Alexia Quadrani (Bear, Stearns & Co.): Compensation costs were going up significantly at about.com. How compensation costs are trending on your other Internet properties?

James M. Follo: Company wide, our compensation costs are down. Our headcount is down year over year about 2.5%, and from the beginning of the year it has been about 1%. We do not break out the components of compensation.

Fred Searby (J.P. Morgan): Could you give of your thoughts on the evolution of CPMs at the Internet properties and what the potential is to raise them?

Martin A. Nisenholtz: We have consistently raised CPMs over the last couple of years in key positions. The premium positions, particularly at nytimes.com, have been raised in double digits over the last several years. We have had four price increases in the last 18 months.

Fred Searby (J.P. Morgan): Could you give color on your expectations for the New York DMA?

Martin A. Nisenholtz: RPMs are up dramatically over the last year. It is the moderation of volume which affects the Google CPC revenue that is off of last year. By saying it is moderated, I do not mean it is decreased in an absolute sense. It has decreased relative to what it was growing last year, but our CPMs remain strong.

Fred Searby (J.P. Morgan): Do you think there may be price decreases or it is going to limit or dampen the ability to raise CPMs on the sites because of this new influx of inventory?

Martin A. Nisenholtz: We do not look at it that way. We basically price on the premium side. In other words, the overall premium rates are continuing to be strong. It is the run of site inventory where you have some moderation.

Fred Searby (J.P. Morgan): Could you expand on the circulation development?

Janet L. Robinson: We are expecting circulation declines at our properties. Declines to mid-single digits, but from a standpoint of the efforts behind what we are doing with circulation, we are consciously looking at a focus in regard to the quality of the circulation, so consequently bringing third party down and focusing on individually paid. We also are making sure that we are looking at earlier delivery, both in Boston and in New York. We are looking at English as second language efforts, particularly in the New York region and the NDM, to increase our exposure to the immigrant market. We are also doing more in regard to adding routes within the NDM as well, and our education programs have advanced nicely in the NDM, with several more copies per day being circulated at schools and colleges throughout the region.

James M. Follo: We have had some other good results in our circ, and one of the things is that we have eliminated our deeply discounted introductory offer. We phased this out in the fourth quarter of 2006. What we are seeing is that customer retention is improving and the percent of people that are paying by credit card recently hit a new record. All of this is leading to a much more efficient marketing spend.

Steven Barlow (Prudential Equity Group): Are there any increased costs at the College Point plant from what you originally anticipated?

James M. Follo: We do not see any additional costs about the ongoing savings at College Point. The transaction, while it took on a different structure, is modestly lower than our original IRR. All things being equal, this is a good investment of our capital.

Steven Barlow (Prudential Equity Group): What do you see debt levels be at the end of the second quarter and are the tax payments related to the gains, will those fall into subsequent quarters or into 2008?

James M. Follo: The gain that we disclosed on the sale of the property, the gain and the cash flow for that will be higher than the reported gain because we have a lower tax basis than book basis, so the proceeds we will be getting from that will be higher than the disclosed gain.
We will be paying tax on that in a subsequent quarter. We will also be getting a tax benefit, from the sale of Edison. The key part of our strategy on selling versus leasing is it takes us off the hook as being a landlord and takes all the risk out of that.

Steven Barlow (Prudential Equity Group): Could you give a forecast for second quarter debt?

James M. Follo: We have talked more of a year-end number and that year-end number is going to be more than $1 billion. We closed the quarter as you know, at 1.4, so we are expecting that number to come down.

Lisa Monaco (Morgan Stanley): How are you thinking about a potential sale lease-back of the new headquarters building?

James M. Follo: We are constantly evaluating how to best monetize that building, as we did with the rental income. I do not have anything to disclose today but the values of that property have gone up dramatically recently. That puts in a good position to create value and gives us some flexibility, so I do not have anything to say beyond that other than it does provide us with a good source of some low-cost financing if that is the route we go going forward, but I have nothing to disclose there.

Lisa Monaco (Morgan Stanley): Could you give color on your expectation for the minority interest line?

James M. Follo: We expect that to be negligible going forward.

Lisa Monaco (Morgan Stanley): Do you expect any additional costs going forward as you ramp up your sites for the co-branding with Monster?