NEW YORK, Aug. 29, 2006 (PRIMEZONE) -- Dow Jones & Company (NYSE:DJ) announced yesterday that it is exploring value-creating alternatives for six of its Ottaway community newspapers. The purpose of the transaction would be to raise cash to repay debt and for investment in the Company's current businesses as well as utilize approximately $155 million of capital loss tax carry-forwards which expire at December 31, 2006. To clarify, the Company's ability to use the $155 million of capital loss carry-forwards will depend on how many newspapers are sold, the price the Company receives in any such sales and whether the capital gains from the sales exceed the Company's capital losses generated in 2006, which must be applied before prior year carry-forwards may be used. In 2006, Dow Jones incurred a capital loss of $202 million in connection with the settlement of the Cantor Fitzgerald litigation. In any event, U.S. federal tax on capital gains from sale transactions would be completely offset by the Company's capital losses.
There is no assurance that any sales will be effected or that the Company will be able to use all or a portion of the capital loss carry-forwards expiring at December 31, 2006.
About Dow Jones & Company
Dow Jones & Company (NYSE:DJ) (dowjones.com) publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Newswires, Dow Jones Indexes, MarketWatch and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva and with Hearst of SmartMoney. Dow Jones also provides news content to CNBC and radio stations in the U.S.
The Dow Jones & Company logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2636