FOR IMMEDIATE RELEASE: News Media contact:

[January 19, 2001]{.underline} David Fiske: (202) 418-0500

**FCC BROADLY AFFIRMS THE DECISIONS REACHED IN THREE TV OWNERSHIP AND
MASS MEDIA ATTRIBUTION ORDERS**

Washington -- The FCC today generally affirmed the three August 1999
Orders amending its television ownership and mass media attribution
rules. Copies of the text of the Orders will be available on the FCC
website at www.fcc.gov.

# 1. Local Television Ownership Rules

The FCC today generally affirmed its August 1999 Order in which it
amended its local TV ownership rules -- the local television multiple
ownership rule, or TV duopoly rule, and the radio/TV cross-ownership
rule -- and "grandfathered" certain local marketing agreements and
waivers of the radio/TV cross-ownership rule. Subsequent to the August
1999 Order, the FCC received fourteen petitions for reconsideration of
the revised local TV ownership rules.

Today\'s Order clarifies and modifies the application of the new rules
in certain circumstances. Most significantly, the FCC modified its rules
to require that, in order for TV stations to count toward the minimum
number necessary for a proposed combination (*e.g.*, 8 for duopolies),
their Grade B signal contours must overlap the Grade B signal contour of
at least one of the TV stations involved in a proposed combination. The
FCC noted that there are some geographically large DMAs where counting
every station in the DMA may produce results at odds with the FCC's goal
of establishing a minimum number of independent voices in a particular
community before permitting common ownership of two local television
stations.

The FCC's revised rule is consistent with the overall duopoly rule,
which has always permitted common ownership of stations with no Grade B
overlap. The FCC also adopted a similar modification for its radio/TV
cross-ownership rule.

Action by the Commission by Memorandum Opinion and Second Order on
Reconsideration, FCC 00-431, Chairman Kennard, Commissioners Ness,
Furchtgott-Roth, Powell and Tristani.

MM Docket No\'s 91-221 and 87-8.

Mass Media Bureau Contact: Eric Bash (202) 418--2130

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#### 2. National Television Ownership Rule

The FCC today affirmed its August 1999 Order in which it revised its
national TV ownership rule to clarify that no market will be counted
more than once when calculating whether a group station owner complies
with the rule's 35% aggregate national audience reach limit. The FCC
received one petition for reconsideration of its August 1999 Order. In
that Order the FCC ruled that when two stations in a market are commonly
owned by virtue of the local television ownership rule (*i.e.*, a
duopoly), that market\'s audience reach will be counted only once when
calculating the group owner\'s national aggregate audience reach.

The FCC stated that regardless of a station\'s actual viewership, the
licensee is attributed with all of the viewership in the entire DMA.
Therefore, the FCC found that increasing actual viewership by adding a
second station does not affect the audience reach calculation, as that
calculation already includes all the viewers in that DMA. The petitioner
did not raise any arguments that persuaded the FCC to revisit this
decision.

Action by the Commission by Memorandum Opinion and Order on
Reconsideration, FCC 00-406, Chairman Kennard, Commissioners Ness,
Furchtgott-Roth, Powell and Tristani.

MM Docket Nos. 96-222, 91-221, 87-8.

Mass Media Bureau Contact: Jane Gross (202) 418--2130

#### 3. Mass Media Attribution Rules

The FCC today disposed of petitions for reconsideration of its August
1999 Report and Order revising the mass media attribution rules. The
attribution rules define what interests are counted in applying the FCC
ownership rules. While generally affirming the August 1999 Report and
Order, on reconsideration, the FCC made a few modifications and
clarifications. First, the FCC eliminated the single majority
shareholder exemption to the mass media attribution rules. Under this
exemption, minority voting shares in a corporation with a single
majority shareholder are not attributable. While eliminating the
exemption, the FCC grandfathered as nonattributable such minority
shareholdings acquired before the date of adoption of the
reconsideration decision. In addition, the FCC clarified certain aspects
of its equity/debt plus (EDP) attribution rule, under which the FCC will
attribute financial interests amounting to over 33% of the total assets
of a mass media entity where the interest holder is either a major
program supplier to the entity or a same-market media entity. Among
other things, the FCC clarified how to determine the total asset base of
an entity so that the percentage share of the firm represented by a
particular interest can be ascertained, and how to count options and
other interests in applying the EDP rule.

Action by the Commission by Memorandum Opinion and Order on
Reconsideration, FCC 00-438, Chairman Kennard approving in part,
concurring in part and issuing a statement; Commissioners Ness and
Tristani approving in part, dissenting in part, and issuing separate
statements; Commissioner Furchtgott-Roth concurring in part, dissenting
in part, and issuing a statement.

MM Docket Nos. 94-150, 92-51, 87-154.

Mass Media Bureau Contacts:Mania Baghdadi (202) 418-2120; Cynthia Thomas
(202) 418-2130

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