Granite Broadcasting Secures $25 Million Credit Facility

Granite Broadcasting Corporation (OTC Bulletin Board: GBTVQ) announced that it received approval by the United States Bankruptcy Court for as much as $25 million of borrowings while undergoing its court-supervised restructuring. Approval of this line of credit provides the company with access to funds for operations, should they be needed.

U.S. Bankruptcy Judge Allan Gropper stated that approval of the loan was in the best interest of the estate and would allow for the continued flow of supplies and services.

Commenting on today's announcement, W. Don Cornwell, Chairman and Chief Executive Officer, said, "We are pleased that the court has approved our request for access to additional funding, if needed, while we complete the reorganization of our corporate balance sheet. Although we currently do not anticipate a need to draw upon the line, we believe it is in the best interest of the company to have such availability in place to ensure there will be no disruptions to our business while we restructure."

Potential borrowings under the line of credit would be used to fund the post-petition operations of the business. All liabilities of the company incurred after the December 11, 2006 filing date are considered priority claims and must be paid before the reorganization can be completed.

Cautionary Note Concerning Forward-looking Statements

Any statements that are included or incorporated by reference in this press release, other than statements of historical fact, which address activities, events or developments that the Company expects or anticipates will or may occur in the future are "forward-looking statements"-that is, statements related to future, not past, events that are subject to risks and uncertainties. Although the Company believes such statements are based on reasonable assumptions, actual outcomes and results may differ materially from those projected. Important factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, the effects of the Company's chapter 11 filing; the Company's ability to maintain adequate liquidity; the Company's ability to obtain and maintain normal terms with clients, suppliers and service providers; the Company's ability to obtain quality programming for its television stations; the results of pending legal proceedings; pricing fluctuations in local and national advertising; changes in advertising trends and the Company's advertisers' financial condition; volatility in programming costs; technological developments; and major world events; and those factors described in the Company's most recent Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements, whether as a result of new information, future developments or otherwise, and disclaims any obligation to do so.

Granite Broadcasting Corporation owns and operates, or provides programming, sales and other services to 23 channels in the following 11 markets: San Francisco, California; Detroit, Michigan; Buffalo, New York; Fresno, California; Syracuse, New York; Fort Wayne, Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin; Binghamton, New York; Utica, New York and Elmira, New York. The Company's channel group includes affiliates of NBC, CBS, ABC, CW and My Network TV, and reaches approximately 6% of all U.S. television households.

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