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Thursday, July 19, 2007

Media General Reports June 2007 Revenues

RICHMOND, Va. – Media General, Inc. (NYSE: MEG) today reported June 2007 total revenues of $72.5 million, a 3.4 percent increase from June 2006, including the revenues of four NBC television stations acquired June 26, 2006.  Excluding the new stations, total revenues declined 7.5 percent.  By business segment, Publishing Division total revenues decreased 10.1 percent.  Broadcast Division total revenues increased 24.8 percent, including the new stations, and decreased 7.8 percent, excluding the new stations.  Interactive Media Division total revenues rose 58.9 percent.

Publishing Division
Newspaper advertising revenues in June declined $4.4 million, or 11.7 percent, reflecting lower spending in all advertising categories, most notably Classified advertising at The Tampa Tribune, which was down 37.7 percent.

Total Classified advertising revenues decreased $3 million, or 17.5 percent.  The Richmond Times-Dispatch and Winston Salem-Journal reported declines of 2.3 percent and 11.3 percent, respectively.  The Community newspapers were down 6.4 percent.

Employment linage at the company’s three metro newspapers decreased 28.5 percent.  This included declines of 50.1 percent at The Tampa Tribune, 14.9 percent at the Richmond Times-Dispatch, and 31.1 percent at the Winston-Salem Journal.

Automotive linage for the three metros decreased 17.2 percent.  The Richmond Times-Dispatch generated a 4.2 percent increase due to new advertising incentives, while The Tampa Tribune and Winston-Salem Journal reported declines of 17.1 percent and 39.9 percent, respectively.

Real estate linage for the three metros was down 36.8 percent.  The Richmond Times-Dispatch saw a 3.9 percent decrease, while The Tampa Tribune experienced a 68 percent decrease and the Winston-Salem Journal was down 13.2 percent.

Retail advertising revenues in June decreased $1 million, or 6 percent.  The Tampa Tribune and its associated newspapers experienced a decline of 12.6 percent, the Richmond Times-Dispatch reported a 3 percent decrease and the Winston-Salem Journal posted a 17.6 percent decline.  The decreases at the three metros reflected lower home improvement, furniture store, department store, medical, office supply and financial advertising.  The Community newspaper group was up 1.3 percent, reflecting increases in the Alabama and Northern Virginia markets.

National revenues decreased $300,000, or 8.9 percent.  The Tampa Tribune and its associated newspapers saw a decrease of 9.8 percent, due to lower financial, automotive and travel advertising.  The Richmond Times-Dispatch decreased 17.4 percent, due to lower telecommunications advertising and a major ad campaign by an advertiser last year that was not repeated.  The Winston-Salem Journal generated an 11.3 increase, due to higher medical spending.

While Circulation revenues declined $290,000, or 4.8 percent, approximately 60 percent of the decrease was the result of a change in wholesale rates to carriers for which there is a corresponding expense decrease.  Excluding this impact, Circulation revenues declined 1.9 percent.

Broadcast Division
In the Broadcast Division, gross time sales increased $6.7 million, or 28.8 percent, including the new stations.  Same-station time sales decreased 7.5 percent, entirely due to lower Political spending in this off-election year.  Excluding Political, Local and National time sales increased 1.2 percent.  In most markets, Local and National transactional time sales remained soft, particularly at a number of NBC-affiliated stations, including Tampa.

Local time sales increased $4.9 million, or 35.6 percent, including the new stations.  Same-station Local time sales declined 1.4 percent, mostly due to lower spending in the furniture and fast food categories, partially offset by higher automotive and transportation advertising.

National time sales increased $3.6 million, or 50.6 percent, including the new stations.  Same-station National time sales rose 6.2 percent, as a result of higher spending in the corporate, services, and furniture categories.

Political revenues of $340,000 compared to $2.2 million last June, and represented early campaign spending from gubernatorial and lieutenant governor races in Louisiana and Mississippi and issue advertising in Ohio, Rhode Island and South Carolina.

Interactive Media Division
Interactive Media Division revenues increased 58.9 percent, including the new NBC station Web sites, and higher sales from the division’s Blockdot advergaming business.  Page views and visitor sessions increased 20.6 percent and 26.5 percent, respectively, including the new NBC station Web sites. Sluggish Classified advertising spending continued in most markets, particularly Tampa, and online Classified revenues were down 5.6 percent.  Local revenues increased 66 percent over last year, reflecting increased direct sales.  National/Regional advertising more than doubled as a result of higher spending from national networks, particularly in the automotive and telecommunications categories at in Tampa.  The launch of the Yahoo!HotJobs Phase A initiative was completed in June at all Media General newspaper Web sites.  Phase B, featuring new products and capabilities, was launched at on June 20. 

About Media General
Media General is a multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States.  The company’s publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 150 weekly newspapers and other publications.  The company’s broadcasting assets include 23 network-affiliated television stations that reach more than 32 percent of the television households in the Southeast and nearly 9.5 percent of those in the United States.  The company’s interactive media assets include more than 75 online enterprises that are associated with its newspapers and television stations.  Media General also owns a 33 percent interest in SP Newsprint Company, a manufacturer of recycled newsprint.

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Investor Contact:
Lou Anne Nabhan
(804) 649-6103

Media Contact:
Ray Kozakewicz
(804) 649-6748