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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Steven Smith Cc: ; Sent: Monday, September 24, 2001 2: 13 PM Subject: KLTV and KTRE

sep~ber24,2001

Mr. Steven Smith, Vice President Cosmos Broadcasting Corporation

Dear Mr. Smith,

It has now been a full month since Ms. Bedard forwarded to you IBN's e-mail of August 24. We are stili awaiting your response.

Moreover, it has been nearly 17 months since a subsidiary of your company filed petitions and applications Which, if granted, would force three of IBN's stations off the air. Although those petitions and applications were a direct threat to IBN, there was no advance consultation or even notice. Furthermore, our persistent efforts to reach responsible officials within the Cosmos/Civic organization have been unsuccessful. Frankly, we do not understand your company's secrecy and unwillingness to engage in meaningful communication about a matter of such vital importance to us and to the communities we serve.

This is a matter of the utmost urgency. We &gain request that you respond without further delay.

Paul J. Broyles, President International Broadcasting Network. 5206 FM 1960 West, Suite 105 Post Office Box 691111 , Texes 77269-1111

- Original Message -­ From: To: Cc: , Sent: Thursday, September 20, 2001 5: 11 PM SUbject: Fw: DTV

September 20, 2001

DearMr. Smith,

On August 24, Artie Bedard forwarded to you our e-mail of the same date. We are stiR awaiting your response.

This is 8 matter of great urgency. Please let us hear from you without further delay.

Thank you.

Paul J. Broyles, President Intemational Broadcasting Network. 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston , 77269-1111

-- Original Message -­ From: To: Cc: Sent: Friday, August 24, 2001 2:31 PM Subject: RE: DTV

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-----Otiginal Message----- From: INTERNATIONAL BROADCASTING NETWORK [ sent: Friday, August 24, 2001 2:13 PM To: SUbject: DTV

August 24, 2001

Dear Ms. Bedard,

Several days ago, we heard that Steve Smith had been In Lufkin to select DTV equipment.

Has a decision been made for KLTV and KTRE to go ahead with the UHF channels under the current construction pennits? If so, that would be very good news.

Your company's decisions on DTV are extremely important to IBN since three of our stations would be knocked off the air were KLTV and KTRE to switch from their assigned DTV channels to channels 10 and 11.

Please share this information with us.

Best personal regards.

Paul

Paul J. Broyles, President Intemational Broadcasting Network 5206 FlY 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Steven Smith Cc: ; Sent: Wednesday, September 26, 2001 5:32 PM Subject: Re: KLTV and KTRE DTV

Septernber26,2001

Mr. Steven Smith, Vice President Cosmos Broadcasting Corporation

Dear Mr. Smith,

Thank you for your response of yesterday to our messages of August 24, september 20 and september 24.

Unfortunately, we regard your response 88 being both misleading and disingenuous. You must think we are incredibly naive and gullible. You have not set the record straight but, rather, you have continued the pattem of obfuscation that has been followed for nearly 17 months.

On May 1, 2000, the owners of KL1V and KTRE began a stealth attack on IBN, filing petitions and applications seeking to take channels 10 and 11 away from IBN's stations in Longview and Lufkin. Because of adjacent channel interference considerations, IBN's station in Crockett was endangered as well. This was done with neither advance consultation nor notice to IBN.

After we Ieamed of the matter from the FCC's public records, IBN was assured that a mistake had been made and that steps to correct the mistake would be undertaken. Notwithstanding that assurance, the mistake was not COlTeCted and the petitions and applications were not withdrawn.

It is quite obvious that your company's strategy has been to ask for patience and forbearance, to hold out bogus hints of possible assistance and to disseminate misinformation while moving aggressively and surreptitiously to achieve its unworthy objectives. In doing so, it appears that responsible officials of your company I\Jve hidden behind local station personnel who may themselves have been misinformed.

In this context, and in view of your continued refusal to infonn us ofthe alternative channels you claim to be available, we must reiterate our request that the offending petitions and applications be promptly withdrawn and that there be no further efforts to shut down any of IBN's stations.

Paul J. Broyles, President Intemational Broadcasting Network 5206 FM 1960 West. Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Friday, June 22, 2001 10:52 AM Subject: Re: KTRE Channel Application

June 22, 200 I

Dear Ms. Bedard,

Thank you for your message. We're looking forward to receiving some good news after your conference call.

My telephone number here at the main office is 281-774-9923. I will be in and out ofthe office this afternoon, so e-mail would be the best means of contacting me.

I hope you're enjoying Lufkin. It's a great town, and KTRE is a great station.

