In 2000, Lee Enterprises decided to sell its television stations in order to focus on growing in newspaper publishing and related online services. Lee owns 23 daily newspapers and more than 100 weekly, classified, shopper and specialty publications, along with associated Internet services, primarily from the Midwest to the Pacific Northwest. Jointly with The Capital Times Co., Lee also owns five daily newspapers and more than a dozen other publications operated by Madison Newspapers Inc. in Wisconsin.  Lee has 5,100 employees, and its associated companies have another 800. The Company’s general offices are in Davenport, Iowa. Lee’s stock is traded on the New York Stock Exchange under the symbol LEE. TABLE OF CONTENTS Two-Year Summary Highlights . . . . . . . . . . . . . . . . . . . . . . . 1 Message to Shareholders, Employees and Friends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 5 Operations and Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-7 Financial Information: Six-Year Financial Performance . . . . . . . . . . . . . . . . . . . . . 8-9 Management Discussion and Analysis . . . . . . . . . . . . . . . . 10-12 Consolidated Statements of Income . . . . . . . . . . . . . . . . . . 13 Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . 14-15 Consolidated Statements of Stockholders’ Equity   . . . . . . . . 16 Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . 17 Notes to Consolidated Financial Statements . . . . . . . . . . . . 18-23 Independent Auditor’s Report / Quarterly Results . . . . . . . 24 Officers and Directors, Corporate Directory . . . . . . . . . Inside Back