Philadelphia Media Holdings' Statement

PHILADELPHIA - Philadelphia, March 31, 2009 -- Philadelphia Media Holdings Spokesperson Jay Devine released the following statement on request from Fox 29:

“As a privately-held company, our corporate policy is not to discuss the employment contracts, compensation or perks of our employees including our executives, columnists, staff or members of the Newspaper Guild. In terms of the timing of our February 22, 2009 bankruptcy, there was no knowledge of the bankruptcy in December 2008 despite comments by the Newspaper Guild. Also, contrary to wire service reports, there was only one (the Newspaper Guild) of our 14 unions which complained about reported salary or bonus increases. Also, contrary to wire service reports, the company does not owe $450,000 in back real estate taxes. These taxes are due today and will be paid when the tax motion before the bankruptcy court is approved. Finally, Philadelphia Newspapers management was able to achieve a 2008 operating profit of $36 million and to remove $75 million in run rate costs from the business without significantly reducing any jobs.”