Best regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

---- Original Message ---- From: Artie Bedard < > To: < > Sent: Thursday, June 21,2001 5:36 PM Subject: KTRE Channel Application

> > June 21. 2001 > > Dear Mr. Broyles, > > Trying to bring me up to speed, Dean Worley forwarded a copy ofthe your > 6/11 email to me. I was named the new General Manager at KTRE in late April > and he was trying to bring me up to speed on this issue. > > Dean and 1have scheduled a 2:00pm conference call with the Vice-President > ofEngineering tomorrow, June 22, 200I. I hope we will have some news for > you then. > > Please accept my apologies regarding the lack ofresponse. Much ofthe > negotiations have been handled at the headquarter level. > > Please give me a telephone number where you can be reached. > > Again, thanks for your patience. > > Artie Bedard > >

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>

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INlERNAllONAl BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Tuesday, June 26, 2001 1:36 PM SUbject: Re: KTRE Channel Application

June 26, 2001

Dear Ms. Bedard,

Many thanks for your e-mail of yesterday.

We certainly understand that the many issues and problems surrounding OTV have kept Mr. Smith quite busy. Although we don't have to deal with those issues in the same way your company does, it is quite apparent that OTV has been 8 disaster and many in the industry wish it would just go away.

From what we've been hearing, many stations are extremely reluctant to build OTV facilities and definitely won't meet the deadline. Just a few days ago, one large group owner began a major lobbying effort to persuade Congress to allow OTV permits to be turned back in. With OTV having been a failure in the markelplaoe, with the technical and legal issues that remain, with the tack of any business model that could sustain OTV operations and with the networks' plans to reduce or eliminate compensation to affiliates, there doesn't seem to be a reason (other than the federal mandate) for OTV transmission systems to be built.

From IBN's standpoint, we want to keep all of our stations on the air. We don't sell airtime or commercials, but our mission is very important to us and to our viewers. The loss of our stations in Lufkin, Longview and Crockett would be devastating.

From your company's standpoint, perhaps it would be desirable to seek a moratorium on OTV buildout obligations, especially in small and medium-sized markets. Or perhaps you could get approval to build a very Iow-power OTV facility, possibly a hundred watts or so, on the UHF channel that has been assigned. I would think that could be done for Iesa than $250,000, and the operational costs would be negligible.

Whatever happens with OTV in the larger markets, it seems certain that it win never be viable in Lufkin or Tyler. Even here in Houston, where OTV has been airing for several years, it has been a dismal failure. Consumers aren't buying it. Without viewers and without revenue, it won't survive.

IBN's position has always been that "if it's not good for everyone, it's not good for anyone." Our record at the FCC reflects our Insistence that aU broadcasters be allowed to thrive and that none be burdened with inappropriate or excessive obligations. \n our view, the OTV mandate is inappropriate and excessive. We think it's time for Congress and the FCC to ease the burden by aUowing stations the option to build a minimal OTV facility or none at all.

Hopefully, these thoughts are responsive to your request. We do want to help in any way we can.

Best regards.

Paul

Paul J. Broyles, President Intemational Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas n269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: sent: Thursday, July 05, 2001 2:31 PM Subject: Pending Petitions and Applications

July 5,2001

Dear Ms. Bedard,

Since we haven't yet received a response 10 our e-mail ofJune26.wearewonderingwhetheryousawit.Justincaseyoudidn.t.we.re sending it again.

As you know, this is an extremely serious matter for us. Until KTRE and KLlV formally withdraw their petitions for rule making and applications for modification of their elV construction permits, it is as though In axe were hanging over our heads. Three of IBN's stations, KIBN-LP, KLGV·LP and KTWC-LP, are endangered. The loss of those stations would be devastating to IBN and would be a severe loss to our viewers and the communities the stations serve as well.

It has now been more than 14 months since the petitions end applications were filed. In response to our initial inquiry right after learning of the filings, we were assured by your predeCessor that a mistake had been made and that stePs would be taken to get the mistake corrected. We're still waiting.

We trust that you will now be able to confirm that the effort to take IBN's channels has ceased and that the filings of May 1, 2000, will be withdrawn.

Paul

Paul J. Broyles, President International Broadcasting Netwol1c; 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

- Original Message -­ From: To: sent: Tuesday, June 26, 2001 2:36 PM Subject: Re: KTRE Channel Application

June 26, 2001

Dear Ms. Bedard,

Many thanks for your e-mail of yesterday.

