Letter from Tony and Mary Jean

[Blog Guy’s Note: The letter sent to me and reprinted here did not include a signature. I hope that is not ominous. A previous post has a link to a 10-page analysis in PDF format by Morgan Stanley ] .


KNIGHT BIDDER
BENEFITS RESOURCE CENTER

Dear Knight Ridder Retiree:
The recent news that our Board of Directors has chosen to explore strategic alternatives including a possible sale of the company has - understandably - raised questions for many of you. In an effort to respond, we have anticipated some of those questions and provided answers to them right here. If you feel you need further clarification on these, or on something else entirely, please contact the Knight Ridder Benefits Resource -Center (KR>BRC) at (800-232-7272 .

General

Q: What does it mean that the Knight Ridder Board of Directors is "exploring strategic alternatives"? Does this mean the company is being sold?

A: No, that is not the only possible outcome. There is a wide range of possible outcomes, which include the sale of Knight Ridder, restructuring the company or engaging in some other form of transaction or maintaining the company in its current form.

Q: How long will this process take?

A: We can't predict an exact timetable. It depends on what decisions are made.

Q: What is the process Knight Ridder's Board of Directors will follow?

A: The company is working with Goldman Sachs, its longtime investment banker, and with Morgan Stanley, to advise it. When the Board makes a decision on a specific transaction, there will be a public announcement.

Benefits

Pension Plan Benefits under the Knight Ridder qualified plan and non-qualified plan

Q: Will I lose my qualified pension benefit and/or non-qualified pension benefit as a result of a change of control in the future?

A: No. The obligation to pay pension benefits is not affected by a change in control. That obligation will continue, whether the pension plan continues to be sponsored by Knight Ridder or will become sponsored by a new organization. The plan cannot be amended to reduce a benefit to which you are already entitled.

401k Plan Benefits

Q: Will my 401(k) Plan benefit be affected?

A: No, the money ih your 401k account remains fully funded and under your control. Please visit www.krem.com and follow the retirement links for more information on the Plan.

Q: What should I do with the Knight Ridder stock in my 401k account?

A: Knight Ridder may not provide investment advice. You should seek advice from a financial counselor if you are concerned about your Knight Ridder investment. In 2003 the Plan was amended to allow you to decrease or increase your investment in the Knight Ridder common stock fund at any time.

Q: May I transfer my 401k balance to an IRA?

A: Yes. You will need to contact Vanguard directly to start this process. (800) 523-1188.

Health Benefits

Q: Will my Knight Ridder Retiree Medical plan change?

A: No changes are planned for the 2006 plan year. However, it is important to remember that we have made changes to the Plan in the past and Knight Ridder always reserves the right (and any potential acquirer will have the right) to amend or cancel the Plan.

Note: The questions and answers above are not meant to suggest that Knight Ridder's plans will remain static in the future, any more than they have in the past. Knight Ridder always reserves the right to make changes in its plans. In the event of a discrepancy between this Q&A and the terms of an applicable plan, the terms of the applicable plan will govern. No planned design changes are currently contemplated.

Please know that we greatly regret the concerns that this news has caused. We hope that the answers given here will offer some reassurance. Many of you have written us notes and e-mails offering empathy and support in recent weeks; we appreciate them greatly, and, in return, we thank you for the many contributions each of you made to Knight Ridder during your years of active service. Clearly, one of the many things that make this company special is the loyalty it engenders among those who have spent large parts, or all, of their careers with Knight Ridder. Your communications now are testament to that bond.

Looking ahead, it is not possible to speculate on how this process of exploring strategic options will unfold. What is possible is tdo assure you that as we go forward, the values that always have defined Knight Ridder - quality journalism, fairness to our employees, service to our communities and diversity in all that we do - will continue to be uppermost in our minds. As we know they are in yours.

With best wishes for a very happy holiday season,

Tony Ridder Mary Jean Connors