Subscriptions were down by 6.6 percent during the first six months of 2000, which Hearst executives say they expected with the redesign.

Hearst executives say, however, that the low readership only underscores the market's potential.

Publishers and other Hearst executives were told of the changes yesterday.

Hearst executives were unavailable for comment on their plans yesterday.

Hearst executives say it may even be superior to the air outside.

Hearst executives would not comment, other than to issue a press release late in the afternoon.

"It has been a losing business but a winning paper," said a Hearst executive as the staff prepared the final issue.

Hearst executives established the rate base at 500,000 for the first issue.

Hearst executives said the rate base will be raised to 1.6 million, and perhaps even more, in 2001.

Hearst executives "stand by the article as fair and accurate reporting," she added.