##### Table of Contents





UNITED
    STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, 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, 2007ORo

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
    Large accelerated
    filer o

Accelerated
    filer þ

Non-accelerated
    filer o

Smaller reporting
    company o(Do not check if a smaller reporting company)   Rule 12b-2 o þ
      Title of Class

Number of Shares OutstandingCommon Stock, $1.25 Par Value

8,728,858   DOCUMENTS
    INCORPORATED BY REFERENCE
  Document

Parts Into Which IncorporatedProxy Statement for the Annual Meeting of
    Shareholders to be held on April 30, 2008

Part III




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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 HOLDERSPART IIITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIESITEM 6. SELECTED FINANCIAL DATAITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF OPERATIONSITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKSITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSUREITEM 9A CONTROLS AND PROCEDURESITEM 9B OTHER INFORMATIONPART IIIITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT, AND DIRECTOR INDEPENDENCEITEM 11. EXECUTIVE COMPENSATIONITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENTITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONSITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICESPART IVITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULESEXHIBIT 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



Spanish-language
           2




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##### Table of Contents



Television
    Broadcasting
    DMA(1)


Network

Expiration Date ofStation

Market Area

Rank


Affiliation

Affiliation AgreementKOMO TV

Seattle-Tacoma, WA


14


ABC


August 31, 2009KUNS TV

Seattle-Tacoma, WA


14


Univision


September 12, 2011KATU TV

Portland, OR


23


ABC


August 31, 2009KUNP TV

LaGrande, OR


23


Univision


September 12, 2011KUNP LP

Portland, OR


23


Univision


September 12, 2011KVAL TV

Eugene, OR


120


CBS


February 29, 2016KCBY TV

Coos Bay, OR


120


CBS


February 29, 2016KPIC TV(2)

Roseburg, OR


120


CBS


February 29, 2016KIMA TV

Yakima, WA


126


CBS


February 29, 2016KEPR TV

Pasco/Richland/Kennewick, WA


126


CBS


February 29, 2016KKFQ CA

Yakima, WA


126


Univision


September 12, 2011KWWA CA

Ellensburg, WA


126


Univision


September 12, 2011KVVK CA

Pasco/Richland/Kennewick, WA


126


Univision


September 12, 2011KORX CA

Walla-Walla, WA


126


Univision


September 12, 2011KLEW TV(3)

Lewiston, ID


NA


CBS


February 29, 2016KBCI TV

Boise, ID


113


CBS


February 29, 2016KUNB LP

Boise, ID


113


Telefutura


May 12, 2011KIDK TV

Idaho Falls-Pocatello, ID


163


CBS


February 29, 2016KPPP LP

Pocatello, ID


NA


Telefutura


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 2008 estimates published by Nielsen Media
    Research. NA refers to Not Available.(2)
    
    Fisher Broadcasting owns a 50% interest in South West Oregon
    Television Broadcasting Corporation, licensee of KPIC.(3)
    
    Although included as part of the Spokane, Washington DMA, KLEW
    primarily serves the Lewiston, Idaho and 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
   3




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Northwest
    Afternoon 60-minute
    KATU TV
    and KUNP TV, Portland, Oregon
    AM Northwest
    KVAL TV,
    KCBY TV, KPIC TV, Eugene, Coos Bay and Roseburg,
    Oregon
  ,
   4




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##### Table of Contents



KIMA TV,
    KEPR TV, KLEW TV, KKFQ CA, KWWA CA, KVVK CA, KORX CA, Yakima and
    Tri-Cities,
    Washington and Lewiston, Idaho.
  Tri-Cities), Tri-Cities
        KBCI TV
    and KUNB LP, Boise, Idaho
  Hewlett-Packard
  st nd rd
   5




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##### Table of Contents



KIDK TV
    and KPPP LP, Idaho Falls-Pocatello, Idaho
    nd
    Television
    Broadcasting Industry
        Television
    Broadcasting Competition
   6




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Audience. non-network non-network
      Programming.
  Advertising. make-up
 7




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Radio
    Markets and Stations
  Seattle
    Radio
    NationalMarketMarket

Station

Dial Position

Power

Rank(1)

FormatSeattle, WA














14KOMO AM



1000 kHz



50 kW






NewsKVI AM



570 kHz



5 kW






TalkKPLZ -FM



101.5 MHz



100 kW






Hot Adult Contemporary     (1)
    
    National Market Rank for Seattle, WA is based on 2007 data from
    the Arbitron Company.      Fisher
    Radio Regional Group
    Radio
    Broadcasting Industry
      Radio
    Broadcasting Competition
   8




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KOMO-AM
  Audience.
    Advertising. make-up
 9




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Internet
    and Digital Television
  Internet
    Property

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.comKUNS-TV

Seattle-Tacoma, WA

www.univisionseattle.comKATU-TV

Portland, OR

www.katu.comKUNP-TV

Portland, OR

www.univisionportland.comKVAL-TV

Eugene, OR

www.kval.comKCBY-TV

Coos Bay, OR

www.kcby.comKPIC-TV

Roseburg, OR

www.kpic.comKIMA-TV

Yakima, WA

www.kimatv.comKEPR-TV

Pasco/Richland/Kennewick, WA

www.keprtv.comKLEW-TV

Lewiston, ID

www.klewtv.comKBCI-TV

Boise, ID

www.2news.tvKIDK-TV

Idaho Falls-Pocatello, ID

www.kidk.comPegasus News

Dallas, TX

www.pegasusnews.com   Competition.
  Audience.
  Advertising.
 10




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




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




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Station

Market Area

Expiration DateKOMO TV

Seattle-Tacoma, WA

February 1, 2015KUNS TV

Seattle-Tacoma, WA

February 1, 2015KATU TV

Portland, OR

February 1, 2007(1)KUNP TV

LaGrande, OR

February 1, 2015KUNP LP

Portland, OR

February 1, 2015KVAL TV

Eugene, OR

February 1, 2015KCBY TV

Coos Bay, OR

February 1, 2015KPIC TV

Roseburg, OR

February 1, 2015KIMA TV

Yakima, WA

February 1, 2015KEPR TV

Pasco/Richland/Kennewick, WA

February 1, 2015KKFQ CA

Yakima, WA

February 1, 2015KWWA CA

Ellensburg, WA

February 1, 2015KVVK CA

Pasco/Richland/Kennewick, WA

February 1, 2015KORX CA

Walla-Walla, WA

February 1, 2015KLEW TV

Lewiston, ID

October 1, 2014KBCI TV

Boise, ID

October 1, 2014KUNB LP

Boise, ID

October 1, 2014KIDK TV

Idaho Falls-Pocatello, ID

October 1, 2014KPPP LP

Pocatello, ID

October 1, 2014     (1)
    
