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LEADING MARKETS < > LEADING BRANDS




                   NEW YORK   LOS ANGELES    CHICAGO   PHILADELPHIA   BOSTON


                   DALLAS     WASHINGTON     ATLANTA    HOUSTON    SEATTLE


                   MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO


                   ST LOUIS PORTLAND BALTIMORE INDIANAPOLIS SAN DIEGO


                   HARTFORD    GRAND RAPIDS    NEWPORT NEWS   NEW ORLEANS


                   HARRISBURG   ALBANY   ALLENTOWN     GREENWICH   STAMFORD


                                                                      >>>
                   TRIBUNE     COMPANY      2002   ANNUAL   REPORT
> TRIBUNE IS A MEDIA INDUSTRY LEADER
  REACHING MORE THAN 80 PERCENT OF

  U.S. HOUSEHOLDS THROUGH PUBLISHING,

  BROADCASTING AND THE INTERNET.

  OPERATIONS ARE CONCENTRATED

  IN THE NATION’S MAJOR MARKETS,

  INCLUDING EIGHT OF THE TOP 10 AND

  20 OF THE TOP 30. REVENUES IN 2002

  TOTALED $5.4 BILLION.
AT A GLANCE
BROADCASTING
TELEVISION                           WGNO (ABC26)
               WBZL (WB39)
WPIX (WB11)                          New Orleans
               Miami
New York                             abc26.com
               wb39.com
wb11.com
                                     WNOL (WB38)
               KWGN (WB2)
KTLA (WB5)                           New Orleans
               Denver
Los Angeles                          wb38.com
               wb2.com
ktla.com
                                     WPMT (FOX43)
               KTXL (FOX40)
WGN (WB9)                            Harrisburg, Pa.
               Sacramento, Calif.
Chicago                              fox43.com
               ktxl.com
wgntv.com
                                     WEWB (WB45)
               KPLR (WB11)*
WPHL (WB17)                          Albany, N.Y.
               St. Louis
Philadelphia                         wewbtv.com
               wb11tv.com
wb17.com
                                     NATIONAL CABLE
               KWBP (WB32)*
WLVI (WB56)                          Superstation WGN
               Portland, Ore.
Boston                               superstationwgn.com
               wb32tv.com
wb56.com
                                     RADIO
               WXIN (FOX59)
                                                             PUBLISHING
KDAF (WB33)                          WGN (720 AM)
               Indianapolis
Dallas                               Chicago
               fox59.com
kdaf.com                             wgnradio.com            DAILY NEWSPAPERS
               WTTV (WB4)
                                                             Los Angeles Times
WBDC (WB50)                          TELEVISION
               Indianapolis
                                                             Los Angeles
Washington                           PROGRAMMING
               wb4.com
                                                             latimes.com
wbdc.com                             Tribune
               KSWB (WB5/69)         Entertainment Co.       Chicago Tribune
WATL (WB36)    San Diego             Los Angeles             Chicago
Atlanta        kswbtv.com            tribtv.com              chicagotribune.com
wb36.com
               WTIC (FOX61)          BASEBALL                Newsday
KHWB (WB39)    Hartford, Conn.       Chicago Cubs            Melville, N.Y.
Houston        fox61.com             Chicago                 newsday.com
khwbtv.com
                                     cubs.com
               WTXX (WB20)
                                                             The Baltimore Sun
KCPQ (FOX13)   Hartford, Conn.       INVESTMENTS             Baltimore
Seattle        wtxx.com              The WB Television       sunspot.net
kcpq.com
                                       Network (22% owned)
               WXMI (FOX17)
                                                             South Florida Sun-Sentinel
KTWB (WB22)                          TV Food Network (31%)
               Grand Rapids, Mich.
                                                             Fort Lauderdale, Fla.
Seattle                              The Golf Channel (9%)
               wxmi.com
                                                             sun-sentinel.com
ktwbtv.com
                                     *Acquisition pending
                                                             Orlando Sentinel
                                                             Orlando, Fla.
                                                             orlandosentinel.com
                                                             The Hartford Courant
                                                             Hartford, Conn.
                                                             ctnow.com
TRIBUNE MEDIA ARE CONCENTRATED IN THE NATION’S MAJOR MARKETS.




The Morning Call       ¡Exito!
Allentown, Pa.         Chicago
mcall.com              exito.com
Daily Press            el Sentinel
Newport News, Va.      Fort Lauderdale, Fla.
dailypress.com         elsentinel.com
The Advocate           El Sentinel
                                                                    INTERACTIVE
Stamford, Conn.        Orlando, Fla.
stamfordadvocate.com   elsentinel.com
                                                                    Tribune Interactive is among the leading news and
Greenwich Time         ENTERTAINMENT
Greenwich, Conn.       LISTINGS AND                                 information networks in the country, operating more
greenwichtime.com      CONTENT SYNDICATION
                                                                    than 50 Web sites and attracting 9 million unique visitors
                       Tribune Media Services
SPANISH-LANGUAGE
                       tms.tribune.com                              per month. The group manages all aspects of the
NEWSPAPERS
                                                                    company’s newspaper and television sites, plus special-
Hoy                    CABLE PROGRAMMING
New York               CLTV                                         interest sites like BlackVoices.com, ChicagoSports.com
holahoy.com            Chicago
                                                                    and many that feature local dining and entertainment
                       cltv.com
La Opinión
                                                                    options. Affiliated national-brand classified advertising
Los Angeles            Central Florida News 13
(partnership)          Orlando, Fla.                                sites include CareerBuilder (33 percent owned by Tribune),
laopinion.com          (partnership)
                                                                    cars.com and apartments.com. The latter two sites
                                                                    are operated by Classified Ventures (29 percent
                                                                    owned by Tribune).
TO OUR SHAREHOLDERS
AND EMPLOYEE OWNERS



TRIBUNE’S LOCAL MASS-MEDIA BUSINESSES ARE THE
FOUNDATION OF OUR COMPANY. THE QUALITY, LEADERSHIP AND
LOCATIONS OF THESE FRANCHISES SET US APART IN THE MEDIA INDUSTRY AND PROVIDE A

DISTINCT COMPETITIVE ADVANTAGE. THROUGH THEM, AND WITH THE COMMITMENT OF ALL

TRIBUNE EMPLOYEES, WE’RE BUILDING LONG-TERM VALUE FOR SHAREHOLDERS.



