1. Philadelphia Newspapers, LLC Insert Verification Preparation September 2006

2. Assessment of Inserting Operation Review Capacity and Capability of Inserting Operation Equipment Machine Controls and Software Practices and Procedures Reporting Capacity

3. Equipment GMA SLS 1000’s 3 SLS 1000 Sunday Machines with 23 insert head positions Average 60 – 70 preprint orders per week Average 17-20 million pieces per week 179 zones with average circulation of 2,300 copies 7 SLS 1000 Daily Machines with 11-12 insert head positions Assessment of Inserting Operation

4. Machine Controls & Software Package Montoring System (PMS) last updated 1996 Burt Packaging Manager

5. Assessment of Inserting Operation Review Procedures Inserting integrity Package identification Delivery to field personnel Handling of replacement packages

6. Communication and Information to Various Groups Advertising Circulation Assessment of Inserting Operation

7. Initial Steps Capital Investment 2004 - Installed new inserting machine controls on Sunday machines (3 SLS 1000’s) 2005 – Installed new machine controls on daily machines (7 SLS 1000’s)

8. Day of Week Sunday Wed/Thur/Fri Circulation 415,400 279,748 Avg Preprint Zone 2,321 1,563 HD Zones 179 Preprint Zones - Current The Inquirer Current Preprint Zoning Effective August 2005

9. Day of Week Sunday Wed/Thur/Fri Circulation 411,162 266,789 Avg Preprint Zone 1,977 1,283 HD Zones 208 Note: 93% of our subscriber base is zip code pure. Preprint Zones – Proposed The Inquirer New Proposed Preprint Zoning Effective October 2006

10. Where We Started

11. Benefits of New Machine Controls Download preprint information directly from Burt to Enternet Real time information for each inserter station Interface to ¾ wrap ink jet printers to identify bundle zone codes Automatic bundle size settings to stacker Provide detailed information to Advertising Archiving of information

12. Current Map

15. Results Inserting Accuracy Machine Reports – 98% miss accuracy, 99% double accuracy Internal Audits – Range of 95% to 99% depending on weekly volume

16. Next Steps 1.Increased system integration from inserting to delivery to customer 2.Improve process of replacement / shortages packages