2009 Second Quarter Summary

 --  Television revenue decreased 26% in the second quarter of 2009 compared     with the same period last year, reflecting continued weakness in     advertising during the quarter due to the challenging macro-economic     environment, and a $2.0 million decline in political spending compared     to the second quarter of 2008. Excluding political spending, television     revenue declined 22% in the second quarter of 2009 compared to the same     period last year.       --  Key advertising categories continued to experience significant           declines from the second quarter of 2008, including automotive           (down 58%), retail (down 25%), and professional services           (down 26%).       --  Television broadcast cash flow ("BCF") was $1.1 million in the           second quarter, down from $9.1 million in the second quarter           of 2008. --  Radio revenue decreased 49% in the second quarter compared to the     second quarter of 2008, while radio BCF increased $1.4 million     compared to the same period last year, a result of the termination     of the Company's Seattle Mariners broadcast contract in 2008.     Excluding the financial impact of the Seattle Mariners broadcast     contract in 2008, radio revenue declined 21% and radio BCF decreased     30% over the same period. 

Retransmission

Over the past three quarters, the Company executed final agreements or reached agreements in principle on key financial terms for new retransmission agreements with most of its distribution partners, whose prior retransmission agreements with the Company expired in December 2008. The Company and several of its cable distribution partners had not executed final agreements at June 30, 2009, even though key financial terms, including fees from January 1, 2009 forward, had been finalized. Accordingly, the Company's second quarter financial results do not include approximately $2 million of cable retransmission fees attributable to those contracts for the period from January 1, 2009 to June 30, 2009. In July 2009, the agreements were fully executed. Therefore, the Company will record the retransmission fees attributable to the first six months of 2009 for those contracts as revenue in the third quarter of 2009.

On June 10, 2009, Fisher and DISH Network ("DISH") executed a new multi-year retransmission agreement. As part of the agreement, the Company agreed to release all prior legal claims against DISH. The Company's retransmission fees under the new DISH agreement began accruing as of the date of execution.

Seattle Radio

During the second quarter of 2009, Fisher began simulcasting its all-news radio station, KOMO AM 1000, on the FM dial at 97.7 pursuant to a local marketing agreement entered into with the station's owner.

In July, advertisers in the Seattle-Tacoma market began buying radio advertising on the basis of Arbitron's new Personal People Meter (PPM) ratings system. Fisher's Hot Adult Contemporary station, branded as STAR 101.5, became the #1 ranked station in all key dayparts and demographics for the first three months of the new ratings system. The KOMO AM/FM simulcast also significantly improved its competitive position under the new ratings system for the month of June (the first full month of the simulcast), ranking #1 in its targeted Adults 35-64 demographic in afternoon Drive and #3 in Adults 35-64 during morning Drive.

Repurchase of Senior Notes

In the second quarter of 2009, the Company repurchased $12.8 million in aggregate principal amount of its 8.625% senior notes due in 2014 for total consideration of $11.4 million in cash, reflecting a discount to the face value of the notes of approximately 11%. The Company recorded a net gain of $1.2 million in the second quarter in connection with these repurchases.

Fisher Plaza Electrical Fire

On July 2, 2009, a small electrical fire contained within a garage level equipment room of the east building of Fisher Plaza disrupted city supplied electrical service to that building. The building is currently being powered by a combination of electricity from Seattle City Light and building generators, with back-up electricity available from a series of portable generators. The Company currently expects to be on 100% city power later this month.

The cause of the electrical fire remains under investigation. Based on the currently available information and our insurance coverage amounts, the Company currently does not expect the incident's financial impact to be material.

Commentary on the Second Quarter

Fisher President and Chief Executive Officer Colleen B. Brown said: "Our financial performance continues to be affected by the overall weakness in the economy and its impact on our clients' advertising budgets. While we expect that our advertising and business partners will remain cautious until the economic recovery begins, we believe we are seeing signs that the worst may be behind us, including an improvement in TV ad pacing. It is too early to make definitive predictions, but these are positive indications that we will be closely monitoring for the remainder of the year.

"We are pleased to have completed our key cable retransmission agreements, gaining some recognition for the value of our stations, and to have settled our dispute with DISH Network. In this challenging economic environment, we continue to seek new opportunities to drive incremental revenue by expanding our broadcast to broadband strategy. We also remain focused on improving our operational performance and effectively managing our cost structure."