THE THEME OF THIS REPORT — LEADING MARKETS, LEADING BRANDS — DEFINES OUR STRATEGY

AND SPEAKS TO THE UNIQUE GROWTH OPPORTUNITIES WE’RE PURSUING IN THE PLACES THAT

MATTER MOST TO ADVERTISERS. THESE INCLUDE THE TOP THREE U.S. MARKETS, NEW YORK,

LOS ANGELES AND CHICAGO, WHERE TRIBUNE IS THE ONLY MEDIA COMPANY OPERATING

NEWSPAPERS, TELEVISION STATIONS AND WEB SITES. >




                                        1
> Our business concentration in major markets contributed to                    and insertion capabilities. In Southern California alone, where the
   excellent financial results in 2002. During the second half of the           Times currently has about a third of the overall preprint business,
   year, as the advertising environment stabilized and the economy              the new operation should contribute an additional $75 million in
   gradually improved, large markets outperformed smaller ones,                 revenue over the next several years. We see another preprint
   helping Tribune achieve record-setting earnings per share in the             growth opportunity in South Florida so the Sun-Sentinel is investing
   fourth quarter and for the full year.                                        in new insertion facilities that will be operational later this year.
      Operating cash flow in 2002 grew 20 percent to $1.5 billion, and             Growing national advertising is a priority, too. Tribune Media
   we generated free cash flow of about $700 million. Our continued             Net produced about $60 million in incremental revenue from
   focus on cost control reduced expenses by 3 percent, and we                  newspaper and cross-media ad programs in 2002 — nearly
   lowered debt by $650 million. Also in 2002, cash-flow margins                double what the unit generated in 2001, its first full year. These
   improved in publishing and broadcasting, and our interactive                 dollars, allocated by national marketers for brand-building
   businesses showed strong growth and turned cash-flow positive.               campaigns, are above and beyond what our local businesses
      Tribune’s solid financial performance was reflected in our                could attract on their own. With our multimedia strength in the
   stock price. Total return on                                                                                     top three markets, we anticipate
   TRB shares — change in stock                                                                                     more than $70 million in incre-
   price plus dividends — was 23                                                                                    mental sales through Tribune
   percent in 2002, compared with                                                                                   Media Net in 2003.
   a negative total return of 22                                                                                        Another positive develop-
   percent for the Standard &                                                                                       ment in 2002 was the emergence
   Poor’s 500 Index and negative                                                                                    of CareerBuilder, our brand in
   15 percent for the Dow Jones                                                                                     the online recruitment segment
   Industrial Average. Our per-                                                                                     of classified advertising. Despite
   formance ranked No. 23 among                                                                                     a very tough help-wanted mar-
   all stocks in the S&P 500.                                                                                       ketplace, CareerBuilder improved
      It was an outstanding year                                                                                    its market share at the expense
                                           Chairman John Madigan (left) and President/CEO Dennis FitzSimons
                                           at the Values in Action exhibit inside Tribune Tower.
   for Tribune journalism as well.                                                                                  of Monster, the category leader.
   Our newspapers won three                                                                                         The rebranding of our Sunday
   Pulitzer Prizes: two by the Los Angeles Times and one by Newsday.            newspaper employment sections and the addition of Gannett
   These honors and many others —including numerous Emmy                        to the CareerBuilder partnership (joining Tribune and Knight
   Awards earned by our television stations and several prestigious             Ridder) have greatly extended the brand’s reach. The multimedia
   awards for our Web sites — symbolize Tribune’s commitment to                 promotional strength that our three companies bring to
   journalistic excellence. They also reinforce our belief that talented        CareerBuilder is a powerful advantage that no competitor can
   and dedicated people are this company’s most important asset.                match, and it will help us gain even more market share as the
                                                                                economy expands.
                                                                                   While winning in classifieds is vital to our future, an important
   INCREASING NEWSPAPER REVENUES AND READERSHIP
   In all of our markets, we aim to maximize Tribune’s share of local           challenge facing the entire newspaper industry is readership.
   advertising dollars. One major priority in publishing is preprinted          A Wall Street media analyst recently said that readership,
   inserts, a highly profitable and growing advertising segment.                as opposed to circulation, is fast becoming the most relevant
   State-of-the-art preprint facilities at the Los Angeles Times and            metric to gauge newspaper audiences for ad buyers and marketers.
   Chicago Tribune, completed in 2002, have greatly enhanced zoning             We agree, and Tribune newspapers are moving quickly with




                                                                            2
innovative steps that get results. In fact, readership is up at our            South Florida, we actively promote our newspapers’ content during
   newspapers in New York, Los Angeles and Chicago.                               evening newscasts, pointing readers to the next day’s editions.
       To grow readership significantly, we believe new products
   are needed — innovations that broaden our newspaper audience.                  ACQUISITIONS, STRONG RATINGS LEAD TV GROWTH
   RedEye, a new daily edition of the Chicago Tribune introduced                  In television, we announced three station acquisitions in 2002,
   last fall, is written for young adults looking for a newspaper that’s          advancing our goal to build scale in the nation’s top 30 markets.
   quicker to read and easier to digest. So far, readers’ response has            Regulatory approval for the acquisitions of WB affiliates KPLR-TV,
   been very encouraging, and advertisers are enthusiastic about                  St. Louis, and KWBP-TV, Portland, Ore., is expected in the first
   RedEye’s ability to reach the critical 18-to-34 demographic.                   quarter. Tribune will then have 26 owned and operated stations in
       We’re also putting greater emphasis on our Spanish-language                addition to Superstation WGN.
   newspapers that serve the large and increasing Hispanic popula-                   Expanding our national footprint also means creating more
   tions in major markets. Our star in this category is Hoy, the leading          two-station clusters. The acquisition of WTTV-TV last summer
   Spanish-language daily in the New York metro area. Tribune                     made Indianapolis our fourth two-station market, joining Seattle,



                                                                                                                                            CAREERBUILDER
                                                                                     TV NEWS
                                INSERTS REVENUE
                                                                                                                                            SECTIONS IN
                                                                                     HOURS UP
                                MORE THAN


                                                                                                                                            130
                                                                                     41%
                               $500                                                                                                         NEWSPAPERS
                                                                                     FROM THREE
                                MILLION
                                                                                                                                            NATIONWIDE
                                                                                     YEARS AGO
                                IN 2002



Preprinted inserts drive retail-advertising growth   High-quality local news programming attracts            The combined multimedia promotional strength
for Tribune newspapers, and we’re investing          viewers and advertisers alike, and Tribune stations     of CareerBuilder partners Tribune, Knight Ridder
aggressively to boost local market shares in this    now air 213 hours of locally produced news every        and Gannett brings valuable “offline” exposure to
fast-growing, high-margin ad category. New           week. “The WB11 Morning News” on New York’s             the online brand. A national marketing campaign
insertion facilities opened in 2002 at the           WPIX-TV (above) expanded by an hour in 2002,            now in progress positions CareerBuilder as
Los Angeles Times and Chicago Tribune.               increasing the show’s already strong ratings.           “the smarter way to find a better job.”



