Gray Reports Operating Results for the Three Months and Nine Months Ended September 30, 2006

Gray Reports Operating Results for the Three Months and Nine Months Ended September 30, 2006

ATLANTA, Nov. 8 /PRNewswire-FirstCall/ -- Gray Television, Inc. ("Gray" or the "Company") (NYSE:GTN) today announced results from operations for the three months ("third quarter") and nine months ended September 30, 2006 as compared to the three months and nine months ended September 30, 2005.

Significant items to note for the period ended September 30, 2006:

Pro Forma(1) Adjusted Change from Same Period
Broadcast Cash Flow of Prior Year
----------------------------------- -------------------------------
See Reconciliation of Net Income
to the Non-GAAP term "Adjusted
Broadcast Cash Flow" below

Pro Forma(1) Adjusted Broadcast Increased 26% or $6.4 million
Cash Flow for the three months
ended September 30, 2006 of $30.8
million

Pro Forma(1) Adjusted Broadcast Increased 12% or $9.5 million
Cash Flow for the nine months
ended September 30, 2006 of $85.6
million

"As Reported" Operating Results Change from Same Period
for the Three Months Ended of Prior Year
September 30, 2006
----------------------------------- -------------------------------
Net local broadcast advertising Increased 14% or $5.8 million
revenue, excluding political
advertising revenue, of $47.7
million

Net national broadcast advertising Increased 13% or $2.3 million
revenue, excluding political
advertising revenue, of $19.5
million

Net political advertising revenue Increased $10.2 million reflecting
of $10.6 million the "on-year" of the political
election cycle

"As Reported" Operating Results for
the Nine Months Ended September Change from Same Period
30, 2006 of Prior Year
----------------------------------- ------------------------------
Net local broadcast advertising Increased 17% or $20.9 million
revenue, excluding political
advertising revenue, of $146.9
million

Net national broadcast advertising Increased 13% or $6.8 million
revenue, excluding political
advertising revenue, of $58.1
million

Net political advertising revenue Increased $15.7 million reflecting
of $17.1 million the "on-year" of the political
election cycle

September 30, 2006 December 31, 2005

Cash on Hand $4.2 million $9.3 million
Total Debt(2) $856.0 million $792.5 million

General Comment on Expansion of Operations:

Since January 1, 2005, the Company has:

Acquired the following television stations:
KKCO, Grand Junction, CO on January 31, 2005;
WSWG, Albany, GA on November 10, 2005;
WSAZ, Charleston - Huntington, WV on November 30, 2005 and
WNDU, South Bend, IN on March 3, 2006.

Expanded its operations in the Charlottesville, Virginia market to
include ABC and FOX affiliations in addition to the previously
existing CBS affiliation and

Launched or re-branded 24 digital second channels in its existing
television markets as affiliates of either the MyNetworkTV, CW or FOX
networks and launched 4 digital local news/weather channels in our
existing markets.

Collectively, these recently acquired stations, the Charlottesville,
Virginia network affiliations and the recently launched/re-branded
digital second channels are referred to as our "expanded channels".

Comments on Results of Operations for the Three Months Ended:

Revenues.

Total revenues increased $18.3 million, or 29%, to $80.6 million reflecting, in part, the acquisition of television stations and expansion of operations discussed above. On a pro forma(1) basis, after giving effect to the acquisition of television stations WSAZ and WNDU total net revenue increased 13%.

Local advertising revenues for all stations, excluding political
advertising revenues, increased $5.8 million, or 14%, to $47.7 million
from $41.9 million.

The expanded channels described above account for approximately $6.4
million of the Company's overall increase in local advertising
revenues, excluding political advertising revenues.

Excluding the results of the expanded channels, local advertising
revenues, excluding political advertising revenues, decreased
approximately 1% or $534,000 due to decreased demand for commercial
time by local advertisers.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, local advertising
revenues for all stations, excluding political advertising revenues,
increased 1% or approximately $358,000.

National advertising revenues for all stations increased 13%, or $2.3
million, to $19.5 million from $17.2 million.

The expanded channels described above account for approximately $2.6
million of the Company's overall increase in national advertising
revenues, excluding political advertising revenues.

Excluding the results of the expanded channels, national advertising
revenues, excluding political advertising revenues, decreased
approximately 1% or $252,000 due to decreased demand for commercial
time by national advertisers.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, national
advertising revenues for all stations, excluding political advertising
revenues, decreased 2% or approximately $421,000.

