MNG Enterprises Responds to Gannett’s Rejection of MNG’s All-Cash Proposal

Says Gannet Has No Credible Plan to Achieve $12 Per Share Valuation
on its Own

Says Gannett Board Is An Impediment To Achieving Real Value for
Gannett Shareholders; Board Tried to Create Illusion It Was Open to True
Engagement

Retains Moelis & Co. As Financial Advisor

DENVER–(BUSINESS WIRE)–MNG Enterprises, Inc. (“MNG”), the largest active shareholder of Gannett
Co., Inc. (NYSE: GCI) (“Gannett” or “the “Company”), with a 7.5%
ownership stake, today issued the following statement in response to
Gannett’s rejection of its proposal to acquire Gannett for $12.00 per
share in cash. The proposal represents a 41% premium to where Gannett
stock closed at year-end 2018, before
the price was affected by MNG’s purchases and public proposal. MNG
stated the following:

“Gannett’s Board today sent shareholders a clear message: that it
intends to block immediate and certain value creation opportunities in
favor of a speculative future engineered by the team that already has
destroyed over 40% of the Company’s value. Gannett’s long-suffering
shareholders cannot afford to wait any longer. The only responsible
course is for Gannett to engage in a genuine pursuit to maximize value,
either from MNG or others with reported interest.

“The sad reality for Gannett shareholders is the company has no credible
plan to attain a $12 per share valuation on its own. Gannett’s ‘pie in
the sky’ hopes for its digital businesses are not believable and cannot
be counted on to deliver value superior to the immediate and substantial
premium being offered by MNG – and that may be available from other
parties. Gannett is presiding over a declining core business, decreasing
cash flow and significant leverage because it overpaid for digital
assets. Gannett’s deep structural problems are better fixed by
experienced operators such as MNG, away from pressures of the public
markets.

“Gannett has tried to create the illusion that it was open to true
engagement, but never did so seriously. In fact, the parties were
exchanging dates late last week for a potential meeting, and Gannett has
now rejected our proposal before we could arrange the meeting they
proposed. Further, instead of extending customary and reasonable terms
for a candid discussion such as a standard Non-Disclosure Agreement that
would have allowed MNG to address its questions thoroughly, Gannett set
up roadblocks to true engagement, demonstrating that they were not
interested in seriously evaluating our premium cash proposal.

“MNG has retained Moelis & Co as its financial advisor and was and is
prepared to discuss with Gannett plans to finance our premium, all cash
proposal. Put plainly, there are no impediments – aside from the Gannett
Board – to MNG completing the proposed transaction and for Gannett
shareholders to achieve real value. MNG will consider its options in the
coming days, including nominating a slate of individuals to the Gannett
board who agree that Gannett shareholders should decide for themselves
whether to accept our premium cash offer or other alternatives for
immediate and certain value.”

Moelis & Company is acting as financial advisor to MNG Enterprises.
Olshan Frome Wolosky LLP is serving as legal counsel to MNG Enterprises.

About MNG Enterprises

MNG Enterprises, Inc. is one of the largest owners and operators of
newspapers in the United States by circulation, with approximately 200
publications including The Denver Post, The San Jose Mercury News, The
Orange County Register and The Boston Herald. MNG is a leader in local,
multi-platform news and information, distinguished by its award-winning
original content and high quality, diversified portfolio of both print
and local news and information web sites and mobile apps offering rich
multimedia experiences across the nation. For more information, please
visit www.medianewsgroup.com.

Contacts

Reevemark
Paul Caminiti / Hugh Burns / Renée Soto
+1
212.433.4600
MNGInquiries@reevemark.com