   Publishing recently promoted Hoy’s publisher to the newly created              Hartford and New Orleans. With multiple stations we can achieve
   position of vice president of Hispanic media. Louis Sito will                  higher operating margins in a number of ways, such as cross
   expand our initiatives in this important segment with the same                 promoting to improve program ratings and consolidating back-
   vision and passion that he and his team have shown in making                   office expenses and news departments.
   Hoy such a remarkable success since its launch five years ago.                    In all of our markets, the fringe periods before and after prime
       Targeted products like RedEye and Hoy are just part of the                 time play a critical role, delivering 40 percent of overall television
   story — we’re stepping up promotion to boost readership, too.                  revenue. Ratings for the newest sitcom on Tribune stations,
   Tribune newspapers are marketing themselves and their content                  “Will & Grace,” are excellent as are those for “Friends” and
   more aggressively than ever, including strategically placed in-paper           “Everybody Loves Raymond.” The size of Tribune’s station group
   ads that alert readers to stories in other sections or upcoming                translates into buying power when acquiring the syndication
   editions. Our newspapers are applying in print some of the same                rights to these and other popular shows.
   proven techniques that our television stations use to attract                     Tribune’s longstanding partnership with The WB Network
   viewers. And in New York, Los Angeles, Chicago, Hartford and                   produced audience and market share growth for our stations in




                                                                              3
2002 as each of our 17 WB affiliates benefited from the network’s               Technology, Inc., a healthcare, benefits and technology consulting
outstanding fall season. Ratings during the November sweeps                     firm that she founded in 1985. We are fortunate to have each of
period were The WB’s best ever, and it registered the highest                   these highly qualified executives serving Tribune shareholders.
audience gains of any network. It did so by doing what it has                   They share our commitment to an active board dedicated to strong
always done best — attract the teenage and young-adult viewers                  corporate governance.
that prime-time advertisers covet.                                                 Two long-time directors, Nancy Hicks Maynard and James J.
   More advertisers are including Superstation WGN in their                     O’Connor, will retire from board service in May. Nancy has served
media plans as well. The channel currently reaches 57 million                   more than seven years and Jim for nearly 20. Tribune shareholders
homes outside Chicago via cable and direct broadcast satellite,                 have benefited greatly from their leadership, and we sincerely
and Tribune Broadcasting is working to increase that subscriber                 appreciate their efforts.
base in 2003. With dual revenue streams from advertising and
subscriber fees, the superstation is a great business with exciting             OUTLOOK
growth potential.                                                               Tribune is well positioned during a time of rapid change in the
   Our television stations and newspapers are complemented by                   media industry. Market fragmentation, caused by the tremendous
high-traffic news and information Web sites that are unrivaled                  growth in consumer media choices, has made it more difficult for
among their peers for content and functionality. The sites are                  advertisers to reach broad audiences quickly and efficiently. That
operated by Tribune Interactive, which in 2002 achieved prof-                   makes our company’s local mass-media assets more valuable
itability for the first time. Since its creation three years ago, Tribune       than ever. Through newspapers, television and the Web, or any
Interactive has dramatically improved cash flow through revenue                 combination of the three, we can help advertisers succeed in
building and cost reduction. Its lead role in our CareerBuilder                 the markets they value most. At the same time, we’ve expanded
business positions Tribune for growth in the important help-wanted              our product options for clients who need to reach specific
segment of classified advertising.                                              demographic groups.
                                                                                   Tribune has long advocated changes to the current rules gov-
                                                                                erning media ownership. The Federal Communications Commission
LEADERSHIP CHANGES
On Jan. 1, 2003, Dennis FitzSimons, who had been president                      took steps in 2002 that we believe signal further deregulation
and chief operating officer, became president and chief executive               ahead. With increasing cash flow and a strong balance sheet, we
officer. In the final phase of Tribune’s management transition,                 can take advantage of opportunities to expand as the regulatory
John Madigan, who had been chairman and chief executive officer,                climate evolves.
will remain chairman until he retires on Dec. 31, 2003, and serve                  We look forward to another excellent year in 2003. Our
on the board of directors until the 2004 annual meeting.                        successful local mass-media strategy remains in place, applied
   Patrick Mullen, previously president of Tribune Television, was              with integrity by employees who believe in putting Tribune’s
named president of Tribune Broadcasting in January 2003. Pat                    guiding values into action every day.
has been a great leader for the company’s television group, most
recently by spearheading the acquisitions in St. Louis and Portland.            Sincerely,
   We welcomed two new members to the Tribune board of
directors in late 2002 — Betsy D. Holden and Kathryn C. Turner.
Betsy is co-chief executive officer of Kraft Foods, Inc., and president                                             Dennis J. FitzSimons
                                                                                John W. Madigan
                                                                                                                    President and Chief Executive Officer
                                                                                Chairman
and chief executive officer of Kraft Foods North America. She has
served Kraft in various management positions since 1982.                        February 26, 2003
Kathryn is chairperson and chief executive officer of Standard




                                                                            4
Tribune Company and Subsidiaries




FINANCIAL
HIGHLIGHTS

                                                                                                                                                   2001(1)
FOR THE YEAR (in thousands, except per share data)                                                                     2002

Operating revenues                                                                                                 $ 5,384,428                 $ 5,253,366

Operating profit before restructuring charges                                                                      $ 1,275,785                 $     802,229

Restructuring charges                                                                                                    27,253                      151,892

Operating profit including restructuring charges                                                                   $ 1,248,532                 $     650,337

Net income           Continuing operations before cumulative effect
                     of accounting change                                                                          $    608,579                $      111,136

                     Cumulative effect of accounting change, net                                                       (165,587)                              –

                     Total                                                                                         $   442,992                 $      111,136

Diluted              Continuing operations before cumulative effect
earnings             of accounting change                                                                          $        1.80               $             .28
per share
                     Cumulative effect of accounting change, net                                                              (.50)                           –

                     Total                                                                                         $        1.30               $             .28

Common dividends per share                                                                                         $          .44              $             .44

Common               high                                                                                          $       49.49               $       45.90
stock price
                     low                                                                                           $      35.66                $        29.71
per share

                     close                                                                                         $       44.47               $        37.74

AT YEAR END                                                                                                      Dec. 29, 2002                Dec. 30, 2001

Total assets                                                                                                       $14,078,328                 $14,484,867

Total debt (excluding PHONES)                                                                                      $ 2,749,630                 $ 3,411,582

Shareholders’ equity                                                                                               $ 6,140,100                 $ 5,651,168

Common shares outstanding                                                                                              305,909                       298,003


(1) 2001 results do not reflect the non-amortization provisions of Financial Accounting Standard No. 142, which requires that goodwill and certain
intangible assets no longer be amortized to earnings, but periodically be reviewed for impairment.




                                                                              5
TRIBUNE IN THE
COMMUNITY




OUR COMMITMENT TO THE COMMUNITIES WE SERVE GOES WELL BEYOND
PROVIDING NEWS, INFORMATION AND ENTERTAINMENT. Tribune’s local media businesses
support a wide range of nonprofit organizations that help people in need and contribute to building healthy, vibrant communities.
As a company and as individuals, giving back is the right thing to do. Citizenship is also good business because as our communities
grow stronger, so does our company.
    Community involvement comes easily to our local business units. That’s partly due to the nature of their work— reporting the
news of their communities and supplying information to the people who live in them. In the course of these activities, our businesses
often discover and act upon opportunities to address important needs. Local initiatives such as “Reading by 9,” the Sun-Sentinel
Diversity Venture Fund and WPHL-TV’s partnership with the Police Athletic League in Philadelphia make a positive difference in the
lives of many people, as does Tribune’s longstanding support of United Way.
    Tribune employees at all levels donate time, talent and dollars to our philanthropic efforts. Their generosity and citizenship
are a source of pride within the company and, we hope, an inspiration to others.




