Subject: Statement and News Release: Owners of KHNL/K5 and KGMB reach agreement to secure the future of television programming and its three stations in Hawaii

August 18, 2009

STATEMENT BY RAYCOM MEDIA PRESIDENT/CEO PAUL McTEAR

We are pleased to announce today that we, at Raycom Media, owners of KHNL and K5, and MCG Capital, who owns KGMB in Hawaii, will be entering into what is called a Shared Services Agreement with KGMB in Hawaii, which will help secure the future of KGMB, as well as KHNL and K5 in Hawaii. The agreement also helps to assure the continued services and programming that are provided to residents here on the islands by these three television stations.

This Shared Services Agreement will ensure that the quality of news, other locally produced programming, network and other national programming, UH sports, and other services provided by these three television stations, will continue for our viewers and many other customers in Hawaii. We realize there may be other financial and business options available, and while we are certainly open to discussing these with any interested party, the economic reality is that this market, and perhaps other markets around the country, cannot support five traditionally separated television stations, all with duplicated costs. Rather than experiencing the loss of one, or possibly two stations in this market, we intend to preserve three stations delivering important and valuable local, national and international programming to viewers in Hawaii.

As we all know, businesses in Hawaii, and across the nation, are having to cut costs through salary freezes and reductions, furlough programs, staff reductions, the elimination of 401 (k) and other benefits, with many declaring bankruptcy, like we’ve seen here, with venerable companies like Aloha Airlines and Hilo Hattie. As we’ve seen, the broadcast industry has not been immune, with some broadcast companies having to reduce staffing, eliminate newscasts, or entire news departments in some markets.

Companies that think and act far more creatively to protect their businesses and employees in this economy are the ones that are going to weather the storm and emerge stronger, which is why Raycom Media and MCG Capital Corporation, owners of KHNL/K5 and KGMB, respectively, have agreed to enter into this Shared Services Agreement.

Under a shared services agreement, Raycom Media will provide certain services to all three stations. The agreement is an operational arrangement, not an ownership change agreement. Raycom Media retains ownership of KHNL/K5 and MCG Capital Corporation retains ownership of KGMB.

Under a shared services agreement, KGMB and the people who work there will benefit from all of the resources available through Raycom Media, as one of the nation’s largest broadcasters, owning and/or operating 46 television stations in 36 markets and 18 states, including Hawaii.

A shared services agreement would also allow the three stations to combine forces and would result in the state’s largest television news department producing more local news and other local programming than any other station in Hawaii. The stations would field the largest number of news professionals in times of major breaking news or severe weather, providing better coverage of the stories impacting the lives of everyone who lives in Hawaii. The new Media Center would have more news staff than any other local TV station covering news each day, and providing more stories of local, national and international importance.

KGMB, KHNL and K5 are proud of their relationship with their respective national networks and all of the programming provided by CBS, NBC and MyNetworkTV, and this agreement will keep those relationships strong. Viewers in Hawaii will continue to enjoy their favorite network programs like 60 Minutes, CSI and Late Night with David Letterman on CBS, The Today Show, Saturday Night Live and The Office on NBC, and UH sports and local programming, without interruption.

We are especially proud of the 25-year, plus, history K5 and Raycom have had with the University of Hawaii. A shared services agreement ensures that the relationship will not only continue, but may be made even stronger with opportunities to provide more UH sports and other related programming to Hawaii and perhaps, even, to the mainland.

All three stations will continue to work with local charities and in other fundraising efforts to benefit all those in Hawaii who most need and rely upon those efforts.

We are very proud of our relationship with the two local managers, two respected and well-known community leaders, John Fink and Rick Blangiardi, and their teams of talented and dedicated employees who work hard every day to provide the best in local and national programming and to serve Hawaii’s residents in so many ways. We are pleased that both John Fink and Rick Blangiardi will continue to provide their strong leadership for KHNL and K5, and KGMB.

This agreement will also allow us to keep as many of John’s and Rick’s teams as possible gainfully employed and doing what they enjoy the most…working in television and serving those who live and work in the many communities in, perhaps, the most beautiful state in the nation, Hawaii.

These professionals will now produce more than 40 hours of local news each week and will also continue to produce award-winning public affairs programming, news and weather specials and, of course, UH sports programming.

