penetration at most of our papers is nearly 60% daily and higher on Sunday. Our goal is to protect that strong base by continuing to make our papers lively, relevant and well-written. in Carbondale. Bill Masterson Jr., a successful publisher at a nearby paper in South Dakota, joined us to lead the  Rapid City Journal . Publisher promotions included Mike Gulledge to the  Billings Gazette in Montana, Mike Jameson to the  La Crosse Tribune in Wisconsin, Kevin Mowbray to  The Bismarck Tribune in North Dakota, Heidi Wright to  The Montana Standard in Butte, and Jim Santori to the  Herald & Review in Decatur, Illinois. Other key promotions included Dan Adams to manage the  Nickel Ads in Portland, Oregon, and Mike Kment to lead our publications in Spokane, Washington. All bring exceptional leadership ability. And we’re very good at that already. In our markets — from the Midwest to the Great Plains to the Rocky Mountains to the Pacific Northwest  — we have more local reporters and ad salespeople on the street than all our major competitors combined. People look to us for a wide range of information, and we deliver it quickly, accurately, and with far more detail than any other source. Like a good friend, we sometimes share happiness, sometimes bring comfort and sometimes must tell an awful truth that we’d rather wish away. Our readers and advertisers rely on us, and every day we work hard to earn their trust.  In 2001, the cost of newsprint will challenge us. Over the last couple years, our newsprint expense has been down slightly, but this year we expect prices to jump more than 20%. One price increase went into effect in September and another is expected this spring. Along with most of the industry, we reduced our page widths this past year. The savings in 2001 will offset about $1 million of the increased newsprint expense. Another challenge for the industry is circulation, which has declined in recent years. Fortunately for Lee Enterprises, we have a strong base. Our readership remains very high. Household With warmest wishes for the new year, Mary E. Junck President and Chief Operating Officer December 15, 2000 LEE ENTERPRISES / 2000 Annual Report 5