1. AT ONE TIME, EQUITY BROADCASTING CORP. ('EQUITY'), PARENT OF THE ASSIGNEE HEREIN, HELD AN INTEREST IN WINSTAR BROADCASTING CORPORATION ('WINSTAR'), AGAINST WHICH CHARACTER ISSUES WERE RAISED WITH REGARD TO AN APPLICATION FOR CONSTRUCTION PERMIT FOR A NEW TV STATION AT VIRGINIA BEACH, VIRGINIA. NO CHARACTER ALLEGATIONS WERE MADE AGAINST EQUITY ITSELF OR AGAINST ANY PRINCIPAL OF EQUITY. THE WINSTAR APPLICATION WAS DISMISSED MARCH 25, 2002, FOR FAILURE TO PAY THE AMOUNT OF THE APPLICANT'S AUCTION BID, WITHOUT RESOLUTION OF THE CHARACTER ALLEGATIONS. A PETITION FOR RECONSIDERATION BY A COMPETING APPLICANT REMAINS PENDING. EQUITY NO LONGER HAS ANY INTEREST IN WINSTAR OTHER THAN A RIGHT TO ANY MONETARY PROCEEDS OF THE DISPOSITION OF WINSTAR'S BROADCAST INTERESTS. 2. PRICE BROADCASTING, INC. ('PBI'), ANOTHER SUBSIDIARY OF EQUITY, WAS APPROVED AS THE ASSIGNEE OF THE CONSTRUCTION PERMIT FOR KUTF(TV) PRICE, UTAH, FILE NO. BAPCT-20011124AAW. THE ASSIGNMENT WAS CONSUMMATED, AND KUTF HAS BEEN BUILT AND IS ON THE AIR. A PETITION TO DENY THE ASSIGNMENT APPLICATION WAS FILED, RAISING ALLEGATIONS SOME OF WHICH COULD BE CONSTRUED AS CHARGING THAT PBI MISREPRESENTED THE EXTENT OF ITS ATTRIBUTABLE INTERESTS IN OTHER BROADCAST STATIONS. WHEN THE ASSIGNMENT APPLICATION WAS GRANTED, NO UNFAVORABLE CHARACTER FINDING WAS MADE; BUT AN APPLICATION FOR REVIEW WAS FILED AND IS PENDING. THE CAPTION OF THE PLEADINGS REGARDING THE ASSIGNMENT APPLICATION PROCEEDING INCLUDES THE PENDING APPLICATION FOR MODIFICATION OF CP FOR KBCJ, VERNAL, UT, BMPCT-20001004AEE. HOWEVER, NO ALLEGATIONS WERE MADE AGAINST KBCJ.