Political advertising revenues increased to $10.6 million from $448,000
reflecting the cyclical influence of the 2006 elections.

Operating expenses.

Operating expenses increased 22% to $60.6 million from $49.8 million in the same period of the prior year primarily as the result of the expanded channels discussed above.

Broadcasting expenses for all stations, before depreciation, amortization
and loss on disposal of assets increased $7.5 million, or 19%, to $47.5
million from $40.0 million.

The expanded channels described above account for approximately 82% or
$6.1 million of this increase.

Excluding the results of the expanded channels, broadcast expenses
increased approximately 3%, or $1.3 million. Payroll related expenses
increased approximately $162,000. Other non-payroll related expenses
increased $1.2 million and this increase was due partially to
increased national sales representative commissions of $430,000 on the
sale of net political advertising revenue.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, broadcast expenses
increased approximately 5% to $47.5 million. Payroll related expenses
increased approximately 1% or $173,000. Non-payroll related expenses
increased approximately $2.0 million including approximately $570,000
of national sales representative commissions on the sale of net
political revenue.

Corporate and administrative expenses, before depreciation, amortization
and loss on disposal of assets increased 10% to $3.5 million from $3.2
million. The 2006 period includes an aggregate of approximately $191,000
of non-cash expenses recorded in connection with restricted stock awards
and the Company's adoption on January 1, 2006 of Statement of Financial
Accounting Standards No. 123(R) ("SFAS 123(R)") which relates to the new
accounting rules for expensing stock based compensation. The
corresponding period of 2005 contains $98,000 of non-cash expenses
associated with restricted stock awards.

Comments on Results of Operations for the Nine Months Ended:

Revenues.

Total revenues increased $41.6 million, or 22%, to $230.2 million reflecting, in part, the acquisition of television stations and expansion of operations discussed above. On a pro forma(1) basis, after giving effect to the acquisition of television stations WSAZ and WNDU total net revenue increased 8%.

Local advertising revenues for all stations, excluding political
advertising revenues, increased $20.9 million, or 17%, to $146.9 million
from $126.0 million.

The expanded channels described above account for approximately $18.5
million of the Company's overall increase in local advertising
revenues, excluding political advertising revenues.

Excluding the results of the expanded channels, local advertising
revenues, excluding political advertising revenues, increased
approximately 2% or $2.4 million due to increased demand for
commercial time by local advertisers.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, local advertising
revenues for all stations, excluding political advertising revenues,
increased 4% or $6.1 million due to increased demand for commercial
time by local advertisers.

National advertising revenues for all stations increased 13% or $6.8
million to $58.1 million from $51.3 million.

The expanded channels described above account for approximately $7.8
million of the Company's overall increase in national advertising
revenues, excluding political advertising revenues.

Excluding the results of the expanded channels, national advertising
revenues, excluding political advertising revenues, decreased
approximately 2% or $960,000 due to decreased demand for commercial
time by national advertisers.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, national
advertising revenues for all stations, excluding political advertising
revenues, decreased 2% or $1.1 million.

Political advertising revenues for all stations increased to $17.1 million
from $1.4 million reflecting the cyclical influence of the 2006 elections.

During the first quarter of 2006, the Company earned an aggregate total of
approximately $2.9 million of revenue from the broadcast of the Winter
Olympic Games. On a pro forma(1) basis, after giving effect to the
acquisition of the television station WNDU discussed above, the aggregate
total revenue attributable to the broadcast of the Winter Olympic Games
approximated $3.4 million. No Olympic Games were broadcast in the first
quarter of 2005.

Operating expenses.

Operating expenses increased 21% to $175.5 million from $145.2 million in the same period of the prior year primarily as the result of the expanded channels discussed above.

Broadcasting expenses for all stations, before depreciation, amortization
and loss on disposal of assets increased $19.8 million, or 17%, to $138.1
million from $118.3 million.

The expanded channels discussed above collectively account for
approximately 83% or $16.4 million of this increase.

Excluding the results of the expanded channels, broadcast expenses
increased approximately 3%, or $3.4 million. Payroll related expenses
increased approximately $1.1 million. Other non-payroll related
expenses increased $2.2 million and this increase was due partially to
increased national sales representative commissions of $639,000 on the
sale of net political advertising revenue.

