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Journal Sentinel Inc. Announces Restructuring

MILWAUKEE-(Business Wire)-July 2, 2008 - Journal Sentinel Inc. announced today that it will reduce its workforce by about 10% of its approximately 1,300 full time equivalent employees to address the impact of a challenging advertising environment. Journal Sentinel Inc. is a Journal Communications' (NYSE:JRN) company.

The restructuring will be accomplished through a combination of voluntary and involuntary separations as well as managed attrition. The separations are expected to be complete by the end of the year. Employees in both the voluntary and involuntary separation programs will receive both cash severance and a healthcare benefit.

"Our advertising customers - especially car dealers, real estate agents, hiring officials, retailers and financial institutions - have been battered by a 'perfect storm' of deteriorating credit conditions, slowing home sales, contracting company size and higher gas prices. All of these forces have driven ad spending down. As a result, Journal Sentinel ad revenues are running more than 12% below last year through May. At the same time, the costs of running our business are rising, with newsprint and fuel price increases becoming a concern," said Elizabeth (Betsy) Brenner, president and chief operating officer of Journal Communications publishing group.

Said Brenner, "As a local news organization, we reach 83% of our market every week through our print and online products. Our challenge continues to be operating as efficiently as possible. We need to perform financially in a manner that enables us to invest in the future, and continue to serve our readers and advertisers with the quality products they expect. We have successfully begun to change from a traditional newspaper company to an integrated multimedia company. We need to continue to support our exceptional print publications as well as our developing online options and other commercial businesses."

"This is a difficult and painful message, and it's being delivered at a time when our work has never been better. We remain committed to growing our audience by providing the leading local coverage that has distinguished our organization." Brenner said.

Forward-looking Statements

This press release may contain certain forward-looking statements related to our businesses that are based on our current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties, including changes in advertising demand and other economic conditions that could cause actual results to differ materially from the expectations expressed in forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. Our written policy on forward-looking statements can be found on page 1 of our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission.

About Journal Sentinel

Journal Sentinel Inc. publishes the flagship Milwaukee Journal Sentinel newspaper as well as a range of other print and electronic products, primarily serving southeast Wisconsin people and businesses. Journal Sentinel is committed to producing a newspaper that reflects the ever-changing world and fulfills the needs of readers and advertisers. In addition to the daily and Sunday newspaper, Journal Sentinel produces Web products and services through its Journal Interactive division, including JSOnline.com and PackerInsider.com. The addition of a new printing facility in 2003 led to Journal Sentinel's recent entry to the business of commercial printing. In 2008, the Journal Sentinel was awarded the Pulitzer Prize for local reporting.

About Journal Communications

Journal Communications, Inc., headquartered in Milwaukee, Wisconsin, was founded in 1882. We are a diversified media company with operations in publishing, radio and television broadcasting, interactive media and printing services. We publish the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and 52 community newspapers and shoppers in Wisconsin and Florida. We own and operate 35 radio stations and 11 television stations in 12 states and operate an additional television station under a local marketing agreement. Our interactive media assets include more than 121 online enterprises that are associated with our daily and community newspapers and television and radio stations. We also provide a wide range of commercial printing services - including printing of publications, professional journals and documentation material - and operate a direct marketing services business.

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