Ladies and Gentlemen, thank you for standing by and welcome to Scripps Fourth Quarter Earnings Report Conference Call. At this time, all participants are in listen only mode. Later we will conduct a question and answer session. [Operator Instructions]. I would now like to turn the conference over to our host, Vice President of Investor Relations, Mr. Tim Stautberg. Please go ahead. Timothy E. Stautberg - Vice President/Communications and Investor Relations: Good morning all and thanks for joining us. We will start the conference call today with comments from Ken Lowe, our President and CEO; and Joe NeCastro, our Executive Vice President and Chief Financial Officer. Our prepared remarks should take about 15 minutes. We know you have busy schedules so we will make sure we are done by the top of the hour. Before we begin, let me introduce the other members of our senior management team who are here with us on the call. Joining us are Rich Boehne, Chief Operating Officer; John Lansing, President of Scripps Networks; Mark Contreras, Senior Vice President of Newspapers; Bill Peterson, Senior Vice President of our TV Station Group; Lori Hickok, Vice President and Controller; A.B. Cruz, our General Counsel; and Jennifer Weber, who heads up our Human Resources. Let me remind you, if you prefer to listen in on the Web, you can go to Scripps.com, click on shareholders and find the link at the top of the page. An audio archive will be available on Scripps.com later today and we will leave it there for a few weeks so you can access it at your convenience. Our discussion this morning will contain certain forward-looking statements and actual results may differ from those predicted. Some of the factors, which may cause results to differ, are set forth in our publicly filed documents, including the 2006 Form 10-K. Now, here is Ken.

Thank you Tim and good morning everyone. As always, we appreciate your interest in our company. Scripps and its shareholders benefited truly once again during the fourth quarter, for that matter for the full-year 2007 from the tremendous popularity and superb financial performance of our lifestyle television networks and their related interactive businesses. Despite persistent industry-wide weaknesses in newspaper advertising and an off-election year for our television stations, consolidated total revenue was down just slightly for the quarter and actually finished ahead for the full year. Total revenue at Scripps Networks was up 14% during the final three months period of the year, driving a very strong 22% increase in segment profit for the division. For the full-year, total revenue was up 13%, an annual growth rate that led the industry and I think a reflection of the talented team that we have assembled at Scripps Networks. In fact, the Scripps Networks ad sales grew to top honors as best ad sales organization at the latest Jack Myers Survey of ad Agencies and Media Buyers. That is quite an accomplishment and I have to say one that we are very, very proud of here at Scripps. Kudos to Steven Gigliotti and his team. HGTV and Food Network our flagships continue to carry the freight [ph] while our three emerging networks each saw very strong double-digit revenue growth for the quarter. At HGTV, 2007 was the best ratings year ever, that's worth repeating, our best ratings year ever, especially when you consider this network is almost 14-years old. And that momentum that we created has continued right into the New Year. Programming standouts like House Hunters, Designed to Sell and Find Your Style, just to name a few continue to draw passionate engaged audiences to our highly targeted network. So far…

[Operator Instructions] Our first question comes from the line of Peter Appert with Goldman Sachs, please go ahead.

Good morning, thank you. Ken, can you give us any more specifics on what you are seeing in terms of scatter pricing currently, and in particular, just any differentiation in terms of categories?

Sure, Peter, we got John here, I will let John jump on that. John Lansing - Senior Vice President and President/Scripps Networks: Sure Peter, good morning. Scatter remained strong in the first quarter, we are seeing on a net Q3 basis scatter up 5 to 6% on an HGTV and closer to 9 to 10% on Food Network and the pending business facing ahead of last year, so all indications are that market is strong and should remain so for the quarter.

Great, and anything interesting in terms of the categories? John Lansing - Senior Vice President and President/Scripps Networks: The same categories, Peter, the endemic [ph] and HGTV lead the way and on Food Network, we are still seeing strength in the financial category as well as the endemics there.

Okay, great thank you. And then Ken one other thing, one the Interactive business, can you give us added color in terms just the revenue momentum you are seeing on Shopzilla, it will be really helpful to better understand the trend you are seeing there for... better see the progression in revenues, in terms of year-to-year growth rate, and then sort of related to that, the write-off at uSwitch, should we take that as perhaps an indicator that this business could be sold or discontinued some time in '08?

I will let Joe comment on both of those questions, Peter. Joseph G. NeCastro - Executive Vice President/Finance and Administration: Yeah Peter. As far as Shopzilla, we are obviously very encouraged by the recent news there and the sort of change in fortunes that began in the fall. We are optimistic now that we are... also cycling over some pretty weak quarters from last year, but the fourth quarter was a very strong story for us and for the first time in several quarters we were experiencing double-digit growth in net revenue there. I think we are safe to say, mid teens level on revenue growth there. As we enter the year '08, we continue to see that strength and we are doing a lot of things to ensure that, that is sustainable for us. So we... I think we are all very optimistic about how things are going at Shopzilla. The team now there is doing an outstanding job of riding the ship and getting us on the right track going forward. Over to uSwitch, we are focused on getting the cost down, to where they need to be. We had a significant headcount reduction in the last year. We are hopeful to avoid further but that's always a possibility as we sort of slice up the market. There has been some recent volatility in energy market there. That's always good for us. But it continues to be shared by some other switching companies. It's premature for us to say we would do anything other than continue to engage our competitors there and try and diversify some away from energy. That is our plan at the moment.

