Guild Retiree benefits cuts loom

Text of letter received by retirees:


>KNIGHTRIDDER>

September 29, 2004

RNL-00065-03
HARRY LIGGETT
544 N FIRESTONE BLVD AKRON, OH 44301

Important News About Your Knight Ridder Retiree Benefits

Dear HARRY LIGGETT:

We are writing to let you know about some upcoming changes to your Knight Ridder Retiree Benefits. You'll see more information in October, but we wanted to let you know now that some changes are being made.

Health Care Benefits

As you may know, the escalating cost of health care in general, and retiree medical and prescription benefits in particular, has presented a major challenge over the last decade or so.

Like all employers, Knight Ridder has responded by making changes to our programs. We have increased the premiums that our employees must pay for their own coverage, and to cover a spouse or dependent children. We have made changes to benefit designs that also increase the employee's cost burden.

Those who retired from Knight Ridder since the current retiree health benefit program was implemented have also experienced change. Modifications to plan designs covering employees apply to these retirees as well. Retiree premiums under this program have risen dramatically in response to increasing costs.

On the other hand, those like yourself who retired before the current program was implemented ("grandfathered retirees") have generally not seen any changes to their coverage, or to their premium, since retirement.

The Company realizes that those who have been retired for many years may not be in a position to now absorb large cost increases. But, given the burden that employees and more recent retirees have had to bear, we believe it is appropriate, as the plan provides, to make some updates to the deductible and coverage provided through your Company retiree medical plan.

Our goal has been to make only relatively modest changes to these plans for 2005 - although we recognize that because so many years have gone by with no update, the changes may appear more significant than if they had occurred gradually. A secondary goal has been to reduce a large administrative burden by consolidating the multiple plan designs wherever possible.

The changers sometimes involve an increase to the annual deductible, increases in some plan
co-pays (including co-pays for prescription drugs) or co-insurances, and in some cases a new method for coordinating plan benefits with Medicare. Dental or vision coverage, for those who currently receive it, is being discontinued. .

We will not be introducing or increasing retiree health care premiums in connection witl these changes.

Benefit changes are automatically effective January 1, 2005. We are announcing these changes
as early as possible to give you time to consider coverage alternatives.

We know you will have questions. Therefore we’ve established a Knight Ridder Retiree
Information Line, staffed by trained specialists on the Company's retiree health program and how these changes affect you. Please call 800-561-0842 to speak to a representative between the hours of 8:30 a.m. and 5 p.m., Eastern Time, Monday through Friday, except holidays.

Sincerely,

Tony Ridder Mary Jean Connors
Chairman and CEO Senior Vice President/Human Resources
Knight Ridder Knight Ridder