Memo from Ron Redfern

June 15, 2009

To: All PEC Employees

We are changing our home delivery footprint in San Bernardino County.

In January of this year, we were faced with the choice of leaving San Bernardino County or implementing a very aggressive price increase to allow us to cover our costs of publishing and continue delivering in San Bernardino County. Unfortunately, a significant number of subscribers in parts of S.B. County refused to accept the increase in price and cancelled their subscriptions.

Consequently, after further review, we have made the decision to discontinue home delivery in certain parts of the San Bernardino market due to low penetration levels. We will continue delivery in those areas where subscriber acceptance remains high, but unfortunately we will eliminate home delivery service in Chino Hills, Ontario, Rancho Cucamonga, Fontana and Rialto on Monday, July 13, 2009. The final print edition of The Press-Enterprise will be delivered to subscribers’ homes on Sunday, July 12, 2009.

Residents of those areas will still have access to the daily product in two ways:

• P-Edition – for the very affordable price of $52 for an annual subscription or $1.25 per week for a 4-week subscription. We have eliminated the paid wall on pe.com for the next thirty days so people with access to the Internet can “test drive” the P-Edition at no cost through July 12, 2009.
• Newsstand racks and retail outlets – we are leaving the single copy distribution channel in place in the areas where home delivery is being eliminated. The Press-Enterprise will still be available for daily purchase at our various retail and news rack locations throughout the area. Current pricing is $0.50/day Monday-Saturday, and $1.50 on Sunday.
  

Please note that subscribers in the affected areas will be receiving letters in the next day or two informing them of this change. If you receive complaint calls, please refer them to our Customer Care Call Center. And if you have any questions, please feel free to talk your Vice President, or contact Kathy Weiermiller in Circulation.

Regrettably, the current economic conditions force us to make this change; however, to paraphrase Mark Twain, “Contrary to what is being written about newspapers, the rumors of our death have been greatly exaggerated.” We are optimistic about our future, particularly because The Press-Enterprise is the only major newspaper in Southern California to show readership growth of over 5% from last year, and our overall audience is up over 33% from last year. Because of that amazing growth during this difficult time, we remain committed to being the best provider of local news, information, and advertising in the Inland Region.

Thanks for your continued support.

Ron Redfern
Publisher, CEO & President
The Press-Enterprise Company