Business News

Lee Enterprises Receives Extension of Covenant Waiver

Monday 19. January 2009 - Lee Enterprises, Incorporated (NYSE:LEE), announced today that a waiver of covenant conditions related to its $306 million Pulitzer Notes debt of its subsidiary St. Louis Post-Dispatch LLC has been extended until Jan. 30, 2009. The waiver had been scheduled to expire today.

The Pulitzer Notes mature in April 2009. Carl Schmidt, Lee vice president, chief financial officer and treasurer, said, ?Lee and its lenders continue to work diligently to effect an extension of the Pulitzer Notes, and to make longer term changes to our bank credit agreement to maintain the company?s liquidity.?

Without such a waiver extension by the holders of the Pulitzer Notes, Lee would be in technical default of several provisions under its applicable debt agreements. An event of default would allow the Pulitzer Noteholders, with notice, to exercise certain remedies granted by the various debt agreements, including acceleration of the maturity of Lee?s debt. The waiver contains a provision that will allow it to be withdrawn with 48 hours notice.