    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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Local
    Television Ownership Limits
    Local
    Radio Ownership Limits
    Cross-Ownership
    Restrictions
    English-language
    Local Marketing Agreements. case-by-case
 14




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




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




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Analog

Digital

CurrentlyChannel

Channel

Broadcasting inStation

Market Area

Allocation

Allocation

Digital Format(1)KOMO TV

Seattle-Tacoma, WA


4



38


Yes (HDTV)KUNS TV

Seattle-Tacoma, WA


51



50


YesKATU TV

Portland, OR


2



43


Yes (HDTV)KUNP TV

LaGrande, OR


16






NoKUNP LP

Portland, OR


47






NoKVAL TV

Eugene, OR


13



25


Yes (HDTV)KCBY TV

Coos Bay, OR


11



21


YesKPIC TV

Roseburg, OR


4



19


YesKIMA TV

Yakima, WA


29



33


Yes (HDTV)KEPR TV

Pasco/Richland/Kennewick, WA


19



18


Yes (HDTV)KKFQ CA

Yakima, WA


2



32


NoKWWA CA

Ellensburg, WA


49






NoKVVK CA

Pasco/Richland/Kennewick, WA


15



34


NoKORX CA

Walla-Walla, WA


16






NoKLEW TV

Lewiston, ID


3



32


Yes (HDTV)KBCI TV

Boise, ID


2



28


Yes (HDTV)KUNB LP

Boise, ID


35






NoKIDK TV

Idaho Falls-Pocatello, ID


3



36


YesKPPP LP

Pocatello, ID


24






No     (1)
    
    The FCC set 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. 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. KUNP, La Grande was not
    originally granted a paired DTV channel. These three full power
    stations were not on the list of compliant stations due to the
    election of remaining on, or returning to their current analog
    channel for digital transmission (known as flash-cut).
    Congressional legislation sets 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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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.
  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; 18




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
    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 media,
    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.
  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
    Changes
    in FCC regulations regarding ownership have increased the
    uncertainty surrounding the competitive position of our stations
    in the markets we serve.
   21




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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.
     23




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Dependence
    on key personnel may expose us to additional
    risks.
    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.
   24




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##### Table of Contents



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.
  Our
    operations may be adversely affected by earthquakes and other
    natural catastrophes in the Northwest or
    California.
    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   25




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##### Table of Contents



Spanish-language 30-year
     
  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 Ranges2007


2006Quarter

High


Low


High


Low1st

$
48.60


$
41.32


$
44.75


$
41.432nd


51.90



47.16



44.94



41.513rd


51.99



44.77



44.36



38.894th


50.94



35.10



45.73



39.91     Dividends
   26




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Stock
    Performance Graph
    5-year
  COMPARISON
    OF 5 YEAR CUMULATIVE TOTAL RETURN*
    Among Fisher Communications, Inc., The S&P 500 Index
    And A Peer Group
  
  *
    
    $100 invested on 12/31/02 in stock or index-including
    reinvestment of dividends. Fiscal year ending December 31.  ©
  12/02


12/03


12/04


12/05


12/06


12/07Fisher Communications, Inc.



100.00




95.81




92.72




78.58




83.86




72.00S&P 500



100.00




128.68




142.69




149.70




173.34




182.87Peer Group



100.00




121.65




91.22




82.63




86.34




79.90      27




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##### Table of Contents



ITEM 6.
    SELECTED
    FINANCIAL DATA  Form 10-K.
  Year Ended December 31,2007


2006


2005


2004


2003(In thousands, except per-share amounts)Revenue

$
160,424


$
154,699


$
137,086


$
141,731


$
127,083Income (loss)From continuing operations

$
30,207


$
6,256


$
(6,131
)

$
(13,039
)

$
(15,834
)From discontinued operations


1,667



10,580



1,059



1,086



24,062Net income (loss)

$
31,874


$
16,836


$
(5,072
)

$
(11,953
)

$
8,228Per share dataIncome (loss) per share  basicFrom continuing operations

$
3.46


$
0.72


$
(0.70
)

$
(1.51
)

$
(1.84
)From discontinued operations


0.19



1.21



0.12



0.12



2.80Net income (loss)

$
3.65


$
1.93


$
(0.58
)

$
(1.39
)

$
0.96Income (loss) per share assuming dilutionFrom continuing operations

$
3.46


$
0.72


$
(0.70
)

$
(1.51
)

$
(1.84
)From discontinued operations


0.19



1.21



0.12



0.12



2.80Net income (loss)

$
3.65


$
1.93


$
(0.58
)

$
(1.39
)

$
0.96   December 31,2007


2006


2005


2004


2003Working capital(1)

$
18,048


$
30,373


$
35,562


$
33,181


$
23,219Total assets(1)


485,934



497,577



440,393



435,872



396,685Total debt(1)


150,000



150,000



150,000



150,053



128,857Stockholders equity


233,397



239,565



209,621



202,453



187,804     (1)
    
    Includes discontinued operations and held for sale assets.     
  ITEM 7.
    MANAGEMENTS
    DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND RESULTS OF
    OPERATIONS  Form 10-K
 28




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Overview
              Spanish-language
 29




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African-American
          Critical
    Accounting Policies
   30




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Goodwill and indefinite-lived intangible
    assets.
    Tangible long-lived assets.
    Television and radio broadcast
    rights. program-by-program
  Pensions.
 31




