##### Table of Contents



UNITED
    STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
    20549
      Form 10-K
      þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from          to   Commission File Number
    000-22439
      FISHER COMMUNICATIONS,
    INC.
 (Exact name of registrant as
    specified in its charter)
      Washington(State of
    Incorporation)

91-0222175(IRS Employer
    Identification No.)100 4th Avenue N.,
    Suite 510
    Seattle, Washington(Address of principal
    executive offices)

98109(Zip
    Code)   (206) 404-7000
    (Registrants telephone number, including area
    code)
      Securities registered pursuant to Section 12(b) of the
    Act:
   Title of Each Class

Name of Each Exchange on Which RegisteredCommon Stock, $1.25 par value

Nasdaq Global Market   Securities registered pursuant to Section 12(g) of the
    Act:
    None
  o þ
  o þ
  þ o
  Regulation S-K Form 10-K Form 10-K. o
  Rule 12b-2
 Large accelerated
    filer o     Accelerated
    filer þ     Non-accelerated
    filer o
  Rule 12b-2 o þ
      Title of Class

Number of Shares OutstandingCommon Stock, $1.25 Par Value

8,720,091   DOCUMENTS
    INCORPORATED BY REFERENCE
  Document

Parts Into Which IncorporatedProxy Statement for the Annual
    Meeting of
    Shareholders to be held on April 26, 2007

Part III




---



TABLE OF CONTENTS  PART IITEM 1. BUSINESSITEM 1A. RISK FACTORSITEM 1B. UNRESOLVED STAFF COMMENTSITEM 2. DESCRIPTION OF PROPERTIESITEM 3. LEGAL PROCEEDINGSITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERSEXHIBIT 3.4EXHIBIT 10.22EXHIBIT 21.1EXHIBIT 23.1EXHIBIT 31.1EXHIBIT 31.2EXHIBIT 32.1EXHIBIT 32.2    Table of Contents  
  PART I
 
  ITEM 1.
    BUSINESS  Form 10-K
    Company
    Description
          African-American
   1




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##### Table of Contents



Television
    Broadcasting
    Number ofAverage


CommercialDMA(1)


Network

Audience


Stations


Rank in


Expiration Date ofStation

Market Area

Rank


Affiliation

Share(2)


in DMA


Market(2)


Affiliation AgreementKOMO

Seattle-Tacoma, WA


14


ABC


9
%


14



2


August 31, 2009KUNS

Seattle-Tacoma, WA


14


Univision


NA



14



unranked


September 12, 2011KATU

Portland, OR


23


ABC


9
%


10



3


August 31, 2009KUNP

Portland, OR


23


Univision


NA



10



unranked


September 12, 2011KUNP LP

Portland, OR


23


Univision


NA



10



unranked


September 12, 2011KVAL

Eugene, OR


120


CBS


17
%


9



1


February 29, 2016KCBY

Coos Bay, OR


120


CBS


17
%


9



1


February 29, 2016KPIC(3)

Roseburg, OR


120


CBS


17
%


9



1


February 29, 2016KIMA(4)

Yakima, WA


125


CBS


11
%


5



1


February 29, 2016KEPR(4)

Pasco/Richland/Kennewick, WA


125


CBS


11
%


8



2


February 29, 2016KLEW(5)

Lewiston, ID


NA


CBS


NA



1



NA


February 29, 2016KBCI

Boise, ID


118


CBS


10
%


5



2


February 29, 2016KUNB LP

Boise, ID


118


Telefutura


NA



5



unranked


May 12, 2011KIDK

Idaho Falls-Pocatello, ID


163


CBS


13
%


5



2


February 29, 2016KPPP LP

Pocatello, ID


NA


Telefutura


NA



5



unranked


May 12, 2011     (1)
    
    DMA represents an exclusive geographic area of counties in which
    the home market stations are estimated to have the largest
    quarter-hour
    audience share. DMA Rank represents the DMA ranking by size of
    the market area in which our station is located. DMA Rank is
    based on January 2007 estimates published by Nielsen Media
    Research. NA refers to Not Available.(2)
    
    Except for the Eugene, Oregon market, average audience share and
    rank in market are based on Nielsen Media Research data for the
    February, May, July and November 2006 rating periods, Sunday to
    Saturday, 6 a.m. to 2 a.m. With respect to the Eugene,
    Oregon market, average audience share and rank in market are
    based on 2




---



##### Table of Contents



BIA Financial Network, Inc. data for the February and May
    2006 rating periods, Sunday to Saturday, 9 a.m. to midnight.
    NA refers to Not Available.(3)
    
    Fisher Broadcasting owns a 50% interest in South West Oregon
    Television Broadcasting Corporation, licensee of KPIC.(4)
    
    Station ranking is for two-station group designated as KIMA+ by
    Nielsen Media Research.(5)
    
    Although included as part of the Spokane, Washington DMA, KLEW
    primarily serves the Lewiston, Idaho, Clarkston, Washington
    audience that is only a small portion of the Spokane DMA.    Television
    Markets and Stations
  KOMO TV
    and KUNS TV, Seattle-Tacoma, Washington
  Market Overview.
  KOMO TV Station Performance. Northwest Afternoon 60-minute
  KUNS TV Station Performance. th
  KATU TV
    and KUNP TV, Portland, Oregon
  Market Overview.
 3




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##### Table of Contents



KATU Station Performance. AM Northwest
  KUNP Station Performance.
  KVAL TV,
    KCBY TV, KPIC TV, Eugene, Coos Bay and Roseburg,
    Oregon
  Market Overview. ,
  Station Performance.
  KIMA TV,
    KEPR TV, KLEW TV, Yakima and
    Tri-Cities,
    Washington and Lewiston, Idaho.
  Market Overview. Tri-Cities), Tri-Cities
    Station Performance.
 4




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##### Table of Contents



KBCI TV
    and KUNB TV, Boise, Idaho
  Market Overview.
  KBCI Station Performance.
  KUNB Station Performance. th
  KIDK TV
    and KPPP TV, Idaho Falls-Pocatello, Idaho
  Market Overview. BYU-Idaho,
  KIDK Station Performance.
  KPPP Station Performance. th
 5




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##### Table of Contents



Television
    Broadcasting Industry
        Television
    Broadcasting Competition
    Audience. non-network non-network
   6




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##### Table of Contents



Programming.
  Advertising. make-up
  Radio
    Markets and Stations
  Seattle
    Radio
    National


Audience ListeningMarket


Rank in


StationMarket

Station


Dial Position


Power


Rank(1)


Market(2)


Share(2)


FormatSeattle, WA














14KOMO AM



1000 kHz



50 kW







4T



4.0
%

NewsKVI AM



570 kHz



5 kW







17



2.6
%

TalkKPLZ FM



101.5 MHz



100 kW







20



2.2
%

Hot Adult Contemporary     (1)
    
    National Market Rank for Seattle, WA is based on 2006 data from
    the Arbitron Company.(2)
    
    Rank and station information in the above chart refers to
    average
    quarter-hour
    share of listenership to commercial stations among total
    persons, age 12+, Monday through Sunday, 6 a.m. to
    midnight, and is subject to the qualifications listed in each
    report. Source: Seattle, Washington: Arbitron Radio market
    Report four-book average  Winter 2006 
    Fall 2006. There are 56 radio stations in the Seattle market
    according to BIA Financial Network, Inc. T refers to
    tie.   7




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##### Table of Contents



Fisher
    Radio Regional Group
    Radio
    Broadcasting Industry
  over-the-air
    Radio
    Broadcasting Competition
       8




---



##### Table of Contents



KOMO-AM
  Audience.
  over-the-air
  Advertising. make-up
 9




---



##### Table of Contents



Internet
    and Digital Television
  Internet
    Station

Market Area

Website URLKOMO TV

Seattle-Tacoma, WA

www.komotv.comKOMO AM

Seattle-Tacoma, WA

www.komoradio.comKVI AM

Seattle-Tacoma, WA

www.570kvi.comKPLZ FM

Seattle-Tacoma, WA

www.star1015.comKATU

Portland, OR

www.katu.comKVAL

Eugene, OR

www.kval.comKCBY

Coos Bay, OR

www.kcby.comKPIC

Roseburg, OR

www.kpic.comKIMA

Yakima, WA

www.kimatv.comKEPR

Pasco/Richland/Kennewick, WA

www.keprtv.comKLEW

Lewiston, ID

www.klewtv.comKBCI

Boise, ID

www.2news.tvKIDK

Idaho Falls-Pocatello, ID

www.kidk.com   Competition.
  Audience.
  Advertising.
 10




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##### Table of Contents



Digital
    Television
    Competition.
  Audience.
  Programming.
  Advertising. make-up
 11




---



##### Table of Contents



Federal
    Regulation
    Programming and Operation.
  New Licenses.
  Assignments and Transfers.
  License Renewal.
     12




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##### Table of Contents



Station

Market Area

Expiration DateKOMO

Seattle-Tacoma, WA

February 1, 2007(1)KUNS

Seattle-Tacoma, WA

February 1, 2015KATU

Portland, OR

February 1, 2007(2)KUNP

Portland, OR

February 1, 2015KUNP LP

Portland, OR

February 1, 2015KVAL

Eugene, OR

February 1, 2007(1)KCBY

Eugene, OR

February 1, 2015KPIC

Roseburg, OR

February 1, 2015KIMA

Yakima, WA

February 1, 2015KEPR

Pasco/Richland/Kennewick, WA

February 1, 2015KLEW

Lewiston, ID

October 1, 2014KBCI

Boise, ID

October 1, 2006(1)KUNB LP

Boise, ID

October 1, 2014KIDK

Idaho Falls-Pocatello, ID

October 1, 2006(1)KPPP LP

Idaho Falls-Pocatello, ID

October 1, 2014     (1)
    