                                                                  6
FAR LEFT Orlando Sentinel employees serve as reading
                                                                                                          mentors during regular visits to local elementary
                                                                                                          schools — part of the newspaper’s “Reading by 9”
                                                                                                          program, a child literacy initiative originated by The
                                                                                                          Baltimore Sun. MIDDLE In New Orleans, “Bruce’s
                                                                                                          Coats for Kids” has collected more than 30,000
                                                                                                          coats over the past seven years. Bruce Katz, WGNO-TV
                                                                                                          chief meteorologist, is spokesperson for the annual
                                                                                                          drive. NEAR LEFT Cubs slugger Sammy Sosa greets
                                                                                                          some excited youngsters at last summer’s opening of a
                                                                                                          baseball diamond named in his honor. Sammy Sosa’s
                                                                                                          Inspiration Field is part of Cubs Care Park, a miniature
                                                                                                          replica of Wrigley Field on Chicago’s Near North Side.
                                                                                                          Cubs Care, the ballclub’s charitable arm and a fund
                                                                                                          of the McCormick Tribune Foundation, provided
                                                                                                          $1 million to the YMCA of Metropolitan Chicago to
                                                                                                          build the facility.




> McCORMICK            T R I B U N E F O U N DAT I O N


 Though legally independent from Tribune Company, the         at Northwestern University’s Medill School of Journalism
 McCormick Tribune Foundation plays a vital role in our       in Evanston, Ill. The $17.5 million state-of-the-art facility
 local media outlets’ support of their communities.           houses Medill’s journalism and integrated marketing
   Tribune business units are partners in the foundation’s    communications programs, with multimedia classrooms,
 communities program, which establishes and administers       broadcast studios and a 150-seat theater for public
 charitable funds in their names. Our businesses raise        affairs programs.
 money from the public on behalf of these funds, primarily       The McCormick Tribune Foundation is one of the nation’s
 through in-kind contributions of staff time and media        largest charitable organizations, with assets of more than
 support. The foundation then provides matching dollars       $2 billion and annual giving exceeding $100 million.
 and awards grants to local nonprofit organizations on        Grants are awarded in four program areas—communities,
 behalf of the funds. In 2002, charitable funds of the        education, journalism and citizenship — and through
 foundation in partnership with Tribune business units        a special initiatives program. The foundation was estab-
 issued grants totaling more than $35 million.                lished as a charitable trust in 1955 upon the death of Col.
   A major foundation initiative came to fruition last fall   Robert R. McCormick, longtime editor and publisher of
 when the McCormick Tribune Center (right) was dedicated      the Chicago Tribune.




                                                                               7
BOARD OF DIRECTORS

Jeffrey Chandler                                                              Robert S. Morrison
President and Chief Executive Officer of Chandler Ranch Co.,                  Retired Vice Chairman of PepsiCo, Inc., and Chairman of
an avocado producer                                                           PepsiCo Beverages and Foods North America
Dennis J. FitzSimons                                                          James J. O'Connor
President and Chief Executive Officer of Tribune Company                      Retired Chairman and Chief Executive Officer of Unicom Corporation,
                                                                              a holding company, and Commonwealth Edison Company,
Jack Fuller
                                                                              an electric utility
President of Tribune Publishing Company
                                                                              William A. Osborn
Roger Goodan
                                                                              Chairman and Chief Executive Officer of Northern Trust Corporation,
Consultant to Schlumberger Limited, a global technology
                                                                              a multibank holding company, and its principal subsidiary,
services company
                                                                              The Northern Trust Company
Enrique Hernandez, Jr.
                                                                              Patrick G. Ryan
Chairman and Chief Executive Officer of Inter-Con Security
                                                                              Chairman and Chief Executive Officer of Aon Corporation
Systems, Inc., an international security services firm
                                                                              William Stinehart, Jr.
Betsy D. Holden
                                                                              Partner in Gibson, Dunn & Crutcher LLP, a law firm
Co-Chief Executive Officer, Kraft Foods, Inc., and President
and Chief Executive Officer of Kraft Foods North America                      Dudley S. Taft
                                                                              President and Director of Taft Broadcasting Company,
John W. Madigan
                                                                              an investor in media and entertainment companies
Chairman of Tribune Company
                                                                              Kathryn C. Turner
Nancy Hicks Maynard
                                                                              Chairperson and Chief Executive Officer of Standard Technology, Inc.,
President of Maynard Partners Incorporated,
                                                                              a healthcare, benefits and technology consulting firm
consultants in news media economics




                                                       CORPORATE MANAGEMENT

John W. Madigan                                      Andrew J. Oleszczuk                                 Susan M. Mitchell
Chairman                                             Senior Vice President, Development                  Vice President, Human Resources
                                                                                                         Service Center
Dennis J. FitzSimons                                 Thomas G. Caputo
President and Chief Executive Officer                Vice President, Audit                               Ruthellyn Musil
                                                                                                         Vice President, Corporate Relations
Jack Fuller                                          James L. Ellis
President, Tribune Publishing                        Vice President, Brand Management                    Patrick M. Shanahan
                                                                                                         Vice President, Tax
David D. Hiller                                      Irene M. Freutel
President, Tribune Interactive                       Vice President, Compensation                        Shaun Sheehan
                                                     and Benefits                                        Vice President, Washington Affairs
Patrick J. Mullen
President, Tribune Broadcasting                      David J. Granat                                     David L. Underhill
                                                     Vice President and Treasurer                        Vice President, Intergroup Development
Donald C. Grenesko
Senior Vice President,                               Mark W. Hianik                                      Howard G. Weinstein
Finance and Administration                           Vice President, Assistant General                   Vice President, Employee and
                                                     Counsel and Assistant Secretary                     Labor Relations
Crane H. Kenney
Senior Vice President,                               Steve Howell                                        Gary Weitman
General Counsel and Secretary                        Vice President, Safety and                          Vice President, Communications
                                                     Security Services
Luis E. Lewin
Senior Vice President,                               R. Mark Mallory
Human Resources                                      Vice President and Controller




                                                                        8
DIRECT STOCK PURCHASE PLAN
                                                               Tribune’s DirectSERVICE Investment Program enables both
SHAREHOLDER                                                    registered shareholders and new investors to buy and sell
INFORMATION                                                    shares of Tribune common stock directly through EquiServe.
                                                               Please contact EquiServe for more information.

                                                               ANNUAL MEETING
                                                               Tribune’s 2003 Annual Meeting of Shareholders will be held
CORPORATE HEADQUARTERS
                                                               in Chicago on Tuesday, May 6, at the Swissôtel, 323 East
Tribune Company
                                                               Wacker Drive. The meeting will begin at 11 a.m. Central time
435 North Michigan Avenue
                                                               and a live Webcast will be available at www.tribune.com.
Chicago, Illinois 60611
312/222-9100
                                                               EQUAL EMPLOYMENT OPPORTUNITY
                                                               Tribune believes in equal employment opportunity. Tribune’s
INTERNET ADDRESS
                                                               policy is to hire and promote the most qualified applicants and
www.tribune.com
                                                               to comply with all federal, state and local equal employment
                                                               opportunity laws.
INVESTOR INFORMATION
Current and prospective Tribune investors can receive
                                                               FORWARD-LOOKING STATEMENTS
the annual report, proxy statement, earnings
                                                               This report contains comments and forward-looking statements
announcements and other reports and publications
                                                               that are based largely on Tribune’s current expectations and
at no cost by calling 800/757-1694. The annual report,
                                                               are subject to certain risks, trends and uncertainties. Such
proxy and related financial information also are available
                                                               comments and statements should be understood in the
on Tribune’s Web site. The contact for securities analysts,
                                                               context of Tribune’s publicly available reports filed with the
portfolio managers and individual investors is
                                                               Securities and Exchange Commission, including the most
Ruthellyn Musil, Vice President/Corporate Relations.
                                                               recent 10-K and 10-Q, which discuss various factors that
Call 312/222-3787 or e-mail rmusil@tribune.com.
                                                               may affect the company’s business. These factors could cause
                                                               actual future performance to differ materially from current
STOCK INFORMATION
                                                               expectations. Tribune is not responsible for updating the
Tribune common stock is listed on the New York, Chicago
                                                               information contained in this report.
and Pacific stock exchanges under the ticker symbol TRB.
The current dividend rate is $.11 per share per quarter.