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Income taxes.
  Accounting for Uncertainty in Income Taxes an interpretation
    of FASB Statement No. 109
  Allowance for doubtful accounts.
  Variable Interest Entities and/or Consolidation of
    Variable Interest Entities,
  Stock-based compensation.
 32




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Estimates.
  Consolidated
    Results of Operations
   33




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Year Ended


2007 - 2006


Year Ended


2006 - 2005December 31,


Variance


December 31,


Variance2007


2006


$


%


2005


$


%(Dollars in thousands)RevenueTelevision

$
110,817


$
107,457


$
3,360



3.1
%

$
93,083


$
14,374



15.4
%Radio


38,434



37,615



819



2.2
%


36,101



1,514



4.2
%Fisher Plaza


11,326



9,406



1,920



20.4
%


8,061



1,345



16.7
%Corporate and eliminations


(153
)


221



(374
)






(159
)


380Consolidated


160,424



154,699



5,725



3.7
%


137,086



17,613



12.8
%Direct operating costsTelevision


40,995



38,149



2,846



7.5
%


36,334



1,815



5.0
%Radio


9,861



9,746



115



1.2
%


10,498



(752
)


(7.2
)%Fisher Plaza


3,443



3,242



201



6.2
%


2,751



491



17.8
%Corporate and eliminations


1,875



1,656



219



13.2
%


1,562



94



6.0
%Consolidated


56,174



52,793



3,381



6.4
%


51,145



1,648



3.2
%Selling, general and administrative expensesTelevision


35,382



31,255



4,127



13.2
%


34,173



(2,918
)


(8.5
)%Radio


16,518



15,442



1,076



7.0
%


14,765



677



4.6
%Fisher Plaza


512



508



4



0.8
%


1,128



(620
)


(55.0
)%Corporate and eliminations


7,868



6,770



1,098



16.2
%


8,647



(1,877
)


(21.7
%)Consolidated


60,280



53,975



6,305



11.7
%


58,713



(4,738
)


(8.1
)%Amortization of program rightsTelevision


8,186



8,396



(210
)


(2.5
)%


9,959



(1,563
)


(15.7
)%Radio


10,500



10,250



250



2.4
%


10,000



250



2.5
%Consolidated


18,686



18,646



40



0.2
%


19,959



(1,313
)


(6.6
)%Depreciation and amortizationTelevision


7,024



6,016



1,008



16.8
%


7,940



(1,924
)


(24.2
)%Radio


937



888



49



5.5
%


1,106



(218
)


(19.7
)%Fisher Plaza


3,305



3,116



189



6.1
%


3,544



(428
)


(12.1
)%Corporate and eliminations


286



257



29



11.3
%


245



12



4.9
%Consolidated


11,552



10,277



1,275



12.4
%


12,835



(2,558
)


(19.9
)%Income (loss) from operationsTelevision


19,230



23,641



(4,411
)






4,677



18,964Radio


618



1,289



(671
)






(268
)


1,557Fisher Plaza


4,066



2,540



1,526







638



1,902Corporate and eliminations


(10,182
)


(8,462
)


(1,720
)






(10,613
)


2,151Consolidated


13,732



19,008



(5,276
)






(5,566
)


24,574Other income, net


45,688



3,881



41,807







3,629



252Interest expense, net


(13,671
)


(13,956
)


285







(13,726
)


(230
)Income (loss) from continuing operations before income taxes


45,749



8,933



36,816







(15,663
)


24,596Provision (benefit) for federal and state income taxes


15,542



2,677



12,865







(9,532
)


12,209Income (loss) from continuing operations


30,207



6,256



23,951







(6,131
)


12,387Income from discontinued operations, net of income taxes


1,667



10,580



(8,913
)






1,059



9,521Net Income (loss)

$
31,874


$
16,836


$
15,038






$
(5,072
)

$
21,908  34




---



##### Table of Contents



Comparison
    of Fiscal Years Ended December 31, 2007, December 31,
    2006, and December 31, 2005
  Revenue
  Spanish-language
  Spanish-language
  Spanish-language Spanish-language
          Direct
    operating costs
    Spanish-language
 35




---



##### Table of Contents



Spanish-language
        Selling,
    general and administrative expenses
  Spanish-language
           36




---



##### Table of Contents



Amortization
    of program rights
      Depreciation
    and amortization
    Other
    income, net
      Interest
    expense, net
      Provision
    (benefit) for federal and state income taxes
   37




---



##### Table of Contents



Income
    from discontinued operations, net of income taxes
    Liquidity
    and Capital Resources
            Spanish-language
   38




---



##### Table of Contents



Debt


Interest


Broadcast


Other


Lease12 Months Ending December 31

Maturities


Payments


Rights


Obligations


Obligations


Total2008

$



$
12,938


$
17,513


$
4,435


$
1,917


$
36,8032009






12,938



8,625



1,920



1,760



25,2432010






12,938



8,567



1,920



1,710



25,1352011






12,938



7,050



960



1,642



22,5902012






12,938



3,479







1,649



18,066Thereafter


150,000



25,873











3,621



179,494$
150,000


$
90,563


$
45,234


$
9,235


$
12,299


$
307,331  39




---



##### Table of Contents



Recent
    Accounting Pronouncements
  Fair Value
    Measurements
  No. FAS 157-b, Fair Value Measurements
  The Fair Value Option for
    Financial Assets and Financial Liabilities  Including
    an amendment to FASB Statement No. 115
  purchase method
   40




---



##### Table of Contents



ITEM 7A.
    QUANTITATIVE
    AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS    Interest
    Rate Exposure
      Marketable
    Securities Exposure
     
  ITEM 8.
    FINANCIAL
    STATEMENTS AND SUPPLEMENTARY DATA   
  ITEM 9.
    CHANGES
    IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
    FINANCIAL DISCLOSURE   41




---



##### Table of Contents



ITEM 9A
    CONTROLS
    AND PROCEDURES  Rules 13a-15(e) 15d-15(e)
    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
   42