    Action on many television license renewal applications,
    including those of
    KOMO-TV,
    KVAL,
    KIDK-TV and
    KBCI, has been delayed because of the pendency of complaints
    that network programming aired by the stations networks
    contained indecent material. Pursuant to FCC rules, we continue
    to operate these stations pending final action on their license
    renewal applications. We cannot predict when or how the FCC will
    address these complaints or act on the renewal applications.(2)
    
    On December 22, 2006, a petition to deny was filed by
    Oregon Alliance to Reform Media (OARM) against KATU
    and seven other television stations licensed to serve the
    Portland, Oregon market. OARM argues that the stations each
    failed to present adequate programming relating to state and
    local elections during the 2004 election campaign in their news
    and public affairs programming. Pursuant to FCC rules, we
    continue to operate KATU pending final action on the KATU
    license renewal application. We cannot predict when or how the
    FCC will address this petition or act on the KATU renewal
    application.    Ownership Restrictions.
  National
    Television Ownership Limits
   13




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##### Table of Contents



Local
    Television Ownership Limits
  full-power
  Local
    Radio Ownership Limits
    Cross-Ownership
    Restrictions
    English-language English-language
    Local Marketing Agreements. case-by-case
  Joint Sales Agreements.
 14




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##### Table of Contents



Biennial Regulatory Reviews.
  Omnibus Appropriations Act.
  Alien Ownership.
  Network Affiliate Issues.
  Other Matters.
 15




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##### Table of Contents



and/or
  system-by-system over-the-air
  Proposed Legislation and Regulation.
  Digital/High
    Definition Television (HDTV)
    and/or
 16




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##### Table of Contents



Digital


CurrentlyChannel


Broadcasting inStation

Market Area

Allocation


Digital Format(1)KOMO

Seattle-Tacoma, WA


38


Yes (HDTV)KUNS

Seattle-Tacoma, WA


50


YesKATU

Portland, OR


43


Yes (HDTV)KUNP

Portland, OR





NoKUNP LP

Portland, OR





NoKVAL

Eugene, OR


25


Yes (HDTV)KCBY

Coos Bay, OR


21


YesKPIC

Roseburg, OR


19


YesKIMA

Yakima, WA


33


Yes (HDTV)KEPR

Pasco/Richland/Kennewick


18


Yes (HDTV)KLEW

Lewiston, ID


32


Yes (HDTV)KBCI

Boise, ID


28


Yes (HDTV)KUNB LP

Boise, ID





NoKIDK

Idaho Falls-Pocatello, ID


36


YesKPPP LP

Idaho Falls-Pocatello, ID





No     (1)
    
    The FCC set May 1, 2002 as the deadline for initial DTV
    operations by all full power commercial TV stations. We met that
    date with respect to each of our stations. We have constructed
    and commenced operation of stations KOMO-DT, Seattle, KUNS-DT,
    Bellevue, KATU-DT, Portland, KVAL-DT, Eugene, KCBY-DT, Coos Bay,
    KPIC-DT, Roseburg, KEPR-DT, Pasco, KBCI-DT, Boise and KIDK-DT,
    Idaho Falls with digital facilities in compliance with the
    FCCs rules pursuant to authorizations issued by the FCC.
    KIMA-DT, Yakima and
    KLEW-DT,
    Lewiston have commenced DTV operations with reduced facilities
    pursuant to special temporary authority (STA)
    granted by the FCC. KUNP, La Grande was not originally
    granted a paired DTV channel. None of our low power television
    stations have been granted a digital companion channel. Pursuant
    to the FCCs rules, we were required to have filed either a
    license application for digital facilities or a request for
    waiver of the deadline for each of our full power stations by
    July 7, 2006, or the station would lose interference
    protection in areas beyond that served on that date. We timely
    filed waiver requests for KIMA-DT and
    KLEW-DT,
    which requests remain pending. Congress recently passed
    legislation setting a hard analog to digital
    transition date of February 17, 2009. On that date, all
    analog television stations must cease analog transmissions and
    operate only using digital technology, and all stations that
    were given a paired channel must cease operation on
    one channel so that the spectrum may be made available for other
    use.  19-30,
   17




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##### Table of Contents



Fisher
    Plaza
    Available
    Information
  Form 10-K, Form 10-Q, Form 8-K,
 
  ITEM 1A.
    RISK
    FACTORS  The following risk factors and other information included in
    this annual report should be carefully considered. The risks and
    uncertainties described below are not the only ones we face.
    Additional risks and uncertainties not presently known to us or
    that we currently deem immaterial also may impair our business
    operations. If any of the following risks occur, our business,
    financial condition and future results could be harmed.
 18




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##### Table of Contents



We
    depend on advertising revenues, which fluctuate as a result of a
    number of factors.
    
    the health of the national economy, and particularly the economy
    of the Northwest region and Seattle, Washington and Portland,
    Oregon;
    the popularity of our programming;
    changes in the makeup of the population in the areas where our
    stations are located;
    pricing fluctuations in local and national advertising;
    the activities of our competitors, including increased
    competition from other forms of advertising-based mediums,
    particularly network, cable television, direct satellite
    television and radio, and the Internet;
    the use of new services and devices which allow viewers to
    minimize commercial advertisements, such as satellite radio and
    personal digital video recorders; and
    other factors that may be beyond our control.      We
    have incurred losses in the past. We cannot assure you that we
    will be able to maintain profitability.
    Our
    operating results are dependent on the success of programming
    aired by our television and radio stations.
     19




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##### Table of Contents



Competition
    in the broadcasting industry and the rise of alternative
    entertainment and communications media may result in loss of
    audience share and advertising revenue by our
    stations.
    
    local network affiliates and independent stations;
    cable, direct broadcast satellite and alternative methods of
    broadcasting brought about by technological advances and
    innovations, such as
    pay-per-view
    and home video and entertainment systems; and
    other sources of news, information and entertainment, such as
    streaming video broadcasts over the Internet, podcasting,
    newspapers, movie theaters and live sporting events.      Because
    significant portions of our cost of services are relatively
    fixed, downturns in the economy harm our operations, revenue,
    cash flow and earnings.
    We may
    experience disruptions in our business if we sell or acquire and
    integrate new television or radio stations.
  Seattle-Tacoma, and/or
 20




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##### Table of Contents



Radio
    and television programming revenue may be negatively affected by
    the cancellation of syndication agreements.
    Our
    indebtedness could materially and adversely affect our business
    and prevent us from fulfilling our obligations under our
    8.625% senior notes due 2014
    
    increase our vulnerability to general adverse economic and
    industry conditions or a downturn in our business;
    reduce the availability of our cash flow to fund working
    capital, capital expenditures and other general business
    purposes;
    reduce the funds available to purchase the rights to television
    and radio programs;
    limit our flexibility in planning for, or reacting to, changes
    in our industries, making us more vulnerable to economic
    downturns;
    place us at a competitive disadvantage compared to our
    competitors that have less debt; and
    limit our ability to make certain asset dispositions.    The
    non-renewal or modification of affiliation agreements with major
    television networks could harm our operating
    results.
  Spanish-language
   21




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##### Table of Contents



Changes
    in FCC regulations regarding ownership have increased the
    uncertainty surrounding the competitive position of our stations
    in the markets we serve.
        The
    FCCs extensive regulation of the broadcasting industry
    limits our ability to own and operate television and radio
    stations and other media outlets.
      KOMO-TV, KIDK-TV
 22




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##### Table of Contents



We
    will be required to make additional investments in HDTV
    technology, which could harm our ability to fund other
    operations or repay debt.
    We may
    lose audience share and advertising revenue if we are unable to
    reach agreement with cable and satellite companies regarding the
    retransmission of signals of our television
    stations.
    direct-to-home direct-to-home
  Dependence
    on key personnel may expose us to additional
    risks.
   23




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##### Table of Contents



A
    reduction on the periodic dividend on the common stock of Safeco
    Corporation may adversely affect our other income, cash flow and
    earnings. A reduction in the share price of Safeco Corporation
    may adversely affect our total assets and stockholders
    equity.
    Failure
    of our information technology systems would disrupt our
    operations, which could reduce our customer base and result in
    lost revenue. Our computer systems are vulnerable to viruses,
    unauthorized tampering, system failures and potential
    obsolescence.
    Our
    ownership and operation of Fisher Plaza is subject to risks,
    including those relating to the economic climate, local real
    estate conditions, potential inability to provide adequate
    management, maintenance and insurance, potential collection
    problems, reliance on significant tenants, and regulatory
    risks.
    We are
    subject to the ongoing internal control provisions of
    Section 404 of the Sarbanes-Oxley Act of 2002. Material
    weaknesses in internal control over financial reporting, if
    identified in future periods, could indicate a lack of proper
    controls to generate accurate financial
    statements.
  Form 10-K.
 24




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##### Table of Contents



Our
    operations may be adversely affected by earthquakes and other
    natural catastrophes in the Northwest.
    A
    write-down of goodwill or intangible assets would harm our
    operating results.
    Foreign
    hostilities and terrorist attacks may affect our revenue and
    results of operations.
   
  ITEM 1B.
    UNRESOLVED
    STAFF COMMENTS   
  ITEM 2.
    DESCRIPTION
    OF PROPERTIES  Spanish-language 30-year
 25




---



##### Table of Contents



ITEM 3.
    LEGAL
    PROCEEDINGS   
  ITEM 4.
    SUBMISSION
    OF MATTERS TO A VOTE OF SECURITIES HOLDERS    PART II
  ITEM 5.
    MARKET
    FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS
    AND ISSUER PURCHASES OF EQUITY SECURITIES    Quarterly Common Stock Price Ranges2006


2005Quarter

High


Low


High


Low1st

$
44.75


$
41.43


$
52.60


$
46.462nd


44.94



41.51



51.90



46.913rd


44.36



38.89



49.28



42.564th


45.73



39.91



49.89



41.43     Dividends
   26




---



##### Table of Contents



Stock
    Performance Graph
    5-year 12/31/2001 12/31/2006.
  COMPARISON
    OF 5 YEAR CUMULATIVE TOTAL RETURN*
    Among Fisher Communications, Inc., The S & P 500 Index
    And A Peer Group
 
  *
    $100 invested on 12/31/01 in stock or index-including
    reinvestment of dividends. Fiscal year ending December 31.  ©
    12/01



12/02



12/03



12/04



12/05



12/06Fisher Communications, Inc.



