A Dangerous FCC Precedent.

Business Editors and Government/Entertainment Writers

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--January 10, 2000

Lowell "Bud" Paxson, Chairman of Paxson Communications Corporation (AMEX:PAX) announced today that on December 29, 1999, the FCC, after two and a half years of delay, released a decision approving the Company's acquisition of a television station in Pittsburgh and the simultaneous acquisition of a noncommercial television station in Pittsburgh by Cornerstone Television, Inc., a non-profit 501(c)(3) organization. In that decision, the Commission by a three to two vote (Commissioners Powell and Furchtgott-Roth dissenting) announced three new far-reaching rules negatively impacting all broadcasters:

- First, the three Commissioners announced that all noncommercial television broadcasters must devote at least fifty percent of their regularly scheduled weekly broadcast hours to "educational" programming defined as programming whose primary purpose is service to the educational, instructional or cultural needs of the community.

- Second, in determining what programming meets this new standard, the three Commissioners placed the FCC in the position of reviewing and evaluating all religious programming by concluding that "programming primarily devoted to religious education, proselytizing, or statements of personally-held religious views and beliefs generally would not qualify as educational or cultural programming."

- Third, the three Commissioners decided that church services do not qualify as educational, instructional or cultural programming.

Mr. Paxson continued by saying, "These new policies must be rescinded. The procedural, regulatory and constitutional ramifications of these new FCC rules are horrendous and will affect commercial as well as noncommercial broadcasters, radio as well as television."

Mr. Paxson noted the following with regards to the new rules:

- They were adopted without any notice to, or comment, from the public. They were announced in relation to a ruling on two long-standing applications contrary to the legal requirement that the FCC adopt rules of general applicability only after publicly conducted rule-making proceedings.

- They thrust the FCC into program content review that is unprecedented and now forces the agency to evaluate the content of all religious programming of all religious faiths.

- They will immediately affect all noncommercial television broadcasters and particularly those broadcasting a significant amount of religious programming. Also at risk are the 400 noncommercial radio stations broadcasting in a religious format.

- Commercial broadcast stations are also impacted by these rules as the FCC opens the door for determining which religious programming carried on commercial stations may be considered to fall into the proper categories, i.e. public affairs, educational, instructional, to earn broadcasters' credit for providing programming serving the needs of their communities.

- They raise serious constitutional issues since the FCC will now be forced to favor certain types of religious programming and disfavor other types. Such content-based review of free speech represents unwarranted federal intrusion and is totally unconstitutional.

Mr. Paxson called on the broadcast industry, the religious community, elected officials and the public to act. He noted that the deadline for filing petitions to challenge these new rules is January 28, 2000 and urged all parties to go on record opposing these unconstitutional policies and the method chosen by the three Commissioners to adopt them. He also felt that certain publicly funded legal institutions are expected to file court challenges. He hoped that Congress will act. He also noted that letters have already been sent to Vice President Al Gore and to Chairman William E. Kennard by Congressmen Michael Oxley, Steve Largent, Charles "Chip" Pickering, Jr., and Cliff Stearns demanding a reversal of the ruling.

Mr. Paxson continued to comment that, "Elected officials, as well as the broadcast industry and the religious community and, indeed, the American public must speak with a single voice in demanding that the three Commissioners immediately rescind these new rules, or, at the very least, commence a notice and comment rulemaking before implementing any such new rules."

Finally, Mr. Paxson stated, "What three of the Commissioners attempted to do on December 29, 1999 not only is unconstitutional and contrary to the religious freedoms guaranteed in this country, but it typifies, at its worse, government deliberations hidden from public view. Broadcasters and their representatives, the religious community and, indeed, the American public are threatened by this action and are called to act."

Upon the completion of pending acquisitions, construction projects, other transactions and divestitures, Paxson Communications Corporation (AMEX:PAX) will own or operate 72 broadcast television stations and have 51 additional PAX TV network affiliates carrying the Company's PAX TV network programming. A complete listing of stations and markets served can be found by visiting the company's web-site at paxtv.com.

Paxson Communications Corporation owns and operates the nation's seventh and newest broadcast network. The National Broadcasting Company (NBC) has a 32.5% stake in Paxson, and with its nationwide broadcast television and cable distribution system, Paxson airs PAX TV, the national family entertainment network. The foundation of the network's prime-time schedule for the fall includes new original shows Hope Island, Destination Stardom, Chicken Soup For The Soul and Twice In A Lifetime. Leading into primetime Monday through Friday is the all new game show Hollywood Showdown and the collectibles series Treasures In Your Home. Other originals returning for a second season on PAX are Flipper: The New Adventures, Little Men and It's A Miracle. Additionally, the line-up includes Touched By An Angel, Diagnosis Murder, Dr. Quinn, Medicine Woman, Christy, The Father Dowling Mystery Series, Highway To Heaven, Bonanza, Eight Is Enough and Life Goes On, as well as original specials and theatrical and made-for-television movies.