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Ad Agencies Drop Circulation Lawsuit Against Star Tribune

Minneapolis/St. Paul - (December 20, 2005) - Two Twin Cities employment agencies have dropped their claims against the Star Tribune that circulation figures at the newspaper were inflated.

Masterson Personnel Inc. and Alternative Staffing Inc. have withdrawn from a lawsuit filed last June. The other two plaintiffs in the lawsuit also withdrew last month. A motion to dismiss the entire litigation is pending in federal court in Minneapolis.

The decision by the plaintiffs to withdraw from the lawsuit follows findings by the Audit Bureau of Circulations that no audit adjustments were required for Star Tribune circulation for the current or past years. In addition, McClatchy was dropped from the lawsuit as a defendant by a Minneapolis federal judge.

Duane Hendrickson, vice president of Masterson Personnel Inc, said: “We did not believe that it was in the interest of Masterson Personnel Inc. as an advertiser to continue to pursue the allegations. Because of recent developments and the costly, time-consuming nature of the process, we decided to move on.”

Keith Moyer, president and publisher of the Star Tribune, said, “When the plaintiffs approached us to settle the suit, we felt an obligation to explore a way to end this matter that we have said from the outset had no merit. This nuisance settlement allows us all to move forward.”

Under the terms of the agreement, lawyers for Masterson Personnel Inc. and Alternative Staffing Inc. will receive up to $40,000 for out-of-pocket expense incurred by their clients. In addition, the two employment agencies will share up to $15,000 in advertising rebates on a pro-rated basis for advertising in 2007 based on their advertising spending next year.

About the Star Tribune

The Star Tribune Company, a news and information company serving the Minneapolis/St. Paul area, is owned by The McClatchy Company of Sacramento, Calif. (NYSE:MNI). The Star Tribune newspaper is one of the top 20 largest newspapers in the nation, with an average daily circulation of 379,713 and an average Sunday circulation of 666,683 (per Audit Bureau of Circulations audit for 52-weeks ending 03/27/05). The company’s website, www.StarTribune.com, is the most frequently used local news and information service for the Twin Cities market. The Star Tribune Foundation has been supporting Twin Cities’ communities since 1945 and currently distributes about $3 million annually. On the Net: The Star Tribune Company: www.startribunecompany.com/company/, and The McClatchy Company: www.mcclatchy.com.

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Contact Ben Taylor
Phone: (612) 673-7457
Email: btaylor@startribune.com




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