Bain Capital Acquires GOCOM Television, Signals Aggressive Move To Expand Stake In Broadcasting Properties.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Sept. 11, 1997--GOCOM Television, a rapidly-growing group of stations in medium-sized and small markets, has been acquired by Bain Capital, Inc., one of the nation's leading private equity investment firms, it was announced today. At the same time, GOCOM announced two major acquisitions that will more than double its size while Bain has targeted $50 million to $100 million of equity, an amount that would represent in excess of $500 million in purchasing power, for additional consolidation of the television station market.

Ric Gorman, formerly of Clear Channel Communications and River City and the founder and CEO of GOCOM, announced that the three year-old group has reached an agreement, pending FCC approval, to acquire Cottonwood Communications, which owns KSPR-TV (ABC in Springfield, MO), KCPM-TV (NBC in Chico/Redding, CA) and KMID-TV (ABC in Midland-Odessa, TX). The form of the transaction is to be a stock swap.

GOCOM also announced the completion of an option agreement to purchase WKBN-TV (CBS in Youngstown, OH), from WKBN Broadcasting.

Terms of Bain's acquisition of GOCOM and GOCOM's acquisitions were not announced.

Adam Kirsch, a Bain managing director said, "Combining Ric Gorman's unique and proven skills at local sales, marketing and programming with our financial and deal-making resources will transform GOCOM into a powerful vehicle for strengthening our stake in communications. We expect GOCOM to grow rapidly and become a dynamic new force in the television broadcasting industry."

Based in Charlotte, NC, privately-held GOCOM Communications currently owns and operates WFXI-TV and WYDO-TV (FOX in Greenville-New Bern, NC), WGXA-TV (FOX in Macon, GA) and KTVE-TV (NBC in Monroe, LA).

A new entity, GOCOM Communications L.L.C., owned by Bain, Gorman and GOCOM management and headed by Gorman, will become the umbrella company of the group.

Said Gorman: "Bain's financial and analytic resources are remarkable. We are enthusiastic about our ability to acquire properties in the near future as we move toward our goal of establishing GOCOM as one of the most successful small and medium market operating groups in the television industry."

Bob Gay, a Bain managing director, said: "GOCOM's cash flow growth in the first three years of its existence demonstrates to us that Ric Gorman understands how to add significant value to television properties through revenue enhancement.

"We intend to do the same thing with GOCOM in television broadcasting as we have achieved in our other very successful industry-consolidating, leveraged build-up investments, such as with Wesley-Jessen in specialty contact lenses, GS Industries in specialty steel products and Dade International in in-vitro diagnostics.

Gorman also announced two major additions to GOCOM's management team:

-- Terry Segal, formerly the President of TBS SuperStation and Senior VP/General Manager for TNT, has joined GOCOM as Vice President/Corporate Director of Programming and Promotion. "Terry's record of building powerhouse lineups is exceptional," Gorman said. "He will play a critical role in the growth of our company."

-- W. Wilson Dorward, previously treasurer of Susquehanna Media Co., a York, PA-based radio and cable television operator, has been appointed Vice President and CFO of GOCOM.

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