Released: 06/16/2008

SACRAMENTO, CALIF., June 16, 2008 -- The McClatchy Company (NYSE:MNI) today announced a strategic partnership with Pacific Northwest publisher Pioneer Newspapers, Inc., to print McClatchy’s Idaho Statesman and The Bellingham Herald -- initiatives that will improve the quality of both newspapers while significantly reducing expenses.

The two companies have entered into a definitive, long-term agreement to print the Idaho Statesman, a 63,000-circulation daily based in Boise. The printing of the Idaho Statesman will take place at the Pioneer-owned Idaho Press Tribune located 20 minutes to the west in the city of Nampa. The change will occur in early 2009 once Pioneer completes an upgrade to the Idaho Press Tribune’s printing facilities.

The companies also have signed a letter of intent to print McClatchy’s Bellingham Herald, a 22,000-circulation daily newspaper in Bellingham, Wash. Once a final agreement is reached, the printing of The Bellingham Herald will take place at Pioneer’s Skagit Valley Herald newspaper plant about 30 minutes south of Bellingham in Mount Vernon. The change is expected to occur within the second quarter of next year after Pioneer completes construction of the Skagit Valley Herald’s new office and production facilities.

“This creative partnership will help both companies take advantage of regional synergies, realize some significant financial benefits and enhance the reproduction quality of our newspapers in each of these markets,” said Bob Weil, McClatchy vice president, operations, who oversees McClatchy’s Northwest newspapers.

Pioneer Newspapers is a family-owned, private company headquartered in Seattle. It publishes eight dailies and 13 weeklies in five states in the Northwest.

“We’re delighted with this new alliance with McClatchy, a company we have long admired for its commitment to public service journalism," said David Lord, president of Pioneer Newspapers. “This new partnership is an innovative way to better serve readers and advertisers at each newspaper.”

The upgraded printing facilities at the Idaho Press Tribune will give the Idaho Statesman more color capacity and improved reproduction quality.

The Idaho Statesman will reduce operating costs through the reduction of 24 full-time equivalent production jobs and the conversion to a narrower web as consistent with industry trends.

Roger Stowell, production director at the Idaho Statesman, will join the Idaho Press Tribune as its production director to oversee the expanded operations. Pioneer expects to hire several of the affected Idaho Statesman production employees later this year when the upgraded press becomes fully operational. Those not offered jobs will receive severance payments and continuation of their benefits.

In addition to operating efficiencies, Weil said McClatchy will avoid tens of millions of dollars in capital expense to refurbish or replace the Idaho Statesman’s 35-year-old press. The Idaho Statesman’s press will remain in service, continuing to print niche and specialty publications and some outside commercial jobs. Inserting operations will continue at the Idaho Statesman’s facilities.

The companies expect to finalize The Bellingham Herald printing agreement within the next several weeks.

About McClatchy

The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets, which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer. McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, and 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

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