But at the moment, the revenues at uSwitch are 100% related to the energy switching offering? Joseph G. NeCastro - Executive Vice President/Finance and Administration: No, no. They are... the majority related, but not anywhere near 100.

Okay. What are the other products that are up and running? Joseph G. NeCastro - Executive Vice President/Finance and Administration: Financial services, insurance, telecommunications products and--.

And then, do you see revenue momentum in those categories? Joseph G. NeCastro - Executive Vice President/Finance and Administration: Well, we saw pretty good momentum in financial services. But the U.K. like the U.S. is experiencing its own issues in sub prime and sort of personal loans and in the credit card business there. So, things have been a little bit rockier lately, but the trends there have been pretty good.

Okay. And last thing. You are still committed to getting this to breakeven no matter what in ‘08, correct? Joseph G. NeCastro - Executive Vice President/Finance and Administration: That is correct.

Great, thank you. Joseph G. NeCastro - Executive Vice President/Finance and Administration: Thanks Peter.

Our next question comes from the line of Alexia Quadrani with Bear Stearns. Please go ahead.

Hi thank you. Couple of questions. First, can you give us a sense of how much you are budging for that allowance you mentioned in the first quarter for the separation of the businesses? And then, I know you touched on the categories for HGTV, I think still you are pretty much the same they have been in terms of spending. But I just want to check make sure that anybody had any change in that so far for the start of the year in January? And lastly, if you could just comment on how much of a drop-off you saw in the newspaper business in December versus the previous months in the quarter and does that continue to deteriorate in January?

John, I want you jump on the category question. And then Joe, budgeting for the separation and Mark Newspaper question. John Lansing - Senior Vice President and President/Scripps Networks: Alexia, the categories of spending on HGTV continue to be supported a great deal by the endemics and notwithstanding all that's going on around the housing market, we continue to see strength in the endemic categories. Indeed, even some improvements with some key advertisers. And we understand why that is the case because HGTV is a very efficient plate for people in our category to reach an audience that's passionate and pre-exposed. So although budgets may be changing for other media, we see the shelter budgets really continuing to be strong in HDTV.

Okay. Joe? Joseph G. NeCastro - Executive Vice President/Finance and Administration: Yes. Alexia on transition cost, we are budgeting somewhere in the $4 million to $5 million range for the first quarter. But I got to tell you that number is a little bit lumpy and some of that could shift out of the quarter because some of it is based on consulting help we are getting in transaction-related cost.

That's what you're including in your guidance. Joseph G. NeCastro - Executive Vice President/Finance and Administration: In the guidance, we've got somewhere between 4 and 5, couple of cents. Mark G. Contreras - Senior Vice President/Newspapers: Alexia, this is Mark. On the December versus the full quarter, we did about... in December and we did about two points better in terms of less decline if you want to find it that way, in December. The only other upcoming issues that may be of interest is that we are going up against some very negative numbers in the first and second quarter of next year to the tune of 9% or 10% in the first and second quarter of '07. So, we may be able to see some improvement on the last couple of quarters' performance. But we are still very, very cautious and don't want to signal to you that there is any light at the end of the tunnel in the short term.

Thank you.

Thanks Alexia.

Our next question comes from the line of Fred Searby with J.P. Morgan. Please go ahead.

Okay, great, thank you. Couple of questions, one is the 10% to 12% in programming cost for the cable nets, it just looked a little bit high, I just wondered if you could just highlight what's going on there? And then secondly, can you talk about the licensing deals, maybe I missed in the press release, but what the impact was on the Kohl's deal with Food and where you stand on some of the other ones in your pipeline? Thanks. John Lansing - Senior Vice President and President/Scripps Networks: Fred, this is John. Starting on the Kohl's deal, the fourth quarter was very strong. It met, just about met all the expectations at Kohl's after the quarter. And we are very pleased with the deal. Remind me the first question.

I can do it. I think, Fred, you were looking at the 12% cost increase--.

Yeah.

At the network for the first quarter, our guidance. It is a little bit high relative to the other quarters, we just have some seasonality there, the spending in the first part of the year is higher. The rough translation of that is that we have some programming, amortizing, and then actually during the year it reduces over time. So, we are reaching the end of the amortization of certain programming costs so the programming in the first quarter is higher than any other quarter of the year and that gives us the higher expense number in the first quarter.

And do you think the writers strike is boosting ratings, it looks like Food has picked up a little bit, I mean wondered what you thought the..