                                                               CREDITS
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP, Chicago                            PRINCIPAL PHOTOGRAPHY
                                                               Derek Snape / San Francisco
TRANSFER AGENT AND REGISTRAR                                   OTHER PHOTOS
EquiServe Trust Company, N.A. maintains shareholder records.   Alex A. Garcia, Chicago Tribune, p.2
                                                               David Cotton, Orlando Sentinel Communications, p.6 (left)
For assistance on matters such as lost shares, name changes
                                                               Glenn Kaupert, Chicago Tribune, p.7 (top)
on shares or transfers of ownership, please contact:
                                                               José M. Osorio, Chicago Tribune, p.7 (bottom)
EquiServe Trust Company                                        DESIGN
P.O. Box 43069                                                 Pressley Jacobs: a design partnership / Chicago
Providence, Rhode Island 02940-3069                            PRINTING
800/446-2617                                                   The Hennegan Company / Florence, Ky.
www.equiserve.com                                              Merrill Corporation / Chicago
TRIBUNE COMPANY 435 NORTH MICHIGAN AVENUE, CHICAGO, ILLINOIS 60611 WWW.TRIBUNE.COM

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tribune annual_02

  • 1. LEADING MARKETS < > LEADING BRANDS NEW YORK LOS ANGELES CHICAGO PHILADELPHIA BOSTON DALLAS WASHINGTON ATLANTA HOUSTON SEATTLE MIAMI FORT LAUDERDALE DENVER SACRAMENTO ORLANDO ST LOUIS PORTLAND BALTIMORE INDIANAPOLIS SAN DIEGO HARTFORD GRAND RAPIDS NEWPORT NEWS NEW ORLEANS HARRISBURG ALBANY ALLENTOWN GREENWICH STAMFORD >>> TRIBUNE COMPANY 2002 ANNUAL REPORT
  • 2. > TRIBUNE IS A MEDIA INDUSTRY LEADER REACHING MORE THAN 80 PERCENT OF U.S. HOUSEHOLDS THROUGH PUBLISHING, BROADCASTING AND THE INTERNET. OPERATIONS ARE CONCENTRATED IN THE NATION’S MAJOR MARKETS, INCLUDING EIGHT OF THE TOP 10 AND 20 OF THE TOP 30. REVENUES IN 2002 TOTALED $5.4 BILLION.
  • 3. AT A GLANCE BROADCASTING TELEVISION WGNO (ABC26) WBZL (WB39) WPIX (WB11) New Orleans Miami New York abc26.com wb39.com wb11.com WNOL (WB38) KWGN (WB2) KTLA (WB5) New Orleans Denver Los Angeles wb38.com wb2.com ktla.com WPMT (FOX43) KTXL (FOX40) WGN (WB9) Harrisburg, Pa. Sacramento, Calif. Chicago fox43.com ktxl.com wgntv.com WEWB (WB45) KPLR (WB11)* WPHL (WB17) Albany, N.Y. St. Louis Philadelphia wewbtv.com wb11tv.com wb17.com NATIONAL CABLE KWBP (WB32)* WLVI (WB56) Superstation WGN Portland, Ore. Boston superstationwgn.com wb32tv.com wb56.com RADIO WXIN (FOX59) PUBLISHING KDAF (WB33) WGN (720 AM) Indianapolis Dallas Chicago fox59.com kdaf.com wgnradio.com DAILY NEWSPAPERS WTTV (WB4) Los Angeles Times WBDC (WB50) TELEVISION Indianapolis Los Angeles Washington PROGRAMMING wb4.com latimes.com wbdc.com Tribune KSWB (WB5/69) Entertainment Co. Chicago Tribune WATL (WB36) San Diego Los Angeles Chicago Atlanta kswbtv.com tribtv.com chicagotribune.com wb36.com WTIC (FOX61) BASEBALL Newsday KHWB (WB39) Hartford, Conn. Chicago Cubs Melville, N.Y. Houston fox61.com Chicago newsday.com khwbtv.com cubs.com WTXX (WB20) The Baltimore Sun KCPQ (FOX13) Hartford, Conn. INVESTMENTS Baltimore Seattle wtxx.com The WB Television sunspot.net kcpq.com Network (22% owned) WXMI (FOX17) South Florida Sun-Sentinel KTWB (WB22) TV Food Network (31%) Grand Rapids, Mich. Fort Lauderdale, Fla. Seattle The Golf Channel (9%) wxmi.com sun-sentinel.com ktwbtv.com *Acquisition pending Orlando Sentinel Orlando, Fla. orlandosentinel.com The Hartford Courant Hartford, Conn. ctnow.com
  • 4. TRIBUNE MEDIA ARE CONCENTRATED IN THE NATION’S MAJOR MARKETS. The Morning Call ¡Exito! Allentown, Pa. Chicago mcall.com exito.com Daily Press el Sentinel Newport News, Va. Fort Lauderdale, Fla. dailypress.com elsentinel.com The Advocate El Sentinel INTERACTIVE Stamford, Conn. Orlando, Fla. stamfordadvocate.com elsentinel.com Tribune Interactive is among the leading news and Greenwich Time ENTERTAINMENT Greenwich, Conn. LISTINGS AND information networks in the country, operating more greenwichtime.com CONTENT SYNDICATION than 50 Web sites and attracting 9 million unique visitors Tribune Media Services SPANISH-LANGUAGE tms.tribune.com per month. The group manages all aspects of the NEWSPAPERS company’s newspaper and television sites, plus special- Hoy CABLE PROGRAMMING New York CLTV interest sites like BlackVoices.com, ChicagoSports.com holahoy.com Chicago and many that feature local dining and entertainment cltv.com La Opinión options. Affiliated national-brand classified advertising Los Angeles Central Florida News 13 (partnership) Orlando, Fla. sites include CareerBuilder (33 percent owned by Tribune), laopinion.com (partnership) cars.com and apartments.com. The latter two sites are operated by Classified Ventures (29 percent owned by Tribune).
  • 5. TO OUR SHAREHOLDERS AND EMPLOYEE OWNERS TRIBUNE’S LOCAL MASS-MEDIA BUSINESSES ARE THE FOUNDATION OF OUR COMPANY. THE QUALITY, LEADERSHIP AND LOCATIONS OF THESE FRANCHISES SET US APART IN THE MEDIA INDUSTRY AND PROVIDE A DISTINCT COMPETITIVE ADVANTAGE. THROUGH THEM, AND WITH THE COMMITMENT OF ALL TRIBUNE EMPLOYEES, WE’RE BUILDING LONG-TERM VALUE FOR SHAREHOLDERS. THE THEME OF THIS REPORT — LEADING MARKETS, LEADING BRANDS — DEFINES OUR STRATEGY AND SPEAKS TO THE UNIQUE GROWTH OPPORTUNITIES WE’RE PURSUING IN THE PLACES THAT MATTER MOST TO ADVERTISERS. THESE INCLUDE THE TOP THREE U.S. MARKETS, NEW YORK, LOS ANGELES AND CHICAGO, WHERE TRIBUNE IS THE ONLY MEDIA COMPANY OPERATING NEWSPAPERS, TELEVISION STATIONS AND WEB SITES. > 1
  • 6. > Our business concentration in major markets contributed to and insertion capabilities. In Southern California alone, where the excellent financial results in 2002. During the second half of the Times currently has about a third of the overall preprint business, year, as the advertising environment stabilized and the economy the new operation should contribute an additional $75 million in gradually improved, large markets outperformed smaller ones, revenue over the next several years. We see another preprint helping Tribune achieve record-setting earnings per share in the growth opportunity in South Florida so the Sun-Sentinel is investing fourth quarter and for the full year. in new insertion facilities that will be operational later this year. Operating cash flow in 2002 grew 20 percent to $1.5 billion, and Growing national advertising is a priority, too. Tribune Media we generated free cash flow of about $700 million. Our continued Net produced about $60 million in incremental revenue from focus on cost control reduced expenses by 3 percent, and we newspaper and cross-media ad programs in 2002 — nearly lowered debt by $650 million. Also in 2002, cash-flow margins double what the unit generated in 2001, its first full year. These improved in publishing and broadcasting, and our interactive dollars, allocated by national marketers for brand-building businesses showed strong growth and turned cash-flow positive. campaigns, are above and beyond what our local businesses