We are a leading media and news organization serving our audiences through print, online and mobile technology. Our segments and divisions are:

News Media Group (consisting of The New York Times Media Group, which principally includes The New York Times ("The Times"), NYTimes.com, the International Herald Tribune and WQXR-FM; the New England Media Group, which principally includes The Boston Globe (the "Globe"), Boston.com and the Worcester Telegram & Gazette; and the Regional Media Group, which includes 14 daily newspapers and their related digital operations). The News Media Group generates revenues principally from print, online and radio advertising and through circulation. Other revenues, which make up the remainder of revenues, primarily consist of revenues from wholesale delivery operations, news services/syndication, digital archives, TimesSelect, Baseline StudioSystems, rental income and commercial printing. The News Media Group's main operating costs are employee-related costs and raw materials, primarily newsprint.

About Group(consisting of the Web sites of About.com, ConsumerSearch.com, UCompareHealthCare.com and Calorie-Count.com). The About Group principally generates revenues from display advertising relevant to its adjacent content, cost-per-click advertising (sponsored links for which the About Group is paid when a user clicks on the ad) and e-commerce (including sales lead generation). Almost all of its revenues (95% in the first nine months of 2007) are derived from the sale of advertisements (display and cost-per-click advertising). Cost-per-click advertising accounts for 49% of the About Group's total advertising revenues. The About Group's main operating costs are employee-related costs and content and hosting costs.

Joint Ventures Our investments accounted for under the equity method are as follows:

• a 49% interest in Metro Boston LLC, which publishes a free daily newspaper catering to professionals and students in the Greater Boston area,

• a 49% interest in a Canadian newsprint company, Donohue Malbaie Inc.,

• a 40% interest in a partnership, Madison Paper Industries, operating a supercalendered paper mill in Maine, and

• an approximately 17% interest in New England Sports Ventures, which owns the Boston Red Sox, Fenway Park and adjacent real estate, 80% of the New England Sports Network, a regional cable sports network, and 50% of Roush Fenway Racing, a leading NASCAR team.

RECENT DEVELOPMENTS

Broadcast Media Group Sale

On May 7, 2007, we sold the Broadcast Media Group, consisting of nine network-affiliated television stations, their related Web sites and the digital operating center, for approximately $575 million. This decision was a result of our ongoing analysis of our business portfolio and has allowed us to place an even greater emphasis on developing and integrating our print and growing digital resources. We recognized a pre-tax gain on the sale of

$189.9 million ($93.7 million after-tax) for the first nine months of 2007, and we used the cash proceeds of the sale to repay our outstanding commercial paper.

Acquisitions

On May 4, 2007, we acquired ConsumerSearch, Inc., a leading online aggregator and publisher of consumer product reviews, for approximately $33 million.

On March 27, 2007, we acquired UCompareHealthCare.com, a site that provides dynamic Web-based interactive tools to consumers to enable them to measure the quality of certain healthcare services, for $2.3 million.

The operating results of these acquisitions are included within the operating results of the About Group from the dates of acquisition. See Note 3 of the Notes to the Condensed Consolidated Financial Statements.

Sale of WQEW-AM

On April 26, 2007, we sold WQEW-AM ("WQEW") to Radio Disney, LLC (which had been providing substantially all of WQEW programming through a licensing agreement) for $40 million. We recognized a pre-tax gain of $39.6 million ($21.2 million after-tax) in the second quarter of 2007.

Plant Consolidation

We are in the process of consolidating the printing operations of a facility we lease in Edison, N.J., into our newer facility in College Point, N.Y. The plant consolidation is part of our expense reduction initiatives and is expected to be completed in the second quarter of 2008. As part of the consolidation, we originally planned to sublease the Edison facility through 2018, the end of the then-existing lease term. After evaluating the options with respect to the original lease, we decided it was financially prudent to purchase the Edison facility and sell it, with two adjacent properties we already owned, to a third party. The purchase and sale of the Edison facility closed in the second quarter of 2007, relieving us of rental terms that were above market as well as certain restoration obligations under the original lease. As a result of the sale, we recognized a pre-tax loss of $68.2 million ($41.3 million after-tax) in the second quarter of 2007.

