Fisher Communications, Inc. Reports Second Quarter Financial Results and Announces a Special Dividend of $3.50 per

SEATTLE, WA, Jul 31 (MARKET WIRE) --
Fisher Communications, Inc. (NASDAQ: FSCI) today reported financial
results for the second quarter ended June 30, 2008.

2008 Second Quarter Highlights

-- In a challenging advertising environment, the Company continued to
achieve same-station television revenue growth -- revenues grew by
5.3% in the second quarter of 2008 compared with the second quarter
of 2007

-- On a same-station basis, gross local TV revenue increased
3.5% in the second quarter of 2008 over the same period in
2007, while gross national TV revenue decreased 9.4%. Gross
political revenue increased $2.1 million quarter to quarter;

-- TV broadcast cash flow (BCF) margin improved to 30% in the second
quarter;

-- Despite increases in our core television business, Consolidated
EBITDA decreased $1.1 million, or 15.1%, in the second quarter of
2008 compared with the same period in 2007 -- largely attributable
to the Radio segment, which experienced lower revenue and higher
promotion and Mariners related expenses, as well as increased
Internet expenses;

-- The Company experienced strong online traffic growth with a 65%
increase in average monthly unique visitors;

-- A majority of the Company's TV stations made significant ratings
gains in the key May 2008 ratings period;

-- The Company began liquidating its sizeable position in Safeco
Corporation in advance of Safeco's pending acquisition by
Liberty Mutual; and

-- The Company began exploring strategic alternatives for its real
estate assets, including Fisher Plaza in Seattle, Washington.

Special Dividend

On July 30, 2008 the Company's Board of Directors declared a special
dividend of $3.50 per share on its common stock, payable on August 29,
2008 to shareholders of record on August 15, 2008. The Company anticipates
funding the special dividend from the proceeds of short-term borrowings
and cash from operations.

CEO Comment

Colleen B. Brown, Fisher President and Chief Executive Officer, commented,
"Despite the economic headwinds, we are pleased that Fisher continues to
grow its revenues and increase its market share. We remain focused on
executing on our strategy of improving operations and creating solid
revenue growth. We are optimistic about the long-term outlook for our
business, given the progress we are making in transforming Fisher's
operations and its business model. Our management team has a strong track
record of effectively managing our costs and creating ratings and revenue
growth.

"We are focused on delivering sustainable operating improvement
quarter-over-quarter and year-over-year in our key measures of success,
which include: 1) exceeding market revenue growth and growing our market
share; 2) achieving power ratios in excess of 1.0; 3) growing our audience
share in key demographics; 4) improving BCF margins; 5) expanding our
online audience; 6) diversifying our affiliate base and geographic
footprint; 7) achieving accretive returns for acquired stations; and 8)
increasing EBITDA, free cash flow and earnings per share.

"We continue to increase the amount and quality of the information we
provide our investors as evidenced by the new format of our quarterly
press release. We are now providing in-depth information on key revenue
categories, broadcast cash flow metrics, ratings performance, and
same-station results. We hope these improvements will allow current and
prospective investors to better evaluate the progress we are making
towards our goals and enable them to more readily compare our results
with our peers.

"During the second quarter, we announced that we were exploring strategic
options for our real estate assets, most notably Fisher Plaza. We are
currently evaluating the redeployment of cash proceeds from the sale of
our Safeco holdings as well as the proceeds from the possible sale of
Fisher Plaza. We do not anticipate finalizing our evaluation or
communicating our strategy for the use of all potential cash proceeds
until we reach a decision on the sale of Fisher Plaza. We remain focused
on taking actions which will drive Fisher's growth and enhance
shareholder value."

Safeco Stock Sale

The Company has completed the sale of its 2.3 million shares of Safeco
common stock as of July 31. The Company received aggregate proceeds of
$153.4 million at an average price of $66.65 per share. The Company
expects after-tax proceeds from the sale of the shares to be $108.9
million.

As of June 30, the Company had sold 1,548,956 shares of Safeco common
stock, resulting in pre-tax net proceeds to the Company in the second
quarter of approximately $104 million (after broker commissions). The book
basis of the shares sold totaled approximately $526,000 ($0.34 per share),
resulting in a pre-tax gain of $103.6 million which is included in other
income in our statement of operations.

Second Quarter 2008

Consolidated Results

Revenue for the quarter ended June 30, 2008 grew 10% to $45.3 million from
$41.3 million in the second quarter of 2007. Loss from operations was $3.9
million for the three months ended June 30, 2008 compared with income from
operations of $3.3 million during the same period in 2007. Our loss in the
quarter ended June 30, 2008 included a $5.0 million non-cash charge for a
change in the Company's national advertising representation firm and a
$1.0 million charge for the forfeiture of a non-refundable deposit.