Tribune’s solid financial performance was reflected in our could attract on their own. With our multimedia strength in the stock price. Total return on top three markets, we anticipate TRB shares — change in stock more than $70 million in incre- price plus dividends — was 23 mental sales through Tribune percent in 2002, compared with Media Net in 2003. a negative total return of 22 Another positive develop- percent for the Standard & ment in 2002 was the emergence Poor’s 500 Index and negative of CareerBuilder, our brand in 15 percent for the Dow Jones the online recruitment segment Industrial Average. Our per- of classified advertising. Despite formance ranked No. 23 among a very tough help-wanted mar- all stocks in the S&P 500. ketplace, CareerBuilder improved It was an outstanding year its market share at the expense Chairman John Madigan (left) and President/CEO Dennis FitzSimons at the Values in Action exhibit inside Tribune Tower. for Tribune journalism as well. of Monster, the category leader. Our newspapers won three The rebranding of our Sunday Pulitzer Prizes: two by the Los Angeles Times and one by Newsday. newspaper employment sections and the addition of Gannett These honors and many others —including numerous Emmy to the CareerBuilder partnership (joining Tribune and Knight Awards earned by our television stations and several prestigious Ridder) have greatly extended the brand’s reach. The multimedia awards for our Web sites — symbolize Tribune’s commitment to promotional strength that our three companies bring to journalistic excellence. They also reinforce our belief that talented CareerBuilder is a powerful advantage that no competitor can and dedicated people are this company’s most important asset. match, and it will help us gain even more market share as the economy expands. While winning in classifieds is vital to our future, an important INCREASING NEWSPAPER REVENUES AND READERSHIP In all of our markets, we aim to maximize Tribune’s share of local challenge facing the entire newspaper industry is readership. advertising dollars. One major priority in publishing is preprinted A Wall Street media analyst recently said that readership, inserts, a highly profitable and growing advertising segment. as opposed to circulation, is fast becoming the most relevant State-of-the-art preprint facilities at the Los Angeles Times and metric to gauge newspaper audiences for ad buyers and marketers. Chicago Tribune, completed in 2002, have greatly enhanced zoning We agree, and Tribune newspapers are moving quickly with 2
  • 7. innovative steps that get results. In fact, readership is up at our South Florida, we actively promote our newspapers’ content during newspapers in New York, Los Angeles and Chicago. evening newscasts, pointing readers to the next day’s editions. To grow readership significantly, we believe new products are needed — innovations that broaden our newspaper audience. ACQUISITIONS, STRONG RATINGS LEAD TV GROWTH RedEye, a new daily edition of the Chicago Tribune introduced In television, we announced three station acquisitions in 2002, last fall, is written for young adults looking for a newspaper that’s advancing our goal to build scale in the nation’s top 30 markets. quicker to read and easier to digest. So far, readers’ response has Regulatory approval for the acquisitions of WB affiliates KPLR-TV, been very encouraging, and advertisers are enthusiastic about St. Louis, and KWBP-TV, Portland, Ore., is expected in the first RedEye’s ability to reach the critical 18-to-34 demographic. quarter. Tribune will then have 26 owned and operated stations in We’re also putting greater emphasis on our Spanish-language addition to Superstation WGN. newspapers that serve the large and increasing Hispanic popula- Expanding our national footprint also means creating more tions in major markets. Our star in this category is Hoy, the leading two-station clusters. The acquisition of WTTV-TV last summer Spanish-language daily in the New York metro area. Tribune made Indianapolis our fourth two-station market, joining Seattle, CAREERBUILDER TV NEWS INSERTS REVENUE SECTIONS IN HOURS UP MORE THAN 130 41% $500 NEWSPAPERS FROM THREE MILLION NATIONWIDE YEARS AGO IN 2002 Preprinted inserts drive retail-advertising growth High-quality local news programming attracts The combined multimedia promotional strength for Tribune newspapers, and we’re investing viewers and advertisers alike, and Tribune stations of CareerBuilder partners Tribune, Knight Ridder aggressively to boost local market shares in this now air 213 hours of locally produced news every and Gannett brings valuable “offline” exposure to fast-growing, high-margin ad category. New week. “The WB11 Morning News” on New York’s the online brand. A national marketing campaign insertion facilities opened in 2002 at the WPIX-TV (above) expanded by an hour in 2002, now in progress positions CareerBuilder as Los Angeles Times and Chicago Tribune. increasing the show’s already strong ratings. “the smarter way to find a better job.” Publishing recently promoted Hoy’s publisher to the newly created Hartford and New Orleans. With multiple stations we can achieve position of vice president of Hispanic media. Louis Sito will higher operating margins in a number of ways, such as cross expand our initiatives in this important segment with the same promoting to improve program ratings and consolidating back- vision and passion that he and his team have shown in making office expenses and news departments. Hoy such a remarkable success since its launch five years ago. In all of our markets, the fringe periods before and after prime Targeted products like RedEye and Hoy are just part of the time play a critical role, delivering 40 percent of overall television story — we’re stepping up promotion to boost readership, too. revenue. Ratings for the newest sitcom on Tribune stations, Tribune newspapers are marketing themselves and their content “Will & Grace,” are excellent as are those for “Friends” and more aggressively than ever, including strategically placed in-paper “Everybody Loves Raymond.” The size of Tribune’s station group ads that alert readers to stories in other sections or upcoming translates into buying power when acquiring the syndication editions. Our newspapers are applying in print some of the same rights to these and other popular shows. proven techniques that our television stations use to attract Tribune’s longstanding partnership with The WB Network viewers. And in New York, Los Angeles, Chicago, Hartford and produced audience and market share growth for our stations in 3
