Sun-Times Media Group Reports Circulation Performance

Sun-Times Media Group, Inc. today announced that its circulation performance for its flagship newspaper, the Chicago Sun-Times, and its combined seven suburban daily newspapers performed in line with the Company’s expectations during the six-month reporting period ended September 30, 2009, compared with the same period last year, as the Company implemented its price increase strategy during the period. That included raising the single-copy price of the Chicago Sun-Times to 75 cents from 50 cents, the first price increase the newspaper has had in five years. The Chicago Sun-Times, which is the city’s most-read newspaper, reported a significant increase in home delivery subscriptions as the Company executed its strategy to target and grow a stable circulation base. The circulation figures were announced as ownership of Sun-Times Media’s newspapers and Web sites were expected to be transferred today to a local investor group.

The Chicago Sun-Times’ Monday through Friday average circulation over the six-month reporting period was 275,641, a decline of 12 percent compared with the same period a year ago. The newspaper's Sunday circulation over the six-month reporting period was 251,260, down 1.8 percent. Over the same timeframe, Saturday's average circulation was 210,027, down 7.9 percent. The latest figures are according to the FAS-FAX report released by the Audit Bureau of Circulations (ABC) early this morning.

The Chicago Sun-Times reported 5.5 percent increase in its overall/weekday home delivery circulation, a positive result as the Company has focused diligently on growing home-delivery circulation and continued its relentless commitment to customer service and retention. Single-copy circulation declined, as a single-copy price increase to 75 cents for Monday through Saturday was put into effect on March 30, 2009.

Combined Monday through Friday circulation for Sun-Times Media’s daily papers, which includes the Chicago Sun-Times and seven suburban newspaper titles, was 460,389, down 12 percent from the same period a year ago, and for its weekly papers 116,784, down mainly due to the discontinuation of several titles and price increases implemented at all suburban newspaper titles. Excluding the Chicago Sun-Times, the average Monday through Friday circulation for the seven suburban dailies was 184,748, down 11 percent.

“As we publicly release our circulation figures today for all of our ABC audited publications, we have positive news to report. When we complete the sale transaction later today, the Chicago Sun-Times and our suburban news titles will be under new ownership, free and clear of old legacy issues and facing new opportunities and new investment. It is truly a bright new day for our publications, our readers and our advertisers,” said Jeremy L. Halbreich, Interim Chief Executive Officer and Chairman of the Board for Sun-Times Media Group.

“During this most recent period, we successfully executed our strategy to increase the prices of all of Sun-Times Media’s newspapers as many newspapers have done in the face of rising production costs, including competitors in our marketplace,” said Rick Surkamer, President and Chief Operating Officer of Sun-Times Media Group. “We are pleased that our newspapers were able to perform in line with our expectations for the period and in line with the performance of many other newspapers during this long economic recession. The future holds great things for Sun-Times Media, which already has a remarkable unparalleled footprint in the Chicago region, reaching more than 3.7 million readers each week in print and online, an astounding 52 percent of the Chicago DMA.”

“The Chicago Sun-Times continues its reign as the city’s best-read paper. And with new ownership and a promising future, we are excited to share new ideas and opportunities with our advertisers and to continue to bring the hands-down best news coverage of the city in print and online to our readers,” said John Barron, Publisher of the Chicago Sun-Times.

About Sun-Times Media Group

Sun-Times Media Group is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties serve more than 300 communities across the region and include the Chicago Sun-Times and Suntimes.com; seven suburban daily newspapers, including the Beacon-News (Aurora), Courier-News (Elgin), Herald-News (Joliet), Lake County News-Sun, Naperville Sun, Post-Tribune (Merrillville, Ind.) and the SouthtownStar; 39 weekly newspapers published by the Pioneer Press and 12 weekly Sun newspapers, as well as Web sites for those newspapers, Roger Ebert.com, centerstagechicago.com and YourSeason.com.