Second Quarter Results

Consolidated Results

Revenue for the second quarter of 2009 was $32.0 million, compared to revenue of $45.7 million in the second quarter of 2008, a decrease of $13.7 million, or 30%. The Company anticipated a significant portion of the decline, given that 2009 is an off-political year and the Company did not renew its Seattle Mariners broadcast contract in 2008.

Loss from operations was $2.1 million for the quarter, compared with a loss from operations of $3.5 million during the same period in 2008. The improvement was due primarily to a 31% decrease in total operating costs from the second quarter of 2008, which offset the 30% decline in revenue. Second quarter 2008 operating costs included approximately $6 million of non-recurring, non-cash charges. EBITDA totaled $1.2 million for the second quarter of 2009, compared to $6.5 million in the second quarter of 2008. Net loss for the second quarter was $2.1 million, or $0.24 per share, compared to net income of $63.7 million or $7.29 per share in the second quarter of 2008. Net income in the second quarter of 2008 included an after-tax gain on the sale of 1.5 million shares of Safeco Corporation of $67.4 million. Excluding the after-tax gain, net loss in the second quarter of 2008 was $3.7 million, or $0.42 per share.

Television Results

For the second quarter of 2009, the television segment reported revenue of $22.7 million, a 26% decrease from the $30.9 million generated in the comparable period of 2008. The decline was attributable to lower local, national, and political advertising revenue at a majority of our stations. TV BCF was $1.1 million, compared with $9.1 million in the same period of 2008, a decrease of 87%. The decrease in BCF was solely attributable to revenue declines.

During the second quarter, the television segment recorded $247,000 of political revenue, compared to $2.2 million during the same period last year, a decrease of 89%. Fisher recorded $791,000 in total retransmission consent revenue in the second quarter, an increase of 6% from the second quarter of 2008. This amount excludes approximately $1 million in retransmission fees for the second quarter (and another $1 million for the first quarter) attributable to certain retransmission consent agreements for which the key financial terms were finalized but which were not executed until the third quarter of 2009.

Radio Results

For the second quarter of 2009, the radio segment reported revenue of $5.9 million, a decrease of 49% from the $11.6 million earned in the comparable period of 2008. The decrease in revenue was more than offset by lower expenses, attributable largely to the absence of the Seattle Mariners broadcast contract in the second quarter of 2009. Radio BCF was $1.4 million, compared with a negative BCF of $6,000 in the second quarter of 2008. Excluding the Mariners contract, BCF decreased 30% from $2.0 million in the second quarter of 2008, a result of a 21% decline in non-Mariners revenue partially offset by a comparable reduction in non-Mariners expenses.

Fisher Plaza Results

For the second quarter of 2009, the Plaza segment reported revenue of $3.4 million, an 8% increase from the second quarter of 2008. Income from operations was $1.7 million, an increase of $374,000 and 29% compared to the same period in 2008. Plaza occupancy was 96% at the end of the second quarter of 2009, compared to 97% at the end of the second quarter of 2008. The slight decrease was attributable to a change in classification of approximately 4,400 square feet formerly occupied by Fisher but now vacant and available for lease.

Key Balance Sheet and Cash Flow Items

Cash, cash equivalents and short-term investments were $58.5 million at the end of the second quarter of 2009, compared to $91.5 million at December 31, 2008. The reduction was primarily due to the Company's repurchase of $28 million in principal amount of its senior notes during the first six months of 2009.

Total debt outstanding was $122.1 million at the end of the second quarter of 2009, compared to $150.0 million at December 31, 2008. The Company's Debt to Operating Cash Flow Ratio, as defined in the Company's senior notes indenture, was 7.2 as of June 30, 2009 compared to 5.3 as of December 31, 2008.

Other components of cash flow for the second quarter of 2009 were capital expenditures of $5.3 million and cash payments for broadcast rights of $4.6 million.

Second Quarter Conference Call

Fisher will host a conference call today at 1:00 p.m. (PDT). Senior management will discuss the financial results and host a question and answer session. The dial in number for the audio conference call is 1-800-561-2718; confirmation code 42407004. A live audio webcast of the call will be accessible to the public on Fisher's Web site, www.fsci.com. A recording of the webcast will subsequently be archived on the Web site and available for replay approximately 2 hours after the live event. The replay will be available for one week following the call. An audio replay of the call can be accessed for one week by dialing 1-888-286-8010 and entering confirmation code 60664924.