100.00




121.27




116.19




112.44




95.30




101.70S & P 500



100.00




77.90




100.24




111.15




116.61




135.03Peer Group



100.00




81.05




98.56




73.88




66.61




69.42      27




---



##### Table of Contents



ITEM 6.
    SELECTED
    FINANCIAL DATA  Form 10-K.
  Year Ended December 31,2006


2005


2004


2003


2002(In thousands, except per-share amounts)Revenue

$
154,699


$
137,086


$
141,731


$
127,083


$
116,272Income (loss)From continuing operations

$
6,256


$
(6,131
)

$
(13,039
)

$
(15,834
)

$
(8,524
)From discontinued operations


10,580



1,059



1,086



24,062



6,151Cumulative effect of change in
    accounting principle


















(64,373
)Net income (loss)

$
16,836


$
(5,072
)

$
(11,953
)

$
8,228


$
(66,746
)Per share dataIncome (loss) per
    share  basicFrom continuing operations

$
0.72


$
(0.70
)

$
(1.51
)

$
(1.84
)

$
(0.99
)From discontinued operations


1.21



0.12



0.12



2.80



0.72Cumulative effect of change in
    accounting principle


















(7.50
)Net income (loss)

$
1.93


$
(0.58
)

$
(1.39
)

$
0.96


$
(7.77
)Income (loss) per share assuming
    dilutionFrom continuing operations

$
0.72


$
(0.70
)

$
(1.51
)

$
(1.84
)

$
(0.99
)From discontinued operations


1.21



0.12



0.12



2.80



0.72Cumulative effect of change in
    accounting principle


















(7.50
)Net income (loss)

$
1.93


$
(0.58
)

$
(1.39
)

$
0.96


$
(7.77
)Cash dividends declared

$



$



$



$



$
0.52   December 31,2006


2005


2004


2003


2002Working capital(1)

$
31,014


$
35,562


$
33,181


$
23,219


$
60,437Total assets(1)


497,577



440,393



435,872



396,685



545,991Total debt(1)


150,000



150,000



150,053



128,857



292,607Stockholders equity


239,565



209,621



202,453



187,804



172,735     (1)
    
    Includes discontinued operations and held for sale assets.   28




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##### Table of Contents



ITEM 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF
    OPERATIONS  Form 10-K
    Overview
  th
         29




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##### Table of Contents



African-American
  Spanish-language
          Critical
    Accounting Policies
    Goodwill and indefinite-lived intangible
    assets.
 30




---



##### Table of Contents



Tangible long-lived assets.
    Derivative instruments.
     31




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##### Table of Contents



Television and radio broadcast
    rights. program-by-program
  Pensions.
    Tax accruals.
  Allowance for doubtful accounts.
  Variable Interest Entities. and/or Consolidation of
    Variable Interest Entities,
 32




---



##### Table of Contents



Stock-based compensation.
        Estimates.
  Consolidated
    Results of Operations
   33




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##### Table of Contents



Year Ended


2006 - 2005


Year Ended


2005 - 2004December 31,


Variance


December 31,


Variance2006


2005


$


%


2004


$


%(Dollars in thousands)RevenueTelevision

$
107,457


$
93,083


$
14,374



15.4
%

$
101,190


$
(8,107
)


(8.0
)%Radio


37,615



36,101



1,514



4.2
%


36,118



(17
)


0.0
%Fisher Plaza


9,406



8,061



1,345



16.7
%


4,555



3,506



77.0
%Corporate and eliminations


221



(159
)


380







(132
)


(27
)Consolidated


154,699



137,086



17,613



12.8
%


141,731



(4,645
)


(3.3
)%Direct operating costsTelevision


38,149



36,334



1,815



5.0
%


34,144



2,190



6.4
%Radio


9,746



10,498



(752
)


(7.2
)%


9,989



509



5.1
%Fisher Plaza


3,242



2,751



491



17.8
%


1,657



1,094



66.0
%Corporate and eliminations


1,656



1,562



94



6.0
%


1,606



(44
)


(2.7
)%Consolidated


52,793



51,145



1,648



3.2
%


47,396



3,749



7.9
%Selling, general and
    administrative expensesTelevision


31,255



34,173



(2,918
)


(8.5
)%


29,105



5,068



17.4
%Radio


15,442



14,765



677



4.6
%


14,612



153



1.0
%Fisher Plaza


508



1,128



(620
)


(55.0
)%


1,880



(752
)


(40.0
)%Corporate and eliminations


6,770



8,647



(1,877
)






8,956



(309
)Consolidated


53,975



58,713



(4,738
)


(8.1
)%


54,553



4,160



7.6
%Amortization of program
    rightsTelevision


8,396



9,959



(1,563
)


(15.7
)%


9,477



482



5.1
%Radio


10,250



10,000



250



2.5
%


9,750



250



2.6
%Consolidated


18,646



19,959



(1,313
)


(6.6
)%


19,227



732



3.8
%Depreciation and
    amortizationTelevision


6,016



7,940



(1,924
)


(24.2
)%


10,588



(2,648
)


(25.0
)%Radio


888



1,106



(218
)


(19.7
)%


1,178



(72
)


(6.1
)%Fisher Plaza


3,116



3,544



(428
)


(12.1
)%


3,762



(218
)


(5.8
)%Corporate and eliminations


257



245



12



4.9
%


207



38



18.4
%Consolidated


10,277



12,835



(2,558
)


(19.9
)%


15,735



(2,900
)


(18.4
)%Income (loss) from
    operationsTelevision


23,641



4,677



18,964







17,876



(13,199
)Radio


1,289



(268
)


1,557







589



(857
)Fisher Plaza


2,540



638



1,902







(2,744
)


3,382Corporate and eliminations


(8,462
)


(10,613
)


2,151







(10,901
)


288Consolidated


19,008



(5,566
)


24,574







4,820



(10,386
)Net loss on derivative instruments


















(12,656
)


12,656Loss from extinguishment of
    long-term debt


















(5,034
)


5,034Other income, net


3,881



3,629



252







3,357



272Interest expense, net


(13,956
)


(13,726
)


(230
)






(11,775
)


(1,951
)Income (loss) from continuing
    operations before income taxes


8,933



(15,663
)


24,596







(21,288
)


5,625Provision (benefit) for federal and
    state income taxes


2,677



(9,532
)


12,209







(8,249
)


(1,283
)Income (loss) from continuing
    operations


6,256



(6,131
)


12,387







(13,039
)


6,908Income from discontinued
    operations, net of income taxes


10,580



1,059



9,521







1,086



(27
)Net Income (loss)

$
16,836


$
(5,072
)

$
21,908






$
(11,953
)

$
6,881  34




---



##### Table of Contents



Comparison
    of Fiscal Years Ended December 31, 2006, December 31,
    2005, and December 31, 2004
  Revenue
  Spanish-language Spanish-language
  Spanish-language
           35




---



##### Table of Contents



Direct
    operating costs
    Spanish-language
        Selling,
    general and administrative expenses
             36




---



##### Table of Contents



Amortization
    of program rights
      Depreciation
    and amortization
    Net loss
    on derivative instruments
         37




---



##### Table of Contents



Loss from
    extinguishment of long-term debt
    Other
    income, net
    Interest
    expense, net
        Provision
    (benefit) for federal and state income taxes
    Income
    from discontinued operations, net of income taxes
    Liquidity
    and Capital Resources
   38




---



##### Table of Contents



Spanish-language
     39




---



##### Table of Contents



Future
    contractual obligations are as follows (in thousands):
  OperatingDebt


Broadcast


Other


Lease12 Months Ending December 31

Maturities


Rights


Obligations


Obligations


Total2007

$



$
17,559


$
4,228


$
1,178


$
22,9652008






17,023



4,360



968



22,3512009






7,137



1,920



783



9,8402010






4,793



1,920



719



7,4322011






1,091



960



652



2,703Thereafter


150,000











2,575



152,575$
150,000


$
47,603


$
13,388


$
6,875


$
217,866     Recent
    Accounting Pronouncements
  Fair Value
    Measurements
  Employers Accounting for Defined Benefit Pension and Other
    Postretirement Plans  An Amendment of FASB Statements
    No. 87, 88, 106 and 132R
 40




---



##### Table of Contents



Considering the Effects of
    Prior Year Misstatements when Quantifying Misstatements in
    Current Year Financial Statements.
    , Accounting for Certain
    Hybrid Instruments,
  The Fair Value Option for
    Financial Assets and Financial Liabilities  Including
    an amendment to FASB Statement No. 115
  ITEM 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS    Interest
    Rate Exposure
   41




---



##### Table of Contents



Marketable
    Securities Exposure
  available-for-sale
    ITEM 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA    ITEM 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE    ITEM 9A.
    CONTROLS
    AND PROCEDURES  Rules 13a-15(e) 15d-15(e)
   42




---



##### Table of Contents



Managements
    Report on Internal Control Over Financial Reporting
  Internal Control  Integrated Framework.
      ITEM 9B.
    OTHER
    INFORMATION    PART III
  ITEM 10.
    DIRECTORS
    AND EXECUTIVE OFFICERS OF THE REGISTRANT, AND DIRECTOR
    INDEPENDENCE    ITEM 11.
    EXECUTIVE
    COMPENSATION    ITEM 12.
    SECURITY
    OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
    MANAGEMENT    Securities
    authorized for issuance under equity compensation
    plans
   43




