Pappas Telecating new Hispanic initiative.

Pappas Telecasting Companies announced that effective midnight, July 1, its television stations that were formerly affiliated with the Azteca America Network will commence broadcasting a new brand of Spanish-language programming to serve America‚s Spanish-speaking population. KAZH-TV/Houston, Texas, KTNC-TV, serving the San Francisco-Oakland-San Jose and Sacramento-Stockton-Modesto television markets, KAZR/Reno, Nevada, KAZO/Omaha, Nebraska, and KAZJ/Sioux City, Iowa, will be the first five stations serving six markets to be launched on July 1, 2007.

Fernando Acosta, Vice President of Pappas Telecasting‚s Hispanic TV Stations Group, said, „Our programming model follows that of other Hispanic independent stations which have demonstrated the ability to compete successfully for Hispanic audiences and ratings. In fact, such stations have regularly achieved higher ratings than the Azteca America Network and performed on par with TeleFutura and Telemundo.‰

Dennis J. Davis, Pappas Telecasting‚s President and Chief Operating Officer, stated, “In late-March, Pappas Telecasting announced that it was exploring the sale, joint venture, or co-investment with others of its Hispanic television assets. This initiative is complementary to those efforts. The higher ratings and increased revenues that our stations will earn will enhance their value to our audiences and our advertisers. The company is in the advanced stages of negotiations with interested parties who not only have successful business track records, but also, in a number of cases, have demonstrated the ability to produce content popular with U.S. Hispanics.”

Pappas expects to add Spanish-language programming serving up to 16 more markets by December 2007. The potential reach of the Pappas stations is nearly forty percent of the U.S. Hispanic population. The company plans to seek affiliates in the remaining top-50 Hispanic markets in the U.S. and is in discussions with other U.S. Hispanic broadcasters about joining with Pappas in its Spanish-language programming initiative.

Mr. Acosta added, “It is important for us to deliver programming that is relevant and appealing to the Hispanic audiences we serve in each market. Most important is that the story lines and content, no matter where produced, need to have a connection with U.S. Hispanics. Programming includes the hit talk show Marta Susana,‚ entertainment gossip show Paparazzi,‚ and the premiere of top-performing novelas new to the United States like Dueña y Señora.‚ Direct from Mexico comes sports programming that provides the most up-to-the minute coverage of Mexican League Soccer. Pappas Telecasting has also licensed hundreds of the best motion pictures from Mexico’s Golden Age of Cinema. Featured will be names dear to the hearts of Hispanics. Pedro Infante, Jorge Negrete, Maria Felix, Sarah Garcia, and Antonio Aguilar are just a few of the stars who will be showcased on our stations.”

Harry J. Pappas, Chairman & CEO of Pappas Telecasting stated, “We‚ve partnered with program providers who are proven masters of their craft. We’ve brought them all together on our distribution platform to assure that our viewers are given a fresh choice of high-value, popular content. An additional, very important element of our strategy is the development of programming produced in the U.S. featuring the best and the brightest Hispanic-American producers, writers, directors, and actors who heretofore have been unable to gain significant distribution and exposure to U.S. Hispanics.”