We certainly understand that the many issues and problems surrounding DlV have kept Mr. Smith quite busy. Although we don't have to deal with those issues In the same way your company does, It is quite apparent that OlV has been a disaster and many in the indUStry wish It would just go away.

From what we've been hearing, many stations are extremely reluctant to build elV facilities and definitely won't meet the deadline. Just a few days ago, one large group owner began a major lObbying effort to persuade Congress to allow elV permits to be tumed back in. With OlV having been a failure in the mal1c;elplace, with the technical and legal issues that remain, with the /ad( of any business model that could sustain OTV operations and with the netwol1c;s' plans to reduce or eliminate compensation to affiliates, there doesn't seem to be a reason (other than the federal mandate) for DlV transmission systems to be built.

From IBN's standpoint, we want 10 keep aU of our stations on the air. We don't sell airtime or commercials, but Our mission is very important to us and to our viewers. The loss of our stations in Lufkin, Longview and Crockett would be devastating.

From your ~pany's standpoint, perhaps it would be desirable to seek a moratorium on elV bulldout obligations, especially in small and medium-sized mal1c;ets. Or perhaps you could get approval to build Q very low-pooNIBr OlV facility, possibly Q hundred watts or so, on the UHF channel that has been assigned. I would think that could be done for less than $250,000, and the operational costs would be negligible.

Whatever happens with DlV in the larger mal1c;ets, It seems certain that it wi" never be viable In Lufkin or Tyler. Even here in Houston,

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where DTV has been airing for several years, it has been a dismal failure. Consumers aren't buying it. Without viewers and without revenue, it won't survive.

IBN's position has always been that "if it's not good for everyone, it's not good for anyone." Our record at the FCC reflects our insistence that all broadcasters be allowed to thrive and that none be burdened with inappropriate Of excessive obligations. In,our view, the OTV mandate is inappropriate and excessive. We think it's time for Congress and the FCC to ease the burden by allowing stations the option to build a minimal DTV facility or none at all.

HopefUlly, these thoughts are responsive to your request. We do want to help in any way we can.

Best regards.

Paul

Paul J. Broyles, PresIdent Intemational Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Cc: Sent: Friday, July 13, 2001 5:39 PM SUbject:

July 13,2001

Dear Ms. Bedard,

I've just now seen your message.

I'm Quite surprised and disappointed that you would respond in that manner.

The information your company has requested has nothing whatsoever to do with anything that is relevant. Apparently, someone just wants to go on a fishing expedition or create a reason to prolong the delay that has already continued for more than 14 months.

Would you take the time to compile a list of aU your company's equipment and fumish that to us? Or let us come into your facilities and make such a list? Of course, you wouldn't. No broadcaster would do that.

We will be glad to furnish your company any information that is reasonably needed, but we won't comply with demands that are totally irrelevant.

It is certainly our desire to reach an amicable solution and to maintain the best relations with you, your staff and your station's new owners. We will not, however, be bullied into assisting your company in Its efforts to take our channels while hinting at a possible solution that may not be real.

If the replacement channels really eXist, your company would have no reason to delay giving that information to us.

We realize that you and Dean rnay be facing pressure from the out-of-state executives of your company. It is not our desire to have a personal conflict with you or with anyone .'se. We wiH, however, vigorously defend our channels from being taken over in the hostile manner that some folks seem to desire.

Paul

Paul J. Broyles, President International Br0adc8stlng Network 5206 FM 1960 west, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

-- Original Message -­ From: To: Cc: Sent: Friday, July 13, 2001 5:30 PM SUbject: RE:

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-----()rjginal Message----- From: INTERNATIONAl BROADCASTING NETWORK [mailto:[email protected]] Sent: Friday, July 13, 2001 12:29 PM To: [email protected] Cc: [email protected] Subject:

July 13, 2001

Dean,

I enjoyed talking with you on Wednesday and again today.

If suitable replacement channels can be found, we'd certainly like to know (a) what channels they are, (b) whether omni­ directional coverage would be possible and (c) what the maximum ERP would be. Our own research has found no suitable channels to which IBN's stations could move. However, we recognize that your company's consulting engineers, du Treil, Lundin & Rackley, have outstanding expertise. We would like to know what that firm may have found.

As you know, IBN takes its mission very seriously. We are not wining to compromise that mission. Nothing will persuade us to abandon the communities we serve or to retreat In any manner. If, however, a mutually-beneficial arrangement were possible, which would meet your company's objectives while enabling IBN's stations in Lufkin, Longview and Crockett to serve more effectively, that would be eatefully considered.