In addition to the loss mentioned above, we estimate costs to close the Edison facility as follows:

• $66 to $69 million for accelerated depreciation expense, of which approximately $57 million has been recognized through September 30, 2007. The remainder will be recognized through the end of the first quarter of 2008 ($6 to $7 million in the fourth quarter of 2007; and $3 to $5 million in the first quarter of 2008). This expense is for the acceleration of depreciation expense for assets that we continue to own at the Edison facility, mainly printing presses.

• $16 to $20 million for staff reduction costs, of which approximately $1 million was recorded as of September 30, 2007, with the majority of the remaining amount to be recorded in the fourth quarter of 2007. As part of the consolidation, we expect a workforce reduction of approximately 300 full-time

equivalent employees.

• $5 to $6 million in other costs, mainly restoration costs, under the new Edison lease, of which approximately $2 million was recorded as of September 30, 2007. The remainder will be recognized through the end of the second quarter of 2008.

Capital expenditures for the plant consolidation are estimated to be $135 to $147 million, a significant portion of which will be made in 2007. We expect to save $30 million annually due to lower operating costs and have avoided the need for approximately $50 million in capital investment at the Edison facility over the next ten years.

FOURTH QUARTER 2007 EXPECTATIONS



Expectations regarding key financial measures for the fourth quarter of 2007 are
discussed in the table below.



Item                          Fourth Quarter 2007 Expectation
Staff reduction costs         $14 to $16 million
Depreciation & amortization   $48 to $50 million(a)
Income from joint ventures    Loss of $3 to $5 million
Interest expense              $11 to $13 million
Income tax rate               Approximately 41%
Capital expenditures          $50 to $80 million

In addition, we believe that we can achieve a reduction in costs from our year-end 2007 cost base of approximately $230 million in 2008 and 2009, excluding the effects of inflation and certain one-time costs. About $130 million of these savings are expected in 2008.

RESULTS OF OPERATIONS



The following table presents our consolidated financial results.



                                      For the Quarters Ended                       For the Nine Months Ended
                            September 30,     September 24,                September 30,     September 24,
(In thousands)                  2007              2006         % Change        2007              2006         % Change

Revenues
Advertising                $       465,043   $       465,476       (0.1 ) $     1,478,425   $     1,527,604       (3.2 )
Circulation                        223,420           215,007        3.9           664,538           654,993        1.5
Other                               65,896            59,103       11.5           186,359           175,822        6.0
Total revenues                     754,359           739,586        2.0         2,329,322         2,358,419       (1.2 )
Operating costs
Production costs
Raw materials                       58,643            75,178      (22.0 )         196,678           241,593      (18.6 )
Wages and benefits                 163,367           162,908        0.3           487,810           490,701       (0.6 )
Other                              109,952           106,012        3.7           318,421           322,879       (1.4 )
Total production costs             331,962           344,098       (3.5 )       1,002,909         1,055,173       (5.0 )
Selling, general and
administrative costs               342,503           340,927        0.5         1,029,045         1,030,941       (0.2 )
Depreciation and
amortization                        51,789            36,676       41.2           142,871           107,712       32.6
Total operating costs              726,254           721,701        0.6         2,174,825         2,193,826       (0.9 )
Net loss on sale of
assets                                   -                 -        N/A            68,156                 -        N/A
Gain on sale of WQEW- AM                 -                 -        N/A            39,578                 -        N/A
Operating profit                    28,105            17,885       57.1           125,919           164,593      (23.5 )
Net income from joint
ventures                             5,412             7,348      (26.3 )           8,004            18,085      (55.7 )
Interest expense, net               10,470            13,267      (21.1 )          28,924            39,025      (25.9 )
Income from continuing
operations before income
taxes and minority
interest                            23,047            11,966       92.6           104,999           143,653      (26.9 )
Income taxes                         8,991             3,926          *            48,741            51,557       (5.5 )
Minority interest in net
loss of subsidiaries                    54               267      (79.8 )              39               604      (93.5 )
Income from continuing
operations                          14,110             8,307       69.9            56,297            92,700      (39.3 )
Discontinued operations,
Broadcast Media Group:
Income from discontinued
operations, net of
income taxes                             -             4,290     (100.0 )           5,753            11,890      (51.6 )
Gain/(loss) on sale, net
of income taxes                       (671 )               -        N/A            93,659                 -        N/A
Discontinued operations,
net of income taxes                   (671 )           4,290          *            99,412            11,890          *
Net income                 $        13,439   $        12,597        6.7   $       155,709   $       104,590       48.9