The Company reported net income of $63.7 million, or $7.29 per share, for
the three months ended June 30, 2008 compared to net income of $2.3
million, or $0.26 per share, in the second quarter of 2007. Excluding the
after-tax effects of the gain from the sale of Safeco stock of $103.6
million, the non-cash charge for a change in national advertising
representation firm of $5.0 million and the $1.0 million charge for the
forfeiture of a non-refundable deposit, net income would have been
$213,000 in the second quarter of 2008 or $0.02 per share.

EBITDA totaled $6.1 million for the second quarter of 2008, a 15% decrease
over the second quarter of 2007. The decrease was largely attributable to
the Radio segment, which experienced reduced revenue and increased
promotion and Mariners related expenses, as well as increased Internet
expenses as part of the Company's strategy to grow its digital business.

Television Results

For the second quarter of 2008, the Television segment reported revenues
of $31.0 million, an increase of 15% over the $27.0 million earned in the
second quarter of 2007.

TV BCF was $9.1 million, compared with $7.4 million in the same period of
2007, an increase of 23.1%. The Company reported a TV BCF margin of 30.3%
in the second quarter of 2008, an increase from 28.1% in the second
quarter of 2007. During the second quarter, the Company recorded $2.2
million of political revenue, compared to $129,000 during the same period
last year. Fisher also earned $0.8 million in total retransmission
consent revenue in the second quarter, which represents a 26% increase
over the second quarter of 2007. In addition, Fisher's Internet strategy
continues to gain momentum, as second quarter revenues grew nearly 50%
over the comparable period in 2007.

On a same-station basis, Fisher's 2008 second quarter revenue was $28.4
million compared with $27.0 million in the second quarter of 2007, an
increase of 5.3%. TV operating expenses, on a same-station basis and
excluding Internet and the non-cash charge for a change in national
advertising representation firm were essentially flat on a quarter to
quarter basis, reflecting the Company's continuing efforts to contain
costs. Same-station results exclude the operating results from KBAK-TV and
KBFX-CA, the CBS and FOX affiliates, respectively, serving the
Bakersfield, California market, which were acquired on January 1, 2008.

Ratings highlights from the May ratings period include:

-- KOMO 4 in Seattle became the #2 ranked station in Early Evening and
Late News and Primetime.

-- KBCI became the #2 ranked station in Boise, sign-on to sign-off.

-- KBAK became the new #1 station in Bakersfield in Early Evening News
and Primetime.

-- KUNS, the Univision Spanish-language affiliate in Seattle, ranked as
the 5th highest rated TV station in Seattle during Access and
7th highest during Primetime in key demographics, outperforming more
established English-language stations in the market.

Radio Results

For the second quarter of 2008, the Radio segment reported revenues of
$11.2 million, a decrease of 3% from the $11.4 million earned in the
second quarter of 2007. Loss from operations was $1.5 million, compared
with a loss from operations of $350,000 in the same period of 2007. The
decrease was attributable to increased promotion expenses and Mariners
rights fees, as well as lower revenue. Lower revenue was related to the
overall weakness of the Seattle radio market, as Fisher's cluster of
stations increased its aggregate market share of revenue.

As reported on July 22, the Company did not renew the broadcast rights
agreement with the Seattle Mariners; therefore, 2008 will be the final
year of Fisher's commitments under the agreement.

Fisher Plaza Results

For the second quarter of 2008, the Plaza segment reported revenues of
$3.2 million, a 9.5% increase over the $2.9 million earned in the second
quarter of 2007. Income from operations was $1.3 million, which is
essentially flat compared to the same period in 2007.

Second Quarter Conference Call

Fisher will host a conference call today at 1:00 p.m. PDT. Senior
management will discuss the financial results and host a question and
answer session. The dial in number for the audio conference call is
1-800-435-1261; confirmation code 27737722. A live audio webcast of the
call will be accessible to the public on Fisher's Web site, www.fsci.com.
A recording of the webcast will subsequently be archived on the Web site
and available for replay for one week following the call. An audio replay
of the call can be accessed for one week by dialing 1-888-286-8010 and
entering confirmation code 93854801.

Definitions and Disclosures Regarding Non-GAAP Financial Information

Broadcast cash flow is calculated as income (loss) from operations plus
amortization of program rights, depreciation and amortization, non-cash
charges, Internet and corporate expenses minus payments for broadcast
rights, amortization of non-cash benefit resulting from change in national
advertising representation firm and non-convergence Internet revenue.

EBITDA is calculated as income from operations plus amortization of
program rights, depreciation and amortization, stock-based compensation,
and non-cash charges minus payments for broadcast rights and amortization
of non-cash benefit resulting from change in national advertising
representation firm.

Broadcast cash flow and EBITDA results are non-GAAP financial measures.
The Company believes the presentation of these non-GAAP measures are
useful to investors because they are used by lenders to measure the
Company's ability to service debt; by industry analysts to determine the
market value of stations and their operating performance; by management
to identify the cash available to service debt, make strategic
acquisitions and investments, maintain capital assets and fund ongoing
operations and working capital needs; and, because they reflect the most
up-to-date operating results of the stations inclusive of pending
acquisitions, time brokerage agreements or local marketing agreements.
Management believes they also provide an additional basis from which
investors can establish forecasts and valuations for the Company's
business. For a reconciliation of these non-GAAP financial measurements
to the GAAP financial results cited in this news announcement, please see
the supplemental tables at the end of this release.

