832428--3/16/2006--SCRIPPS_E_W_CO

related topics

{capital, credit, financial}

{product, market, service}

{customer, product, revenue}

{cost, contract, operation}

{property, intellectual, protect}

{investment, property, distribution}

{condition, economic, financial}

{tax, income, asset}

{acquisition, growth, future}

Changes in economic conditions in the United States, the regional economies in which we operate or in specific economic sectors could adversely affect the profitability of our businesses. Our traditional media businesses face substantial competition for advertising revenues with non-traditional digital media. Television viewing audiences have fragmented, and further fragmentation could adversely affect our advertising revenues. We purchase keyword advertising on general search engines to attract consumers to our comparison shopping Internet site. Approximately 30% to 40% of our referral fee revenues in 2005 were with a general search engine and a change in this relationship could harm our business. Advertising and referral fee revenues are subject to seasonal and cyclical variations. Changes in public and consumer tastes and preferences for entertainment could reduce demand for our entertainment offerings and products and reduce profitability. Scripps Networks is dependent upon the maintenance of distribution agreements with cable and satellite distributors on acceptable terms. Decreases, or slow growth, in circulation adversely affects our circulation revenues and also our advertising revenues. The loss of affiliation agreements could adversely affect our broadcast television stations results of operations. We continue to develop new products and services for evolving markets. There can be no assurance of the success of these efforts due to a number of factors, some of which are beyond our control. We cannot be certain that we will be successful in integrating businesses we may acquire with our existing businesses. Macro economic factors may impede access to or increase the cost of financing our operations and investments. Sustained increases in costs of pension and employee health and welfare benefits may reduce our profitability. We Could Suffer Losses Due to Asset Impairment Charges We may not be able to protect intellectual property rights upon which our business relies, and if we lose intellectual property protection, we may lose valuable assets. Our Common Voting shares are principally held by descendants of Edward W Scripps, through a family trust, and this control could create conflicts of interest or inhibit potential changes of control.

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832428--3/16/2006--SCRIPPS_E_W_CO_/DE