  • 8. 2002 as each of our 17 WB affiliates benefited from the network’s Technology, Inc., a healthcare, benefits and technology consulting outstanding fall season. Ratings during the November sweeps firm that she founded in 1985. We are fortunate to have each of period were The WB’s best ever, and it registered the highest these highly qualified executives serving Tribune shareholders. audience gains of any network. It did so by doing what it has They share our commitment to an active board dedicated to strong always done best — attract the teenage and young-adult viewers corporate governance. that prime-time advertisers covet. Two long-time directors, Nancy Hicks Maynard and James J. More advertisers are including Superstation WGN in their O’Connor, will retire from board service in May. Nancy has served media plans as well. The channel currently reaches 57 million more than seven years and Jim for nearly 20. Tribune shareholders homes outside Chicago via cable and direct broadcast satellite, have benefited greatly from their leadership, and we sincerely and Tribune Broadcasting is working to increase that subscriber appreciate their efforts. base in 2003. With dual revenue streams from advertising and subscriber fees, the superstation is a great business with exciting OUTLOOK growth potential. Tribune is well positioned during a time of rapid change in the Our television stations and newspapers are complemented by media industry. Market fragmentation, caused by the tremendous high-traffic news and information Web sites that are unrivaled growth in consumer media choices, has made it more difficult for among their peers for content and functionality. The sites are advertisers to reach broad audiences quickly and efficiently. That operated by Tribune Interactive, which in 2002 achieved prof- makes our company’s local mass-media assets more valuable itability for the first time. Since its creation three years ago, Tribune than ever. Through newspapers, television and the Web, or any Interactive has dramatically improved cash flow through revenue combination of the three, we can help advertisers succeed in building and cost reduction. Its lead role in our CareerBuilder the markets they value most. At the same time, we’ve expanded business positions Tribune for growth in the important help-wanted our product options for clients who need to reach specific segment of classified advertising. demographic groups. Tribune has long advocated changes to the current rules gov- erning media ownership. The Federal Communications Commission LEADERSHIP CHANGES On Jan. 1, 2003, Dennis FitzSimons, who had been president took steps in 2002 that we believe signal further deregulation and chief operating officer, became president and chief executive ahead. With increasing cash flow and a strong balance sheet, we officer. In the final phase of Tribune’s management transition, can take advantage of opportunities to expand as the regulatory John Madigan, who had been chairman and chief executive officer, climate evolves. will remain chairman until he retires on Dec. 31, 2003, and serve We look forward to another excellent year in 2003. Our on the board of directors until the 2004 annual meeting. successful local mass-media strategy remains in place, applied Patrick Mullen, previously president of Tribune Television, was with integrity by employees who believe in putting Tribune’s named president of Tribune Broadcasting in January 2003. Pat guiding values into action every day. has been a great leader for the company’s television group, most recently by spearheading the acquisitions in St. Louis and Portland. Sincerely, We welcomed two new members to the Tribune board of directors in late 2002 — Betsy D. Holden and Kathryn C. Turner. Betsy is co-chief executive officer of Kraft Foods, Inc., and president Dennis J. FitzSimons John W. Madigan President and Chief Executive Officer Chairman and chief executive officer of Kraft Foods North America. She has served Kraft in various management positions since 1982. February 26, 2003 Kathryn is chairperson and chief executive officer of Standard 4
  • 9. Tribune Company and Subsidiaries FINANCIAL HIGHLIGHTS 2001(1) FOR THE YEAR (in thousands, except per share data) 2002 Operating revenues $ 5,384,428 $ 5,253,366 Operating profit before restructuring charges $ 1,275,785 $ 802,229 Restructuring charges 27,253 151,892 Operating profit including restructuring charges $ 1,248,532 $ 650,337 Net income Continuing operations before cumulative effect of accounting change $ 608,579 $ 111,136 Cumulative effect of accounting change, net (165,587) – Total $ 442,992 $ 111,136 Diluted Continuing operations before cumulative effect earnings of accounting change $ 1.80 $ .28 per share Cumulative effect of accounting change, net (.50) – Total $ 1.30 $ .28 Common dividends per share $ .44 $ .44 Common high $ 49.49 $ 45.90 stock price low $ 35.66 $ 29.71 per share close $ 44.47 $ 37.74 AT YEAR END Dec. 29, 2002 Dec. 30, 2001 Total assets $14,078,328 $14,484,867 Total debt (excluding PHONES) $ 2,749,630 $ 3,411,582 Shareholders’ equity $ 6,140,100 $ 5,651,168 Common shares outstanding 305,909 298,003 (1) 2001 results do not reflect the non-amortization provisions of Financial Accounting Standard No. 142, which requires that goodwill and certain intangible assets no longer be amortized to earnings, but periodically be reviewed for impairment. 5
  • 10. TRIBUNE IN THE COMMUNITY OUR COMMITMENT TO THE COMMUNITIES WE SERVE GOES WELL BEYOND PROVIDING NEWS, INFORMATION AND ENTERTAINMENT. Tribune’s local media businesses support a wide range of nonprofit organizations that help people in need and contribute to building healthy, vibrant communities. As a company and as individuals, giving back is the right thing to do. Citizenship is also good business because as our communities grow stronger, so does our company. Community involvement comes easily to our local business units. That’s partly due to the nature of their work— reporting the news of their communities and supplying information to the people who live in them. In the course of these activities, our businesses often discover and act upon opportunities to address important needs. Local initiatives such as “Reading by 9,” the Sun-Sentinel Diversity Venture Fund and WPHL-TV’s partnership with the Police Athletic League in Philadelphia make a positive difference in the lives of many people, as does Tribune’s longstanding support of United Way. Tribune employees at all levels donate time, talent and dollars to our philanthropic efforts. Their generosity and citizenship are a source of pride within the company and, we hope, an inspiration to others. 6
  • 11. FAR LEFT Orlando Sentinel employees serve as reading mentors during regular visits to local elementary schools — part of the newspaper’s “Reading by 9” program, a child literacy initiative originated by The Baltimore Sun. MIDDLE In New Orleans, “Bruce’s Coats for Kids” has collected more than 30,000 coats over the past seven years. Bruce Katz, WGNO-TV chief meteorologist, is spokesperson for the annual drive. NEAR LEFT Cubs slugger Sammy Sosa greets some excited youngsters at last summer’s opening of a baseball diamond named in his honor. Sammy Sosa’s Inspiration Field is part of Cubs Care Park, a miniature replica of Wrigley Field on Chicago’s Near North Side. Cubs Care, the ballclub’s charitable arm and a fund of the McCormick Tribune Foundation, provided $1 million to the YMCA of Metropolitan Chicago to build the facility. > McCORMICK T R I B U N E F O U N DAT I O N Though legally independent from Tribune Company, the at Northwestern University’s Medill School of Journalism McCormick Tribune Foundation plays a vital role in our in Evanston, Ill. The $17.5 million state-of-the-art facility local media