S&P 500 which yielded 12.8%. Despite these returns, we  are still trading at a discount to our pre-recession  enterprise multiple and stock price. The challenge for us going-forward is how best to put our  significant free cash flow to use in order to generate  meaningful returns for our shareholders. As such, in  addition to the recently declared $0.12 quarterly dividend  per share, we have earmarked up to $36.5 million in 2011  to reinvest in our television operations in such projects as  equipment upgrades and high-definition newscasts which  will provide us either a market competitive edge or  operating efficiencies. We also recently negotiated with  our banks to reduce our borrowing costs and provide more  flexibility for us to use our cash flow, including the ability  to distribute up to $100 million per year to shareholders  and  to  pursue  television  acquisitions  should  the  opportunity arise. In 2011, we anticipate monetizing some  of our non-broadcast investments producing positive  returns which will create additional free cash for us. On the technology front, the industry continues to work  towards a mobile television offering. This past year, the  Open Mobile Video Coalition ("OMVC") conducted field  trials and consumer feedback was extremely positive. Results reflected that consumers watched broadcast  television on mobile devices in a variety of locations such  as in the workplace and while commuting and running  errands. Afternoon daytime (12pm to 5pm) was the most  watched daypart and local broadcast news the most  watched program on the mobile devices. In 2010, we joined the Mobile500 Alliance, a voluntary  coalition of leading television broadcasters reaching 92%  of the U.S. television households. The Mobile500's goal is  to "create a vibrant new growth industry…that serves the  public interest…and delivers a new generation of  affordable mobile television services to consumers." To  fully appreciate the potential of a mobile television service,  one should consider the evolution of the telephone, which  began as a land-based system and transformed into a  mobile cellular service. Today, over 85% of the U.S.  population has a mobile phone, many of these which are  capable of downloading video, games and music. We view  the future of broadcast television as heading down a  similar path whereby mobile television devices, such as  smart phones and video tablets, become as commonplace  as the in-home fixed television set. We believe the  broadcast industry's offering of video and entertainment  products is unquestionably superior to any other service  available to the market. Not only do we offer real-time,  wide screen, high quality video, but we have the most  highly-rated and popular shows to offer such as local news,  sports, and network programs. On the technology front,  we believe our broadcast infrastructure provides the most  efficient and robust delivery system compared to the  wireless phone companies, which rely on a system of small  cellular towers that deliver video on a one-to-one basis. Their delivery system often results in a low-quality picture  and inefficiencies whereby the greater the traffic on the  network, the greater the picture degradation and buffering  issues. We believe there is no amount of additional  spectrum that can mitigate this problem. Broadcasters, on  the other hand, using our over-the-air spectrum, can  provide a signal that simultaneously covers the entire  market from one transmission location. This "one-to- many" mass audience reach means that we are not subject  to the same network traffic concerns that plague the  telephone and Internet delivery platforms, resulting in a  high quality, low cost consumer experience. While the industry initiates the mobile TV model, we  continue to find alternative ways to use our spectrum  while serving the public interest. Currently, we broadcast  various program formats on our secondary digital tier  including TheCoolTV and The Country Network, both  music television networks; Estrella TV, a Spanish language  network; ThisTV, featuring movies; and MyNetworkTV's  syndicated program offering. There is no question that the consumer media landscape is  evolving. But with it comes opportunities for us to grow  and offer a broader array of solutions for our customers  and increased levels of engagement with our viewers. This  past year we launched our digital interactive new media  strategy, whose goal it is to provide local businesses  another means of engaging consumers using non- traditional media outlets including mobile devices and  social media through the Internet. Among our product  offerings are Mobi Deals, Hey It's Half Off, loyalty  programs and mobile website and design development. As we look to 2011 and beyond, we are very encouraged by  the improving economy and increased advertising demand  by the auto and political categories, areas which we expect  will drive our revenue growth, free cash flow and,  therefore, potential dividend returns. We feel confident in  the strength of the network/affiliate model, and are  especially excited about the long term prospects of a  mobile digital television service, a product that we  anticipate will change the industry and the way consumers  watch television. So despite the economic downturn and  the yet-to-come killer Internet app, we had our best  EBITDA performance and credit profile in a decade. We  believe that broadcast television with its "one-to-many"  mass audience reach, quality programming, and strong  branding capabilities will remain now and for years to  come as the dominant and most powerful advertising and  entertainment medium. We are confident in our future,  our adaptability, and our relevance to meet consumer and  business needs in this ever-changing digital world. We thank you, our shareholders, for your continued  support and look forward to our future successes. Sincerely, David D. Smith Chairman, President and CEO 1 A reconciliation of EBITDA to net  income can be found on our website:  www.sbgi.net. 2 A reconciliation of free cash flow to  net income can be found on our  website: www.sbgi.net.