CHICAGO -- Sun-Times Media Group, Inc. today announced that it and certain affiliates (the "Company") filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The filing was made earlier today in the U.S. Bankruptcy Court for the District of Delaware.

The Company and its principal operating subsidiary, the Sun-Times News Group, will continue to operate its newspapers and online sites as usual while it focuses on further improving its cost structure and stabilizing operations. The Company has retained Rothschild Inc. to commence a process for the sale of assets pursuant to Section 363 of the U.S. Bankruptcy Code. The Company believes it has sufficient financial resources to continue customary day-to-day operations during this process.

The Company operates 59 newspapers and their corresponding online sites. Those titles include: the Chicago Sun-Times, the SouthtownStar, Beacon News (Aurora), Courier-News (Elgin), Herald News (Joliet), Lake County News-Sun (Waukegan), Naperville Sun, Post-Tribune(Merrillville, Ind.), and weeklies published by Pioneer Press and Fox Valley Publications. The Company also publishes free shoppers and content on all of its corresponding online news sites and other sites such as YourSeason.com.

"Over the past several months, the Company has taken several steps to reduce costs and strengthen our organization. However, the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us," said Jeremy L. Halbreich, Chairman and Interim Chief Executive Officer of Sun-Times Media Group. "Unfortunately, this deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management, has led us to today's difficult action. Importantly, we firmly believe that filing for Chapter 11 protection and exploring the potential sale of assets or new investment in the Company offers us the best opportunity to protect our respected media properties for the long-term."

Halbreich added, "With today's filing, it will be business as usual as we continue to operate our newspapers and online sites. We provide the area's best source of local news and information and remain committed to continuing to serve our readers, advertisers, and communities. We have enjoyed a long, rich history in the Chicago area and our goal is to preserve and sustain these strong print and online news and information assets that are such an integral part of the fabric of Chicago and its neighboring communities."

The Company intends to move through the Chapter 11 process as quickly as possible and expects the process to be completed in 2009.

The Sun-Times Media Group's legal advisor is Kirkland & Ellis and its financial advisor is Rothschild Inc. Huron Consulting Group is acting as restructuring advisor to the Company.

More information about the Sun-Times Media Group's bankruptcy case is available by clicking on the "Chapter 11 Information" link at www.thesuntimesgroup.com.