55 During the past five years, new or substantial additions or remodeling of existing facilities have been completed or are at some stage of construction at 29 of the company’s newspaper operations. Gannett continues to make significant investments in renovations or new facilities, where the investment improves the products for its readers and advertisers as well as productivity and operating efficiency. The company’s facilities are adequate for present operations. Regulation: Gannett is committed to protecting the environ- ment. The company’s goal is to ensure its facilities comply with federal, state, local and foreign environmental laws and to incor- porate appropriate environmental practices and standards in our operations. The company employs a corporate environmental manager responsible for overseeing not only regulatory compli- ance but also preventive measures. The company is one of the industry leaders in the use of recycled newsprint. The company increased its domestic purchases of newsprint containing some recycled content from 42,000 metric tons in 1989 to 862,000 metric tons in 2001. The company’s newspapers use inks, pho- tographic chemicals, solvents and fuels. The use and disposal of these substances may be regulated by federal, state and local agencies. Through its environmental compliance plan, the com- pany is taking effective measures to comply with environmental laws. Any release into the environment may create obligations to private and governmental entities under a variety of statutes and rules regulating the environment. Some of the company’s newspaper subsidiaries have been included among the potentially responsible parties in connection with the alleged disposal of ink or other chemical wastes at dis- posal sites that have been subsequently identified as inactive haz- ardous waste sites by the U.S. Environmental Protection Agency or comparable state agencies. Generally, the company’s sub- sidiaries are de minimus parties. The company provides for costs associated with these matters in accordance with generally accepted accounting principles. The company does not believe that these matters will have any significant impact on its financial position or results of operations.  Additional information about the company’s newspapers may be found on pages 66-69 of this report. Newsquest owns certain of the plants where its newspapers  are produced and leases other facilities. Its headquarters is in Morden, Surrey. All of its properties are adequate for present purposes. A new printing plant has come into operation at Wingates in Lancashire to replace the existing press at Lostock and add color capacity. A listing of Newsquest publishing centers and key properties may be found on page 70.  Newsquest is actively seeking to maximize the value of its local information expertise through development of opportuni- ties offered by the Internet. Through internal growth and in partnership with other businesses, Newsquest has established a number of local and national Web sites that offer news and other information of special interest to its communities, as well as clas- sified and retail advertising and shopping services.  Newsquest’s revenues for 2001 were in excess of $700 mil- lion. As with U.S. newspapers, advertising is the largest compo- nent of revenue, comprising approximately 80%. Circulation rev- enue represents 11% of revenues and printing activities account for much of the remainder. Compared to U.S. newspaper opera- tions, advertising revenue at Newsquest is a greater percent of total revenue and circulation revenue is a lesser percent, reflect- ing the greater volume and importance of free weekly publica- tions among Newsquest’s titles. Altogether, Newsquest now publishes over 300 titles in the United Kingdom, including 15 daily newspapers. Newsquest manages its newspaper publishing activities around geographic clusters to maximize the use of management, finance, printing and personnel resources. This approach enables the group to offer readers and advertisers a range of attractive products cover- ing the market. The clustering of titles and, usually, the publica- tion of a free newspaper alongside a paid-for newspaper allows cross-selling of advertising among newspapers serving the same or contiguous markets, thus satisfying the needs of its advertisers and audiences. At the end of 2001, Newsquest had 16 such clus- ters in the United Kingdom. Newsquest’s policy is to produce free and paid-for newspapers with an attractive level of quality local editorial content. Newsquest also distributes a substantial volume of advertising leaflets in the communities it serves and it offers a travel/vacation booking service. Newspapers/United Kingdom