On a pro forma(1) basis, after giving effect to the acquisition of
television stations WSAZ and WNDU discussed above, broadcast expenses
increased approximately 4% to $140.2 million. Payroll related expenses
increased approximately 2% or $2.0 million. Non-payroll related
expenses increased approximately $3.5 million including approximately
$985,000 of national sales representative commissions on the sale of
net political revenue.

Corporate and administrative expenses, before depreciation, amortization
and loss on disposal of assets increased 14% to $10.1 million from $8.9
million. The 2006 period includes an aggregate of approximately $581,000
of non-cash expenses recorded in connection with restricted stock awards
and the Company's adoption on January 1, 2006 of SFAS 123(R) which relates
to the new accounting rules for expensing stock based compensation. The
corresponding period of 2005 contains $294,000 of non-cash expenses
associated with restricted stock awards. Payroll and benefit costs,
excluding non-cash stock based compensation, increased $880,000 which was
due largely to the timing of accruals for annual bonuses. For the year
ended December 31, 2006, corporate bonuses are expected to be consistent
with that of 2005.

Balance Sheet:

Gray's cash balance was $4.2 million at September 30, 2006 compared to $9.3 million at December 31, 2005. Gray generated $60.4 million of net cash from operations during the first nine months of 2006 compared to $39.3 million for the prior year. The 2006 net cash generated from operations was offset in part by the return of capital to Gray's common and preferred shareholders through the payment of $4.5 million of dividends. Of the cash generated from operations, Gray used a total of $4.7 million to purchase and retire a portion of Gray's 9.25% Senior Subordinated Notes and used $15.1 million to repay a portion of its Senior Credit Facility and other outstanding debt. Gray used $1.8 million to repurchase 175 shares of Series C Redeemable Serial Preferred Stock and $5.6 million to repurchase 902,200 shares of common stock. Total debt outstanding at September 30, 2006 and December 31, 2005 was $856.0 million and $792.5 million(2), respectively. Capital expenditures for the nine months ended September 30, 2006 were $28.9 million compared to $26.8 million for the same period of the prior year.

Changes in the classification of certain items:

Prior year operating results of the publishing and wireless segments in the accompanying condensed consolidated financial statements have been reclassified to conform to the 2006 presentation which reflects the results of those operations in income from discontinued operations, net of income taxes.

A Detailed table of operating results follows.

Gray Television, Inc.
Selected As Reported and Pro Forma Operating Data (Unaudited)
(in thousands except for per share data and percentages)

As Reported Pro Forma(1)
Three Months Ended Three Months Ended
September 30, September 30,
% %
2006 2005 Change 2006 2005 Change

Revenues (less agency
commissions) $80,592 $62,281 29 % $80,592 $71,280 13 %
Operating expenses:
Operating expenses
before depreciation,
amortization and
loss on disposal
of assets, net: 47,456 40,019 19 % 47,456 45,262 5 %
Corporate and
administrative 3,481 3,155 10 % 3,481 3,155 10 %
Depreciation and
amortization of
intangible assets 9,478 6,610 43 % 9,478 8,561 11 %
Loss on disposals of
assets, net 221 8 2663 % 221 8 2663 %
60,636 49,792 22 % 60,636 56,986 6 %
Operating income 19,956 12,489 60 % 19,956 14,294 40 %
Other income (expense):
Miscellaneous income,
net 91 254 (64)% 91 255 (64)%
Interest expense (17,542) (11,122) 58 % (17,542) (14,425) 22 %
Loss on early
extinguishment
of debt (237) - NA (237) - NA
Income from continuing
operations before
income tax expense 2,268 1,621 40 % 2,268 124 1729 %
Income tax expense 909 650 40 % 909 48 1794 %
Income from continuing
operations 1,359 971 40 % 1,359 76 1688 %
Income from operations
of discontinued
publishing and wireless
operations net of
income tax expense
of $0, $503, $0 and
$503, respectively - 772 (100)% - 770 (100)%
Net income 1,359 1,743 (22)% 1,359 846 61 %
Preferred dividends
(includes accretion
of issuance cost of
$47, $22, $47,
$22, respectively) 840 815 3 % 840 815 3 %
Net income available
to common stockholders $519 $928 (44)% $519 $31 1574 %

