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MILWAUKEE, Aug 23, 2007 (BUSINESS WIRE) -- Journal Communications, Inc. (NYSE:JRN) announced today that it has repurchased 3,200,000 shares of class B common stock from the Company's founding family shareholder, Matex Inc., at $10.00 per share, for a total of $32.0 million.

The purchase price reflects a 7.7% discount to the ten-day volume weighted average class A common stock closing price beginning on August 9, 2007 and ending on August 22, 2007 and a 0.9% discount to the $10.09 closing price of class A shares on August 22, 2007. Matex Inc. is a corporation controlled by members of the family of the Company's former chairman, Harry J. Grant. Class B shares, which are not publicly traded, have ten votes per share and are convertible into class A shares on a one-for-one basis.

The Matex stock repurchase was transacted under the Company's ongoing share buyback program. As of today's date, 12,149,100 shares in aggregate had been repurchased by Journal Communications and 2,850,900 shares remain for repurchase under the current authorization.
The repurchased stock, which has been retired, constituted approximately 20.6% of the company's 15,503,327 class B shares and 4.8% of its total common stock outstanding (classes A, B and C) at July 27, 2007.

In addition to the share repurchase, Matex and the other Grant family members agreed to a one-year lock-up on sales of their remaining Journal shares and the elimination of their existing right to nominate a second director if the Company's board were to increase to more than 11 directors. The Company was also granted certain rights regarding the conversion of some or all of the class C shares held by Matex and the other Grant family members.

"We are pleased about this opportunity to buy a substantial block of shares in a single purchase," said Steven J. Smith, chairman and chief executive officer of Journal Communications. "The Grant family has advised us that this stock repurchase allows members of the family to diversify their portfolios while continuing to remain dedicated owners of Journal Communications. Following the share repurchase, Matex owns 1,431,000 class B shares as well as 3,033,963 non-publicly traded class C shares, which carry two votes per share. Other members of the Grant family also own an additional 16,667 class B shares and 230,037 class C shares.

"This repurchase benefits all Journal shareholders, as the transaction will be accretive to earnings per share. Our healthy balance sheet and strong cash flows have enabled us to fund this transaction while preserving our significant financial flexibility to invest in and continue to grow our business."


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Original Article: Journal Communications, Inc. - News Release=

News Source: Journal Communications, Inc.

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