It seems to us that the availability of suitable replacement channels is the threshold issue which must be dealt with before there can be any meaningful discussion about other matters. We need very specific information about that.

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Friday, July 27,2001 10:34 AM

July 27, 2001

Dear Ms. Bedard,

For quite some time, I've wanted to give you and two of your key staff members a special edition of the Bible. It's published by the American Bible Society, and it's called "The Master Plan: God's Word for Media Professionals."

With your permission, I'U order the Bibles and personally present them to you, Tina Alexander and Dean Worley. It is my hope that this small gift will be accepted and will bring blessing to each of you.

As soon as I hear from you, "II be delighted to place the order.

Best regards.

Paul

Paul J. Broyles, President International Broadcasting Network

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Monday, July 30, 2001 5:37 PM Subject: Re:

July 30, 2001

Dear Ms. Bedard,

That's great! The supplier tells us the Bibles will be delivered to us in about four to six weeks. I'll let you know when they arrive, and I'll make an appointment then.

Your names will be imprinted on the front covers. Unless you want the names shown differently, each Bible will be imprinted with one of the following names:

Artie Bedard Tina Alexander Dean Worley

If you prefer, middle names or initials can be added. Just let me know.

Incidentally, my mother's first name was Artie. So your name has a special meaning for me and brings back many wonderful memories.

Best regards!

Paul

- Original Message --­ From: To: Sent: Monday, july 30, 2001 6:10 PM Subject: RE:

-----Original Message---- From: INTERNATIONAL BROADCA5T1NG NETWORK [mailto:[email protected]] sent: Friday, July 27, 2001 11:34 AM To: [email protected] SUbject:

July 27, 2001

Dear Ms. Bedard,

For quite some time, I've wanted to give you and two of your key staff members a special edition of the Bible. It's published by the American Bible Society, and it's called ''The Master Plan: God's Word for Media Professionals."

With your permission, I'll order the Bibles and personally present them to you, Tina Alexander and Dean Worley. It is my hope that this small gift will be accepted and will bring blessing to each of you.

As soon as I hear from you, I'll be delighted to place the order.

Best regards.

Paul

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Paul J. Broyles, President International Broadcasting Network

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Friday, August 24,2001 1:12 PM Subject: DTV

August 24, 2001

Dear Ms. Bedard, several days ago, we heard that Steve Smith had been in Lufkin to select DTV equipment.

Has a decision been made tor KLTV and KTRE to go ahead with the UHF channels under the current construction permits? If so, that would be very good news.

Your company's decisions on DTV are extremely important to IBN since three of our stations would be knocked off the air were KLTV and KTRE to switch from their assigned OTV channels to channels 10 and 11.

Please share this information with us.

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas n269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Cc: Sent: Wednesday, September 26,2001 5:56 PM Attach: ATT00162.dat; Re KLTV and KTRE DTV.eml Subject: Fw: Delivery Status Notification (Failure)

September 26,2001

Dear Ms. Bedard,

The message we sent to Steve Smith a few minutes ago has been returned. The copies we sent to you and Dean were not returned.

Has Mr. Smith changed his e-mail address since yesterday? Or has he blocked out messages from IBN? Ifso, we are depending on you to ensure that he promptly receives the message.

Additionally, it is requested that you furnish to us the names, mailing addresses, e-mail addresses, phone numbers and fax numbers ofthe chief executive officers ofLiberty Corporation, Cosmos Broadcasting Corporation and Civic License Holding Company, Inc.

Thank you.

Paul

----- Original Message --.-- From: < > To: < > Sent: Wednesday, September 26,2001 6:38 PM Subject: Delivery Status Notification (Failure)

> This is an automatically generated Delivery Status Notification. > > Delivery to the following recipients failed. > > > > > >

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: sent: Friday, September 28, 2001 3:50 PM

September 28, 2001

Dear Ms. Bedard,

Thank you for the information you sent a few minutes ago.

Mr. Keetor must be the president of Cosmos Broadcasting Corporation. According to an Intemet search we have done, W. Hayne Hipp is chairman, president and CEO of The Liberty Corporation. Is that correct?

We have so far been unable to find out who is the current president of Civic License Holding Company, Inc. His name, mamng address, telephone number, fax number and e-maU acIclress are also needed.

Are all three companies moving to the new address in Greenville? Do you have the new street address?

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: sent: Friday, September 28,20014:18 PM Subject: Bibles

September 28, 2001

Dear Ms. Bedard,

You will recall my having mentioned that a special edition of the Bible would be given to you, Dean and Tina. The edition is entitled "The Master Plan: God's Word for Media Professionals."