Basic per share
information:
Net income (loss)
from continuing
operations
available to common
stockholders $0.01 $- $0.01 $(0.02)
Income from
discontinued
operations,
net of tax - 0.02 - 0.02
Net income
available to
common stockholders $0.01 $0.02 $0.01 $-
Weighted average
shares outstanding 48,072 48,725 (1)% 48,072 48,725 (1)%

Diluted per share
information:
Net income (loss)
from continuing
operations
available to common
stockholders $0.01 $- $0.01 $(0.02)
Income from
discontinued
operations,
net of tax - 0.02 - 0.02
Net income
available to
common stockholders $0.01 $0.02 $0.01 $-
Weighted average
shares outstanding 48,072 48,920 (2)% 48,072 48,920 (2)%

Political revenue
(less agency
commission) $10,595 $448 2265 % $10,595 $647 1538 %

Gray Television, Inc.
Selected As Reported and Pro Forma Operating Data (Unaudited)
(in thousands except for per share data and percentages)

As Reported Pro Forma(1)
Nine Months Ended Nine Months Ended
September 30, September 30,
% %
2006 2005 Change 2006 2005 Change

Revenues (less agency
commissions) $230,216 $188,578 22 % $232,801 $215,853 8 %
Operating expenses:
Operating expenses
before depreciation,
amortization and
loss on disposal
of assets, net: 138,058 118,299 17 % 140,195 134,640 4 %
Corporate and
administrative 10,140 8,932 14 % 10,140 8,932 14 %
Depreciation and
amortization of
intangible assets 26,828 17,900 50 % 27,496 23,764 16 %
Loss on disposals
of assets, net 493 92 436 % 493 92 436 %
175,519 145,223 21 % 178,324 167,428 7 %
Operating income 54,697 43,355 26 % 54,477 48,425 12 %
Other income (expense):
Miscellaneous income,
net 496 709 (30)% 496 708 (30)%
Interest expense (49,664) (33,547) 48 % (50,089) (43,309) 16 %
Loss on early
extinguishment
of debt (347) (4,770) (93)% (347) (4,770) (93)%
Income from continuing
operations before
income tax expense 5,182 5,747 (10)% 4,537 1,054 330 %
Income tax expense 2,058 2,272 (9)% 1,823 411 344 %
Income from continuing
operations 3,124 3,475 (10)% 2,714 643 322 %
Income from operations
of discontinued
publishing and wireless
operations net of
income tax expense of
$0, $2,444, $0 and
$2,444, respectively - 3,736 (100)% - 3,736 (100)%
Net income 3,124 7,211 (57)% 2,714 4,379 (38)%
Preferred dividends
(includes accretion
of issuance cost of
$91, $65, $91 and $65,
respectively) 2,469 2,444 1 % 2,469 2,444 1 %
Net income available
to common stockholders $655 $4,767 (86)% $245 $1,935 (87)%

Basic per share information:
Net income (loss)
from continuing
operations
available to common
stockholders $0.01 $0.02 $0.01 $(0.04)
Income from
discontinued
operations,
net of tax - 0.08 - 0.08
Net income
available to
common stockholders $0.01 $0.10 $0.01 $0.04
Weighted average
shares outstanding 48,532 48,655 0 % 48,532 48,655 0 %

Diluted per share
information:
Net income (loss)
from continuing
operations
available to common
stockholders $0.01 $0.02 $0.01 $(0.04)
Income from
discontinued
operations,
net of tax - 0.08 - 0.08
Net income
available to
common stockholders $0.01 $0.10 $0.01 $0.04
Weighted average
shares outstanding 48,543 48,939 (1)% 48,543 48,939 (1)%

Political revenue
(less agency
commission) $17,077 $1,429 1095 % $17,157 $1,946 782 %

Guidance for the Fourth Quarter of 2006

We currently anticipate that Gray's broadcasting results of operations for the three months ended December 31, 2006 will approximate the ranges presented in the table below.

% %
% Change % Change
2006 Change From 2006 Change From
Guidance From Pro Guidance From Pro Pro
Selected Low Actual Forma High Actual Forma Actual Forma
operating date: Range 2005 2005 Range 2005 2005 2005 2005
(dollars in millions)
OPERATING REVENUES:
Revenues
(less agency
commissions) $95,000 30% 17% $100,000 37% 23% $72,975 $81,197

OPERATING EXPENSES:
(before depreciation,
amortization and
other expenses)
Broadcast $52,500 20% 9% $53,000 22% 10% $43,607 $48,296
Corporate $3,800 33% 28% $4,000 40% 35% $2,867 $2,964

OTHER SELECTED DATA:
Broadcast
political
revenues
(less agency
commissions) $24,500 $25,000 $1,433 $1,713

Pro Forma information presents certain operating results of WSAZ and WNDU
as if each station had been acquired on January 1, 2005.