---



##### 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 Issuance216,625

$45.61

318,875  
  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, 2007, 2006, and 2005
    Consolidated Balance Sheets at December 31, 2007 and 2006
    Consolidated Statements of Stockholders Equity for the
    years ended December 31, 2007, 2006, and 2005
    Consolidated Statements of Cash Flows for the years ended
    December 31, 2007, 2006, and 2005
    Consolidated Statements of Comprehensive Income for the years
    ended December 31, 2007, 2006, and 2005
    Notes to Consolidated Financial Statements  Financial Statement Schedules:
  
    Schedule II  Valuation and Qualifying Accounts
    for the years ended December 31, 2007, 2006, and 2005    Exhibits: See
    Exhibit Index.
 43




---



##### Table of Contents



Report of
    Independent Registered Public Accounting Firm
     Internal Control  Integrated
    Framework
        
     44




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF OPERATIONS
  Year Ended December 312007


2006


2005(In thousands, except per-shareamounts)Revenue

$
160,424


$
154,699


$
137,086Costs and expensesDirect operating costs (exclusive of annual depreciation and
    amortization of $9,549, $8,488 and $10,749, respectively, and
    amortization of program rights of $18,686, $18,646 and $19,959,
    respectively, reported separately below)


56,174



52,793



51,145Selling, general and administrative expenses


60,280



53,975



58,713Amortization of program rights


18,686



18,646



19,959Depreciation and amortization


11,552



10,277



12,835146,692



135,691



142,652Income (loss) from operations


13,732



19,008



(5,566
)Other income, net


45,688



3,881



3,629Interest expense, net


(13,671
)


(13,956
)


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


45,749



8,933



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


15,542



2,677



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


30,207



6,256



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


1,667



10,580



1,059Net income (loss)

$
31,874


$
16,836


$
(5,072
)Income (loss) per share:From continuing operations

$
3.46


$
0.72


$
(0.70
)From discontinued operations


0.19



1.21



0.12Net income (loss) per share

$
3.65


$
1.93


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

$
3.46


$
0.72


$
(0.70
)From discontinued operations


0.19



1.21



0.12Net income (loss) per share assuming dilution

$
3.65


$
1.93


$
(0.58
)Weighted average shares outstanding


8,723



8,713



8,678Weighted average shares outstanding assuming dilution


8,728



8,716



8,678    45




---



##### Table of Contents



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


December 312007


2006(In thousands, except share and per-share amounts)ASSETSCurrent AssetsCash and cash equivalents

$
6,510


$
7,477Restricted cash






8,473Receivables, net


30,498



30,131Deferred income taxes


785



690Prepaid expenses and other assets


3,855



3,592Television and radio broadcast rights


5,934



6,676Assets held for sale


37



19Total current assets


47,619



57,058Restricted cash


52,365Marketable securities, at market value


129,223



188,307Cash value of life insurance and retirement deposits


16,809



15,959Television and radio broadcast rights


7



1,041Goodwill


37,361



32,714Intangible assets


42,782



41,142Investment in equity investee


2,635



2,789Deferred financing fees and other assets


9,072



7,748Assets held for sale


2,053



2,612Property, plant and equipment, net


146,008



148,207Total Assets

$
485,934


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

$
3,737


$
4,600Accrued payroll and related benefits


7,614



7,008Interest payable


3,773



3,809Television and radio broadcast rights payable


4,940



5,667Income taxes payable


3,959



486Current portion of accrued retirement benefits


1,230



1,200Other current liabilities


4,218



3,626Liabilities of businesses held for sale


100



289Total current liabilities


29,571



26,685Long-term debt


150,000



150,000Accrued retirement benefits


18,552



18,386Deferred income taxes


45,274



54,414Other liabilities


9,140



8,527Commitments and ContingenciesStockholders EquityCommon stock, shares authorized 12,000,000, $1.25 par
    value; issued and outstanding 8,725,516 in 2007 and 8,720,091 in
    2006


10,907



10,900Capital in excess of par


10,220



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


82,818



121,441Accumulated loss


(1,958
)


(1,735
)Prior service cost


(181
)


(212
)Retained earnings


131,591



99,717Total Stockholders Equity


233,397



239,565Total Liabilities and Stockholders Equity

$
485,934


$
497,577    46




---



##### 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, 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 loss






















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



239,565Net income






















31,874



31,874Other comprehensive loss


















(38,815
)






(38,815
)Stock-based compensation










733















733Issuance of common stock under awards, rights and options, and
    related tax benefit


5,425



7



33















40Balance December 31, 2007


8,725,516


$
10,907


$
10,220


$



$
80,679


$
131,591


$
233,397    47




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  Year Ended December 312007


2006


2005(In thousands)Cash flows from operating activitiesNet income (loss)

$
31,874


$
16,836


$
(5,072
)Adjustments to reconcile net income (loss) to net cash provided
    by operating activitiesDepreciation and amortization


11,552



10,385



13,085Deferred income taxes


10,760



2,636



(8,991
)Equity in operations of equity investees


4



(30
)


(46
)Amortization of deferred financing fees


633



633



646Amortization of program rights


18,686



18,646



19,959Payments for television and radio broadcast rights


(17,645
)


(17,633
)


(18,953
)Gain on sale of radio stations


(1,491
)


(9,971
)Gain on sale of marketable securities


(40,421
)Dividends from equity investee


150







112Stock-based compensation


733



473Other


(21
)


224



229Change in operating assets and liabilitiesReceivables


(356
)


(1,964
)


(573
)Prepaid expenses and other assets


(281
)


201



(642
)Cash value of life insurance and retirement deposits


(850
)


(656
)


(332
)Other assets


693



(440
)


(260
)Trade accounts payable, accrued payroll and related benefits,
    interest payable, and other current liabilities


57



1,012



(781
)Income taxes receivable and payable


3,473



1,472



2,369Accrued retirement benefits


196



(618
)


677Other liabilities


(583
)


3,527



4,146Net cash provided by operating activities


17,163



24,733



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










1,585Purchase of marketable securities


(924
)Proceeds from sale of marketable securities


41,009







247Restricted cash


(43,892
)


(8,473
)Proceeds from sale of radio stations


2,869



23,238Payment for options to purchase television stations






(1,100
)Deposits paid for purchase of television stations


(2,750
)Purchase of television stations


(4,931
)