outlets’ support of their communities. houses Medill’s journalism and integrated marketing Tribune business units are partners in the foundation’s communications programs, with multimedia classrooms, communities program, which establishes and administers broadcast studios and a 150-seat theater for public charitable funds in their names. Our businesses raise affairs programs. money from the public on behalf of these funds, primarily The McCormick Tribune Foundation is one of the nation’s through in-kind contributions of staff time and media largest charitable organizations, with assets of more than support. The foundation then provides matching dollars $2 billion and annual giving exceeding $100 million. and awards grants to local nonprofit organizations on Grants are awarded in four program areas—communities, behalf of the funds. In 2002, charitable funds of the education, journalism and citizenship — and through foundation in partnership with Tribune business units a special initiatives program. The foundation was estab- issued grants totaling more than $35 million. lished as a charitable trust in 1955 upon the death of Col. A major foundation initiative came to fruition last fall Robert R. McCormick, longtime editor and publisher of when the McCormick Tribune Center (right) was dedicated the Chicago Tribune. 7
  • 12. BOARD OF DIRECTORS Jeffrey Chandler Robert S. Morrison President and Chief Executive Officer of Chandler Ranch Co., Retired Vice Chairman of PepsiCo, Inc., and Chairman of an avocado producer PepsiCo Beverages and Foods North America Dennis J. FitzSimons James J. O'Connor President and Chief Executive Officer of Tribune Company Retired Chairman and Chief Executive Officer of Unicom Corporation, a holding company, and Commonwealth Edison Company, Jack Fuller an electric utility President of Tribune Publishing Company William A. Osborn Roger Goodan Chairman and Chief Executive Officer of Northern Trust Corporation, Consultant to Schlumberger Limited, a global technology a multibank holding company, and its principal subsidiary, services company The Northern Trust Company Enrique Hernandez, Jr. Patrick G. Ryan Chairman and Chief Executive Officer of Inter-Con Security Chairman and Chief Executive Officer of Aon Corporation Systems, Inc., an international security services firm William Stinehart, Jr. Betsy D. Holden Partner in Gibson, Dunn & Crutcher LLP, a law firm Co-Chief Executive Officer, Kraft Foods, Inc., and President and Chief Executive Officer of Kraft Foods North America Dudley S. Taft President and Director of Taft Broadcasting Company, John W. Madigan an investor in media and entertainment companies Chairman of Tribune Company Kathryn C. Turner Nancy Hicks Maynard Chairperson and Chief Executive Officer of Standard Technology, Inc., President of Maynard Partners Incorporated, a healthcare, benefits and technology consulting firm consultants in news media economics CORPORATE MANAGEMENT John W. Madigan Andrew J. Oleszczuk Susan M. Mitchell Chairman Senior Vice President, Development Vice President, Human Resources Service Center Dennis J. FitzSimons Thomas G. Caputo President and Chief Executive Officer Vice President, Audit Ruthellyn Musil Vice President, Corporate Relations Jack Fuller James L. Ellis President, Tribune Publishing Vice President, Brand Management Patrick M. Shanahan Vice President, Tax David D. Hiller Irene M. Freutel President, Tribune Interactive Vice President, Compensation Shaun Sheehan and Benefits Vice President, Washington Affairs Patrick J. Mullen President, Tribune Broadcasting David J. Granat David L. Underhill Vice President and Treasurer Vice President, Intergroup Development Donald C. Grenesko Senior Vice President, Mark W. Hianik Howard G. Weinstein Finance and Administration Vice President, Assistant General Vice President, Employee and Counsel and Assistant Secretary Labor Relations Crane H. Kenney Senior Vice President, Steve Howell Gary Weitman General Counsel and Secretary Vice President, Safety and Vice President, Communications Security Services Luis E. Lewin Senior Vice President, R. Mark Mallory Human Resources Vice President and Controller 8
  • 13. DIRECT STOCK PURCHASE PLAN Tribune’s DirectSERVICE Investment Program enables both SHAREHOLDER registered shareholders and new investors to buy and sell INFORMATION shares of Tribune common stock directly through EquiServe. Please contact EquiServe for more information. ANNUAL MEETING Tribune’s 2003 Annual Meeting of Shareholders will be held CORPORATE HEADQUARTERS in Chicago on Tuesday, May 6, at the Swissôtel, 323 East Tribune Company Wacker Drive. The meeting will begin at 11 a.m. Central time 435 North Michigan Avenue and a live Webcast will be available at www.tribune.com. Chicago, Illinois 60611 312/222-9100 EQUAL EMPLOYMENT OPPORTUNITY Tribune believes in equal employment opportunity. Tribune’s INTERNET ADDRESS policy is to hire and promote the most qualified applicants and www.tribune.com to comply with all federal, state and local equal employment opportunity laws. INVESTOR INFORMATION Current and prospective Tribune investors can receive FORWARD-LOOKING STATEMENTS the annual report, proxy statement, earnings This report contains comments and forward-looking statements announcements and other reports and publications that are based largely on Tribune’s current expectations and at no cost by calling 800/757-1694. The annual report, are subject to certain risks, trends and uncertainties. Such proxy and related financial information also are available comments and statements should be understood in the on Tribune’s Web site. The contact for securities analysts, context of Tribune’s publicly available reports filed with the portfolio managers and individual investors is Securities and Exchange Commission, including the most Ruthellyn Musil, Vice President/Corporate Relations. recent 10-K and 10-Q, which discuss various factors that Call 312/222-3787 or e-mail rmusil@tribune.com. may affect the company’s business. These factors could cause actual future performance to differ materially from current STOCK INFORMATION expectations. Tribune is not responsible for updating the Tribune common stock is listed on the New York, Chicago information contained in this report. and Pacific stock exchanges under the ticker symbol TRB. The current dividend rate is $.11 per share per quarter. CREDITS INDEPENDENT ACCOUNTANTS PricewaterhouseCoopers LLP, Chicago PRINCIPAL PHOTOGRAPHY Derek Snape / San Francisco TRANSFER AGENT AND REGISTRAR OTHER PHOTOS EquiServe Trust Company, N.A. maintains shareholder records. Alex A. Garcia, Chicago Tribune, p.2 David Cotton, Orlando Sentinel Communications, p.6 (left) For assistance on matters such as lost shares, name changes Glenn Kaupert, Chicago Tribune, p.7 (top) on shares or transfers of ownership, please contact: José M. Osorio, Chicago Tribune, p.7 (bottom) EquiServe Trust Company DESIGN P.O. Box 43069 Pressley Jacobs: a design partnership / Chicago Providence, Rhode Island 02940-3069 PRINTING 800/446-2617 The Hennegan Company / Florence, Ky. www.equiserve.com Merrill Corporation / Chicago
  • 14. TRIBUNE COMPANY 435 NORTH MICHIGAN AVENUE, CHICAGO, ILLINOIS 60611 WWW.TRIBUNE.COM