Comments on Guidance

Gray currently intends to launch additional digital second channels during the fourth quarter of 2006. By December 31, 2006, Gray expects to be operating a total of 30 digital second channels including 5 Fox affiliates, 1 ABC affiliate, 9 CW affiliates and 15 MyNetworkTV affiliates. In addition to those channels, we will also have 8 local news/weather channels in certain markets.

The above guidance for broadcasting revenue reflects the cyclical impact of political advertising spending.

The above fourth quarter 2006 guidance for broadcasting revenue also includes the impact of Gray's expanded channels which collectively account for approximately $13.3 million of the overall increase in fourth quarter broadcast revenue in comparison to the fourth quarter of 2005 on an "as reported" basis.

On a pro forma(1) basis, after giving effect to the acquisition of television stations WSAZ and WNDU local revenue for all stations, excluding political revenue, is expected to increase approximately 4% over the pro forma results for the fourth quarter of 2005 while national advertising revenue is expected to decrease 1% over the same period.

The above fourth quarter 2006 guidance for broadcasting operating expense before depreciation, amortization, and other expenses also includes the current period impact of Gray's expanded channels which collectively account for approximately $6.3 million of the overall increase in fourth quarter broadcast operating expense before depreciation, amortization and other expenses in comparison to the fourth quarter of 2005 on an "as reported" basis.

On a pro forma(1) basis, after giving effect to the acquisition of television stations WSAZ and WNDU, more than half of the expected increase in broadcast operating expenses for all stations, before depreciation, amortization and loss on disposal of assets is attributable to the incremental costs of the digital channels discussed above and national sales representative commissions on the sale of net political revenue.

Also included within the broadcast operating expense estimates presented above, Gray currently estimates that the non-cash 401(k) plan expense will approximate $550,000 for the three months ended December 31, 2006 compared with $483,000 for the same period of 2005.

The guidance above for corporate expense for the three months ended December 31, 2006 includes an estimated $525,000 of non-cash expense currently anticipated in connection with the Company's adoption on January 1, 2006 of SFAS 123(R) which relates to new accounting rules for expensing stock based compensation.

Conference Call Information

Gray Television, Inc. will host a conference call to discuss its third quarter operating results on November 8, 2006. The call will begin at 2:00 PM Eastern Time. The live dial-in number is 1-800-946-0708 and the confirmation code is 3054796. The call will be webcast live and available for replay at http://www.gray.tv/. The taped replay of the conference call will be available at 1-888-203-1112, Confirmation Code: 3054796 until December 8, 2006.

Reconciliations:

Reconciliation of Net Income to the Non-GAAP term "Adjusted Broadcast Cash Flow" (in thousands):

As Reported Pro Forma(1)
Three Months Ended Three Months Ended
September 30, September 30,
2006 2005 2006 2005
(in thousands) (in thousands)

Net income $1,359 $1,743 $1,359 $846
Adjustments to reconcile to Adj.
Broadcast Cash Flow:
Depreciation and amortization
of intangible assets 9,478 6,610 9,478 8,561
Amortization of non-cash stock
based compensation 191 98 191 98
Loss on disposals of assets, net 221 8 221 8
Miscellaneous (income) expense,
net (91) (254) (91) (255)
Interest expense 17,542 11,122 17,542 14,425
Loss on early extinguishment
of debt 237 - 237 -
Income tax expense 909 650 909 48
(Income) loss from
discontinuing operations - (772) - (770)
Amortization of program
broadcast rights 3,628 2,961 3,628 2,961
Common Stock contributed to
401(k) Plan excluding
corporate 401(k) contributions 552 469 552 469
Network compensation revenue
recognized (258) (986) (258) (986)
Network compensation per network
affiliation agreement 629 1,935 629 1,935
Payments for program broadcast
rights (3,587) (2,904) (3,587) (2,904)
Adjusted Broadcast Cash Flow $30,810 $20,680 $30,810 $24,436

As Reported Pro Forma(1)
Nine Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
(in thousands) (in thousands)

