Granite Broadcasting Corporation Announces Intention to Market its San Francisco and Detroit Stations Amends Existing Purchase and Sale Agreements



    NEW YORK, Feb. 15 /PRNewswire-FirstCall/ -- Granite Broadcasting
 Corporation (OTC Bulletin Board:   GBTVK) announced today amendments to each of
 its agreements with wholly-owned subsidiaries of AM Media Holdings, LLC, ("AM
 Media") relating to the sale of Granite's WB-affiliated television stations,
 KBWB, Channel 20 in San Francisco, California and WDWB, Channel 20 in Detroit,
 Michigan. The amendments eliminate the exclusivity, or "no-shop," clause in
 each agreement, thereby freeing the Company to engage in dialogue with other
 parties interested in acquiring the stations while AM Media continues to
 evaluate its interest in the transactions in light of the recent announcement
 by the WB Network that it will cease operations in September 2006.  In
 addition, the amendments allow either party to terminate the agreements at any
 time.
     Commenting on today's announcement, W. Don Cornwell, Chief Executive
 Officer of Granite Broadcasting Corporation, said, "The recent announcement by
 the WB Network has led AM Media to decide not to proceed forward with the
 transactions as originally contemplated.  As AM Media continues to evaluate
 its interest in these stations, these amendments give us the ability to
 actively engage in dialogue with other interested parties.  While it is our
 intention to sell the stations, we are prepared to operate them as
 independents in September."
 
     Granite Broadcasting Corporation owns and operates, or provides
 programming, sales and other services to 20 channels in the following 8
 markets: San Francisco, California; Detroit, Michigan; Buffalo, New York;
 Fresno, California; Syracuse, New York; Fort Wayne, Indiana; Peoria, Illinois;
 and Duluth, Minnesota-Superior, Wisconsin. The Company's channel group
 includes affiliates of the NBC, CBS, ABC, WB and UPN networks, and reaches
 approximately 6% of all U.S. television households.
 
     This press release and related statements by management contain forward-
 looking statements, which represent the Company's expectations or beliefs
 concerning future events. Forward-looking statements include information
 preceded by, followed by, or that includes the words "believe," "expect,"
 "anticipate," "intend," "plan," "foresee," "likely," "will," "should" or other
 similar words or phrases.  While we believe these judgments are reasonable,
 the Company cautions that these statements are qualified by important factors
 that could cause actual results to differ materially from those in the
 forward-looking statements. Such factors include, without limitation, failure
 to sell the Company's WB affiliates, the ability to operate the WB affiliates
 as independents, the ability to generate sufficient cash flows, general
 economic conditions, competition in the markets in which the Company's
 stations are located, technological change, pricing fluctuations in national
 and local advertising, innovation in the broadcasting industry, geopolitical
 factors and changes in laws, regulations and tax rates.  Consequently, all
 forward-looking statements made herein are qualified by these cautionary
 statements and the cautionary language set forth in the Company's most recent
 Annual Report on Form 10K filed with the Securities and Exchange Commission
 ("SEC"), which may be revised or supplemented in subsequent reports on SEC
 Forms 10-Q and 8-K.  There can be no assurance that the actual results, events
 or developments referenced herein will occur or be realized. The Company
 assumes no obligation to update these forward-looking statements to reflect
 actual results, changes in assumptions or changes in factors affecting such
 forward-looking statements.
 
 

SOURCE Granite Broadcasting Corporation

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