From the Chairman: The transformation of Lee Enterprises has accelerated. In 2000, we decided to exit broadcasting and refocus the company completely on expanding in newspaper publishing and related online and information services. In 2001, we will change leadership at the top and, with a new management team, a dramatically improved sales capacity and an exceedingly strong balance sheet, speed up our plans for growing both internally and through strategic acquisitions. At our board meeting in January 2001, I will retire as chief executive officer. I will continue as chairman until my current term expires in January 2002. Our new chief executive officer will be Mary Junck, a remarkably talented leader who joined us as chief operating officer in 1999 and became president last January. As much as I am personally looking forward to my own retirement after 36 very gratifying years, including nine as CEO, I am even more excited about the future of Lee Enterprises under Mary. Our board and I are incredibly enthusiastic about her ability and plans to lead rapid change and take our company to greater heights. Mary will outline those plans, as well as some of our many achievements over the last year, in her message beginning on the next page. For my part, I would like to say two more things: The first is that, as usual, the year that just ended was a good one for Lee shareholders. Our earnings in 2000 were $1.89 per share vs. $1.52 in 1999, a gain of 24.3%. Excluding the $0.25 gain per share on the sale of certain publishing properties, EPS was $1.64, an increase of 7.9% over 1999. As for stock performance, our total return (stock price December 15, 2000 With best regards and thanks, Finally, as I have repeated many times in many places, I want to say that I am incredibly proud of the great number of talented and dedicated employees who enrich Lee Enterprises with their passion to serve their customers and communities. In the coming year as chairman, I will look forward to helping them and Mary as they reach for and achieve ever-higher goals. In the years afterward, I and my wife, Harriet, will look forward as shareholders to enjoying the fruits of their continued successes. change plus dividends) was 8.0% vs. an increase of 0.3% for the Standard & Poor’s Publishing- Newspapers Index. Gottlieb and Junck, announcing plans for the change in leadership. Greg Boll / Quad-City Times Richard D. Gottlieb Chairman and Chief Executive Officer 2 LEE ENTERPRISES / 2000 Annual Report TO SHAREHOLDERS, EMPLOYEES AND FRIENDS...