Lee and Liberty Group to Exchange Newspapers

Posted on January 30, 2004

Lee Enterprises and Liberty Group Publishing have agreed to an exchange of daily newspapers and other properties as they strengthen regional clusters. The announcement was made by Mary Junck, chairman and chief executive officer of Lee Enterprises, and Kenneth L. Serota, chairman and chief executive officer of Liberty Group Publishing. They said the transaction is expected to close in February.

Lee will receive the South Idaho Press in Burley, Idaho, and the Elko Daily Free Press in Elko, Nevada. The South Idaho Press has Monday-Friday and Sunday circulation of 4,000. The Elko Daily Free Press has Monday-Saturday circulation of 6,500. Lee also will receive five weekly newspapers in Idaho -- the Minidoka County News in Rupert, the Wood River Journal in Hailey, The Gooding County Leader in Gooding, Northside News in Jerome and the Lincoln County Journal in Shoshone -- and three specialty publications. Websites include southidahopress.com, elkodaily.com and woodriverjournal.com.

Liberty will receive The Leader in Corning, New York, and The Journal-Standard in Freeport, Illinois. The newspapers have daily and Sunday circulation of 13,500 to 14,000. Their websites are the-leader.com and journalstandard.com. Liberty also will receive three other publications in Freeport -- The Scene, Homefront Real Estate Magazine and Wheels For You.

Junck said the incoming publications will become part of Lee's regional business unit centered in Twin Falls, Idaho. It includes The Times-News, a 22,800-circulation daily-Sunday newspaper; Ag Weekly, Magic Values Shopper, TV Weekly, Wheels For You, South Idaho Business, Dairy Monthly, Horse Quarterly and Cattle Country.

"In this exchange of similarly sized properties, Lee is both a cquiring and giving up quality publications staffed by talented people," Junck said. "However, as we have shown in other Lee markets, strategic groupings of regional publications can benefit readers, advertisers and stockholders alike. We're particularly excited about expanding our position in the growing southern Idaho and northern Nevada markets."

Serota said the trade will expand the holdings of Liberty Group Publishing to 28 dailies, weeklies and shopper's guides in New York and to 100 dailies, weeklies and shopper's guides in Illinois.

Liberty Group Publishing is a publisher of community newspapers in the United States, specializing in publications with daily circulation of less than 20,000. The company owns more than 300 publications, including 65 daily newspapers, each with a website serving as the local portal within its community. The company is controlled by Leonard Green & Partners, L.P., a Los Angeles-based private merchant banking firm.

Lee Enterprises is based in Davenport, Iowa, and is the premier publisher of daily newspapers in midsize markets. Lee owns 38 daily newspapers and a joint interest in six others, along with associated online services. Lee also publishes nearly 200 weekly newspapers, shoppers and classified and specialty publications. Lee has 6,700 employees in 18 states.