Replies

I'll say that they did expose themselves.

and

Sinclair's problems go beyond anti-Kerry telecast ( Business Reality about other Media companies)

and:

Shareholders Push Sinclair to Amend Plans

This is a very dangerous video for Kerry. His supporters must risk everything to keep this away from the American People.

A rogue media company is very bad news for their domination plans.

See this:

Unholy Alliance

by David Horowitz
Hardcover - (September 2004) - $27.95

In this tour de force on the most important issue of our time, David Horowitz, confronts the paradox of how so many Americans, including the leadership of the Democratic Party, could turn against the War on Terror. He finds an answer in a political Left that shares a view of America as the “Great Satan” with America’s radical Islamic enemies. In a remarkable exploration of the “Mind of the Left,” Horowitz traces the evolution of American radicalism from its Communist past to its “anti-war” present. He then shows how this Left was able to turn the Democratic Party presidential campaign around and reshape its views on the War on Terror.

October 20, 2004

David D. Smith
President and Chief Executive Officer
Sinclair Broadcast Group, Inc.
10706 Beaver Dam Road
Hunt Valley, MD 21030

Dear Mr. Smith:

We write to you today as individual board members of the California State Teachers Retirement System (CalSTRS). As such, we do not speak on behalf of CalSTRS, but rather in our individual fiduciary capacities. As you may know, the system owns 119,938 shares of Sinclair Broadcast Group, Inc. (SBGI) and two bonds valued at $8,017,175.

We are very concerned about the situation arising from your promotion of the program “Stolen Honor: Wounds that Never Heal.” We understand that you are now planning to air only parts of the program. Nevertheless, we feel your continued desire to promote partisan politics is of great concern.

As significant investors in SBGI, we are compelled to ask why you are potentially putting your company (and our investment) in jeopardy to influence the upcoming presidential election. Since your questionable decision has come to light, a nationwide boycott of SBGI stations has been launched, and news reports indicate this boycott is causing SBGI to lose sponsors and significant advertising revenue.

In addition, consumer and media watchdog groups are vowing to challenge every FCC license renewal of SBGIowned stations. We question your decision to expose SBGI to the risks associated with boycotts and lost revenue.

SBGI is one of the largest and most diversified television broadcasting companies in the country today. Sinclair owns and operates programs or provides sales services to 62 television stations in 39 markets. Your television group includes FOX, WB, UPN, ABC, CBS, NBC affiliates and independent stations and reaches approximately 24 percent of all U.S. television households. As such, a significant share of your revenues would be at risk if the FCC takes adverse action against your licenses.

SGBI stock has fallen 53 percent this year and recently closed at a new 52-week low. Your actions are exposing SBGI to possible credit downgrades, shareholder lawsuits, and disciplinary actions by the Federal Election Commission and Federal Communications Commission. Legg Mason concluded that favorable deregulation is at

David D. Smith
October 20, 2004
Page 2

risk due to SBGI actions. Any of these actions taken singularly would be troubling. In totality, they represent a very serious threat to the financial stability of SBGI.

We represent the financial interests of 734,963 members who are mostly teachers and their families. These members have the right to expect the companies in which CalSTRS invests will act with their best interests in mind.

CalSTRS is often our teachers’ primary source of income in their retirement years. It appears that your decision to air “Stolen Honor” puts partisan politics above the best interests of your shareholders. We urge you in the strongest way to reverse this highly questionable course of action.

Sincerely,

JACK O’CONNELL
State Superintendent of Public Instruction
California Department of Education

STEVE WESTLY
State Controller
California State Controller

JO/SW:ab