$_{•}$  In February, we disclosed our intention to refinance a portion of and to amend certain terms of the Bank Credit  Agreement; and  $_{•}$  In March, we reached an agreement-in-principle with Comcast Corporation for a multi-year retransmission consent  agreement for the continued carriage of 36 stations in 22 markets owned and/or operated by us or to which we provide  sales services.  $_{•}$  Political advertising increases in even-numbered years, such as 2010, due to the advertising expenditures from candidates  running in local and national elections. In addition, political revenue has consistently risen between presidential election  or mid-term election years such as from 2004 to 2008 or from 2006 to 2010, respectively. In every fourth year, such as  2008, political advertising is usually elevated further due to presidential elections. However, due to the contentious mid- term elections our political revenues in 2010 not only exceeded 2006 results, but exceeded 2008 presidential election year  revenues as well; $_{•}$  The FCC has permitted broadcast television stations to use their digital spectrum for a wide variety of services including  multi-channel broadcasts. The FCC “must carry” rules only apply to a station’s primary digital stream; $_{•}$  A number of other broadcasters, including Sinclair, have joined together in organizations such as the OMVC, M500 and  the MCV to focus on efforts to accelerate the nationwide availability of mobile DTV service and work through  programming, distribution and aggregation opportunities. There is potential for broadcasters to create an additional  revenue stream by providing their signals to mobile devices as well as through other multi-channel initiatives;  $_{•}$  Retransmission consent rules provide a mechanism for broadcasters to seek payment from multi-channel video  programming distributors (MVPDs) who carry broadcasters’ signals. Recognition of the value of the programming  content provided by broadcasters, including local news and other programming and network programming all in HD has  generated increased local revenues; $_{•}$  Automotive-related advertising is a significant portion of our total net revenues in all periods presented and these  revenues trended downward in most of 2009 due to the economic turmoil. However, this sector has dramatically  trended upward in 2010 and into 2011 as of the date of this filing, due to improved economic conditions;  $_{•}$  Many broadcasters are enhancing/upgrading their websites to use the internet to deliver rich media content, such as  newscasts and weather updates, to attract advertisers;  $_{•}$  Seasonal advertising increases in the second and fourth quarters due to the anticipation of certain seasonal and holiday  spending by consumers;  $_{•}$  Broadcasters have found ways to increase returns on their news programming initiatives while continuing to maintain  locally produced content through the use of news sharing arrangements;  $_{•}$  Station outsourcing arrangements are becoming more common as broadcasters seek out ways to improve revenues and  margins;  $_{•}$  Advertising revenue related to the Olympics occurs in even numbered years and the Super Bowl is aired on a different  network each year. Both of these popularly viewed events can have an impact on our advertising revenues; and  $_{•}$  Compensation from networks to their affiliates in exchange for broadcasting of network programming has halted. Networks now require compensation from broadcasters for the use of network programming. Our operating revenues are derived from local and national advertisers and, to a much lesser extent, from political advertisers. From 2006 to 2010, we began to generate new local revenues from our retransmission consent agreements. Our revenues from  local advertisers had seen a continued upward trend until 2008 and 2009 when non-political revenues fell from 2007 due to the  economic recession. We saw an increase in local revenues in 2010. Revenues from national advertisers have continued to trend  downward when measured as a percentage of total broadcast revenues. We believe this trend is the result of our focus on  increasing local advertising revenues as a percentage of total advertising revenues, combined with a decrease in overall spending  by national advertisers and an increase in the number of competitive media outlets providing national advertisers multiple  alternatives in which to advertise their goods or services. Our efforts to mitigate the effect of these increasingly competitive  media outlets for national advertisers include continuing our efforts to increase local revenues and developing innovative sales and  marketing strategies to sell traditional and non-traditional services to our advertisers including the success of multi-channel digital  initiatives together with mobile DTV. In addition, our revenue success is dependent on the success and advertising spending  levels of the automotive industry.  Sources of Revenues and Costs Industry Trends  2010 Annual Report    9 