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GRANITE BROADCASTING FILES REGISTRATION STATEMENT FOR PROPOSED OFFERING OF $33 MILLION OF CUMULATIVE CONVERTIBLE EXCHANGEABLE PREFERRED STOCK

 NEW YORK, Nov. 3 /PRNewswire/-- Granite Broadcasting Corporation (NASDAQ: GBTVK) announced today that it has filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering by the company of 1,320,000 shares of cumulative convertible exchangeable preferred stock at $25 per share for a total of $33 million in gross proceeds. The manager of the offering will be Alex. Brown & Sons Incorporated. The net proceeds of the offering, together with borrowings under a proposed new senior bank agreement, will be used to acquire two television stations from Meredith Corporation and repay all of the company's existing bank indebtedness. Simultaneous with the closing of the proposed offering of preferred stock, the company will issue 300,000 additional shares of the same preferred stock in connection with its investment in certain outstanding secured debt and equity securities of Queen City III Limited Partnership, the ultimate parent of WKBW-TV, the ABC affiliate serving Buffalo, N.Y.
 The preferred stock will be convertible into common stock (nonvoting) of the company at the option of the holder at any time and will accrue a quarterly dividend. The preferred stock may be redeemed, in whole or in part, at the option of the company at any time beginning in 1996, and must be redeemed, if not previously converted into common stock (nonvoting), in the year 2005 at a price of $25 per share plus accrued and unpaid dividends to the redemption date. The preferred stock will be exchangeable in whole but not in part, at the option of the company, beginning in 1995, into junior subordinated convertible debentures due 2005.
 Granite is a group broadcasting company founded in 1988 to acquire and manage network-affiliated television stations and other media and communications-related properties. The company currently owns and operates KNTV(TV), the ABC affiliate serving San Jose, Calif., and the Salinas-Monterey, Calif. television market; WPTA-TV, the ABC affiliate serving Fort Wayne, Ind.; WEEK-TV, the NBC affiliate serving Peoria- Bloomington, Ill.; and KBJR-TV, the NBC affiliate serving Duluth, Minn. and Superior, Wis. The company signed definitive agreements in June 1993 for, and is currently in the process of, acquiring WTVH-TV, the CBS affiliate serving Syracuse, N.Y., and KSEE-TV, the NBC affiliate serving Fresno-Visalia, Calif. from Meredith Corporation. The company was ranked number 29 on Black Enterprise Magazine's 1992 Black Enterprise Industrial/Service 100 List.
 A copy of the preliminary prospectus will be available from the office of Alex. Brown & Sons Incorporated, 135 E. Baltimore Street, Baltimore, Md. 21202.
 A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
 -0- 11/3/93
 /CONTACT: Don Cornwell, Chief Executive Officer of Granite Broadcasting Corporation, 212-826-2530/
 (GBTVK)


CO: Granite Broadcasting corporation ST: New York, California, Indiana IN: ENT SU: OFR

WB -- NY032 -- 0064 11/03/93 10:44 EST
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Publication:PR Newswire
Date:Nov 3, 1993
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