(35,681
)Purchase of online news service


(1,482
)Proceeds from sale of commercial property and property, plant
    and equipment


1,250







418Purchase of property, plant and equipment


(9,273
)


(15,431
)


(7,523
)Net cash used in investing activities


(18,124
)


(37,447
)


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










(53
)Borrowings under borrowing agreements


6,000



15,000Payments on borrowing agreements


(6,000
)


(15,000
)Payment of deferred financing fees










(87
)Payment of capital lease obligation


(45
)Proceeds from exercise of stock options


39



546



3,437Excess tax benefit from exercise of stock options






23Net cash provided by (used in) financing activities


(6
)


569



3,297Net increase (decrease) in cash and cash equivalents


(967
)


(12,145
)


3,597Cash and cash equivalents, beginning of period


7,477



19,622



16,025Cash and cash equivalents, end of period

$
6,510


$
7,477


$
19,622    48




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  CONSOLIDATED
    STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
  Year Ended December 312007


2006


2005(In thousands)Net income (loss)

$
31,874


$
16,836


$
(5,072
)Other comprehensive income:Unrealized gain (loss) on marketable securities


(18,998
)


18,217



12,779Effect of income taxes


6,649



(6,377
)


(4,473
)Accumulated loss


(343
)


673



56Effect of income taxes


120



(235
)


(20
)Prior service cost


48



(326
)Effect of income taxes


(17
)


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


(40,421
)






(163
)Effect of income taxes


14,147







57Other comprehensive Income (loss)


(38,815
)


12,066



8,236Comprehensive income (loss)

$
(6,941
)

$
28,902


$
3,164    49




---



##### 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
 50




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Marketable securities
  Concentration of credit risk
  Television and radio broadcast rights program-by-program
  Investments in equity investees
  Goodwill and indefinite-lived intangible assets
   51




---



##### Table of Contents



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


1055 yearsMachinery and equipment


325 yearsLand improvements


1030 years   Accounting for the Impairment or Disposal of Long-Lived
    Assets
  Tangible long-lived assets
   52




---



##### 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 and/or Consolidation of Variable Interest Entities,
  Advertising
  Operating leases
  Capital leases
  Income taxes
 53




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Accounting for Uncertainty in
    Income Taxes  an
    interpretation of FASB Statement No. 109
  Earnings per share
    Year Ended December 31

2007


2006


2005Net income (loss)

$
31,874


$
16,836


$
(5,072
)Weighted average shares outstanding  basic


8,723



8,713



8,678Weighted effect of dilutive options and rights


5



3Weighted average shares outstanding assuming dilution


8,728



8,716



8,678Basic net income (loss) per share

$
3.65


$
1.93


$
(0.58
)Diluted net income (loss) per share

$
3.65


$
1.93


$
(0.58
)     Stock-based compensation
   54




---



##### Table of Contents



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

$
(5,072
)Add: stock-based compensation included in net loss, net of tax


221Deduct: total stock-based compensation determined under fair
    value method for all awards, net of tax


(1
)Pro forma net loss

$
(4,852
)Basic and diluted net loss per share:As reported

$
(0.58
)Pro forma

$
(0.56
)   Reclassifications
  Recent
    accounting pronouncements
  The Fair Value Option for
    Financial Assets and Financial Liabilities  Including
    an amendment to FASB Statement No. 115
 55




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Fair Value Measurements
  No. FAS 157-b, Fair Value Measurements
  purchase method
    NOTE 2
  Discontinued
    Operations
   56




---



##### 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

2007


2006


2005Revenue

$
1,929


$
8,507


$
12,233Income from discontinued operations:Discontinued operating activities

$
271


$
938


$
1,629Gain on sale


2,294



15,3392,565



16,277



1,629Income tax effect


(898
)


(5,697
)


(570
)Income from discontinued operations

$
1,667


$
10,580


$
1,059     December 31

2007


2006Goodwill

$
645


$
1,129Property, plant and equipment, net


643



718Intangible assets


765



765Other assets


37



19Assets held for sale

$
2,090


$
2,631Liabilities of businesses held for sale

$
100


$
289   NOTE 3
  Sale
    of Safeco Corporation Common Stock
   57




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 4
  Acquisitions
  Spanish-language
  Intangible assets  FCC license (indefinite life,
    non-amortizing)

$
1,400Goodwill
    (non-amortizing,
    tax deductible)


3,417Property, plant and equipment


214$
5,031     Intangible assets  Technology (useful life of
    4 years)

$
270Goodwill
    (non-amortizing,
    tax deductible)


1,231Property, plant and equipment


15Other


4$
1,520   African-American
  Intangible assets  FCC license (indefinite life,
    non-amortizing)

$
24,012Property, plant and equipment


790Deferred tax liabilities


(8,626
)$
16,176    58




---



##### Table of Contents



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

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


2,593Property, plant and equipment


161$
19,554   Rule 3-05 Regulation S-X
  NOTE 5
  Receivables
    December 31

2007


2006Trade accounts

$
29,580


$
26,978Other


1,769



3,61431,349



30,592Less-Allowance for doubtful accounts


851



461Total receivables

$
30,498


$
30,131     NOTE 6
  Investments
    in Equity Investee
     59




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Balance, December 31, 2004

$
2,825Dividends


(112
)Equity in net income


46Balance, December 31, 2005


2,759Equity in net income


30Balance, December 31, 2006


2,789Dividends


(150
)Equity in net loss


(4
)Balance, December 31, 2007

$
2,635   NOTE 7
  Goodwill
    and Intangible Assets
    ,
 60




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 8
  Property,
    Plant and Equipment
    December 31

2007


2006Building and improvements

$
132,865


$
132,323Machinery and equipment


119,478



113,316Land and improvements


7,369



7,369259,712



253,008Less-Accumulated depreciation


113,704



104,801Total

$
146,008


$
148,207       Year

Rentals2008

$
3,1002009


2,2102010


1,8342011


1,4732012


1,173Thereafter


2,580$
12,370     NOTE 9
  Long
    Term Debt
  Long-term
    debt and borrowing agreements
   61