The Bibles arrived several weeks ago, and I had intended to deliver them on September 11. The terrible tragedy that occurred that morning made it necessary to postpone the delivery.

Hopefully, I will be able to make an appointment to deliver the Bibles soon.

Incidentally, the Bibles have nothing whatsoever to do with the present controversy between Cosmos and IBN. For a long time, we have wanted to get the Bibles for KTRE's key staff members. Nothing will change that.

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Cc: Sent: Monday, October 29,2001 2:50 PM

October 29,2001

Dear Ms. Bedard,

We have learned that your company has been using inappropriate means in an attempt to gain public support for its attack against IBN.

Recently, a radio station was threatened with loss of its antenna position on KlTVs tower. The threatened loss was contingent upon the outcome of your company's efforts to take IBN's channels.

Last week, false statements were made to The lufkin Daily News by Mr. Keator. Some of those statements were included in the article that was published in last Friday's edition.

Now we have learned that you are making calls to supporters of IBN, including pastors of churches.

In our opinion, Ms. Bedard, the continuation of your company's campaign to take away IBN's channels is a huge mistake. We hope your station's owners will realize that they stand to lose far more than they could possibly gain.

We know that you are under pressure from corporate headquarters. But please don't allow YOUl'$elf or anyone on your staff to be used as an accomplice. And please let your bosses back east know that their efforts are III-advised and misguided.

KTRE and KlTV have channels that were assigned for DTV quite some time ago. The construction permits are still valid. We believe your company should begin construction under the existing permits and cease its efforts to take IBN's channels.

Best personal regards to you and your staff.

Paul

Paul J. Broyles, President International Broadcasting Network

11/26/0 I INTERNATIONAL BROADCASTING NElWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Monday, June 11, 2001 3: 17 PM Subject: DTV Applications

June 11, 2001

Dean,

Ever since we Ieamed of KLTVs and KTRE's applications to modify their DTV construction permits to channels 10 and 11, we've tried to reach Frank Melton to discuss the matter. So far, we haven't been successful in finding him. He seems to constantly be on vacation, and his office has never been willing to even give us his e-mail address.

From what we've been able to gather, the applications were filed without Erol's knowledge or consent and he felt they were a mistake. Recently, we were told by a third party that KTRE would be starting construction on DTV channel 43 this summer. That was very good news for us, but, according to KIBN's station operations coordinator Adam Thomason, that information is now in question.

As you know, if either of the applications were to be approved, that would be devastating to IBN. Three of our stations would be knocked off the air, and it is most doubtful that we could find replacement channels. This is an extremely serious matter for us.

Any information you can provide will be greatly appreciated.

Paul

Paul J. Broyles, President Intemational Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269·1111

11/26/01 INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Cc: Sent: Friday, July 13, 2001 11 :29 AM

July 13, 2001

Dean,

I enjoyed talking with you on Wednesday and again today.

If suitable replacement channels can be found, we'd certainly like to know (a) what channels they are, (b) whether omni-directlonal coverage would be possible and (c) what the maximum ERP would be. Our own research has found no suitable channels to which IBN', statIOns could move. However, we recognize that your company's consulting engineers, du Treil, Lundin & Rackley, have outstanding expertise. We would like to know what that finn may have found.

As you know, IBN takes Its mission very seriously. We are not willing to oompromise that mission. Nothing will persuade us to abandon the communities we serve or to retreat in any manner. If, however, a mutually-beneficial arrangement were possible, which would meet your company's objectives whlle enabling IBN's stations in Lufkin, longview and Crockett to serve more effectively, that would be carefully considered.

It seems to us that the availability of suitable replacement channels is the threshold issue which must be dealt with before there can be any meaningful discussion about other matters. We need very specific infonnation about that.

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

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From: INTERNATIONAL BROADCASTING NETWORK To: Cc: Sent: Tuesday, July 17,2001 3:24 PM Subject: DTV

July 17, 2001

Dean,

Recently, in response to Ms. Bedard's request for suggestions, I mentioned the possibility of constructing a low-power transmission system on the UHF channel that has been assigned. You and I discussed that by telephone as well.

My understanding is that many stations are doing just that, and that it's pel'fectly acceptable to the FCC, The FCC-recommended procedure, I am told, is to build under the existing construction permit but with an STA that allows lOwer power.

As you know, most all ofthe transmitter manufacturers can provide upgradeable transmitters at a reasonable price. Such a transmitter, along with an appropriate antenna and coax from Andrew or other supplier, can be purchased and installed at a very modest cost. If OTV continues to be the disaster that it now seems to be, the loss will be far less than it would be if a full-blown high-power system had been constructed.