Yeah Fred. We are all interested in following the writer's strike of course. The thing about our ratings, the strength that we are seeing today was really begun during the third quarter with the remarkable success that Food Network starred, actually that was in the second quarter, and then HGTV design starred in the third quarter, which we used a catapults to launch a number of new series in prime time. And those series have proved to be quite successful and that success built throughout the fourth quarter and then it is continuing now into the first quarter. Whether or not the writer strike is helping or not, I have no empirical evidence, it certainly doesn't hurt I suppose. But the strength in the ratings that we are seeing really is tied just specifically to programs that have been showing strong growth since that they were launched in September.

Great, thanks guys.

Our next question comes from the line of John Janedis with Wachovia. Please go ahead.

Hi, good morning. Thank you. I guess Mark based on the 1Q newspaper ad revenue guidance, it looks like you are expecting a bit of a sequential improvement in the quarter from 4Q. Is that… you kind of touched on that, but is that purely comps or does the tone feel any better at all or maybe even worse than advertisers? Mark G. Contreras - Senior Vice President/Newspapers: I wish I could tell you it felt a lot better, but it doesn't. We just had such steep declines in the first and second quarter of last year that much of what we are talking about now is related to going up against some pretty tough numbers of last year making the comps easier.

Okay. Thanks. Mark G. Contreras - Senior Vice President/Newspapers: But, I don't… again I don't... I'm going to be very clear, I don't want to signal that we would see any light at the end of the tunnel, we're acting on expenses as though much of the difficulty is going to continue and much of that is concentrated in Florida and California. The lion share frankly, 70% plus is because what's going on in California and Florida.

Okay. All right thanks. How you view the longer-term profitability potential? Have uSwitch given the write down and do you foresee a time when energy, either in a good scenario will be half or less than half of the business, or how do you think about that? Joseph G. NeCastro - Executive Vice President/Finance and Administration: John this is Joe. You could add a little bit in your question but, I'm... I'll guess that fill in the blanks, here and answer the question I want to answer. Look, we as you know, as you look at the impairment, that's very much about your future prospects and your outlook for that business and also about the timing of that. So, while we had a great year in '06 on a full year basis, '07 fell significantly and we actually lost money. So, as you push out that curve, you end up producing the value of that business, no matter what's your view of the long term is. It does so happen, of course that our long-term view of that business is less positive than it had been. And so, the combination of pushing it out and flattening the curve some as you go results in a obliviously, significantly lower value to that business. We're still positive on the market and the consumer prospect of that business and the fact that its got a very good and strong a recognizable brand name. So, we're going to continue to pursue that in the near term. What was the second question?

It is related to that is... If you lookout a couple of years, the... is this a business that'll be more so non-energy or how are you thinking about it right now. Joseph G. NeCastro - Executive Vice President/Finance and Administration: On energy, exactly how we're thinking about it. And in fact, if you go back and listen to what we've talked about before, we were making a pretty good amount of cash flow there and our plan was always to reinvest that into the launch of products so that we could diversify that portfolio, both within the U.K., and then even diversify geographically beyond that, that was the plan all along, we're going to continue to pursue that, but on a scale-down basis, since we just don't have the cash flow coming out of that business that we expected.

Thank you very much.

And our next question comes from the line of Craig Huber with Lehman Brothers. Please go ahead.

Good morning, thank you. Going back to your guidance you guys gave back in early December for your cable networks up 8% to 10% for revenues. Can you just give us some more detail what you're thought is for this year, the more predictable part that your affiliate see growth for this calendar year please. Joseph G. NeCastro - Executive Vice President/Finance and Administration: Craig, give me second, I'm checking some of my backup here. Its still… Craig we're still looking at double-digit increases we're in the teens in terms of growth rate for affiliate fees for the year. And that has not changed since we gave the guidance early on.

Okay. And then on a cost front for your cable networks, for this year you've also talked about, I guess up 8% to 10% from this New Year [ph], I realize this is heavily [ph] first quarter as you mentioned. Could you just give us little more detail why cost of that much in marketing and programming more investments intractable, what is it exactly? Joseph G. NeCastro - Executive Vice President/Finance and Administration: Yes, Craig. You've touched on two of them. It clearly is focused on our strategy which is to strengthen our core brand HGTV and Food in a very competitive environment requires us to increase our programming investments, and then our particular investment around all of our interactive businesses, our interactive add revenue is growing at about a rate of close to three times our linear advertising revenue and so our dollars of investment on the interactive side yield an excellent result and we will continue to do that. And we believe over the long haul, the rate of growth can actually improve on the revenue side as we grow the interactive business through the strength of these brands and these categories.

Okay. Then my last question, on Shopzilla and uSwitch, are you looking to sell one or both those properties in the market, trying to sell them?

No, we are not.

Okay. Thank you. Joseph G. NeCastro - Executive Vice President/Finance and Administration: Thanks, Craig.

And we have no more questions in queue at this time. Timothy E. Stautberg - Vice President/Communications and Investor Relations: Thank you, operator. This is Tim Stautberg. I appreciate everybody taking some time this morning to join us. If you have any further questions, I will be available at 513-977-3826. Thank you operator.

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