ADD BW0129 (GANNETT) Adding financial tables to earlier Gannett announcement.

ARLINGTON, Va.--(BUSINESS WIRE)--Oct. 9, 1995--Reflecting the costs associated with a strike against its Detroit newspaper, Gannett reported that earnings per share fell to 69 cents in the third quarter, from 74 cents in the 1994 quarter.

Six unions representing 2,500 workers struck Detroit Newspapers on July 13. The agency has published every day despite the strike. However, additional costs for temporary workers and security, coupled with lower revenues, created losses in Detroit which reduced earnings per share by approximately 15 cents in the quarter.

Net income fell 9 percent to $96,101,000, compared to $105,531,000 in 1994. Operating revenues were flat at $932,261,000, compared to $932,427,000 in the year-earlier quarter. Operating income fell 10 percent to $169,414,000. In the third quarter of 1994, operating income was $187,255,000.

Average shares outstanding in the quarter totaled 140,181,000, compared to 143,465,000 in 1994. During last year's third quarter, the company repurchased about 8 million of its common shares.

For the nine months, earnings per share advanced 6 percent to $2.30, compared to $2.17 in 1994. Net income was $321,730,000, compared to $316,015,000. Operating revenues were 3 percent higher at $2,860,002,000, while operating profit gained 2 percent to $572,980,000.

In a statement, the company said that its broadcasting operations achieved record profits in the quarter, and outdoor earnings continued to improve. Excluding the impact of the strike, newspaper profits gained modestly, despite sharply higher newsprint costs.

Newspaper earnings fell 19 percent to $136,344,000. Segment revenues fell 1 percent to $760,075,000, reflecting reduced advertising and circulation revenues in Detroit. Excluding Detroit, pro forma advertising volume was flat and advertising revenues were 3 percent higher, including a 6 percent gain in classified advertising.

At USA TODAY, paid advertising pages gained 5 percent to 853 from 812 in the third quarter of 1994. Advertising revenues advanced 8 percent. For the nine months, paid pages totaled 2,779 in 1995, compared to 2,740 in 1994, and advertising revenues grew 6 percent.

Broadcasting earnings jumped 41 percent to $38,513,000 as revenues gained 10 percent to $104,787,000. Television results included the operations of KTHV-TV in Little Rock, purchased in December 1994. Strong demand for television advertising continued in the third quarter, pushing pro forma revenues up 7 percent. Radio revenues gained 10 percent. Outdoor income advanced 39 percent in the quarter to $9,723,000. Segment revenues gained 2 percent to $67,399,000.

Gannett is a nationwide news and information company that publishes 82 daily newspapers, including USA TODAY, and USA WEEKEND, a newspaper magazine. Gannett also operates 10 television stations, 11 radio stations and the largest outdoor advertising company in North America. On July 24, 1995, Gannett agreed to purchase Multimedia, Inc., a diversified media company based in Greenville, S.C.

CONSOLIDATED STATEMENT OF INCOME  (Unaudited)
Gannett Co., Inc. and Subsidiaries

                                     Thirteen weeks ended
                                Sept. 24, 1995  Sept. 25, 1994
                                --------------  --------------
 Net Operating Revenues:
 Newspaper advertising           $508,821,000    $521,938,000
 Newspaper circulation            209,445,000     210,724,000
 Broadcasting                     104,787,000      95,189,000
 Outdoor advertising               67,398,000      65,929,000
 Other                             41,810,000      38,647,000
                                  -----------     -----------
  Total                           932,261,000     932,427,000
                                  -----------     -----------
Operating Expenses:
Cost of sales and operating
 expenses, exclusive of
 depreciation                     546,196,000     524,016,000
Selling, general and
 administrative expenses,
 exclusive of depreciation        166,953,000     167,447,000
Depreciation                       38,336,000      42,203,000
Amortization of intangible assets  11,362,000      11,506,000
                                  -----------     -----------
Total                             762,847,000     745,172,000
                                  -----------     -----------
Operating income                  169,414,000     187,255,000
                                  -----------     -----------
Non-operating income (expense):
Interest expense                   (9,113,000)    (10,307,000)
Other                               1,100,000        (217,000)
                                  -----------     -----------
Total                              (8,013,000)    (10,524,000)
                                  -----------     -----------
Income before income taxes        161,401,000     176,731,000
Provision for income taxes         65,300,000      71,200,000
                                  -----------     -----------
Net income                       $ 96,101,000    $105,531,000
                                  ===========     ===========

Net income per share                    $0.69           $0.74
                                  ===========     ===========
Dividends per share                     $0.35           $0.34
                                  ===========     ===========

                                    Thirty-nine weeks ended
                                Sept. 24, 1995  Sept. 25, 1994
                                --------------  ---------------

Net Operating Revenues:
Newspaper advertising         $  1,592,697,000  $ 1,554,332,000
Newspaper circulation              635,454,000      635,809,000
Broadcasting                       322,650,000      286,689,000
Outdoor advertising                186,562,000      176,031,000
Other                              122,639,000      123,072,000
                                 -------------    -------------
Total                            2,860,002,000    2,775,933,000
                                 -------------    -------------

Operating Expenses:
Cost of sales and operating
 expenses, exclusive of
 depreciation                   1,622,790,000     1,556,523,000
Selling, general and
 administrative expenses,
 exclusive of depreciation        513,536,000       501,850,000
Depreciation                      116,578,000       123,204,000
Amortization of intangible assets  34,118,000        33,961,000
                                -------------     -------------
Total                           2,287,022,000     2,215,538,000
                                -------------     -------------
Operating income                  572,980,000       560,395,000
                                -------------     -------------
Non-operating income (expense):
Interest expense                  (31,723,000)      (32,204,000)
Other                                (627,000)        2,224,000
                                 -------------    -------------
Total                             (32,350,000)      (29,980,000)
                                 -------------    -------------
Income before income taxes        540,630,000       530,415,000
Provision for income taxes        218,900,000       214,400,000
                                 -------------     ------------
Net income                     $  321,730,000   $   316,015,000
                                 =============    =============

Net income per share                    $2.30             $2.17
                                =============     =============
Dividends per share                     $1.03             $1.00
                                =============     =============

CONTACT: Mimi Feller,

Senior Vice President of Public Affairs and

Government Relations

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or

Sheila Gibbons, Director of Public Affairs

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