Net income $3,124 $7,211 $2,714 $4,379
Adjustments to reconcile to Adj.
Broadcast Cash Flow:
Depreciation and amortization
of intangible assets 26,828 17,900 27,496 23,764
Amortization of non-cash stock
based compensation 581 294 581 294
Loss on disposals of assets, net 493 92 493 92
Miscellaneous (income) expense,
net (496) (709) (496) (708)
Interest expense 49,664 33,547 50,089 43,309
Loss on early extinguishment of
debt 347 4,770 347 4,770
Income tax expense 2,058 2,272 1,823 411
(Income) loss from
discontinuing operations - (3,736) - (3,736)
Amortization of program broadcast
rights 10,432 8,618 10,432 8,618
Common Stock contributed to
401(k) Plan excluding
corporate 401(k) contributions 1,679 1,436 1,679 1,436
Network compensation revenue
recognized (839) (4,036) (839) (4,036)
Network compensation per network
affiliation agreement 1,677 6,097 1,677 6,097
Payments for program broadcast
rights (10,357) (8,572) (10,357) (8,572)
Adjusted Broadcast Cash Flow $85,191 $65,184 $85,639 $76,118

See below for the definition of "Adjusted Broadcast Cash Flow"

This press release includes the non-GAAP financial measures of Adjusted Broadcast Cash Flow, which is reconciled to net income (loss). Adjusted Broadcast Cash Flow is used by the Company to approximate the amount used to calculate key financial performance covenants including, but not limited to, limitations on debt, interest coverage, and fixed charge coverage ratios as defined in the Company's senior credit facility and/or subordinated note indenture. Adjusted Broadcast Cash Flow is defined as operating income, plus depreciation and amortization (including amortization of program broadcast rights), non-cash compensation and (gain) loss on disposal of assets and cash payments received or receivable under network affiliation agreements less payments for program broadcast obligations, less network compensation revenue and less income (loss) from discontinued operations, net of income taxes. Adjusted Cash Flow is used in addition to and in conjunction with results presented in accordance with GAAP. Adjusted Cash Flow should be considered as a supplement to, and not as a substitute for net income (loss) calculated in accordance with GAAP.

Notes

(1) The pro forma presentation gives effect to the results of operations for the acquisition of television stations WSAZ, Charleston - Huntington, WV on November 30, 2005 and WNDU, South Bend, IN on March 3, 2006 as if each station had been acquired on January 1, 2005. Due to the relative size of the acquisition of KKCO, Grand Junction, CO and WSWG, Albany, GA, the results of operations for KKCO and WSWG are included as of their respective acquisition date in both the "As Reported" and "Pro Forma" results.

(2) Total debt as of September 30, 2006 and December 31, 2005 does not include $686,000 and $811,000, respectively, of unamortized debt discount on Gray's 9 1/4% Senior Subordinated Notes due March 2011. The decrease is due to the amortization of the discount.

The Company

Gray Television, Inc. is a television broadcast company headquartered in Atlanta, GA. Gray currently operates 31 television stations serving 31 markets. Each of the stations are affiliated with either CBS (16 stations), NBC (10 stations) or ABC (5 stations). In addition, Gray currently operates 24 digital second channels, which are currently affiliated with either CW, MyNetworkTV or Fox and 4 local news/weather channels in certain of its existing markets.

Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act

The comments on Gray's current expectations of operating results for the fourth quarter of 2006 and other future events are "forward looking statements" for purposes of the Private Securities Litigation Reform Act of 1995. Actual results of operations are subject to a number of risks and uncertainties and may differ materially from the current expectations discussed in this press release. All information set forth in this release and its attachments is as of November 8, 2006. Gray does not intend, and undertakes no duty, to update this information to reflect future events or circumstances. Information about potential factors that could affect Gray's business and financial results and cause actual results to differ materially from those in the forward-looking statements is included under the captions, "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations," in Gray's Annual Report on Form 10-K for the year ended December 31, 2005 and Gray's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 which are on file with the SEC and available at the SEC's website at http://www.sec.gov/. Additional information will also be set forth in those sections in Gray's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006.

First Call Analyst:
FCMN Contact: dottie@gray.tv

Source: Gray Television, Inc.

CONTACT: Bob Prather, President and Chief Operating Officer,
+1-404-266-8333, or Jim Ryan, Senior V. P. and Chief Financial Officer,
+1-404-504-9828, both of Gray Television, Inc.

Web site: http://www.gray.tv/

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