Scripps to Divide Into Two Separate Companies

CINCINNATI, October 16: The E. W. Scripps Company’s board of
directors has elected to split the entity into two publicly traded companies,
one focused on its lifestyle media brands and the other on its print businesses
and local TV stations.

Upon completion of the split, Scripps Networks Interactive
will consist of Scripps Networks—with HGTV, Food Network, DIY Network,
the Fine Living Television Network, Great American Country and their Internet
businesses—and the online comparison shopping services Shopzilla and
uSwitch and their associated websites. These businesses have combined annual
revenue of approximately $1.4 billion and 2,100 employees.

The E. W. Scripps Company will now consist of daily and community
newspapers in 17 U.S. markets. Ten broadcast television stations clustered
among the nation's largest 50 markets, the character licensing and feature
syndication businesses operated by United Media and Scripps Media Center in
Washington D.C., which includes the Scripps Howard News Service. These
businesses have combined annual revenue of about $1.1 billion and employ about
7,100 people.

"This is an important and logical next step for our
shareholders, employees and all other stakeholders who have a direct interest
in the success of our media businesses," said Kenneth W. Lowe, the
president and CEO for Scripps. "It's our intention to create two publicly
traded companies, each with a sharpened strategic focus that would foster
continued growth, solid operating performance and a clear vision on how best to
build on the specific strengths of our national and local media
franchises."

He continued: "The new company that would be created by
the transaction—Scripps Networks Interactive—would be anchored by
two of America's most-watched and most successful cable television
networks—HGTV and Food Network—and would benefit from the rapidly
growing popularity of its newer lifestyle brands, DIY Network, Fine Living and
Great American Country.

"At The E. W. Scripps Company, shareholders would
benefit from the strength of our established, high-profile local media brands.
These are businesses built on the company's 130-year tradition of journalistic
excellence, community service and local media innovation. The company's
portfolio of valuable media assets would include established print, online and
broadcast franchises in some of the country's most attractive and fastest
growing markets, including West Palm Beach, The Treasure Coast, Tampa and
Naples, all in Florida; East Tennessee's Knoxville; California's Ventura County
and Phoenix in the Sun Belt."

The separation is expected to be completed in the second
quarter of 2008.

—By Mansha Daswani