You've probably seen the KTech advertisements In TV Technology and Broadcasting & Cable. Those advertisements, which have been running for awhile now, feature a 100 watt OTV transmitter for less than $80,000. A few minutes ago, I talked with Romeo Castillo, director of sales, and Steve Kuh, president of KTech. Both were very knowledgeable and personable. I didn't mention Cosmos Broadcasting, KLTV or KTRE, but I did say I was seeking Information to pass along to friends.

If you should wish to talk with KTech, the telephone number is 818-361-2248. The e-mail address is . The web site is

Dean, I hope this will be helpful to you. Larcan and ADC are known for high-quality low power transmitters, and IBN's experience with both of those companies has been excellent. Harris is great, but I'm not particularly fond ofAerodyne.

Best personal regards to you and Ms. Bedard,

Paul

-- Original Message ­ From: To: Sent: Tuesday, June 26,20012:36 PM Subject: Re: KTRE Channel Application

June 26, 2001

Dear Ms. Bedard,

Many thanks for your e-mail of yesterday.

We certainly understand that the many issues and problems surrounding OTV have kept Mr. Smith quite busy. Although we don't have to deal with those issues in the same way your company does, it is quite apparent that OTV has been a disaster and many in the industry wish it would just go away.

From what we've been hearing, many stations are extremely reluctant to build OTV facilities and definitely won't meet the deadline. Just a few days ago, one large group owner began a major lobbying effort to persuade Congress to allow OTV permits to be turned back in. With DTV haVing been a failure in the marketplace, with the technical and legal issues that remain, with the lack of any business model that could sustain OTV operations and with the networks' plans to reduce or eliminate compensation to affiliates, there doesn't seem to be a reason (other than the federal mandate) for OTV transmission systems to be built.

~rom IBN's standpoint, we want to keep all of our stations on the air. We don't sell airtime or commercials, but our mission is very Important to us and to our viewers. The loss of our stations in Lufkin, Longview and Crockett would be devastating.

From your co":,pany's standpoint, perhaps it would be desirable to seek a moratorium on OTV buildout obligations, especially in small and medium-sized markets. Or pe~aps you could get approval to build a very low-power OTV facility, possibly a hundred watts or so, on the ~HF channel that has been assrgned. I would think that could be done for less than 5250,000, and the operational costs would be neglrglble.

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Whatever happens with OlV in the larger mar1tets, it seems certain that it will never be viable in Lufkin or Tyler. Even here in Houston, whefe OlV has been airing for several years, it has been a dismal failure. Consumers aren't buying it. Without viewers and without revenue, it won't survive.

IBN's position has always been that "if it's not good for everyone, it's not good for anyone." Our record at the FCC reflects our insistence that all broadcasters be allowed to thrive and that none be burdened with inappropriate or excessive obligations. In our view, the OTV mandate Is inappropriate and excessive. We think it's time for Congress and the FCC to ease the burden by allowing stations the option to build a minimal OTV facility or none at all.

Hopefully, these thoughts are responsive to your request. We do want to help in any way we can.

Best regards.

Paul

Paul J. Broyles, President Intemational Broadcasting Network 5206 FM 1960 West. Suite 105 Post OffIce Box 691111 Houston, Texas 77269-1111

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INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NElWORK To: Sent: Wednesday, August 22,2001 2:00 PM Attach: Peak News Release.doc

August 22, 2001

Dean,

This press release came in a few minutes ago, and I thought you might like to see it.

Also, we received a quote from K Tech Telecom on a 1QO-watt UHF DTV transmitter. If you'd like, we'll forward It to you. K Tech knows we were getting information for a friend, but it doesn't know who. IBN has no experience with K Tech transmitters.

EMCEE has been around a long time, and it has an excellent reputation. However, it may have had some recent financial difficulties. Reports indicate that it has received a large infusion of cash.

I heard that Steve Smith was there recently. Were any decisions made that might be good news for IBN?

Best regards!

