March 2006 Publisher’s StatementMarch 2006 Publisher’s StatementCirculation UpdateCirculation Update

2006 March ABC Publisher’s Statement Update Agenda• Los Angeles Times 2006 Circulation Strategy• Total Circulation• Managed Reduction in Other Paid• Growth in Individually Paid• Readership Strength and Growth• Additional ways to connect to the LAT community• Appendix: Key ABC Circulation Categories

Los Angeles Times Ongoing Circulation Strategy

• Decrease Other Paid circulation

• Reinvest in Individually Paid

circulation

While a managed reduction of Other Paid circulation causes a drop in total circulation, for you, the advertiser, it means access to a higher-quality audience of readers willing to pay for Los Angeles Times content.

• Higher Composition of Individually Paid circulation

• Strong weekend circulation

March 2006 Publisher’s Statement

While total circulation has decreased, Individually Paid is actually on the rise, which means that the newspaper is getting more valuable to readers.

As expected, managed reductions of Other Paid circulation pushed Total Paid circulation down 5.4% daily and 1.8% Sunday.

Daily (Monday–Friday)

March 2005Actual

Individually Paid 774,720 778,096 +0.4%

Other Paid 125,857 73,745 –41.4%

Total Paid 900,577 851,841 –5.4%

Sunday

March 2005Actual

Individually Paid 1,201,924 1,203,198 +0.1%

Other Paid 51,925 28,120 –45.8%

Total Paid 1,253,849 1,231,318 –1.8%

March 2006Actual

March 2006Actual

Total Paid

We have discontinued Hotel Guest distribution (November 2005), and scaled-back our classroom T.I.E. programs (January 2006).

March 2006 Change

Daily(Monday–Friday) Sunday

Hotel Guest Copies (20,180) -80.2% (24,436) -77.1%

Times In Education (32,835) -38.6% (1,909) -38.8%

Third-Party-Paid/Other +902 +5.8% +2,540 +16.6%

Total Other Paid (52,113) -41.4% (23,805) -45.8%

Circulation of less value to advertisers has been decreased in the interest of higher-value circulation

Other Paid

Growth in Individually Paid Circulation

March 2006 Change

Daily(Monday–Friday) Sunday

Home Delivery +24,265 +4.3% +21,172 +2.3%

Single-Copy Sales (13,876) -9.0% (28,960) -11.5%

Other (JDAs and Bonus Days) (7,012) -13.1% +9,062 +19.1%

Total Individually Paid +3,377 +0.4% +1,274 +0.1%

A growth in home-delivered circulation delivers greater reach to subscribers who are most responsive to Los Angeles Times content

Increases in Individually Paid circulation are driven by home-delivered circulation, especially from expansion of our Three-Day (Friday/Saturday/Sunday) service in 2005.

Individually Paid

Home Delivery now represents an even greater composition of total circulation.

Home Delivery as Percent of Total Circulation

+6% points +3% points

2005 2006 2005 2006

Monday–Friday Sunday

63% 69% 72% 75%

Greater composition of the most responsive subscribers who pay to receive the Los Angeles Times at home

Individually Paid

Individually Paid

A greater composition of Individually Paid circulation delivers greater advertising efficiency.

Individually Paid as Percent of Total Circulation

+5% points +2% points

2005 2006 2005 2006

Monday–Friday Sunday

86% 91% 96% 98%

Strong end-of-week and weekend subscriptions

Actual March 2006

MondayTuesday

WednesdayThursday

Friday

Saturday

Sunday

920,982

779,863

713,045

Individually Paid Circulation by Day of Week

September 2005*

691,948

1,203,198

773,353

679,430

679,256

685,661748,594

885,936

960,208

1,189,876

938,518

• Friday benefited from the 3-day circulation program.

• Weekday volume changes are largely attributed to shifts in bonus day distribution from Thursdays and Saturdays to Mondays and Tuesdays. The shift was made to reinforce weekend subscriber loyalty, and increase subscriber exposure to the weekday product.

*September 2005 Publisher’s Statement; day of the week figures were not reported prior to this report

Individually Paid--Day of Week

MondayTuesday

WednesdayThursday

Friday

Saturday

Sunday

752,639

780,957

851,832

990,904

791,161791,183

1,002,759

1,247,569

995,897

943,495

1,231,318

Total Paid Circulation by Day of Week

864,721849,602

September 2005*

796,602

Actual March 2006

• Weekday volume changes are largely attributed to shifts in bonus day distribution from Thursdays and Saturdays to Mondays and Tuesdays. The shift was made to reinforce weekend subscriber loyalty, and increase subscriber exposure to the weekday product.

