Azteca America to offer stations options in Houston & San Francisco.

Azteca America is currently analyzing new station options in the markets of Houston and San Francisco, and expects to finalize affiliation agreements with new partners promptly.

“Better aligned interests with other partners in these markets will translate into substantial benefits for audiences, clients and our entire affiliate group,” said Luis J. Echarte, Chairman of Azteca America. “We will now be able to build common marketing and operational plans, and coordinate promotional strategies oriented to give an extra boost to overall ratings and sales.”

As previously disclosed, the Pappas Telecasting affiliation contracts for stations in Houston, San Francisco and three minor markets will be terminated effective June 30, 2007.

The affiliation agreements with Pappas Telecasting in these and other smaller markets were the result of a negotiated settlement in prior years. Unlike the standard affiliation contracts, based on a longstanding relationship, the Pappas accords were up for termination twice a year by either party. Because of the nature of this agreement, Azteca America has always been ready with alternative coverage solutions. The company expects to execute these options shortly to offer viewers uninterrupted service in the aforementioned markets.

“We are quite pleased about our ability to work with new partners in these markets,” said Adrian Steckel, President and CEO of Azteca America. “Azteca America is making significant investments in programming specifically for the US market and believes the network and its affiliates will strongly benefit from these initiatives.”

“These short-term issues will be resolved and we will maintain our coverage and standing as a network. We look forward to our next press release when we can announce the beginning of those long-term affiliations for July 1.”