Revenues



Revenues by reportable segment and for the Company as a whole were as follows:



                                       For the Quarters Ended                       For the Nine Months Ended
                             September 30,     September 24,                September 30,     September 24,
(In thousands)                   2007              2006         % Change        2007              2006         % Change
Revenues:
News Media Group            $       729,635   $       721,260        1.2   $     2,257,350   $     2,302,441       (2.0 )
About Group                          24,724            18,326       34.9            71,972            55,978       28.6
Total revenues              $       754,359   $       739,586        2.0   $     2,329,322   $     2,358,419       (1.2 )

News Media Group



Advertising, circulation and other revenues by operating segment of the News
Media Group and for the Group as a whole were as follows:



                                            For the Quarters Ended                       For the Nine Months Ended
                                  September 30,     September 24,                September 30,     September 24,
(In thousands)                        2007              2006         % Change        2007              2006         % Change
The New York Times Media Group
Advertising                      $       271,234   $       261,653        3.7   $       867,774   $       885,509       (2.0 )
Circulation                              162,896           153,739        6.0           481,446           467,858        2.9
Other                                     47,388            41,516       14.1           133,607           123,337        8.3
Total                            $       481,518   $       456,908        5.4   $     1,482,827   $     1,476,704        0.4

New England Media Group
Advertising                      $        91,838   $        97,424       (5.7 ) $       289,414   $       307,569       (5.9 )
Circulation                               39,755            40,483       (1.8 )         117,537           121,055       (2.9 )
Other                                     11,498            11,146        3.2            31,548            32,173       (1.9 )
Total                            $       143,091   $       149,053       (4.0 ) $       438,499   $       460,797       (4.8 )

Regional Media Group
Advertising                      $        78,609   $        88,938      (11.6 ) $       253,020   $       281,330      (10.1 )
Circulation                               20,769            20,785       (0.1 )          65,555            66,080       (0.8 )
Other                                      5,648             5,576        1.3            17,449            17,530       (0.5 )
Total                            $       105,026   $       115,299       (8.9 ) $       336,024   $       364,940       (7.9 )

Total News Media Group
Advertising                      $       441,681   $       448,015       (1.4 ) $     1,410,208   $     1,474,408       (4.4 )
Circulation                              223,420           215,007        3.9           664,538           654,993        1.5
Other                                     64,534            58,238       10.8           182,604           173,040        5.5
Total                            $       729,635   $       721,260        1.2   $     2,257,350   $     2,302,441       (2.0 )

Advertising Revenues

Advertising revenue is primarily determined by the volume, rate and mix of advertisements. Total News Media Group advertising revenues decreased in the third quarter and the first nine months of 2007. Print advertising revenues declined 3.5% and 6.3% in the third quarter and first nine months of 2007, respectively, while online advertising revenues increased 22.7% and 20.4% in the same periods.

During the last few years, our results have been adversely affected by a weak print advertising environment. Print advertising volume for the News Media Group was as follows:

                                              For the Quarters Ended                   For the Nine Months Ended
(Inches in thousands, preprints in   September 30,   September 24,              September 30,   September 24,
thousands of copies)                     2007            2006        % Change       2007            2006        % Change

National                                     495.3           497.0       (0.3 )       1,567.9         1,663.0       (5.7 )
Retail                                     1,314.2         1,446.0       (9.1 )       4,202.8         4,543.1       (7.5 )
Classified                                 1,795.6         2,350.4      (23.6 )       6,127.4         7,210.3      (15.0 )
Part Run/Zoned                               386.9           442.8      (12.6 )       1,250.9         1,458.6      (14.2 )
Total                                      3,992.0         4,736.2      (15.7 )      13,149.0        14,875.0      (11.6 )
Preprints                                  641,558         657,709       (2.5 )     1,994,956       2,060,764       (3.2 )

