Sinclair Announces Sale of WEMT-TV in Tri-Cities

Sinclair Announces Sale of WEMT-TV in Tri-Cities

BALTIMORE, May 16 /PRNewswire-FirstCall/ -- Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) announced today that it has agreed to sell the broadcasting assets of WEMT-TV (FOX 39) in the Tri-Cities market (Bristol, VA/Bristol, TN/Johnson City, TN/Kingsport, TN) to BlueStone Television Inc. and the license assets of WEMT-TV to Aurora Broadcasting, Inc. The total purchase price for the two transactions is $7.0 million, of which $5.6 million for the non-license assets closed and funded. The sale of the license assets for the purchase price of $1.4 million is subject to the Federal Communications Commission's approval. BlueStone Television Inc., who is the ultimate owner of WCYB-TV in Tri-Cities, will operate WEMT-TV with Sinclair pursuant to a joint sales and shared services agreement, in which BlueStone's station will provide certain non-programming related sales, operational and administrative services to WEMT-TV.

"In the past 6 months, we have announced the sale of $325 million in single station market assets that we were unable to duopolize, but were able sell at very attractive multiples of cash flow," commented David Smith, President and Chief Executive Officer of Sinclair. "Our sales, which have included CBS, FOX and WB stations and involved markets ranging from the 19th to 89th DMAs, continue to demonstrate the under-valuation of television station assets by public equity holders. Regardless of market size and affiliation mix, television multiples continue to retain their value."

Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 61 television stations in 38 markets. Sinclair's television group reaches approximately 23% of U.S. television households and includes ABC, CBS, FOX, NBC, WB, and UPN affiliates. Sinclair owns a majority equity interest in G1440 Holdings, Inc., an Internet consulting and development company, and Acrodyne Communications, Inc., a manufacturer of transmitters and other television broadcast equipment.

Forward-Looking Statements:

The matters discussed in this press release include forward-looking statements regarding, among other things, future results and future valuations of stations. When used in this press release, the words "believes," "expects," and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including changes in broadcast regulations, court rulings, valuations of broadcast properties, and the other risk factors set forth in the Company's most recent reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements.

Source: Sinclair Broadcast Group, Inc.

CONTACT: David Amy, EVP & CFO, or Lucy Rutishauser, Treasurer,
+1-410-568-1500, both of Sinclair Broadcast Group, Inc.

Web site: http://www.sbgi.net/

Company News On-Call: http://www.prnewswire.com/comp/110203.html

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