Goodmon Releases          Statement about FCC Vote
               CBC President & CEO Jim Goodmon spoke against the FCC’s              probable vote before the Senate Commerce Committee. | 
CBC President &          CEO Jim Goodmon released the following statement to the press on Monday,          June 2, 2003, after the FCC voted to relax media ownership rules. The          FCC Commissioners voted 3-2 in favor of the motion, along party lines.
Capitol Broadcasting          Company, Inc. 
         Response to FCC Deregulation 
         “The Emperor Has No Clothes” 
Raleigh – James F.          Goodmon, President/CEO of Capitol Broadcasting Company, Inc., today expressed          grave concern for the Federal Communications Commission’s total abandonment          of the public interest in favor of special interests when it voted to          relax its media ownership rules. “Chairman Powell obviously began this          proceeding knowing the end game, manipulating the process where necessary,”          said Goodmon. “Unfortunately, the public is the big loser – as owners          of the airwaves, as citizens of the United States, and as viewers concerned          about their local communities. Raising the national television ownership          cap to 45% is disastrous for localism, diversity and competition.” 
“The emperor has no          clothes. This process has been flawed from the beginning and it is flawed          in the end. The public and Congress have been ignored. The new rules were          passed for the benefit of large broadcasting conglomerates, large newspapers          and their investment bankers with virtually no public support. Now we          are pleased to move to a new forum for this debate – a forum that involves          elected officials accountable to the public – the U.S. Congress.” 
Goodmon stated that          one of the most disturbing features of the new rules is the continuation          of the UHF discount in calculating the national television ownership cap.          “This is the one rule that should be eliminated based upon marketplace          changes. It is completely without merit. In effect, the national television          ownership cap is NOT a 45% rule, but a 90% rule. I was very disappointed          with Media Bureau Chief Ken Ferree’s comment regarding what happens when          the UHF discount sunsets at the end of the digital transition. Ferree          stated that a future commission would make the decision on what happens          to those companies that are over the cap. Unfortunately, historically,          the Commission has favored grandfathering over divestiture.” Goodmon also          noted that the UHF discount is inconsistent with the way UHF stations          are treated in the cross-ownership rules. 
“We are very grateful          to our North Carolina Congressional delegation, including Senators Dole          and Edwards and Representatives Ballenger, Burr, Etheridge, Hayes, Jones,          McIntyre, Miller, and Price for supporting S.1046 and H.R. 2052 that will          codify the national television ownership cap at 35%.”