Advertising revenues (print and online) by category for the News Media Group were as follows:

                            For the Quarters Ended                       For the Nine Months Ended
                  September 30,     September 24,                September 30,     September 24,
(In thousands)        2007              2006         % Change        2007              2006         % Change

National         $       212,910   $       192,001       10.9   $       662,056   $       644,659        2.7
Retail                    97,191           104,874       (7.3 )         314,180           337,452       (6.9 )
Classified               117,157           136,890      (14.4 )         387,735           446,228      (13.1 )
Part Run/Zoned            14,423            14,250        1.2            46,237            46,069        0.4
Total            $       441,681   $       448,015       (1.4 ) $     1,410,208   $     1,474,408       (4.4 )

The New York Times Media Group

Advertising revenues increased in the third quarter of 2007 primarily due to higher print and online advertising. Higher print rates and higher volume in online advertising more than offset lower print volume. Print and online advertising revenues increased 1.8% and 23.8%, respectively, in the third quarter of 2007. Advertising revenues decreased in the first nine months of 2007 primarily due to lower print advertising revenue, partially offset by higher online advertising. Lower print volume more than offset higher print rates and higher volume in online advertising. Print advertising revenues declined 4.0% in the first nine months of 2007, while online advertising revenues increased 21.3% in the same period.

National advertising, which represents approximately 66% of the Group's advertising revenues, increased in the third quarter of 2007 due to increases in a variety of categories, particularly studio entertainment, international fashion and corporate advertising. In particular, studio entertainment benefited from the success of a special Times film section and increased advertising for a number of films. For the first nine months of 2007, national advertising increased mainly because of growth in online advertising.

Classified advertising, which represents approximately 19% of the Group's advertising revenues, decreased in the third quarter and first nine months of 2007, principally due to declines in the print real estate, automotive and recruitment categories. The declines in real estate reflect the slowdown in the local and national housing markets and a shift in advertising to online alternatives.

Retail advertising, which represents approximately 12% of the Group's advertising revenues, decreased in the third quarter and the first nine months of 2007 principally because of softness in national chain store, home furnishing store and department store advertising.

New England Media Group

Advertising revenues were lower in the third quarter and for the first nine months of 2007 primarily due to lower print volume in the classified and retail advertising categories.

Classified advertising, which represents approximately 38% of the Group's advertising revenues, decreased in the third quarter and first nine months of 2007, principally because of declines in real estate advertising, which was negatively affected by the soft housing market in the Northeast, and softness in the automotive and recruitment categories.

Retail advertising, which represents approximately 29% of the Group's advertising revenues, also decreased. Advertising revenues in the third quarter of 2007 decreased due to declines in a number of categories

including the food and drug and computer/office supply categories, while weakness in the first nine months of 2007 was principally due to reduced spending in department store advertising, as a result of the consolidation of two large retailers, as well as food and drug advertising.

National advertising, which represents approximately 27% of the Group's advertising revenues, increased in the third quarter and first nine months of 2007 mainly because of growth in online advertising.

Regional Media Group

Advertising revenues decreased in the third quarter and the first nine months of 2007, primarily due to weakness in print classified and retail advertising, which was partially offset by growth in online advertising.

Retail advertising, which represents approximately 49% of the Group's advertising revenues, decreased in the third quarter of 2007 mainly due to reduced spending in home furnishings, department store and telecommunications advertising. In the first nine months of 2007, retail advertising declined principally due to reduced spending in home furnishings, banking and department store advertising.

Classified advertising, which represents approximately 41% of the Group's advertising revenues, decreased across all print categories in the third quarter and first nine months of 2007. In the third quarter and for the first nine months of 2007, much of the decline was related to the downturn in the Florida and California housing markets, which continues to affect not only real estate but recruitment and retail advertising as well. About two-thirds of the advertising revenues at the Regional Media Group come from newspapers in Florida and California.

