ST. LOUIS, April 15 /PRNewswire/ -- Pulitzer Publishing Company
(NYSE: PTZ) today reported an 11.8 percent increase in first-quarter 1998 net
income to $14 million, or $0.62 per diluted share, from $12.5 million, or
$0.56 per diluted share, in the first quarter of 1997.
    Operating cash flow (operating income plus depreciation and amortization)
for the first quarter of 1998 increased 4.4 percent to $35.2 million from
$33.8 million in the first quarter of 1997.  Broadcasting cash flow increased
8.8 percent to $22.5 million from $20.7 million, while publishing cash flow
decreased 2.1 percent to $14.2 million from $14.5 million in the prior-year
quarter.
    Commenting on the results, Michael E. Pulitzer, chairman and chief
executive officer, said, "Our earnings gain was driven by solid increases in
advertising revenues in both our broadcasting and publishing segments,
partially offset by higher expenses, most notably a 12.7 percent, or
$1.7 million, increase in newsprint costs.
    "Looking ahead, we're encouraged by the trend in advertising revenues and
by the prospect for broadcast political advertising related to the mid-term
elections.  We also expect to continue to incur expense increases resulting
from higher newsprint costs and from the investments we're making to improve
the market position of the St. Louis Post-Dispatch."
    First-quarter 1998 revenues increased 5.4 percent to $143.4 million from
$136 million a year ago.  Broadcasting revenues rose 6 percent to
$53.2 million and publishing revenues increased 5.1 percent to $90.2 million.
The broadcasting gain was driven by a 6.5 percent increase in national and
local advertising revenues, and the publishing gain reflected a 7 percent
increase in advertising revenues, primarily the result of increases in
classified and national advertising revenues at the St. Louis Post-Dispatch.
    Operating expenses, excluding the St. Louis Agency adjustment, increased
5 percent to $111.8 million for the 1998 first quarter.  Broadcasting expenses
increased 2.6 percent and publishing expenses increased 6.3 percent.  The
broadcasting increase resulted primarily from higher overall personnel costs
in 1998.  Excluding the impact of higher newsprint costs, publishing expenses
increased 4.8 percent, primarily reflecting higher overall personnel costs,
including increased investment to improve the market position of the
Post-Dispatch.  Publishing and broadcasting expenses include selling, general
and administrative expenses and depreciation and amortization.

    Special Note
    The above statements include forward-looking statements which are based on
current management expectations.  Factors that could cause future results to
differ from these expectations include the following:  overall advertising
expenditures, competition and general economic conditions.  Additional factors
are described in the Company's reports filed with the Securities and Exchange
Commission
    Founded in St. Louis in 1878, Pulitzer Publishing Company is engaged in
newspaper publishing and television and radio broadcasting.  The Company's
newspaper operations include two major metropolitan dailies, the St. Louis
Post-Dispatch and The Arizona Daily Star in Tucson, Ariz., and a group of
community newspapers, including 13 dailies, which serve smaller markets,
primarily in the West and Midwest.
    Broadcasting operations consist of nine network-affiliated television
stations:  WYFF in Greenville, S.C.; WGAL in Lancaster, PA.; WXII in
Winston-Salem, N.C.; KOAT in Albuquerque, N.M.; KETV in Omaha, Neb.; WLKY in
Louisville, KY.; WDSU in New Orleans, La.; WESH in Daytona Beach/Orlando,
Fla.; and KCCI in Des Moines, Iowa; and five radio stations: KTAR-AM, KMVP-AM
and KKLT-FM in Phoenix, Ariz.; WLKY-AM in Louisville, Ky.; and WXII-AM in
Winston-Salem, N.C.

                 PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
                      Statements of Consolidated Income
                (In thousands, except earnings per share data)

                                              First Quarter Ended
                                                   March 31,
                                              1998           1997
                                                  (Unaudited)
    OPERATING REVENUES - NET:
    Publishing:
      Advertising                          $57,721        $53,927
      Circulation                           22,198         22,434
      Other                                 10,310          9,474
        Total Publishing                    90,229         85,835
    Broadcasting
      Local/national advertising            48,330         45,384
      Network compensation                   4,457          4,398
      Other                                    383            389
        Total Broadcasting                  53,170         50,171

          Total operating revenues         143,399        136,006

    OPERATING EXPENSES:
      Publishing operations                 37,314          34,533
      Broadcasting operations               18,109          16,994
      Selling, general and administrative   47,459          45,782
      St. Louis Agency adjustment            5,270           4,929
      Depreciation and amortization          8,930           9,183
        Total operating expenses           117,082         111,421

      Operating income                      26,317          24,585

      Interest income                        1,042           1,595
      Interest expense                      (3,462)         (4,525)
      Net other expense                       (290)           (465)

    INCOME BEFORE PROVISION
     FOR INCOME TAXES                       23,607          21,190

    PROVISION FOR INCOME TAXES               9,642           8,695

    NET INCOME                             $13,965         $12,495

    BASIC EARNINGS PER SHARE OF STOCK:
      Earnings per share                     $0.63           $0.57

      Weighed average number
       of shares outstanding                22,223          22,029

    DILUTED EARNINGS PER SHARE OF STOCK:
      Earnings per share                     $0.62           $0.56

      Weighed average number
       of shares outstanding                22,615          22,378

    NOTE
    Earnings Per Share:  Basic earnings per share of stock is computed
    using the weighted average number of Common and Class B shares
    outstanding during the applicable period.  Diluted earnings per share
    of stock is computed using the weighted average number of Common and
    Class B shares outstanding and common stock equivalents.

                 PULITZER PUBLISHING COMPANY AND SUBSIDIARIES
                              Business Segments
                                (In thousands)

                                              First Quarter Ended
                                                   March 31,
                                              1998           1997
                                                  (Unaudited)
    Operating revenues:
      Publishing                           $90,229        $85,835
      Broadcasting                          53,170         50,171
      Total                               $143,399       $136,006

    Operating income (loss):
      Publishing                           $10,819        $11,150
      Broadcasting                          16,915         14,819
      Corporate                             (1,417)        (1,384)
        Total                              $26,317        $24,585

    Depreciation and amortization:
      Publishing                            $3,379         $3,349
      Broadcasting                           5,551          5,834
        Total                               $8,930         $9,183

    Operating margins
      (Operating income to revenues):
      Publishing (a)                          17.8%          18.7%
      Broadcasting                            31.8%          29.5%

    (a) Operating margins for publishing stated with St. Louis Agency
        adjustment added back to publishing operating income.

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