---



##### Table of Contents



Number of Securities to be Issued

Weighted Average Exercise

Number of SecuritiesUpon Exercise of Outstanding

Price of Outstanding

Remaining AvailableOptions and Rights

Options and Rights

for Future Issuance221,235

$45.49

333,900   ITEM 13.
    CERTAIN
    RELATIONSHIPS AND RELATED TRANSACTIONS    ITEM 14.
    PRINCIPAL
    ACCOUNTANT FEES AND SERVICES    PART IV
  ITEM 15.
    EXHIBITS AND
    FINANCIAL STATEMENT SCHEDULES  Consolidated Financial Statements:
  
    Report of Independent Registered Public Accounting Firm
    Consolidated Statements of Operations for the years ended
    December 31, 2006, 2005, and 2004
    Consolidated Balance Sheets at December 31, 2006 and 2005
    Consolidated Statements of Stockholders Equity for the
    years ended December 31, 2006, 2005, and 2004
    Consolidated Statements of Cash Flows for the years ended
    December 31, 2006, 2005, and 2004
    Consolidated Statements of Comprehensive Income for the years
    ended December 31, 2006, 2005, and 2004
    Notes to Consolidated Financial Statements  Financial Statement Schedules:
  
    Schedule II  Valuation and Qualifying Accounts
    for the years ended December 31, 2006, 2005, and 2004    Exhibits:
 44




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
        Consolidated
    financial statements and financial statement
    schedule
      Internal
    control over financial reporting
  Form 10-K, Internal Control 
    Integrated Framework Internal Control  Integrated
    Framework
   45




---



##### Table of Contents



46




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
  Year Ended December 312006


2005


2004(In thousands, except per-shareamounts)Revenue

$
154,699


$
137,086


$
141,731Costs and expensesDirect operating costs (exclusive
    of annual depreciation and
    amortization of $8,488, $10,749 and $13,015, respectively,
    and
    amortization of program rights of $18,646, $19,959 and $19,227,
    respectively, reported separately below)


52,793



51,145



47,396Selling, general and
    administrative expenses


53,975



58,713



54,553Amortization of program rights


18,646



19,959



19,227Depreciation and amortization


10,277



12,835



15,735135,691



142,652



136,911Income (loss) from operations


19,008



(5,566
)


4,820Net loss on derivative instruments










(12,656
)Loss from extinguishment of
    long-term debt










(5,034
)Other income, net


3,881



3,629



3,357Interest expense, net


(13,956
)


(13,726
)


(11,775
)Income (loss) from continuing
    operations before income taxes


8,933



(15,663
)


(21,288
)Provision (benefit) for federal
    and state income taxes


2,677



(9,532
)


(8,249
)Income (loss) from continuing
    operations


6,256



(6,131
)


(13,039
)Income (loss) from discontinued
    operations, net of income taxes:Georgia television stations










(132
)Radio stations


10,580



1,059



1,218Income from discontinued
    operations, net of income taxes


10,580



1,059



1,086Net income (loss)

$
16,836


$
(5,072
)

$
(11,953
)Income (loss) per share:From continuing operations

$
0.72


$
(0.70
)

$
(1.51
)From discontinued operations


1.21



0.12



0.12Net income (loss) per share

$
1.93


$
(0.58
)

$
(1.39
)Income (loss) per share assuming
    dilution:From continuing operations

$
0.72


$
(0.70
)

$
(1.51
)From discontinued operations


1.21



0.12



0.12Net income (loss) per share
    assuming dilution

$
1.93


$
(0.58
)

$
(1.39
)Weighted average shares outstanding


8,713



8,678



8,617Weighted average shares
    outstanding assuming dilution


8,716



8,678



8,617    47




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    BALANCE SHEETS
  December 31


December 312006


2005(In thousands, except share and per-share amounts)ASSETSCurrent AssetsCash and cash equivalents

$
7,477


$
19,622Restricted cash


8,473Receivables, net


30,131



28,166Income taxes receivable






986Deferred income taxes


690



665Prepaid expenses


3,592



4,295Television and radio broadcast
    rights


6,676



6,519Assets held for sale


19Total current assets


57,058



60,253Marketable securities, at market
    value


188,307



170,053Cash value of life insurance and
    retirement deposits


15,959



15,303Television and radio broadcast
    rights


1,041



2,075Goodwill, net


32,714



38,354Intangible assets


41,142



1,244Investment in equity investee


2,789



2,759Deferred financing fees and other
    assets


7,748



6,040Assets held for sale


2,612Property, plant and equipment, net


148,207



144,312Total Assets

$
497,577


$
440,393LIABILITIES AND
    STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
4,600


$
3,483Accrued payroll and related benefits


7,567



7,355Interest payable


3,809



3,809Television and radio broadcast
    rights payable


5,667



5,524Income taxes payable


486Other current liabilities


3,626



4,520Liabilities of businesses held for
    sale


289Total current liabilities


26,044



24,691Long-term debt


150,000



150,000Accrued retirement benefits


19,027



19,644Deferred income taxes


54,414



31,381Other liabilities


8,527



5,056Commitments and ContingenciesStockholders EquityCommon stock, shares authorized
    12,000,000, $1.25 par value; issued and outstanding 8,720,091 in
    2006 and 8,705,041 in 2005


10,900



10,881Capital in excess of par


9,454



8,590Deferred compensation






(159
)Accumulated other comprehensive
    income  net of income taxes:Unrealized gain on marketable
    securities


121,441



109,600Accumulated loss


(1,735
)


(2,172
)Prior service cost


(212
)Retained earnings


99,717



82,881Total Stockholders Equity


239,565



209,621Total Liabilities and
    Stockholders Equity

$
497,577


$
440,393    48




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF STOCKHOLDERS EQUITY
  AccumulatedCapital in





OtherCommon Stock


Excess


Deferred


Comprehensive


Retained


TotalShares


Amount


of Par


Compensation


Income


Earnings


Equity(In thousands except share amounts)Balance December 31, 2003


8,608,288


$
10,760


$
4,051


$
(2
)

$
73,089


$
99,906


$
187,804Net loss






















(11,953
)


(11,953
)Other comprehensive income


















26,103







26,103Amortization of deferred
    compensation














2











2Compensation expense for
    accelerated option vesting










41















41Issuance of common stock under
    rights and options, and related tax benefit


10,493



13



443















456Balance December 31, 2004


8,618,781



10,773



4,535







99,192



87,953



202,453Net loss






















(5,072
)


(5,072
)Other comprehensive income


















8,236







8,236Issuance of common stock rights










188



(188
)










Amortization of deferred
    compensation














29











29Compensation expense for
    accelerated option vesting










340















340Issuance of common stock under
    rights and options, and related tax benefit


86,260



108



3,527















3,635Balance December 31, 2005


8,705,041



10,881



8,590



(159
)


107,428



82,881



209,621Net income






















16,836



16,836Other comprehensive income


















12,066







12,066Elimination of deferred stock-based
    compensation upon adoption of SFAS 123R










(159
)


159











Stock-based compensation










473















473Issuance of common stock under
    rights and options, and related tax benefit


15,050



19



550















569Balance December 31, 2006


8,720,091


$
10,900


$
9,454


$



$
119,494


$
99,717


$
239,565    49




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  Year Ended December 312006


2005


2004(In thousands)Cash flows from operating activitiesNet income (loss)

$
16,836


$
(5,072
)

$
(11,953
)Adjustments to reconcile net income
    (loss) to net cash provided by  operating activitiesDepreciation and amortization


10,385



13,085



16,017Deferred income taxes


2,636



(8,991
)


(4,578
)Equity in operations of equity
    investees


(30
)


(46
)


(139
)Amortization of deferred financing
    fees


633



646



742Decrease in fair value of
    derivative instruments










12,656Interest accrued on forward sale
    transaction










3,564Loss from extinguishment of
    long-term debt










5,034Amortization of program rights


18,646



19,959



19,227Payments for television and radio
    broadcast rights


(17,633
)


(18,953
)


(18,524
)Gain on sale of radio stations


(9,971
)Dividends from equity investee






112



138Other


697



229



245Change in operating assets and
    liabilitiesReceivables


(1,964
)


(573
)


(319
)Prepaid expenses


201



(642
)


502Cash value of life insurance and
    retirement deposits


(656
)


(332
)


(278
)Other assets


(440
)


(260
)


834Trade accounts payable, accrued
    payroll and related benefits, interest payable, and other
    current liabilities


1,012



(781
)


3,294Income taxes receivable and payable


1,472



2,369



(7,060
)Accrued retirement benefits


(618
)


677



274Other liabilities


3,527



4,146



(586
)Net cash provided by operating
    activities


24,733



5,573



19,090Cash flows from investing activitiesProceeds from sale of radio stations


23,238Purchase of Seattle television
    station


(16,127
)Payment for options to purchase
    television stations


(1,100
)Proceeds from collection of notes
    receivable






1,585



428Proceeds from sale of marketable
    securities






247Proceeds from sale of commercial
    property and property, plant and equipment






418



112Restricted cash


(8,473
)Purchase of Oregon television
    stations


(19,554
)Purchase of property, plant and
    equipment


(15,431
)


(7,523
)


(6,791
)Purchase of radio station licenses










(204
)Net cash used in investing
    activities


(37,447
)


(5,273
)


(6,455
)Cash flows from financing activitiesNet payments under notes payable






(53
)


(662
)Borrowings under borrowing
    agreements


15,000







161,000Payments on borrowing agreements
    and mortgage loans


(15,000
)






(142,709
)Payments to terminate forward
    transaction tranche and additional amount to retire outstanding
    balances










(21,589
)Payment of deferred financing fees






(87
)


(6,074
)Proceeds from exercise of stock
    options


546



3,437



428Excess tax benefit from exercise of
    stock options


23Net cash provided by (used in)
    financing activities


569



3,297



(9,606
)Net increase (decrease) in cash and
    cash equivalents


(12,145
)


3,597



3,029Cash and cash equivalents,
    beginning of period


19,622



16,025



12,996Cash and cash equivalents, end of
    period

$
7,477


$
19,622


$
16,025    50




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF COMPREHENSIVE INCOME
  Year Ended December 312006


2005


2004(In thousands)Net income (loss)