Circulation Revenues

Circulation revenue is based on the number of copies sold and the rate charged to customers. At The Times and our other newspapers, our strategy is to reduce other-paid circulation and to focus promotional spending on individually paid circulation, which is generally more valued by advertisers. While we expect this strategy to result in copy declines, we believe it will result in reduced costs and improved circulation profitability.

Circulation revenues in the third quarter of 2007 increased 3.9% compared with the third quarter of 2006 mainly because of higher prices for The Times partially offset by volume declines. In the fourth quarter of 2006, The Times raised the newsstand price of the Northeast edition of the Sunday Times and increased home-delivery prices. In the third quarter of 2007, The Times raised the newsstand price of the Sunday Times in the greater New York metropolitan area and the daily newsstand price nationwide and increased home-delivery prices. At the New England Media Group and Regional Media Group, circulation revenues declined primarily due to lower volume.

In the first nine months of 2007, circulation revenues increased 1.5% compared with the same prior-year period mainly because of higher prices for The Times, partially offset by fewer copies sold across the News Media Group.

Other Revenues

Other revenues increased in the third quarter of 2007 primarily because of revenues from rental income from our lease of five floors in our new headquarters, increased wholesale delivery operation revenues and revenues from Baseline StudioSystems. Baseline, which was acquired in August 2006, is a leading online database and research subscription service for information on the film and television industries. For the first nine months of 2007, other revenues increased mainly due to increased revenues from Baseline, wholesale delivery operations and rental income as noted above.

About Group

About Group revenues increased 34.9% to $24.7 million in the third quarter of 2007 from $18.3 million in the third quarter of 2006, and 28.6% to $72.0 million in the first nine months of 2007 compared with $56.0 million in the same period last year. The increases were primarily due to higher advertising rates and increased volume in both display and cost-per-click advertising, as well as revenues associated with the acquisition of ConsumerSearch, Inc. ConsumerSearch, Inc., which was acquired in May 2007, is a leading online aggregator and publisher of consumer product reviews. Excluding acquisitions of ConsumerSearch, Inc. and UCompareHealthCare.com (in March 2007), revenues grew approximately 26%.

Operating Costs


Operating costs were as follows:



                                       For the Quarters Ended                       For the Nine Months Ended
                             September 30,     September 24,                September 30,     September 24,
(In thousands)                   2007              2006         % Change        2007              2006         % Change
Operating costs:
Production costs:
Raw materials               $        58,643   $        75,178      (22.0 ) $       196,678   $       241,593      (18.6 )
Wages and benefits                  163,367           162,908        0.3           487,810           490,701       (0.6 )
Other                               109,952           106,012        3.7           318,421           322,879       (1.4 )
Total production costs              331,962           344,098       (3.5 )       1,002,909         1,055,173       (5.0 )
Selling, general and
administrative costs                342,503           340,927        0.5         1,029,045         1,030,941       (0.2 )
Depreciation and
amortization                         51,789            36,676       41.2           142,871           107,712       32.6
Total operating costs       $       726,254   $       721,701        0.6   $     2,174,825   $     2,193,826       (0.9 )

Production Costs

Total production costs decreased 3.5% ($12.1 million) in the third quarter of 2007, mainly due to lower raw materials expense ($16.5 million), primarily newsprint ($14.4 million), offset by other expenses. Newsprint expense declined 22.2%, with 13.4% of the decrease resulting from lower newsprint prices and 8.8% resulting from lower consumption.

Total production costs decreased 5.0% ($52.3 million) in the first nine months of 2007, mainly due to lower raw materials ($44.9 million), primarily newsprint ($37.2 million), and outside printing costs ($11.0 million). Newsprint expense declined 17.8% in the first nine months of 2007, with 9.0% of the decrease resulting from lower newsprint prices and 8.8% resulting from lower consumption. Outside printing costs decreased principally as a result of the lower volume of copies printed by third parties and expense reduction initiatives.

Selling, General and Administrative Costs

. . .