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A. H. Belo Corporation Announces Sale of Riverside, CA Office Building

Tuesday 23. July 2013 - A. H. Belo Corporation (NYSE: AHC) today announced it completed the sale of its five-story office building and certain related assets in Riverside, California to the County of Riverside for $30 million. The proceeds to the Company were approximately $28.6 million after selling costs of approximately $1.4 million. In the third quarter of 2013 the Company will record a gain of approximately $4 to $5 million related to this transaction. However, this transaction will not result in a taxable gain to the Company.

The Press-Enterprise (PE) entered into a six month lease-back with the County of Riverside until PE’s new leased office space is ready for move in, which is expected to take place by the end of this year. The Company anticipates expenses associated with the relocation of The Press-Enterprise offices to be approximately $0.5 million which will be incurred in the fourth quarter. As result of the sale of the building and the move to leased space, The Press-Enterprise anticipates incurring incremental capital spending of $1.6 million in 2013 to build a data center in its production facility and ongoing expenses of approximately $0.2 million per year for incremental facilities cost.
Robert W. Decherd, chairman, president and Chief Executive Officer, said, “We are pleased to have the sale of the Riverside office building completed and thank our colleagues in Riverside for their hard work and support in completing this transaction. The significant proceeds received will provide funds for increasing shareholder returns and diversifying our revenue streams in the future.”