$
16,836


$
(5,072
)

$
(11,953
)Other comprehensive income:Unrealized gain on marketable
    securities


18,217



12,779



40,136Effect of income taxes


(6,377
)


(4,473
)


(14,048
)Accumulated loss


673



56



23Effect of income taxes


(235
)


(20
)


(8
)Prior service cost


(326
)Effect of income taxes


114Reclassification adjustment for
    gains included in net income (loss)






(163
)Effect of income taxes






5712,066



8,236



26,103Total comprehensive income

$
28,902


$
3,164


$
14,150    51




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  NOTE 1
  Operations
    and Accounting Policies
    Principles of consolidation
  Estimates
  Television and radio broadcast licenses
  Revenue recognition
  Termination of national advertising representation firms
  Short-term cash investments
  Restricted cash
 52




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Marketable securities available-for-sale
  Concentration of credit risk
  Television and radio broadcast rights program-by-program
  Investments in equity investees
  Goodwill and indefinite-lived intangible assets
  Goodwill and Other
    Intangible Assets
 53




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Property, plant and equipment, net
      Buildings and improvements


555 yearsMachinery and equipment


325 yearsLand improvements


1055 years   Accounting for the Impairment or Disposal of Long-Lived
    Assets
  Tangible long-lived assets
   54




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Fair value of financial instruments
    Deferred financing costs 10-year 6-year
  Variable interest entities Consolidation of Variable Interest
    Entities,
  Advertising
  Operating leases
  Income taxes
  Earnings per share
 55




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Year Ended December 31

2006


2005


2004Net income (loss)

$
16,836


$
(5,072
)

$
(11,953
)Weighted average shares
    outstanding  basic


8,713



8,678



8,617Weighted effect of dilutive
    options and rights


3Weighted average shares
    outstanding assuming dilution


8,716



8,678



8,617Basic net income (loss) per share

$
1.93


$
(0.58
)

$
(1.39
)Diluted net income (loss) per share

$
1.93


$
(0.58
)

$
(1.39
)     Stock-based compensation
       56




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     2005


2004Net loss, as reported

$
(5,072
)

$
(11,953
)Add: stock-based compensation
    included in net loss, net of tax


221



41Deduct: total stock-based
    compensation determined under fair
    value method for all awards, net of tax


(1
)


(1,090
)Pro forma net loss

$
(4,852
)

$
(13,002
)Basic and diluted net loss per
    share:As reported

$
(0.58
)

$
(1.39
)Pro forma

$
(0.56
)

$
(1.51
)   Reclassifications
  
    Direct operating costs has replaced the caption
    previously labeled Cost of services sold;
    Amortization of program rights are now reported
    separately, whereas previously these amounts were reported
    within Cost of services sold; and
    Selling, general and administrative expenses now
    include amounts previously reported separately under the
    captions Selling expenses and General and
    administrative expenses.    Recent
    accounting pronouncements
  Fair Value
    Measurements
  Employers Accounting for Defined Benefit Pension and Other
    Postretirement Plans  An Amendment of FASB Statements
    No. 87, 88, 106 and 132R
 57




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Considering the Effects of
    Prior Year Misstatements when Quantifying Misstatements in
    Current Year Financial Statements.
  Accounting for Uncertainty in Income Taxes
  , Accounting for
    Certain Hybrid Instruments,
  The Fair Value Option for
    Financial Assets and Financial Liabilities  Including
    an amendment to FASB Statement No. 115
  NOTE 2
  Discontinued
    Operations
   58




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Accounting
    for the Impairment or Disposal of Long-Lived Assets,
    Year Ended December 31

2006


2005


2004Revenue

$
8,507


$
12,233


$
12,135Income from discontinued
    operations:Discontinued operating activities

$
938


$
1,629


$
1,662Gain on sale


15,339







16,277



1,629



1,662Income tax effect


(5,697
)


(570
)


(444
)Income from discontinued operations

$
10,580


$
1,059


$
1,218     Goodwill, net

$
1,129Property, plant and equipment, net


718Intangible assets


765Other assets


19Assets held for sale

$
2,631Liabilities of businesses held for
    sale

$
289   WFXG-TV, WXTX-TV,
    Year Ended December 31

2004Loss from discontinued operations:Discontinued operating activities

$
(207
)Income tax effect


75Loss from discontinued Georgia
    television stations

$
(132
)   NOTE 3
  Acquisitions
  African-American
 59




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Intangible assets - FCC license
    (indefinite life,
    non-amortizing)

$
24,012Property, plant and equipment


790Deferred tax liabilities


(8,626
)$
16,176     Intangible assets  FCC
    license (indefinite life,
    non-amortizing)

$
16,800Goodwill
    (non-amortizing,
    tax deductible)


2,593Property, plant and equipment


161$
19,554   NOTE 4
  Receivables
    December 31

2006


2005Trade accounts

$
26,978


$
27,273Other


3,614



1,39630,592



28,669Less-Allowance for doubtful
    accounts


461



503Total receivables

$
30,131


$
28,166    60




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   NOTE 5
  Investments
    in Equity Investee
        Balance, December 31, 2003

$
2,824Dividends


(138
)Equity in net income


139Balance, December 31, 2004


2,825Dividends


(112
)Equity in net income


46Balance, December 31, 2005


2,759Dividends


Equity in net income


30Balance, December 31, 2006

$
2,789   NOTE 6
  Goodwill
    and Intangible Assets
    ,
 61




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    NOTE 7
  Property,
    Plant and Equipment
    December 31

2006


2005Building and improvements

$
138,141


$
132,869Machinery and equipment


107,498



103,448Land and improvements


7,369



8,233253,008



244,550Less-Accumulated depreciation


104,801



100,238Total

$
148,207


$
144,312     Year

Rentals2007

$
3,2222008


3,1002009


2,2782010


1,9202011


1,513Thereafter


3,772$
15,805     NOTE 8
  Notes Payable,
    Long Term Debt, and Derivative Instruments
  Notes
    payable
    Long-term
    debt and borrowing agreements
   62




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Year

Percentage2009


104.3125
%2010


102.8750
%2011


101.4375
%2012 and thereafter


100.0000
%       
    incur additional indebtedness;
    make certain asset dispositions;
    make investments or other restricted payments;
    pay dividends or make other distributions on, redeem or
    repurchase, capital stock;
    issue capital stock of our restricted subsidiaries;
    enter into transactions with affiliates or related persons;
    incur certain liens on assets to secure debt; and
    enter into a merger, sale or consolidation.       63




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Derivative
    Instruments
        Debt
    Maturities
    2007

$
2008


2009


2010


2011


Thereafter


150,000$
150,000    64




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   NOTE 9
  Television
    and Radio Broadcast Rights and Other Broadcast
    Commitments
        NOTE 10
  Stockholders
    Equity
  Transition Election Accounting for the Tax
    Effects of Share-Based Payment Awards.
    Stock options
 65




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Restricted stock rights
  Determining
    Fair Value Under SFAS 123(R)
  Valuation and Amortization Method.
  Expected Life.
  Expected Volatility.
  Risk-Free Interest Rate.
  Expected Dividend Yield.
  Expected Forfeitures.
    Years Ended December 312006


2005


2004Assumptions:Weighted average risk-free
    interest rate


4.6
%


4.1
%


3.7
%Expected dividend yield


0.00
%


0.00
%


0.00
%Expected volatility


31.3
%


30.8
%


27.5
%Expected life of options


6 years



6 years



7 yearsWeighted average fair value at
    date of grant

$
17.25


$
19.27


$
19.63   Stock-based
    Compensation Under SFAS 123(R)
     66




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      Consolidated statement of
    operations:Decrease in income from operations

$
(382
)Decrease in income from continuing
    operations before income taxes


(382
)Decrease in net income


(248
)Decrease in basic and diluted net
    income per share


(0.03
)Consolidated statement of cash
    flows:Decrease in net cash provided by
    operating activities


(23
)Increase in net cash provided by
    financing activities


23   Stock
    Award Activity
    Stock Options


Restricted Stock RightsWeighted


WeightedAverage


Average








WeightedExercise


Remaining


Aggregate





AverageNumber


Price per


Contractual


Intrinsic


Number


Grant-Dateof Shares


Share


Life


Value


of Shares


Fair ValueOutstanding at December 31,
    2003


456,263


$
52.93











460


$
62.19Options and stock rights granted


77,800



51.50Options exercised/stock rights
    vested


(10,100
)


42.35











(400
)


62.53Options and stock rights forfeited


(36,473
)


60.94Outstanding at December 31,
    2004


487,490



52.32











60



59.88Options and stock rights granted


69,600



50.33











4,000



46.89Options exercised/stock rights
    vested


(86,200
)


40.11











(60
)


59.88Options and stock rights forfeited


(195,460
)


56.21Outstanding at December 31,
    2005


275,430



52.88











4,000



46.89Options and stock rights granted


85,800



43.44











19,650



44.20Options exercised/stock rights
    vested


(14,800
)


36.86











(850
)


40.07Options expired


(4,000
)


37.25Options and stock rights forfeited


(141,745
)


53.26











(2,250
)


45.05Outstanding at December 31,
    2006


200,685


$
50.14



6.5 years


$
151,561



20,550


$
44.51Exercisable at December 31,
    2006


96,160


$
55.75



3.8 years


$
61,740  67




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      NOTE 11
  Income
    Taxes
    Year Ended December 31

2006


2005


2004Current tax expense (benefit)Continuing operations

$
465


$
29


$
(3,418
)Discontinued operations


21







115486



29



(3,303
)Deferred tax expense (benefit)Continuing operations


2,212



(9,561
)


(4,831
)Discontinued operations


5,676



570



2547,888



(8,991
)


(4,577
)Total

$
8,374


$
(8,962
)

$
(7,880
)Income taxes are allocated as
    follows:Continuing operations

$
2,677


$
(9,532
)

$
(8,249
)Discontinued operations


5,697



570



369$
8,374


$
(8,962
)

