FOR IMMEDIATE RELEASE
Friday, March 7, 2008
Media General Announces Sale of WTVQ-TV in Lexington, Ky., to Morris Network, Inc.
Richmond, Va., and Savannah, Ga. – Media General, Inc. (NYSE: MEG) and Morris Network, Inc. announced today that they have signed a definitive agreement under which Morris Network will purchase the assets of Media General’s ABC television station WTVQ in Lexington, Ky. The transaction is subject to regulatory approvals and is expected to be completed in the second or third quarter of 2008. Terms were not disclosed.
On October 29, 2007, Media General announced that it was exploring the sale of five broadcast television stations in mid-sized markets in the Southeastern U.S. The other stations are WCWJ, a CW affiliate in Jacksonville, Fla.; WMBB, an ABC station in Panama City, Fla.; KALB/NALB, a NBC/CBS station in Alexandria, La., and WNEG, an independent station in Toccoa, Ga. All five stations will be presented as discontinued operations for all periods presented in Media General’s first-quarter results, including the addition of WTVQ and WCWJ to the station group presented as discontinued in the fourth quarter of 2007. Once all of the divestitures are completed, Media General will provide aggregated financial details on the group of stations sold.
Marshall N. Morton, president and chief executive officer of Media General, said, “We are pleased that the execution of our divestitures is proceeding as planned and in line with our value expectations. We will use the proceeds to reduce debt. Negotiations are nearing completion with other parties for the remaining four stations. We expect to announce definitive agreements for these sales in the coming weeks.”
Mr. Morton said, “The employees of WTVQ are responsible for many fine contributions to Media General. We thank them and wish them well in the future.”
Charles H. Morris, chairman and chief executive officer of Morris Multimedia, Inc., described the purchase as another key component of the company’s long-term growth strategy. “The acquisition represents another important strategic fit for our broadcast group led by Dean Hinson, its president. Lexington will be our largest broadcast market and features strengths that we consider crucial to long-term success. Consistent with our recent station acquisitions, WTVQ is a superior television station with a strong local presence, talented employees and a quality news product.”
WTVQ, which was acquired by Media General in 1997 as part of its acquisition of Park Communications, has approximately 90 employees.Forward-Looking Statements
About Media General
Media General is a multimedia company operating leading newspapers, television stations and online enterprises primarily in the Southeastern United States. The company’s publishing assets include three metropolitan newspapers, The Tampa Tribune, Richmond Times-Dispatch, and Winston-Salem Journal; 22 daily community newspapers in Virginia, North Carolina, Florida, Alabama and South Carolina; and more than 150 weekly newspapers and other publications. The company’s broadcasting assets include 23 network-affiliated television stations that reach more than 32 percent of the television households in the Southeast and nearly 9.5 percent of those in the United States. The company’s interactive media assets include more than 75 online enterprises that are associated with its newspapers and television stations.
About Morris Multimedia, Inc.
Morris Multimedia, Inc., founded in 1970 and headquartered in Savannah, Georgia, is one of the largest privately-owned media companies in the United States. Morris Multimedia, through its affiliate Morris Network, Inc., owns and operates the following five network affiliate television stations:
Morris Multimedia also owns and operates over 90 daily and weekly newspapers, shoppers and niche publications through its affiliate, Morris Newspaper Corporation. Morris Multimedia operates in nine states and the Caribbean.
Lou Anne J. Nabhan, Investors
Ray Kozakewicz, Media
Morris Multimedia, Inc.
Jeffrey R. Samuels
Chief Financial Officer