Cybersecurity incident disclosed by LEE ENTERPRISES, Inc in a Form 8-K (February 2025)

Material Cybersecurity Incident. On February 3, 2025, Lee Enterprises, Inc. ("Lee" or the "Company") experienced a systems outage caused by a cybersecurity attack. Upon discovery, Lee activated its incident response team, comprised of internal personnel and external cybersecurity experts retained to assist in addressing the incident. Preliminary investigations indicate that threat actors unlawfully accessed the Company’s network, encrypted critical applications, and exfiltrated certain files. The Company is actively conducting forensic analysis to determine whether sensitive data or personally identifiable information (PII) was compromised. At this time, no conclusive evidence has been identified, but the investigation remains ongoing. In coordination with legal counsel, the Company has notified the relevant law enforcement about the matter, and will notify relevant federal and state regulatory bodies, and applicable consumer protection agencies, as necessary. The incident impacted the Company’s operations, including distribution of products, billing, collections, and vendor payments. Distribution of print publications across our portfolio of products experienced delays, and online operations were partially limited. As of February 12, 2025, all core products are being distributed in the normal cadence, however weekly and ancillary products have not been restored. These products represent five-percent of the Company’s total operating revenue. The Company anticipates a phased recovery over the next several weeks. Lee has implemented temporary measures, including manual processing of transactions and alternative distribution channels, to maintain critical business functions while systems are being restored. While the full scope of the financial impact is not yet known, the incident is reasonably likely to have a material impact on the Company’s financial condition or results of operations. The Company is continuing its forensic investigation and analysis to assess…

Material Cybersecurity Incidents. As previously disclosed in the Original Form 8-K, the Company experienced a system outage on February 3, 2025, caused by a cybersecurity attack by threat actors who unlawfully accessed the Company’s network, encrypted critical applications, and exfiltrated certain files (the “Incident”). As of the date of this filing and because of the Company’s remediation and other activities, the threat has been contained and the Company is working closely with third-party security vendors to restore automation of its business processes impacted by the Incident. Currently all products are being produced and distributed, although some limitations remain including limited depth of products due to tightened schedules. Additionally, certain back-office functions remain delayed including billing our clients, collections, and payments to vendors. We anticipate the business processes to be fully restored in the coming weeks. Our investigation and forensic analysis to determine whether personally identifiable information was taken by the threat actors remains ongoing. We expect a definitive answer in the next several weeks. While the full scope of the financial impact is not yet known, the Incident is likely to have a material impact on the Company’s financial condition and results of operations. The Company maintains comprehensive cyber insurance coverage, including business interruption insurance, and anticipates costs in excess of a small retainer to be reimbursed by insurance. In an effort to provide short-term liquidity to fund the cybersecurity incident’s remediation efforts and other operations, the Company and its lender have agreed to waive payment of the Company’s interest payments due in March 2025. BH Finance LLC, a Nebraska limited liability company (“BH Finance”) is the Company’s sole lender, and the waiver applies to interest owed under the Credit Agreement dated January 29, 2020. The Covenant Waiver also applies to lease payments in…