$
(7,880
)     Year Ended December 31

2006


2005


2004Normal expense (benefit) computed
    at 35% of pretax income

$
3,127


$
(5,482
)

$
(7,451
)Dividends received deduction


(820
)


(690
)


(565
)State taxes, net of federal tax
    benefit


733



(119
)


(8
)Change in state tax valuation
    allowance


(733
)


119



8Pension death and disability
    benefits, and increases in pension values


(301
)


(291
)


(438
)Non-deductible expenses


325



252



283Worthless stock deduction of
    liquidated subsidiary






(3,437
)Other


346



116



(78
)$
2,677


$
(9,532
)

$
(8,249
)  68




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    December 31

2006


2005AssetsAccrued employee benefits

$
8,150


$
8,154Allowance for doubtful accounts


171



187Goodwill and intangible assets






9,053Net operating loss carryforwards


8,936



10,271Contract termination charge


1,955



1,607Other


1,015



51820,227



29,790LiabilitiesMarketable securities


(53,791
)


(47,416
)Property, plant and equipment


(11,645
)


(11,306
)Goodwill and intangible assets


(7,491
)Prepaid insurance


(427
)


(454
)(73,354
)


(59,176
)Valuation allowance


(597
)


(1,330
)Net

$
(53,724
)

$
(30,716
)Current


690



665Noncurrent


(54,414
)


(31,381
)$
(53,724
)

$
(30,716
)         NOTE 12
  Retirement
    Benefits
   69




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   Employers Accounting for Settlements and
    Curtailments of Defined Benefit Pension Plans and for
    Termination Benefits
    Year Ended December 31

2006


2005Projected benefit obligation,
    beginning of year

$
19,559


$
20,012Service cost






80Interest cost


1,039



1,028Assumption changes


(690
)


696Actuarial (gains) losses


226



(469
)Curtailment gain






(597
)Benefit payments


(1,199
)


(1,191
)Projected benefit obligation, end
    of year

$
18,935


$
19,559Unfunded status

$
18,935


$
19,559Accumulated loss


(2,722
)


(3,341
)Net amount recognized

$
16,213


$
16,218     December 31

2006


2005Accrued pension liability

$
18,935


$
19,559Accumulated other comprehensive
    loss


(2,722
)


(3,341
)Net amount recognized

$
16,213


$
16,218     2006


2005Discount rate


5.80
%


5.48
%Rate of compensation increase


N/A



N/A    70




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
     Year Ended December 31

2006


2005


2004Service cost

$



$
80


$
291Interest cost


1,039



1,028



1,096Amortization of transition
    obligation






52



104Recognition of remaining
    transition obligation, curtailment loss






451Amortization of loss


154



267



213Net periodic pension cost


1,193



1,878



1,704Cost of termination benefits










471Total cost, including termination
    benefits

$
1,193


$
1,878


$
2,175     2006


2005

2004Discount Rate


5.48
%

5.02% - 5.74%


6.25
%Rate of Compensation increase


0.00
%

0.00% - 3.00%


3.00
%         PostretirementSupplemental


Health InsuranceRetirement Program


Program2007

$
1,125


$
752008


1,133



692009


1,139



742010


1,140



632011


1,175



67Next 5 years


6,876



300      71




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
   NOTE 13
  Segment
    Information
      Revenue
  Year Ended December 31

2006


2005


2004Television

$
107,457


$
93,083


$
101,190Radio


37,615



36,101



36,118Fisher Plaza


9,406



8,061



4,555Corporate and eliminations


221



(159
)


(132
)$
154,699


$
137,086


$
141,731   Depreciation
    and amortization
  Year Ended December 31

2006


2005


2004Television

$
6,016


$
7,940


$
10,588Radio


888



1,106



1,178Fisher Plaza


3,116



3,544



3,762Corporate and eliminations


257



245



207$
10,277


$
12,835


$
15,735     Year Ended December 31

2006


2005


2004Television

$
23,903


$
5,032


$
17,698Radio


1,377



(177
)


444Fisher Plaza


2,542



627



(2,851
)Corporate and eliminations


(4,933
)


(7,419
)


(24,804
)Total segment income (loss) from
    continuing operations before interest and income taxes

$
22,889


$
(1,937
)

$
(9,513
)  72




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year Ended December 31

2006


2005


2004Total segment income (loss) from
    continuing operations before interest and income taxes

$
22,889


$
(1,937
)

$
(9,513
)Interest expense


(13,956
)


(13,726
)


(11,775
)Consolidated income (loss) from
    continuing operations before income taxes

$
8,933


$
(15,663
)

$
(21,288
)     Total
    assets
  December 31

2006


2005Television

$
130,994


$
92,543Radio


24,436



41,487Fisher Plaza


119,872



118,611Corporate and eliminations


219,644



187,752494,946



440,393Assets held for sale


2,631$
497,577


$
440,393   Goodwill
  December 31

2006


2005Television

$
24,498


$
21,453Radio


8,216



16,901$
32,714


$
38,354   Capital
    expenditures
  Year Ended December 31

2006


2005


2004Television

$
8,304


$
4,260


$
3,069Radio


841



595



440Fisher Plaza


6,120



2,361



3,093Corporate and eliminations


166



307



189$
15,431


$
7,523


$
6,791      73




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 14
  Commitments
    and Contingencies
    LeaseYear

Commitments2007


1,1782008


9682009


7832010


7192011


652Thereafter


2,575$
6,875   Spanish-language
     74




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 15
  Interim
    Financial Information (Unaudited)
      First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter


AnnualRevenue2006

$
31,081


$
40,190


$
38,712


$
44,716


$
154,6992005

$
28,313


$
36,865


$
35,635


$
36,273


$
137,086Income (loss) from continuing
    operations2006

$
(1,787
)

$
1,792


$
(784
)

$
7,035


$
6,2562005

$
(5,106
)

$
(1,462
)

$
(1,118
)

$
1,555


$
(6,131
)Income from discontinued operations2006

$
86


$
476


$
113


$
9,905


$
10,5802005

$
38


$
372


$
328


$
321


$
1,059Net income (loss)2006

$
(1,701
)

$
2,268


$
(671
)

$
16,940


$
16,8362005

$
(5,068
)

$
(1,090
)

$
(790
)

$
1,876


$
(5,072
)Income (loss) per
    share  basic:From continuing operations2006

$
(0.21
)

$
0.21


$
(0.09
)

$
0.81


$
0.722005

$
(0.59
)

$
(0.17
)

$
(0.13
)

$
0.18


$
(0.70
)From discontinued operations2006

$
0.01


$
0.05


$
0.01


$
1.13


$
1.212005

$



$
0.04


$
0.04


$
0.04


$
0.12Net income (loss)2006

$
(0.20
)

$
0.26


$
(0.08
)

$
1.94


$
1.932005

$
(0.59
)

$
(0.13
)

$
(0.09
)

$
0.22


$
(0.58
)Income (loss) per share, assuming
    dilution:From continuing operations2006

$
(0.21
)

$
0.21


$
(0.09
)

$
0.81


$
0.722005

$
(0.59
)

$
(0.17
)

$
(0.13
)

$
0.18


$
(0.70
)From discontinued operations2006

$
0.01


$
0.05


$
0.01


$
1.13


$
1.212005

$



$
0.04


$
0.04


$
0.04


$
0.12Net income (loss)2006

$
(0.20
)

$
0.26


$
(0.08
)

$
1.94


$
1.932005

$
(0.59
)

$
(0.13
)

$
(0.09
)

$
0.22


$
(0.58
)  75




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      NOTE 16
  Financial
    Information for Guarantors
     76




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Operations
 for the
    year ended December 31, 2006
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands, except per-share amounts)Revenue

$



$
154,861


$
(162
)

$
154,699Costs and expensesDirect operating costs






51,137



1,656



52,793Selling, general and
    administrative expenses


8,496



47,297



(1,818
)


53,975Amortization of program rights






18,646







18,646Depreciation and amortization


257



10,020







10,2778,753



127,100



(162
)


135,691Income (loss) from operations


(8,753
)


27,761







19,008Other income, net


3,498



383







3,881Equity in income of subsidiaries


28,577







(28,577
)Interest expense, net


(13,951
)


(5
)






(13,956
)Income (loss) from continuing
    operations before income taxes


9,371



28,139



(28,577
)


8,933Provision (benefit) for federal
    and state income taxes


(7,465
)


10,142







2,677Income (loss) from continuing
    operations


16,836



17,997



(28,577
)


6,256Income from discontinued
    operations net of income taxes






10,580







10,580Net income (loss)

$
16,836


$
28,577


$
(28,577
)

$
16,836  77




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Operations
 for the
    year ended December 31, 2005
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands, except per-share amounts)Revenue

$



$
137,259


$
(173
)

$
137,086Costs and expensesDirect operating costs






49,586



1,559



51,145Selling, general and
    administrative expenses


10,018



50,427



(1,732
)


58,713Amortization of program rights






19,959







19,959Depreciation and amortization


243



12,592







12,83510,261



132,564



(173
)


142,652Income (loss) from operations


(10,261
)


4,695







(5,566
)Other income, net


2,936



693







3,629Equity in income of subsidiaries


4,543







(4,543
)Interest expense, net


(13,703
)


(23
)






(13,726
)Income (loss) from continuing
    operations before income taxes


(16,485
)


5,365



(4,543
)


(15,663
)Provision (benefit) for federal
    and state income taxes


(11,413
)


1,881







(9,532
)Income (loss) from continuing
    operations


(5,072
)


3,484



(4,543
)


(6,131
)Income from discontinued
    operations net of income taxes






1,059







1,059Net income (loss)

$
(5,072
)

$
4,543


$
(4,543
)

$
(5,072
)  78




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Operations
 for the
    Year Ended December 31, 2004
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)Revenue

$



$
141,951


$
(220
)

$
141,731Costs and expensesDirect operating costs






45,924



1,472



47,396Selling, general and
    administrative expenses


10,057



46,188



(1,692
)


