GRAY 1Q REVENUE RISES 2% TO $71 MILLION

Gray Television today announced its financial results for the first quarter before the market opened and reported that net revenue increased $1.3 million, or 2 percent, to $71 million. The gain, it said, reflected increased political advertising revenues, Internet advertising revenues and production revenues that were partially offset by decreased local and national advertising revenues.

The increase in political advertising revenue reflects increased advertising from candidates in the 2008 primary elections.

Increased internet advertising revenue reflects increased Web site traffic and Internet sales in each of its markets.

The decrease in local and national revenue was partially due to reduced advertising revenues resulting from the change in networks broadcasting the Super Bowl. During the first quarter of 2008 Gray earned approximately $130,000 of net revenue from the Super Bowl on its six Fox stations compared to earning approximately $750,000 of net revenue from the 2007 Super Bowl broadcast on its 17 CBS affiliates.

Political advertising revenues increased $2 million, or 180 percent, to $3.1 million.

Internet advertising revenue increased $0.6 million, or 28 percent, to $2.6 million.

Local advertising revenue decreased $1 million, or 2 percent, to $45.7 million.

National advertising revenue decreased $0.8 million, or 4 percent, to $16.3 million.