The parties did not disclose financial terms other than to say that Reuters will be compensated through a combination of subscription fees and a share of advertising it sells on web pages carrying its news.

Under the multi-year agreement, Reuters will deliver its entire suite of On-Line Reports, including US News, Sports, Business, Entertainment, Technology, Politics, International News, Oddly Enough, and the On-Line TopPix Photo Service.

Reuters also will supply the Reuters Business Report, Spanish Language Service and US Markets News Service to Knight Ridder New Media for use by its editors who will construct news and information products for its Real Cities network, including web sites such as homehunter.com, jobhunter.com, realbooks.com and justgo.com.

Additionally, Planet Reuters, the company's syndicated multi-media news service, will be made available to all web sites operated by Knight Ridder newspapers. Reuters AudioCast, a voiced wrap-up of current events will be available for all 38 sites operated by Knight Ridder.

Reuters content will be presented on Knight Ridder Web sites on co-branded pages. Users will reach pages with this information via hyperlinks integrated throughout the news areas of the sites. Also included in this agreement is a license for Knight Ridder New Media to include headlines and other selected content in news indexes that will be combined with other products and services appearing on non-owned sites.

Andrew Nibley, President, Reuters NewMedia Inc., said of the arrangement: "This exciting new business opportunity is the latest chapter in our long-standing relationship with Knight Ridder. As pioneers in the new media environment, it only makes sense for both companies to further extend that relationship, to build our brands, and find new sources of revenue for our unique multi-media content."

"Reuters will be a great new asset for all our sites and products," said Ken Doctor, vice-president/editorial for Knight Ridder New Media. "We think the services covered by this agreement will add exceptional depth to our sites and distinguish them from the competition. It's also an outstanding opportunity for both companies to enhance the user experience with an innovative integration of news content."

"We're committed to providing our customers the best and deepest news and information experience in each of our markets," added Bob Ingle, president for Knight Ridder New Media. "Reuters is an important building block in that effort."

Among the Knight Ridder sites that will integrate Reuters content under the agreement are the Philadelphia Inquirer, Miami Herald, San Jose Mercury News, Detroit Free Press, Kansas City Star, Charlotte Observer, the Akron Beacon Journal and Fort Worth Star-Telegram.

Reuters America Inc. is the primary operating entity in the Americas of Reuters Group PLC (NASDAQ: RTRSY), the international news and financial information services company.

Knight Ridder New Media, located in San Jose, is a division of Knight Ridder and maintains 40 web sites and Internet products in the Real Cities network. The Real Cities network consists of newspaper web sites, online classified products and community lifestyle web sites. Knight Ridder is the nation's second largest newspaper publisher, with products in print and online. The company publishes 31 daily newspapers in 28 U.S. markets, reaching 9 million readers daily and 12.6 million on Sunday.

Contacts:

Robert Crooke Reuters America Inc. (212) 603-3587 robert.crooke@reuters.com

Patricia Colby Pacifico, Inc. for Knight Ridder New Media (408) 293-8600 pcolby@pacifico.com