Sinclair to Sell Its Shares of Its Auto Investment

Sinclair to Sell Its Shares of Its Auto Investment

BALTIMORE, June 6 /PRNewswire-FirstCall/ -- Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) announced that it has agreed to sell its 17.5% equity interest in Atlantic Automotive Corp. (formerly Summa Holdings, Ltd.), which owns automobile dealerships and a leasing company located in the mid-Atlantic region, to Auto Properties LLC, an affiliate of Atlantic Automotive. The sale is expected to close in the next 90 days.

Sinclair had invested $20 million in Atlantic Automotive in December 2002. Since then, that initial investment has grown to a current fair value of $21.5 million which, along with approximately $2.5 million in dividends, represents approximately a 7.75% return on investment.

The decision to exit the auto investment was made by a committee composed of Sinclair's independent directors. A fairness opinion on the value of the investment was obtained from Mercer Capital, an appraisal firm qualified under Sinclair's outstanding bond indentures.

Commenting on the transaction, Martin R. Leader, a member of Sinclair's Board stated, "We initially invested in the auto space because that industry represents the largest category of advertisers for television stations and Summa, being the largest automobile dealer in the mid-Atlantic region, is a well-run, profitable company overlapping our Baltimore television station market. However, a year ago, in response to our shareholders' feedback, the Board decided to not make further investments into Atlantic Automotive. This was among the reasons that the independent directors decided to accept the buyout offer. The independent directors also recommended that the proceeds from the sale be used to reduce debt."

Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 61 television stations in 38 markets. Sinclair's television group includes FOX, WB, ABC, CBS, NBC, and UPN affiliates and reaches approximately 23.0% of all U.S. television households. For more information, please visit Sinclair's website at http://www.sbgi.net/.

Source: Sinclair Broadcast Group, Inc.

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

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

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

------- Profile: Ent