• In addition, all days reflect managed decreases due to elimination of the Hotel Program and reduction in the Education Program (TIE).

*September 2005 Publisher’s Statement; day of the week figures were not reported prior to this report

Total Paid

Readership Strength and Growth

Source: Scarborough Research 2005 R1 and 2006 R1, NADbase Spring 2006 Release, MRI 2005 Doublebase.

The Los Angeles Times and Latimes.com together reach more than 4.9 million in the L.A. DMA.

Sunday readership (05-06) of the most affluent (HHI $100,000+) grew 13%.

2005 2006

927,886 1,045,812 +13%Change

The combined reach of the Los Angeles Times and Latimes.com is greater than any other media vehicle in the marketplace, including all radio stations during a.m. drive time, all broadcast TV stations during ½ hour of prime time, all magazines, and all other Sunday newspapers combined.

Total Times Readership

Monday–Friday Sunday

2,176,204 3,281,209

4,974,943

Total LAT + Latimes.com

Source: Scarborough Research 2005 R1 and 2006 R1

The Los Angeles Times DAILY readership is growing dramatically in the Inland Empire and Ventura County.

2005 200679,987 108,591 +36%

Change

2005 2006110,041 137,941 +25%

Change

2005 200676,928 86,768 +13%

Change

Riverside County- Daily

San Bernardino County- Daily

Ventura County- Daily

Source: Scarborough Research 2005 R1 and 2006 R1

2005 2006152,269 170,355 +12%

Change

2005 2006191,564 210,253 +10%

Change

2005 2006115,335 119,336 +4%

Change

Riverside County- Sunday

San Bernardino County- Sunday

Ventura County- Sunday

The Los Angeles Times SUNDAY readership is growing dramatically in the Inland Empire and Ventura County.

Additional, new ways to connect with the Los Angeles Times community

and extend your reach

Los Angeles Times products combined -- including print, online and direct mail -- reach a total of 7.7 million, or 59%, of all adults in the LA DMA.Source: Gallup 2005

New opportunities to extend your reach• www.latimes.com

• With 3.7 million registered users, latimes.com is the ultimate Web destination for Angelenos

• West Magazine New Sunday magazine with a distinctly Californian focus featuring articles and

fiction from award-winning contributors, bold photography and a cutting-edge Style section

West will reach 3.28 million people, making it one of the most widely read magazines in the L.A. DMA

• TheEnvelope.com Now available in print• The only web site devoted entirely to entertainment awards now includes an in-

paper component

• LAT 125th Anniversary opportunities in paper and online– Special commemorative sections on readers’ favorite topics (e.g. 125 years of

Sports)– Latimes.com/125: a special web site with ongoing coverage of the most

entertaining historical stories that shaped the city

Summary2006 Circulation & Readership Outlook

• Through a higher composition of quality Individually Paid subscribers and strong weekend readership, the Los Angeles Times delivers more customers who want and pay to read our editorial and your advertising.

• The Times is the leader in L.A. DMA readership, providing unmatched reach to the largest number of customers. The Sunday Times has the broadest reach of ANY competing media vehicle.

• Reach the Los Angeles Times community through new high-impact and relevant opportunities: a compelling new Sunday magazine, 125th anniversary celebrations, and exclusive in paper and online content your customers won’t find in a competing media vehicle.

Appendix: Key ABC Circulation Categories • Total Average Paid circulation:The total top-line average circulation number

• Individually Paid: Copies directly purchased by individuals• Home delivery: Copies delivered to individual subscribers at home• Single-copy sales: Copies purchased at the newsstand• Weekend: Copies delivered to individual subscribers on weekends only

• Other Paid: Copies that are not directly purchased by individuals• Hotel/guest single copies: Copies paid for by hotel guests as part of their bill• Newspapers in education: Copies distributed in schools for classroom use• Employee copies: Copies given to current and retired newspaper employees• Third-party sales: Copies purchased in bulk by hotels, restaurants and retail stores,

distributed free to guests and customers

Higher Individually Paid circulation shows greater “wantedness” of product.