54,553Amortization of program rights






19,227







19,227Depreciation and amortization


204



15,531







15,73510,261



126,870



(220
)


136,911Income (loss) from operations


(10,261
)


15,081







4,820Net gain (loss) on derivative
    instruments


(13,563
)


907







(12,656
)Loss from extinguishment of
    long-term debt


(3,170
)


(1,864
)






(5,034
)Other income, net


2,326



1,031







3,357Equity in income of subsidiaries


8,104







(8,104
)Interest expense, net


(7,476
)


(4,299
)






(11,775
)Income (loss) from continuing
    operations before income taxes


(24,040
)


10,856



(8,104
)


(21,288
)Provision (benefit) for federal
    and state income taxes


(12,087
)


3,838







(8,249
)Income (loss) from continuing
    operations


(11,953
)


7,018



(8,104
)


(13,039
)Income from discontinued
    operations net of income taxes






1,086







1,086Net income (loss)

$
(11,953
)

$
8,104


$
(8,104
)

$
(11,953
)  79




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Balance Sheet
 as of
    December 31, 2006
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)ASSETSCurrent AssetsCash and cash equivalents

$
8,544


$



$
(1,067
)

$
7,477Restricted cash






8,473







8,473Receivables, net


768



29,363







30,131Due from affiliate






17,357



(17,357
)Deferred income taxes


106



584







690Prepaid expenses


438



3,154







3,592Television and radio broadcast
    rights






6,676







6,676Assets held for sale






19







19Total current assets


9,856



65,626



(18,424
)


57,058Marketable securities, at market
    value


187,833



474







188,307Investment in consolidated
    subsidiaries


253,632







(253,632
)Cash value of life insurance and
    retirement deposits


15,959











15,959Television and radio broadcast
    rights






1,041







1,041Goodwill, net






32,714







32,714Intangible assets






41,142







41,142Investments in equity investee






2,789







2,789Deferred financing fees and other
    assets


4,538



3,210







7,748Assets held for sale






2,612







2,612Property, plant and equipment, net


813



147,394







148,207Total Assets

$
472,631


$
297,002


$
(272,056
)

$
497,577LIABILITIES AND
    STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
1,543


$
4,124


$
(1,067
)

$
4,600Due to affiliate


17,357







(17,357
)Accrued payroll and related benefits


1,841



5,726







7,567Interest payable


3,809











3,809Television and radio broadcast
    rights payable






5,667







5,667Income taxes payable






486







486Other current liabilities


950



2,676







3,626Liabilities of businesses held for
    sale






289







289Total current liabilities


25,500



18,968



(18,424
)


26,044Long-term debt


150,000











150,000Accrued retirement benefits


18,942



85







19,027Deferred income taxes


38,559



15,855







54,414Other liabilities


65



8,462







8,527Stockholders EquityCommon stock


10,900



1,131



(1,131
)


10,900Capital in excess of par


9,454



164,234



(164,234
)


9,454Deferred compensationAccumulated other comprehensive
    income  net of income taxes:Unrealized gain on marketable
    securities


121,441











121,441Accumulated loss


(1,735
)










(1,735
)Prior service cost


(212
)










(212
)Retained earnings


99,717



88,267



(88,267
)


99,717Total Stockholders Equity


239,565



253,632



(253,632
)


239,565Total Liabilities and
    Stockholders Equity

$
472,631


$
297,002


$
(272,056
)

$
497,577  80




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Balance Sheet
 as of
    December 31, 2005
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)ASSETSCurrent AssetsCash and cash equivalents

$
3,660


$
15,962


$



$
19,622Receivables, net


105



28,061







28,166Due from affiliate


6,184







(6,184
)Income taxes receivable


1,538







(552
)


986Deferred income taxes


7



658







665Prepaid expenses


414



3,881







4,295Television and radio broadcast
    rights






6,519







6,519Total current assets


11,908



55,081



(6,736
)


60,253Marketable securities, at market
    value


169,634



419







170,053Investment in consolidated
    subsidiaries


225,057







(225,057
)Cash value of life insurance and
    retirement deposits


5,115



10,188







15,303Television and radio broadcast
    rights






2,075







2,075Goodwill, net






38,354







38,354Intangible assets






1,244







1,244Investments in equity investee






2,759







2,759Deferred financing fees and other
    assets


5,169



871







6,040Property, plant and equipment, net


904



143,408







144,312Total Assets

$
417,787


$
254,399


$
(231,793
)

$
440,393LIABILITIES AND
    STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
693


$
2,790


$



$
3,483Due to affiliate






6,184



(6,184
)Accrued payroll and related benefits


1,113



6,242







7,355Interest payable


3,809











3,809Television and radio broadcast
    rights payable






5,524







5,524Income taxes payable






552



(552
)Other current liabilities


2,058



2,462







4,520Total current liabilities


7,673



23,754



(6,736
)


24,691Long-term debt


150,000











150,000Accrued retirement benefits


19,560



84







19,644Deferred income taxes


30,868



513







31,381Other liabilities


65



4,991







5,056Stockholders EquityCommon stock


10,881



1,131



(1,131
)


10,881Capital in excess of par


8,590



164,234



(164,234
)


8,590Deferred compensation


(159
)










(159
)Accumulated other comprehensive
    income  net of income taxes:Unrealized gain on marketable
    securities


109,600











109,600Accumulated loss


(2,172
)










(2,172
)Retained earnings


82,881



59,692



(59,692
)


82,881Total Stockholders Equity


209,621



225,057



(225,057
)


209,621Total Liabilities and
    Stockholders Equity

$
417,787


$
254,399


$
(231,793
)

$
440,393  81




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Cash Flows
 for the
    Year Ended December 31, 2006
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)Net cash provided by (used in)
    operating activities

$
4,481


$
21,319


$
(1,067
)

$
24,733Cash flows from investing
    activitiesProceeds from sale of radio
    stations






23,238







23,238Purchase of Seattle television
    stations






(16,127
)






(16,127
)Option payment for purchase of
    television stations






(1,100
)






(1,100
)Increase in restricted cash






(8,473
)






(8,473
)Purchase of Oregon television
    stations






(19,554
)






(19,554
)Purchase of property, plant and
    equipment


(166
)


(15,265
)






(15,431
)Net cash used in investing
    activities


(166
)


(37,281
)






(37,447
)Cash flows from financing
    activitiesBorrowings under borrowing
    agreements


15,000











15,000Payments on borrowing agreements


(15,000
)










(15,000
)Excess tax benefit from exercise
    of stock options


23











23Proceeds from exercise of stock
    options


546











546Net cash provided by financing
    activities


569











569Net increase (decrease) in cash
    and cash equivalents


4,884



(15,962
)


(1,067
)


(12,145
)Cash and cash equivalents,
    beginning of period


3,660



15,962







19,622Cash and cash equivalents, end of
    period

$
8,544


$



$
(1,067
)

$
7,477  82




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Cash Flows
 for the
    Year Ended December 31, 2005
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)Net cash provided by (used in)
    operating activities

$
(417
)

$
5,990


$



$
5,573Cash flows from investing
    activitiesProceeds from collection of notes
    receivable






1,585







1,585Proceeds from sale of marketable
    securities


73



174







247Proceeds from sale of property,
    plant and equipment






418







418Purchase of property, plant and
    equipment


(309
)


(7,214
)






(7,523
)Net cash used in investing
    activities


(236
)


(5,037
)






(5,273
)Cash flows from financing
    activitiesNet payments under notes payable


(44
)


(9
)






(53
)Payment of deferred financing fees


(87
)










(87
)Proceeds from exercise of stock
    options


3,437











3,437Net cash provided by (used in)
    financing activities


3,306



(9
)






3,297Net increase in cash and cash
    equivalents


2,653



944







3,597Cash and cash equivalents,
    beginning of period


1,007



15,018







16,025Cash and cash equivalents, end of
    period

$
3,660


$
15,962


$



$
19,622  83




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Financial
    Information for Guarantors
  Condensed
    Consolidated Statement of Cash Flows
 for the
    Year Ended December 31, 2004
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)Net cash provided by (used in)
    operating activities

$
12,591


$
13,999


$
(7,500
)

$
19,090Cash flows from investing
    activitiesProceeds from collection of notes
    receivable






428







428Proceeds from sale of property,
    plant and equipment






112







112Purchase of radio station license






(204
)






(204
)Purchase of property, plant and
    equipment


(784
)


(6,007
)






(6,791
)Net cash used in investing
    activities


(784
)


(5,671
)






(6,455
)Cash flows from financing
    activitiesNet payments under notes payable


(662
)










(662
)Borrowings under borrowing
    agreements


158,000



3,000







161,000Payments on borrowing agreements


(142,709
)










(142,709
)Payment to terminate forward
    transaction tranche and additional amount to retire
    outstanding balances


(21,589
)










(21,589
)Payment of deferred financing fees


(5,907
)


(167
)






(6,074
)Dividends Paid






(7,500
)


7,500Proceeds from exercise of stock
    options


428











428Net cash provided by (used in)
    financing activities


(12,439
)


(4,667
)


7,500



(9,606
)Net increase (decrease) in cash
    and cash equivalents


(632
)


3,661







3,029Cash and cash equivalents,
    beginning of period


1,639



11,357







12,996Cash and cash equivalents, end of
    period

$
1,007


$
15,018


$



$
16,025  84




---



##### Table of Contents



Schedule II
  FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  Valuation
    and Qualifying Accounts
  Year Ended December 31

2006


2005


2004(In thousands)Allowance for doubtful accountsBalance at beginning of year

$
503


$
651


$
930Additions charged to expense


694



492



318Balances written off, net of
    recoveries


(736
)


(640
)


(597
)Balance at end of year

$
461


$
503


$
651




---



##### Table of Contents



SIGNATURES
    Fisher Communications,
    Inc.
  By:
    /s/  Colleen
    B. Brown  Colleen B. Brown
 President and Chief Executive Officer
    Signatures

Title

Date/s/  Colleen
    B. BrownColleen
    B. Brown

President, Chief Executive Officer
    and Director (Principal Executive Officer)

March 14, 2007/s/  S.
    Mae Fujita
    NumataS.
    Mae Fujita Numata

Senior Vice President and Chief
    Financial Officer (Principal Financial and Accounting Officer)

March 14, 2007/s/  Deborah
    L. BevierDeborah
    L. Bevier

Director

March 14, 2007/s/  James
    W. CannonJames
    W. Cannon

Director

March 14, 2007/s/  Phelps
    K. FisherPhelps
    K. Fisher

Director

March 14, 2007/s/  Carol
    H. FrattCarol
    H. Fratt

Director

March 14, 2007/s/  Donald
    G.
    Graham, Jr.Donald
    G. Graham, Jr.

