1232241--2/27/2006--JOURNAL_COMMUNICATIONS

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{capital, credit, financial}

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{condition, economic, financial}

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{personnel, key, retain}

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Risks Relating to Our Diversified Media Business Decreases in advertising spending, resulting from economic downturn, war, terrorism or other factors, could adversely affect our financial condition and results of operations. Our diversified media businesses operate in highly competitive markets, and during a time of rapid competitive changes, we may lose market share and advertising revenue to competing newspapers, radio and television stations, as well as to other types of media competitors or through consolidation of media competitors or changes in advertisers media buying strategies. Seasonal and cyclical changes in advertising volume affect our quarterly revenue and results of operations and may cause our stock price to be volatile. We may not be able to acquire radio stations, television stations, newspapers or assets related to our Internet-based growth strategy, successfully manage acquired properties, or increase our profits from these operations. Our publishing business may suffer if there is a significant increase in the cost of newsprint or a reduction in the availability of newsprint. Changes relating to information collection and use could adversely affect our ability to collect and use data, which could harm our business. If we are unable to respond to changes in technology and evolving industry standards, our radio stations may not be able to effectively compete. If we are unable to respond to changes in technology and evolving industry standards, our television stations may not be able to effectively compete. If the network programming we broadcast pursuant to network affiliation agreements does not maintain satisfactory viewership levels, our advertising revenues, financial condition and results of operations may be adversely affected. The costs of television programming may increase, which could adversely affect our results of operations. If our key on-air talent does not remain with us or loses popularity, our advertising revenue and results of operations may be adversely affected. Changes in the professional sports industry could result in decreased ratings for our Milwaukee radio station and adversely affect our results of operations and financial condition. If cable systems do not carry our new digital channels, our revenue and results of operations may be adversely affected. If we cannot renew our FCC broadcast licenses, our business will be impaired. The FCC may impose sanctions or penalties for violations of rules or regulations. We could experience delays in expanding our business due to antitrust laws. Regulatory changes may result in increased competition in our radio and television broadcasting business. Risks Relating to Our Telecommunications Business Telecommunications technology changes very rapidly, which could result in price declines or render our telecommunications technology obsolete. Continued overcapacity and intense competition may necessitate further price decreases or lead to service disconnections, which would have an adverse effect on our results of operations. The expenditures necessary to sufficiently develop our telecommunications network to reach customers within the local exchange network and develop our telecommunications services in order to satisfy our customers demands may surpass our available cash, and we may be unable to obtain additional capital to develop our services on a timely basis and on acceptable terms. Service interruptions on the network could cause immediate loss of revenue, payment of outage credits to our customers and the loss of our customers confidence and our business reputation. Our network utilization is dependent on maintaining our rights-of-way and indefeasible rights of use. We need to obtain additional capacity for the network from other providers in order to serve our customers and keep our costs down. We could be harmed by the recent adverse developments affecting other telecommunications companies. Federal regulation of the telecommunications industry is changing rapidly and we could become subject to unfavorable new rules and requirements which could impose substantial financial and administrative burdens on us and interfere with our ability to successfully execute our business strategies. The role of the states in regulation of companies providing telecommunications services is increasing, although the rules continue to vary substantially from state to state, and we may become increasingly subject to burdensome and restrictive state regulations. Municipal regulation of our access to public rights-of-way is subject to change and could impose administrative burdens that would adversely affect our business. Risks Relating to Our Printing Services Business and Other Segment Postal rate increases and disruptions in postal services could lead to reduced volumes of business. Revenue from our direct marketing business may decline if our data products do not maintain technological competitiveness. We depend on key personnel, and we may not be able to operate and grow our business effectively if we lose the services of any of our senior executive officers or are unable to attract qualified personnel in the future. Our business may be negatively affected by work stoppages, slowdowns or strikes by our employees.

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1232241--2/27/2006--JOURNAL_COMMUNICATIONS_INC