---



##### 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.       62




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 10
  Television
    and Radio Broadcast Rights and Other Broadcast
    Commitments
        NOTE 11
  Stockholders
    Equity
  Transition Election Accounting for the Tax Effects of
    Share-Based Payment Awards.
    Stock options
 63




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  Restricted stock rights
  Stock awards
  Determining
    Fair Value Under SFAS 123(R)
  Valuation and Amortization Method.
  Expected Life.
  Expected Volatility.
  Risk-Free Interest Rate.
  Expected Dividend Yield.
  Expected Forfeitures.
 64




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    Year Ended December 312007


2006


2005Assumptions:Weighted average risk-free interest rate


4.5
%


4.6
%


4.1
%Expected dividend yield


0.00
%


0.00
%


0.00
%Expected volatility


28.6
%


31.3
%


30.8
%Expected life of options


6 years



6 years



6 yearsWeighted average fair value at date of grant

$
17.15


$
17.25


$
19.27   Stock-based
    Compensation Under SFAS 123(R)
        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  65




---



##### Table of Contents



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











20,550



44.51Options and stock rights granted


15,000



45.73











2,000



45.90Options exercised/stock rights vested


(920
)


42.70











(4,630
)


40.92Options expired


(12,060
)


57.50Options and stock rights forfeited


(3,200
)


42.70











(800
)


42.70Outstanding at December 31, 2007


199,505


$
49.52



5.94


$
11,550



17,120


$
44.73Exercisable at December 31, 2007


111,965


$
52.92



4.01


$
11,550      66




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 12
  Income
    Taxes
    Year Ended December 31

2007


2006


2005Current tax expense (benefit)Continuing operations

$
3,959


$
465


$
29Discontinued operations






213,959



486



29Deferred tax expense (benefit)Continuing operations


11,583



2,212



(9,561
)Discontinued operations


898



5,676



57012,481



7,888



(8,991
)Total

$
16,440


$
8,374


$
(8,962
)Income taxes are allocated as follows:Continuing operations

$
15,542


$
2,677


$
(9,532
)Discontinued operations


898



5,697



570$
16,440


$
8,374


$
(8,962
)     Year Ended December 31

2007


2006


2005Normal expense (benefit) computed at 35% of pretax income

$
16,012


$
3,127


$
(5,482
)Dividends received deduction


(1,022
)


(820
)


(690
)State taxes, net of federal tax benefit


209



733



(119
)Change in state tax valuation allowance


(209
)


(733
)


119Pension death and disability benefits, and increases in pension
    values


(276
)


(301
)


(291
)Non-deductible expenses


361



325



252Worthless stock deduction of liquidated subsidiary










(3,437
)Other


467



346



116$
15,542


$
2,677


$
(9,532
)  67




---



##### Table of Contents



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

2007


2006AssetsAccrued employee benefits

$
8,697


$
8,150Allowance for doubtful accounts


324



171Net operating loss carryforwards


947



8,936Contract termination charge


1,827



1,955Other






1,01511,795



20,227LiabilitiesMarketable securities


(35,675
)


(53,791
)Property, plant and equipment


(8,711
)


(11,645
)Goodwill and intangible assets


(10,610
)


(7,491
)Prepaid insurance


(424
)


(427
)Other


(476
)(55,896
)


(73,354
)Valuation allowance


(388
)


(597
)Net

$
(44,489
)

$
(53,724
)Current


785



690Noncurrent


(45,274
)


(54,414
)$
(44,489
)

$
(53,724
)         agreed-upon
 68




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 13
  Retirement
    Benefits
    Employers Accounting for Settlements and
    Curtailments of Defined Benefit Pension Plans and for
    Termination Benefits
    Year Ended December 31

2007


2006Projected benefit obligation, beginning of year

$
18,935


$
19,559Service costInterest cost


1,063



1,039Assumption changes


192



(690
)Actuarial loss


240



226Benefit payments


(1,139
)


(1,199
)Projected benefit obligation, end of year

$
19,291


$
18,935Unfunded status

$
19,291


$
18,935Accumulated loss


(3,111
)


(2,722
)Net amount recognized

$
16,180


$
16,213     December 31

2007


2006Accrued pension liability

$
19,291


$
18,935Accumulated other comprehensive loss


(3,111
)


(2,722
)Net amount recognized

$
16,180


$
16,213  69




---



##### Table of Contents



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

2006Discount rate


5.88
%


5.80
%Rate of compensation  increase


N/A



N/A       Year Ended December 31

2007


2006


2005Service cost

$



$



$
80Interest cost


1,063



1,039



1,028Amortization of transition obligation










52Recognition of remaining transition obligation, curtailment loss










451Amortization of loss


43



154



267Net periodic pension cost

$
1,106


$
1,193


$
1,878     2007

2006

2005Discount rate


5.80
%


5.48
%

5.02% - 5.74%Rate of compensation increase


NA



NA


0.00% - 3.00%         PostretirementSupplemental


Health InsuranceRetirement Program


Program2008

$
1,198


$
692009


1,169



742010


1,171



642011


1,207



672012


1,286



70Next 5 years


7,343



279    70




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
    NOTE 14
  Segment
    Information
      Revenue
  Year Ended December 31

2007


2006


2005Television

$
110,817


$
107,457


$
93,083Radio


38,434



37,615



36,101Fisher Plaza


11,326



9,406



8,061Corporate and eliminations


(153
)


221



(159
)$
160,424


$
154,699


$
137,086   Depreciation
    and amortization
  Year Ended December 31

2007


2006


2005Television

$
7,024


$
6,016


$
7,940Radio


937



888



1,106Fisher Plaza


3,305



3,116



3,544Corporate and eliminations


286



257



245$
11,552


$
10,277


$
12,835     Year Ended December 31

2007


2006


2005Television

$
19,620


$
23,903


$
5,032Radio


668



1,377



(177
)Fisher Plaza


4,068



2,542



627Corporate and eliminations


35,064



(4,933
)


(7,419
)Total segment income (loss) from continuing operations before
    interest and income taxes

$
59,420


$
22,889


$
(1,937
)  71




---



##### Table of Contents



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

2007


2006


2005Total segment income (loss) from continuing operations before
    interest and income taxes