Paul

Paul J. Broyles, President International Broadcasting Network

11/26/01 Page I of I

INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: Sent: Wednesday, OCtober 31, 2001 3:21 PM Subject: Documents received from you today

Odober 31,2001

Scott S. Patrick, Esquire Dow, Lohnes & Albertson, PLLC Attorneys at Law Washington, D.C. 20036-6802

Dear Mr. Patrick,

We have today received your letter of yesterday, with which were endosed copies of the following documents:

Lufkin, Texas (KTRE-DT)

1. Letter dated May 1, 2000, from Wiley, Rein & Fielding, together with enclosures

2. Letter dated January 30, 2001, from Dow, Lohnes & Albertson, together with an enclosure

3. Letter dated March 16.2001, from Dow, Lohnes & Albertson, together with an endosure

4. Further Supplement, dated August 15, 2001 (no cover letter)

Tyler, Texas (KLTV-DT)

1. Letter dated May 1, 2000. from Wiley, Rein & Fielding. together with endO$ures

2. Letter dated March 16, 2001, from Dow, Lohnes & Albertson, together with an endosure

3. Letter dated July 13, 2001, from Dow, Lohnes & Albertson (no endosure)

4. Further Supplement, dated August 15, 2001 (no cover letter)

We note that there Is no January 3D, 2001, letter for Tyler and no July 13, 2001, letter for Lufkin. Are we missing two documents?

We also note that no document indudes a certificate of service. Was there a certificate of service for any of the filings?

Although IBN was directly impacted, there was, in fact, no adual service on IBN. We are quite surprised that the filings were made without notice to IBN.

Ifwe are missing any document or any certificate attached to a document, we would appreciate your sending us the missing items immediately.

Thank you.

Paul J. Broyles, President International Broadcasting Networ1l: 5206 FM 1960 West, Suite 105 Houston, Texas 77069

11/27/01 Page I of2

INTERNATIONAL BROADCASTING NETWORK

From: INTERNATIONAL BROADCASTING NETWORK To: ; sent: Saturday, November 17, 2001 5:46 PM SUbject: MM Docket Nos. 01-244 and 01-245

November 17, 2001

John S. Logan Scott S. Patrick Dow, Lohnes & Albertson, PLLC 1200 New Hampsrure Avenue, N.W. Suite 800 Washington, D.C. 20036

Dear Messrs. Logan and Patrick,

Copies of the Comments you filed on behalf of Civic License Holding Company, Inc., in MM Docket Nos. 01-244 and 01· 245 have been received.

Although we haven't yet had time to read the Comments in detail, we have noticed that they include technical exhibits suggesting that IBN's Lufkin and Longview stations can be rebuilt on channels 14 and 36 respectively.

Never before had your client shared with us any infonnation concerning specific channels that might be used to rebuild our stations. Our own studies had found no suitable channels. Although we have some significant concerns about the suitability of Channels 14 and 36, we are certainly willing, as we have been in the past, to consider a mutually­ beneficial arrangement which would meet your c1lenrs objectives while enabling IBN's stations to serve more effectively. That was made very dear to your client in the attached e-mail of July 13, 2001, and on other occasions as welt.

As the deadline for reply comments is rapidly approaching, there isn't much time for an agreement to be reached. However, we would suggest that the parties mutually request an extension of the November 28 deadline for reply comments in order that they may wor1< toward an amicable resotution of the matter.

Our initial analysis suggests that IBN's moving to channels 14 and 36 would be both problematic and costly, would reduce actual viewership, would restliet opportunities for future upgrading and would SUbstantially inaease the likelihood offuture displacement. If, however, your client were to share a portion of its digital capacity with IBN, that might go a long way toward offsetting some ofthose disadvantages.

IBN has always been wilting to negotiate in order that both parties may benefit. IBN Is not WIlling, however, to compromise Its mission or to abandon the communities it serves.

It would be a great mistake for Civic to continue its efforts to take the channels without IBN's consent. It Is hoped that you will concur and will so advise your client.

We are awaiting your response.

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

-- Original Message -­ From: To: Cc: Sent: Friday, JUly 13, 2001 11:29 AM

July 13,2001

Dean,

I enjoyed talking with you on Wednesday and again today.

11/27/01 Pagt: 2 of2

If suitable replacement channels can be found, we'd certainly like to know (a) what channels they are, (b) whether omni­ directional coverage would be possible and (c) what the maximum ERP would be. Our own research has found no suitable channels to which IBN's stations could move. However, we recognize that your company's consulting engineers, du Treil, Lundin & Rackley, have outstanding expertise. We would like to know what that firm may have found.

As you know, IBN takes its mission very seriously. We are not willing to compromise that mission. Nothing will persuade us to abandon the communities we serve or to retreat in any manner. If, however, a mutually-beneficial arrangement were possible, which would meet your company's objectives while enabling IBN's stations in Lufkin, Longview and Crockett to serve more effectively, that would be carefully considered.