All of those employed in Hawaii by the three stations under such an agreement will benefit from the many resources available through Raycom Media, as a very large television company run by industry veterans who will be an integral part of the broadcasting industry for years to come.

Everyone at the three stations is very proud of the strong relationships they have with their many friends and customers, local businesses and viewers. We are confident that after we have responded to the many anticipated questions, most will understand why a creative approach to preserving our interests in Hawaii are necessary. This agreement would allow for all three stations to continue to grow those relationships and assures that all three stations will continue to provide strong services to all communities on all islands.

We, at Raycom, are proud of our long relationship with Hawaii and we are excited that this agreement would allows us to, not only continue to serve Hawaii, but to serve the residents in even more and better ways.

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August 18, 2009

NEWS RELEASE

FOR IMMEDIATE RELEASE

OWNERS OF KHNL/K5 AND KGMB REACH AGREEMENT TO SECURE THE FUTURE OF TELEVISION PROGRAMMING AND ITS THREE STATIONS IN HAWAII

-Shared Services Agreement would ensure that news, network programming, UH sports, severe weather coverage and all other services continue to be provided to residents of Hawaii-

HONOLULU — Raycom Media, owner of KHNL and K5, and MCG Capital Corporation, owner of KGMB, announced today a Shared Services Agreement which, upon completion, the two companies would combine the three stations to creatively and successfully address the impact of the negative economy and to secure the future of all three television stations in Hawaii.

“The purpose of a Shared Services Agreement is to not only secure the future of KHNL, K5 and KGMB, but to operate them more efficiently and effectively without diminishing the quality of news and other programming provided to our customers in Hawaii,” said Paul McTear, President and CEO of Raycom Media. “We realize there may be other financial and business options available, and while we are certainly open to discussing these with any interested party, the economic reality is that this market cannot support five traditionally separated television stations, all with duplicated costs. Rather than experiencing the loss of one, or possibly two stations in Hawaii, we intend to preserve three stations that provide important and valuable local, national and international programming to viewers in Hawaii.”

Under the agreement, Raycom Media would provide certain services to all three stations. The agreement is an operational arrangement, not an ownership change agreement. Raycom Media retains ownership of KHNL/K5 and MCG Capital Corporation retains ownership of KGMB.

“Companies that think and act far more creatively to protect their businesses and employees in this economy are the ones that are going to weather the storm and emerge stronger,” said McTear.  “Raycom Media is proud of its long relationship with Hawaii, and with the University of Hawaii, and we are excited that an agreement would allow us to, not only continue to serve the islands, but to serve residents in even more and better ways.”

The Shared Services Agreement creates what would be the largest local television news operation available to cover local, national and international news for Hawaii. The KGMB, KHNL, K5 newsroom and all those working there plan to produce more than 40 hours of local news each week, making it among the most productive newsrooms in the country. The stations will also continue to provide local web sites rich in news, weather, sports, entertainment, business, advertising and other content of community interest.

“Such an agreement allows the three stations to field the largest number of news professionals, particularly during times of major breaking news or severe weather, providing better coverage of stories impacting the lives of everyone who lives on the islands, and produced on multiple platforms – television, internet and on mobile devices.” added McTear.

“Given the challenges of operating a standalone station in these very difficult markets, MCG views the Shared Services Agreement as a smart and creative way to manage its continuing ownership investment in KGMB,” said Rick Blangiardi, President and General Manager of KGMB and MCG Capital’s representative in Hawaii.  “We are very proud of our employees and the work that they do. Under a new agreement, KGMB, and the people who work there, will benefit from the scale and diversity which comes from a company like Raycom Media, recognized as a company that will be an integral part of the broadcast industry for years to come.”

Under a Shared Services Agreement, the three stations will share in the news services as well as other combined services. It’s anticipated that, once the two companies swap call letters, the national networks and other programming, along with the accompanying channel positions of each of the three stations, will remain the same.

Raycom Media, an employee-owned company, is one of the nation’s largest broadcasters and owns and operates 46 television stations in 36 markets and 18 states, including Hawaii. In addition to television stations, Raycom owns Raycom Sports, a marketing, production and events management and distribution company; Raycom Post, a post production facility; Broadview Media, a post production telecommunications company; and CableVantage, a cable advertising sales group.

MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle-market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital is generally used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital.  For more information, please visit http://www.mcgcapital.com