$
59,420


$
22,889


$
(1,937
)Interest expense


(13,671
)


(13,956
)


(13,726
)Consolidated income (loss) from countinuting operations before
    income taxes

$
45,749


$
8,933


$
(15,663
)     Total
    assets
  December 31

2007


2006Television

$
136,341


$
130,994Radio


20,030



24,436Fisher Plaza


117,688



119,872Corporate and eliminations


209,785



219,644483,844



494,946Assets held for sale


2,090



2,631$
485,934


$
497,577   Goodwill
  December 31

2007


2006Television

$
29,145


$
24,498Radio


8,216



8,216$
37,361


$
32,714   Capital
    expenditures
  Year Ended December 31

2007


2006


2005Television

$
4,833


$
8,304


$
4,260Radio


438



841



595Fisher Plaza


3,488



6,120



2,361Corporate and eliminations


514



166



307$
9,273


$
15,431


$
7,523      72




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 15
  Commitments
    and Contingencies
    Capital


OperatingYear

Leases


Leases2008


873



1,0442009


900



8602010


926



7842011


954



6882012


983



666Thereafter


1,621



2,0006,257


$
6,042Less executory costs


(4,711
)Net minimum lease payments


1,546Less amounts representing interest


(342
)Present value of net minimum lease payments


1,204Less current portion of obligations under capital leases


(144
)Long-term portion of obligations under capital leases

$
1,060       NOTE 16
  Subsequent
    Event
    Intangible assets  FCC licenses (indefinite life,
    non-amortizing)

$
30,200Intangible assets  Network affiliation agreement


3,200Goodwill
    (non-amortizing,
    tax deductible)


15,850Property, plant and equipment


6,000$
55,250  73




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
  NOTE 17
  Interim
    Financial Information (Unaudited)
      First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter


AnnualRevenue2007

$
34,243


$
41,299


$
40,798


$
44,084


$
160,4242006

$
31,081


$
40,190


$
38,712


$
44,716


$
154,699Income (loss) from continuing operations2007

$
(1,268
)

$
699


$
(601
)

$
31,377


$
30,2072006

$
(1,787
)

$
1,792


$
(784
)

$
7,035


$
6,256Income from discontinued operations2007

$
23


$
1,557


$
68


$
19


$
1,6672006

$
86


$
476


$
113


$
9,905


$
10,580Net income (loss)2007

$
(1,245
)

$
2,256


$
(533
)

$
31,396


$
31,8742006

$
(1,701
)

$
2,268


$
(671
)

$
16,940


$
16,836Income (loss) per share  basic:From continuing operations2007

$
(0.14
)

$
0.08


$
(0.07
)

$
3.60


$
3.462006

$
(0.21
)

$
0.21


$
(0.09
)

$
0.81


$
0.72From discontinued operations2007

$



$
0.18


$
0.01


$



$
0.192006

$
0.01


$
0.05


$
0.01


$
1.13


$
1.21Net income (loss)2007

$
(0.14
)

$
0.26


$
(0.06
)

$
3.60


$
3.652006

$
(0.20
)

$
0.26


$
(0.08
)

$
1.94


$
1.93Income (loss) per share, assuming dilution:From continuing operations2007

$
(0.14
)

$
0.08


$
(0.07
)

$
3.60


$
3.462006

$
(0.21
)

$
0.21


$
(0.09
)

$
0.81


$
0.72From discontinued operations2007

$



$
0.18


$
0.01


$



$
0.192006

$
0.01


$
0.05


$
0.01


$
1.13


$
1.21Net income (loss)2007

$
(0.14
)

$
0.26


$
(0.06
)

$
3.60


$
3.652006

$
(0.20
)

$
0.26


$
(0.08
)

$
1.94


$
1.93    74




---



##### Table of Contents



FISHER
    COMMUNICATIONS, INC. AND SUBSIDIARIES
  NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS  (Continued)
      NOTE 18
  Financial
    Information for Guarantors
     75




---



##### 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, 2007
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


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

$



$
160,443


$
(19
)

$
160,424Costs and expenses Direct operating costs






55,975



199



56,174Selling, general and administrative expenses


9,893



50,605



(218
)


60,280Amortization of program rights






18,686







18,686Depreciation and amortization


286



11,266







11,55210,179



136,532



(19
)


146,692Income (loss) from operations


(10,179
)


23,911







13,732Other income, net


45,209



479







45,688Equity in income of subsidiaries


17,083







(17,083
)


Interest expense, net


(13,639
)


(32
)






(13,671
)Income (loss) from continuing operations before income taxes


38,474



24,358



(17,083
)


45,749Provision for federal and state income taxes


6,600



8,942







15,542Income (loss) from continuing operations


31,874



15,416



(17,083
)


30,207Income from discontinued operations net of income taxes






1,667







1,667Net income (loss)

$
31,874


$
17,083


$
(17,083
)

$
31,874  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

$



$
154,712


$
(13
)

$
154,699Costs and expenses Direct operating costs






52,616



177



52,793Selling, general and administrative expenses


8,496



45,669



(190
)


53,975Amortization of program rights






18,646







18,646Depreciation and amortization


257



10,020







10,2778,753



126,951



(13
)


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

$



$
137,099


$
(13
)

$
137,086Costs and expenses Direct operating costs






51,019



126



51,145Selling, general and administrative expenses


10,018



48,834



(139
)


58,713Amortization of program rights






19,959







19,959Depreciation and amortization


243



12,592







12,83510,261



132,404



(13
)


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 Balance Sheet
 as of
    December 31, 2007
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)ASSETSCurrent AssetsCash and cash equivalents

$
5,804


$
706


$



$
6,510Receivables, net


582



29,916







30,498Due from affiliate






40,567



(40,567
)Deferred income taxes


123



662







785Prepaid expenses and other assets


237



3,618







3,855Television and radio broadcast rights






5,934







5,934Assets held for sale






37







37Total current assets


6,746



81,440



(40,567
)


