainties and
other factors include, but are not limited to, industry cyclicality, the
seasonal nature of the business, changes in pricing or other actions by
competitors or suppliers (including newsprint), outcome of labor negotiations,
capital or similar requirements, and general economic conditions, any of which
may impact advertising and circulation revenues and various types of expenses,
as well as other risks detailed in the Company's filings with the Securities and
Exchange Commission.  Although the Company believes that the expectations
reflected in "forward-looking statements" are reasonable, it cannot guarantee
future results, levels of activity, performance or achievements.  Accordingly,
investors are cautioned not to place undue reliance on any such "forward-looking
statements," and the Company disclaims any obligation to update the information
contained herein or to publicly announce the result of any revisions to such
"forward-looking statements" to reflect future events or developments.

                      PULITZER INC. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
                (In thousands, except earnings per share)
                               (Unaudited)

                             Third Quarter Ended   Nine Months Ended
                             Sept. 28, Sept. 29,  Sept. 28, Sept. 29,
                                2003      2002      2003      2002
  OPERATING REVENUES:
    Advertising
     Retail                  $ 28,463  $ 29,005  $ 84,921  $ 85,857
     National                   6,411     6,587    20,768    18,521
     Classified                32,466    33,044    93,397    98,079
      Total                    67,340    68,636   199,086   202,457
     Preprints                 14,488    13,223    44,023    38,881
      Total advertising        81,828    81,859   243,109   241,338
    Circulation                19,830    20,281    60,323    60,459
    Other                       1,594     1,401     5,164     5,784
       Total operating
        revenues              103,252   103,541   308,596   307,581

  OPERATING EXPENSES:
    Payroll and other
     personnel expenses        44,900    45,981   134,973   135,546
    Newsprint expense          11,176    10,087    32,690    31,025
    Depreciation                3,677     3,176    11,061    10,627
    Amortization                1,139     1,108     3,349     3,325
    Other expenses             26,440    27,257    78,454    82,255
     Total operating expenses  87,332    87,609   260,527   262,778

   Equity in earnings of
    Tucson newspaper
     partnership                3,225     3,904    11,593    12,902

   Operating income            19,145    19,836    59,662    57,705

   Interest income                872     1,146     2,729     3,131
   Interest expense            (4,877)   (4,527)  (15,609)  (15,349)
   Net gain on marketable
    securities                    455        44       513        44
   Net loss on investments       (163)   (1,888)   (1,289)   (7,853)
   Other income                    78       113        96       127

  INCOME BEFORE PROVISION
   FOR INCOME TAXES            15,510    14,724    46,102    37,805

  PROVISION FOR INCOME TAXES    5,748     5,662    17,077    14,338

  MINORITY INTEREST IN NET
   EARNINGS OF SUBSIDIARIES       382       390     1,162       999

  NET INCOME                 $  9,380  $  8,672  $ 27,863  $ 22,468

  BASIC EARNINGS PER SHARE
   OF STOCK:

  Basic earnings per share   $   0.44  $   0.41  $   1.30  $   1.06

  Weighted average number
   of shares outstanding       21,414    21,299    21,381    21,269

  DILUTED EARNINGS PER SHARE
   OF STOCK:

  Diluted earnings per share $   0.43  $   0.40  $   1.29  $   1.05

  Weighted average number
   of shares outstanding       21,670    21,415    21,571    21,454



FOOTNOTES Financing Arrangements: In October 2002, the Company terminated
previously executed swap contracts totaling $75.0 million resulting in a net
gain of $5.0 million.  The $5.0 million net gain is being amortized ratably over
the remaining term of the original swap contract that expires in April 2009. 
The Company maintains other interest rate swap contracts that have the effect of
converting the interest cost for $150.0 million of the Company's debt from fixed
rate to variable rate.  These swap contracts mature with the Company's debt on
April 28, 2009.  The Company accounts for the swap contracts as fair value
hedges.

Earnings Per Share:  Basic earnings per share of stock are computed using the
weighted average number of Common and Class B Common shares outstanding during
the applicable period.  Diluted earnings per share of stock are computed using
the weighted average number of Common and Class B Common shares outstanding and
common stock equivalents.

Fiscal Year End:  The Company's fiscal year ends on the last Sunday of the
calendar year.  In 2002, the Company's fiscal year began on December 31, 2001
and ended on December 29, 2002.  In 2003, the Company's fiscal year began on
December 30, 2002 and will end on December 28, 2003.

Reclassifications:  Certain reclassifications have been made to the 2002
consolidated financial statements to conform to the 2003 presentation.

Use of Estimates:  The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and reported amounts of
revenues and expenses during the reporting period.  Actual results may differ
from those estimates.

New Accounting Pronouncement:  In May 2003, FASB issued SFAS No. 150, Accounting
for Certain Financial Instruments with Characteristics of both Liabilities and
Equity ("SFAS No. 150").  SFAS No. 150 sought to establish standards for how an
issuer classifies and measures certain financial instruments with
characteristics of both liabilities and equity.  SFAS No. 150 was effective for
financial instruments entered into or modified after May 31, 2003, and otherwise
was effective at the beginning of the first interim period beginning after June
15, 2003.

The Company determined that SFAS No. 150, as it existed through FASB Staff
Positions 150-2, dated October 16, 2003, required the Company to recognize a
liability, at an estimated amount of $45 million (which amount would have
changed over time), associated with the liquidation in 2015 of the capital
accounts of The Herald Company, Inc. ("Herald"), reflecting Herald's minority
interest in two of the Company's subsidiaries, St. Louis Post-Dispatch LLC ("PD
LLC") and STL Distribution Services LLC ("DS LLC"). Accordingly, the Company's
press release on October 27, 2003, releasing third quarter and first nine-month
results for 2003, incorporated the adoption of SFAS No. 150.

On November 7, 2003, the FASB issued Staff Position 150-3, which deferred
indefinitely the application of those provisions of SFAS No. 150 that relate to
Herald's interests in PD LLC and DS LLC. Accordingly, the Company will file its
quarterly Report on Form 10-Q presenting its consolidated results of operations,
financial position, and cash flows absent any potential impact of SFAS No. 150. 
The Company cannot predict and, accordingly, is not able to determine what the
ultimate impact to the Company's consolidated financial statements, if any,
might be from future FASB action concerning SFAS No. 150. 

DATASOURCE: Pulitzer Inc.



CONTACT:  James V. Maloney, Director of Shareholder Relations, of

Pulitzer Inc., [phone]



Web site:  http://www.pulitzerinc.com/ 

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