Exhibit 99.1

MORRIS PUBLISHING ANNOUNCES
2006 SECOND QUARTER RESULTS
AUGUSTA, Ga. (August 10, 2006) — Morris Publishing Group, LLC today reported second quarter operating income of $24.7 million, up $4.0 million, or 19.1%, from $20.7 million for the same period in 2005. Net income for the quarter was $9.7 million, up $2.3 million from $7.4 million in the prior year.
Total operating revenue for the second quarter was $120.3 million, up $3.3 million, or 2.8%, from $117.0 million in the same quarter last year. Total advertising revenue was $99.0 million, up $4.0 million, or 4.2%, from $95.0 million last year, with retail advertising revenue of $48.7 million, up 0.3%, classified advertising revenue of $43.7 million, up 8.1%, and national advertising revenue of $6.6 million, up 10.2%. Circulation revenue was $17.3 million, down $0.4 million, or 2.2%.
For the second quarter, total operating expense was $95.5 million, down $0.7 million, or 0.7%, from $96.2 million last year, with employee costs of $43.4 million, down 3.1%, newsprint, ink and supplements costs of $14.9 million, up 2.9%, and other operating costs, excluding depreciation and amortization, of $32.0 million, up 0.8%. Depreciation and amortization expense was $5.2 million, down 6.1% from the same period last year.
Commenting on the results, William S. Morris IV, Morris Publishing Group’s chief executive officer and president, said, “Our double-digit increase in operating income for the second quarter was driven by solid gains in the classified advertising revenue category, along with our diligent efforts to control costs. Online advertising revenue was up 42.7% due to the strength in the employment classified and retail categories.”
Morris Publishing Group, LLC is a wholly owned subsidiary of Morris Communications Company, LLC, a privately held media company based in Augusta, Ga. Morris Publishing owns and operates 27 daily newspapers as well as nondaily newspapers, city magazines and free community publications in the Southeast, Midwest, Southwest and Alaska. For more information, visitwww.morris.com.
A conference call will be held Thursday, August 10, 2006, at 10:00 a.m. Eastern Daylight Time. In order to participate, please call 1-888-928-9177 ten (10) minutes prior to the scheduled start. The pass code and leader’s name listed below will be required to join the conference call:
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LEADER: | | MR. STEVE STONE |
PASS CODE: | | MORRIS PUBLI |
To access the Audio Replay of this call, all parties can:
1. Go to the URL:https://e-meetings.mci.com
2. Choose Audio Streaming under Join Events
3. Enter the conference number:9000672
4. Enter the pass code:MORRIS PUBLI
Replays of the conference call are available for 30 days after the live event at the URL link.
For further information, please contact:
Craig S. Mitchell
Senior Vice President of Finance
Morris Communications Company, LLC
706-823-3236
Second-quarter results follow:
Morris Publishing Group, LLC
Condensed Consolidated Statements of Income
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| | Three months ended June 30, | | | Six months ended June 30, | |
(Dollars in thousands) | | 2006 | | | 2005 | | | 2006 | | | 2005 | |
NET OPERATING REVENUES: | | | | | | | | | | | | | | | | |
Advertising | | $ | 98,988 | | | $ | 94,964 | | | $ | 191,361 | | | $ | 186,465 | |
Circulation | | | 17,259 | | | | 17,643 | | | | 34,803 | | | | 35,523 | |
Other | | | 4,018 | | | | 4,384 | | | | 8,027 | | | | 8,341 | |
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Total net operating revenues | | | 120,265 | | | | 116,991 | | | | 234,191 | | | | 230,329 | |
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OPERATING EXPENSES: | | | | | | | | | | | | | | | | |
Labor and employee benefits | | | 43,400 | | | | 44,796 | | | | 87,432 | | | | 89,319 | |
Newsprint, ink and supplements | | | 14,929 | | | | 14,507 | | | | 29,689 | | | | 28,449 | |
Other operating costs (excluding depreciation and amortization) | | | 32,015 | | | | 31,396 | | | | 64,027 | | | | 64,727 | |
Depreciation and amortization | | | 5,193 | | | | 5,529 | | | | 10,474 | | | | 11,077 | |
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Total operating expenses | | | 95,537 | | | | 96,228 | | | | 191,622 | | | | 193,572 | |
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Operating income | | | 24,728 | | | | 20,763 | | | | 42,569 | | | | 36,757 | |
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OTHER EXPENSE (INCOME): | | | | | | | | | | | | | | | | |
Interest expense, including amortization of debt issuance costs | | | 9,171 | | | | 8,867 | | | | 18,171 | | | | 17,382 | |
Interest income | | | (1 | ) | | | (354 | ) | | | (68 | ) | | | (652 | ) |
Other, net | | | (46 | ) | | | (14 | ) | | | (57 | ) | | | 20 | |
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Total other expenses, net | | | 9,124 | | | | 8,499 | | | | 18,046 | | | | 16,750 | |
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INCOME BEFORE INCOME TAXES | | | 15,604 | | | | 12,264 | | | | 24,523 | | | | 20,007 | |
PROVISION FOR INCOME TAXES | | | 5,883 | | | | 4,822 | | | | 9,465 | | | | 7,923 | |
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NET INCOME | | $ | 9,721 | | | $ | 7,442 | | | $ | 15,058 | | | $ | 12,084 | |
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