Director

March 14, 2007/s/  Donald
    G.
    Graham, IIIDonald
    G. Graham, III

Director

March 14, 2007/s/  Richard
    L. HawleyRichard
    L. Hawley

Director

March 14, 2007




---



##### Table of Contents



Signatures

Title

Date/s/  Brian
    P.
    McAndrewsBrian
    P. McAndrews

Director

March 14, 2007/s/  Jerry
    A. St.
    DennisJerry
    A. St. Dennis

Director

March 14, 2007/s/  George
    F.
    Warren, Jr.George
    F. Warren, Jr.

Director

March 14, 2007/s/  William
    W.
    Warren, Jr.William
    W. Warren, Jr.

Director

March 14, 2007




---



##### Table of Contents



EXHIBIT INDEX
  Exhibit No.

Description2
.1*

Asset Purchase Agreement between
    Fisher Radio Regional Group, Inc. and Equity Broadcasting
    Corporation, dated December 7, 2005 (filed as
    Exhibit 2.1 of the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).3
.1*

Articles of Incorporation (filed
    as Exhibit 3.1 of the Companys Registration Statement
    on Form 10 (File No. 000-22439)).3
.2*

Articles of Amendment to the
    Amended and Restated Articles of Incorporation filed
    December 10, 1997 (filed as Exhibit 3.2 of the
    Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 1997 (File No.
    000-22439)).3
.3*

Articles of Amendment to the
    Amended and Restated Articles of Incorporation filed
    March 8, 2001 (filed as Exhibit 3.3 of the
    Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2001 (File No.
    000-22439)).3
.4

Bylaws amended as of
    October 26, 2006.4
.1*

Indenture relating to Fisher
    Communications, Inc.s 8.625% Senior Notes Due 2014,
    dated as of September 20, 2004 (filed as Exhibit 4.1
    to the Current Report on
    Form 8-K
    dated September 20, 2004).4
.2*

Registration Rights Agreement
    among Fisher Communications, Inc., its domestic subsidiaries
    listed on Schedule 1 thereto and Wachovia Securities, Inc.,
    dated September 20, 2004 (filed as Exhibit 4.2 to the
    Current Report on
    Form 8-K
    dated September 20, 2004).4
.3*

Form of Fisher Communications,
    Inc.s 8.625% Exchange Note due 2014 (filed as
    Exhibit 4.3 to the Registration Statement on
    Form S-4
    filed on December 20, 2004).10
.1*+

Amended and Restated Fisher
    Communications, Inc. Supplemental Pension Plan, dated
    December 31, 2005 (filed as Exhibit 3.3 of the
    Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).10
.2*

Form of Affiliation Agreement
    between CBS Television Network and Retlaw Enterprises, Inc.
    regarding
    KJEO-TV,
    KJEO-TV,
    KIMA-TV,
    KBCI-TV,
    KIDK-TV,
    KVAL-TV,
    KCBY-TV and
    KPIC-TV
    (filed as Exhibit 10.17 to the Companys Annual Report
    on
    Form 10-K
    for the fiscal year ended December 31, 1999 (File No.
    000-22439)).10
.3*+

Amended and Restated Fisher
    Communications Incentive Plan of 1995. (Filed as
    Exhibit 10.22 to the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2000 (File No.
    000-22439)).10
.4*+

Fisher Communications Incentive
    Plan of 2001. (Filed as Exhibit 10.23 to the Companys
    Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2000 (File No.
    000-22439)).10
.5*

Credit Agreement, dated
    September 20, 2004, among Fisher Communications, Inc.,
    certain subsidiary guarantors, the lenders thereto and Wachovia
    Bank, National Association, as administrative agent (filed as
    Exhibit 10.1 to the Current Report on
    Form 8-K
    filed on September 21, 2004 (File No. 000-22439).10
.6*+

Form of Non-Qualified Stock Option
    Contract (filed as Exhibit 10.1 to the Companys
    Current Report on
    Form 8-K
    dated October 13, 2005 (File No. 000-22439)).10
.7*+

Form of Restricted Stock Rights
    Agreement (filed as Exhibit 10.2 to the Companys
    Current Report on
    Form 8-K
    dated October 13, 2005 (File No. 000-22439)).10
.8*

Renewal Letter Agreements dated
    May 6, 2005 between American Broadcasting Companies, Inc.
    (ABC) and Fisher Broadcasting Company, Inc. (filed
    as Exhibit 10.3 to the Companys Quarterly Report on
    Form 10-Q
    filed on August 8, 2005 (File No. 000-22439)).10
.9*

Renewal Letter Agreements dated
    January 6, 2006 between CBS Television and Fisher
    Broadcasting   Oregon TV LLC (filed as
    Exhibit 10.13 of the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).10
.10*

Renewal Letter Agreements dated
    January 6, 2006 between CBS Television and Fisher
    Broadcasting   Washington TV LLC. (filed as
    Exhibit 10.14 of the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).10
.11*

Renewal Letter Agreements dated
    January 6, 2006 between CBS Television and Fisher
    Broadcasting  Idaho TV LLC (filed as
    Exhibit 10.15 of the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).




---



##### Table of Contents



Exhibit No.

Description10
.12*

Renewal Letter Agreements dated
    January 6, 2006 between CBS Television and Fisher
    Broadcasting  S.E. Idaho TV LLC (filed as
    Exhibit 10.16 of the Companys Annual Report on
    Form 10-K
    for the fiscal year ended December 31, 2005 (File No.
    000-22439)).10
.13*

Joint Sales Agreement dated
    July 1, 2006 between La Grande Broadcasting, Inc.,
    Fisher Broadcasting   Portland TV, L.L.C. and Equity
    Broadcasting Company (filed as Exhibit 10.1 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on November 9, 2006 (File No. 000-22439)).10
.14*

Amendment No. 2 to Purchase
    and Sale Agreement dated August 24, 2006 by and among
    Cherry Creek Radio LLC, Fisher Communications, Inc. and Fisher
    Radio Regional Group Inc. (filed as Exhibit 10.2 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on November 9, 2006 (File No. 000-22439))10
.15*

Second Amendment and Agreement
    Regarding Asset Purchase Agreement dated September 22, 2006
    by and among Fisher Radio Regional Group Inc., Equity
    Broadcasting Corporation, La Grande Broadcasting, Inc., EBC
    Boise, Inc. and EBC Pocatello, Inc. (filed as Exhibit 10.3
    to the Companys Quarterly Report on
    Form 10-Q
    filed on November 9, 2006 (File No. 000-22439))10
.16*

Amendment and Agreement Regarding
    Asset Purchase Agreement dated May 1, 2006 between Fisher
    Radio Regional Group Inc., Equity Broadcasting Corporation,
    La Grande Broadcasting, Inc., EBC Boise, Inc. and EBC
    Pocatello, Inc. (filed as Exhibit 10.1 to the
    Companys Current Report on
    Form 8-K
    dated May 3, 2006 (File  No. 000-22439)).10
.17*

Purchase and Sale Agreement dated
    May 30, 2006 by and between Cherry Creek Radio LLC, Fisher
    Communications, Inc. and Fisher Radio Regional Group Inc (filed
    as Exhibit 10.2 to the Companys Quarterly Report on
    Form 10-Q
    filed on August 9, 2006 (File No. 000-22439)).10
.18*

Stock Purchase Agreement dated
    June 26, 2006 by and among Christopher J. Racine,
    African-American Broadcasting of Bellevue, Inc. and Fisher
    Broadcasting Company (filed as Exhibit 10.3 to the
    Companys Quarterly Report on
    Form 10-Q
    filed on August 9, 2006 (File No. 000-22439)).10
.19*

Local Marketing Agreement dated
    June 26, 2006 by and between Fisher Broadcasting Company
    and African-American Broadcasting of Bellevue, Inc. (filed as
    Exhibit 10.4 to the Companys Quarterly Report on
    Form 10-Q
    filed on August 9, 2006 (File No. 000-22439)).10
.20*+

Change in Control Severance
    Agreement with Colleen B. Brown, dated October 10, 2005
    (filed as Exhibit 10.1 to the Companys Current Report
    on
    Form 8-K
    dated October 7, 2005 (File No. 000-22439)).10
.21*+

Offer Letter to Colleen B. Brown,
    dated October 3, 2005 (filed as Exhibit 10.2 to the
    Companys Current Report on
    Form 8-K
    dated October 7, 2005 (File No. 000-22439)).10
.22

Offer Letter to S. Mae Fujita
    Numata, dated October 20, 2006.21
.1

Subsidiaries of the Registrant.23
.1

Consent of PricewaterhouseCoopers
    LLP.31
.1

Certification of Chief Executive
    Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002.31
.2

Certification of Chief Financial
    Officer Pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002.32
.1

Certification of CEO pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.32
.2

Certification of CFO pursuant to
    18 U.S.C. Section 1350, as adopted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.     *
    
    Incorporated by reference.+
    
    Management contract or arrangement.
    
    Certain information in this exhibit has been omitted and filed
    separately with the Commission pursuant to a confidential
    treatment request under 17 C.F.R.
    Sections 200.80(b)(4), 200.83 and 230.406.