47,619Restricted cash


52,365











52,365Marketable securities, at market value


128,201



1,022







129,223Investment in consolidated subsidiaries


270,717







(270,717
)Cash value of life insurance and retirement deposits


16,809











16,809Television and radio broadcast rights






7







7Goodwill, net






37,361







37,361Intangible assets






42,782







42,782Investments in equity investee






2,635







2,635Deferred financing fees and other assets


3,913



5,159







9,072Assets held for sale






2,053







2,053Property, plant and equipment, net


1,030



144,978







146,008Total Assets

$
479,781


$
317,437


$
(311,284
)

$
485,934LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesTrade accounts payable

$
924


$
2,813


$



$
3,737Due to affiliate


40,567







(40,567
)Accrued payroll and related benefits


1,656



5,958







7,614Interest payable


3,773











3,773Television and radio broadcast rights payable






4,940







4,940Income taxes payable






3,959







3,959Current portion of accrued retirement benefits


1,230











1,230Other current liabilities


1,033



3,185







4,218Liabilities of businesses held for sale






100







100Total current liabilities


49,183



20,955



(40,567
)


29,571Long-term debt


150,000











150,000Accrued retirement benefits


18,552











18,552Deferred income taxes


28,590



16,684







45,274Other liabilities


59



9,081







9,140Stockholders EquityCommon stock


10,907



1,131



(1,131
)


10,907Capital in excess of par


10,220



164,234



(164,234
)


10,220Accumulated other comprehensive income  net of income
    taxes:Unrealized gain on marketable securities


82,818











82,818Accumulated loss


(1,958
)










(1,958
)Prior service cost


(181
)










(181
)Retained earnings


131,591



105,352



(105,352
)


131,591Total Stockholders Equity


233,397



270,717



(270,717
)


233,397Total Liabilities and Stockholders Equity

$
479,781


$
317,437


$
(311,284
)

$
485,934  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 Assets Cash 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 and other assets


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


1,282



5,726







7,008Interest payable


3,809











3,809Television and radio broadcast rights payable






5,667







5,667Income taxes payable






486







486Current portion of accrued retirement benefits


1,200











1,200Other current liabilities


950



2,676







3,626Liabilities of businesses held for sale






289







289Total current liabilities


26,141



18,968



(18,424
)


26,685Long-term debt


150,000











150,000Accrued retirement benefits


18,301



85







18,386Deferred 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 compensation Accumulated 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 Statement of Cash Flows
 for the
    Year Ended December 31, 2007
  100%





FisherFisher


Owned





Communications,Communications,


Guarantor





Inc. andInc.


Subsidiaries


Eliminations


Subsidiaries(In thousands)Net cash provided by operating activities

$
9,492


$
6,604


$
1,067


$
17,163Cash flows from investing activitiesPurchase of marketable securities






(924
)






(924
)Proceeds from sale of marketable securities


40,598



411







41,009(Increase) decrease in restricted cash


(52,365
)


8,473







(43,892
)Proceeds from sale of radio stations






2,869







2,869Deposit paid for purchase of television stations






(2,750
)






(2,750
)Purchase of television stations






(4,931
)






(4,931
)Purchase of online news service






(1,482
)






(1,482
)Proceeds from sale of property, plant and equipment






1,250







1,250Purchase of property, plant and equipment


(504
)


(8,769
)






(9,273
)Net cash used in investing activities


(12,271
)


(5,853
)






(18,124
)Cash flows from financing activities Borrowings under
    borrowing agreements


6,000











6,000Payments on borrowing agreements


(6,000
)










(6,000
)Payment of capital lease obligation






(45
)






(45
)Proceeds from exercise of stock options


39











39Net cash provided by (used in) financing activities


39



(45
)






(6
)Net increase (decrease) in cash and cash equivalents


(2,740
)


706



1,067



(967
)Cash and cash equivalents, beginning of period


8,544







(1,067
)


7,477Cash and cash equivalents, end of period

$
5,804


$
706


$



$
6,510  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 television stations






(35,681
)






(35,681
)Option payment for purchase of television stations






(1,100
)






(1,100
)Increase in restricted cash






(8,473
)






(8,473
)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




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##### Table of Contents



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

2007


2006


2005(In thousands)Allowance for doubtful accountsBalance at beginning of year

$
461


$
503


$
651Additions charged to expense


681



694



492Balances written off, net of recoveries


(291
)


(736
)


(640
)Balance at end of year

$
851


$
461


$
503  84




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##### 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, 2008/s/  S.
    Mae Fujita NumataS.
    Mae Fujita Numata

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

March 14, 2008/s/  Deborah
    L. BevierDeborah
    L. Bevier

Director

March 14, 2008/s/  Phelps
    K. FisherPhelps
    K. Fisher

Director

March 14, 2008/s/  Donald
    G. Graham, IIIDonald
    G. Graham, III

Director

March 14, 2008/s/  Richard
    L. HawleyRichard
    L. Hawley

Director

March 14, 2008/s/  Brian
    P. McandrewsBrian
    P. Mcandrews

Director

March 14, 2008/s/  Jerry
    A. St. DennisJerry
    A. St. Dennis

Director

March 14, 2008/s/  George
    F. Warren, JrGeorge
    F. Warren, Jr

Director

March 14, 2008/s/  William
    W. Warren, JrWilliam
    W. Warren, Jr

Director

March 14, 2008/s/  Michael
    D. WortsmanMichael
    D. Wortsman

Director

March 14, 2008  85




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##### 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 as of April 26, 2007 (filed as Exhibit 3.1 to
    the Current Report on
    Form 8-K
    dated May 2, 2007 (File
    No. 000-22439)).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*+

Amended and Restated Fisher Communications Incentive Plan of
    2001 (Filed as Appendix A to the Companys definitive
    Proxy Statement for its Annual Meeting of Shareholders held on
    April 26, 2007 (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 (filed as Exhibit 10.22 to the Companys Annual
    Report on
    Form 10-K
    dated March 14, 2007 (File
    No. 000-22439)).10
.23*

Asset Purchase Agreement dated August 3, 2007 between
    Westwind Communications L.L.C. and Fisher Broadcasting Company
    (filed as Exhibit 10.1 to the Companys Quarterly
    Report on
    Form 10-Q
    filed on November 9, 2007 (File
    No. 000-22439)).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.