It seems to us that the availability of suitable replacement channels is the threshold issue which must be dealt with before there can be any meaningful discussion about other matters. We need very specific information about that.

Best personal regards.

Paul

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

11/27/01 EXHIBITC

Attached to and made a part ofthe

REPLY COMMENTS OF INTERNATIONAL BROADCASTING NETWORK

November 27, 2001 IBN

NEWS RELEASE For Immediate Publication

CHRISTIAN STATIONS APPEAL FOR HELP TO PROTECT CHANNELS FROM TAKEOVER

International Broadcasting Network president Paul J. Broyles and KffiN station operations coordinator Adam Thomason announced today that KIBN is under attack by the out-of-state owners ofKTRE.

The attack began nearly 18 months ago, when Civic License Holding Company, Inc., filed petitions and applications with the Federal Communications Commission to substitute VHF channels 10 and 11 for the UHF channels it had earlier been assigned for digital television facilities in Lufkin and Tyler. IBN's stations in Lufkin and Longview have long been licensed to broadcast on those channels, and, ifthe petitions were approved by the FCC, both stations would be forced offthe air. ffiN believes that a third station, KTWC in Crockett, would be impacted as well.

After filing the petitions, Civic quickly sold KTRE, along with KLTV in Tyler and WLBT in Jackson, Mississippi, to new owners for a price reported to be $204 million. The three stations are now part ofa larger group of 15 stations owned and operated by The Liberty Corporation and its subsidiary Cosmos Broadcasting Corporation, both of Greenville, South Carolina. Since purchasing the stations, Liberty and Cosmos have continued an aggressive campaign to obtain the FCC's approval for the channel takeover.

There was no consultation with IBN before the filings were made, and no notice was given to IBN. The matter first came to ffiN's attention when a routine check ofthe FCC's databases revealed that the filings had been made. IBN then made inquiries but received very little cooperation. Repeated attempts to reach Civic's president were unsuccessful, and the presidents ofLiberty and Cosmos did not respond to letters sent to them by fax and certified mail.

IBN is appealing for help from everyone in the Lufkin area to defeat the threatened takeover ofits channels. "Commercial stations like KTRE exist for the purpose of making money for their owners," said Broyles. "In this case, viewers and advertisers are the key. IfKTRE's owners realize that they have much more to lose than they would gain by persisting in their quest to take the channels, they will likely change course." - 2 -

Broyles acknowledges that IBN is up against a formidable foe with virtually unlimited resources. "IBN cannot match the powerful lawyers, lobbyists and spin doctors that our opponents have," he says. "But neither could David match the physical stature and strength of Goliath. We all know who won that battle."

Thomason agrees. "With the strong backing ofthe great folks ofLufkin, we'll see a victory," he adds. "There's no doubt about that."

IBN is in its 22nd year as a nonprofit evangelical Christian ministry. In addition to its Lufkin and Longview stations, it operates stations in Livingston, Huntsville, Nacogdoches, Crockett and Kerrville. It also operates an orphanage and school in a remote area ofHonduras and engages in various missions projects around the world.

In addition to its national programming from FamilyNet, KIBN airs a variety oflocal programs. Among them are Lufkin Panther football games, various special events and the worship services ofFirst Baptist Church, First Assembly ofGod, Harmony Hill Baptist Church, Carpenter's Way Church, Calvary Baptist Church and Church ofthe Living God. The station works closely with many other churches and organizations as well.

- 30-

For further information, contact:

Paul J. Broyles, President International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111 Telephone: 281-774-9922/281-774-9923 Fax: 281-774-9923/281-251-1426 E-Mail: [email protected]

Adam Thomason, Station Operations Coordinator KIBN Channel 11 2601 East Lufkin Avenue Lufkin, Texas 75901 Telephone: 936-632-5000 Fax: 936-632-2178 Cell: 936-414-5000 E-Mail: [email protected] CERTIFICATE OF SERVICE

I, Paul J. Broyles, hereby certify that on this 27th day ofNovember 2001 a copy of the foregoing REPLY COMMENTS OF INTERNATIONAL BROADCASTING NETWORK has been served by first-class mail, postage prepaid, upon the following:

John S. Logan Scott S. Patrick Dow, Lohnes & Albertson, PLLC 1200 New Hampshire Avenue, NW Suite 800 Washington, DC 20036-6802 (Counsel for Civic License Holding Company, Inc.)

International Broadcasting Network 5206 FM 1960 West, Suite 105 Post Office Box 691111 Houston, Texas 77269-1111

Telephone: 281-774-9922 and 281-774-9923

E-Mail: [email protected]