About Fisher Communications, Inc.

Fisher Communications, Inc. is a Seattle-based communications company that
owns and operates 13 full power television stations (including a 50%-owned
television station), 7 low power television stations and 8 radio stations
in the Western United States. The Company owns and operates Fisher
Pathways, a satellite and fiber transmission provider; Fisher Plaza, a
media, telecommunications, and data center facility located near downtown
Seattle; and Pegasus News, an online start-up and hyper-local media
pioneer based in Dallas. For more information about Fisher
Communications, Inc., go to www.fsci.com.

Forward-Looking Statements

This news release includes forward-looking statements. We have based these
forward-looking statements on our current expectations and projections
about future events. Forward-looking statements include information
preceded by, followed by, or that includes the words "guidance,"
"believes," "expects," "anticipates," "could," or similar expressions. For
these statements, the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995. The forward-looking statements contained in this news
release, concerning, among other things, changes in revenue, cash flow and
operating expenses, involve risks and uncertainties, and are subject to
change based on various important factors, including the impact of changes
in national and regional economies, our ability to service and refinance
our outstanding debt, successful integration of acquired television
stations (including achievement of synergies and cost reductions), pricing
fluctuations in local and national advertising, future regulatory actions
and conditions in the television stations' operating areas, competition
from others in the broadcast television markets served by the Company,
volatility in programming costs, the effects of governmental regulation of
broadcasting, industry consolidation, technological developments and major
world news events. Unless required by law, we undertake no obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. In light of these risks,
uncertainties and assumptions, the forward-looking events discussed in
this news release might not occur. You should not place undue reliance on
these forward-looking statements, which speak only as of the date of this
release. For more details on factors that could affect these expectations,
please see our filings with the Securities and Exchange Commission.

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Six months ended Three months ended
(in thousands, except per-share June 30 June 30
amounts) Unaudited 2008 2007 2008 2007
-------- -------- -------- --------

Revenue $ 83,013 $ 75,542 $ 45,292 $ 41,299
Costs and expenses
Direct operating costs 35,375 31,081 17,881 15,265
Selling, general and
administrative expenses 34,881 25,202 21,174 12,705
Amortization of program rights 9,461 9,434 7,015 7,011
Depreciation and amortization 6,253 5,857 3,126 3,016
-------- -------- -------- --------
85,970 71,574 49,196 37,997
-------- -------- -------- --------
Income (loss) from operations (2,957) 3,968 (3,904) 3,302
Other income, net 105,756 2,296 104,730 1,126
Interest expense (6,902) (6,904) (3,544) (3,410)
-------- -------- -------- --------
Income (loss) from continuing
operations before income taxes 95,897 (640) 97,282 1,018
Provision (benefit) for federal
and state income taxes 33,282 (71) 33,626 319
-------- -------- -------- --------
Income (loss) from continuing
operations 62,615 (569) 63,656 699
Income (loss) from discontinued
operations, net of income taxes (7) 1,580 18 1,557
-------- -------- -------- --------
Net income $ 62,608 $ 1,011 $ 63,674 $ 2,256
======== ======== ======== ========

Income (loss) per share:
From continuing operations $ 7.17 $ (0.06) $ 7.29 $ 0.08
From discontinued operations - 0.18 - 0.18
-------- -------- -------- --------
Net income per share $ 7.17 $ 0.12 $ 7.29 $ 0.26
======== ======== ======== ========

Income (loss) per share assuming
dilution:
From continuing operations $ 7.17 $ (0.06) $ 7.29 $ 0.08
From discontinued operations - 0.18 - 0.18
-------- -------- -------- --------
Net income per share assuming
dilution $ 7.17 $ 0.12 $ 7.29 $ 0.26
======== ======== ======== ========

Weighted average shares outstanding 8,730 8,721 8,731 8,722

Weighted average shares outstanding
assuming dilution 8,732 8,727 8,735 8,729

Reclassifications

Certain amounts in the 2007 condensed consolidated statements of
operations have been reclassified to conform to the 2008 presentation.
Certain employment-related expenses totaling approximately $1.5 million
and $3.0 million for the three and six months ended June 30, 2007,
respectively, which were previously reported within "Selling, general
and administrative expenses," are now reported within "Direct operating
costs."

FISHER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS June 30 December 31
(in thousands) Unaudited 2008 2007
----------- -----------
Assets
Current assets $ 181,148 $ 47,619
Marketable securities, at market value 893 129,223
Other assets 158,094 163,084
Property, plant and equipment, net 149,581 146,008
----------- -----------
Total assets $ 489,716 $ 485,934
=========== ===========

Liabilities and stockholders' equity
Current liabilities $ 61,445 $ 29,571
Long-term debt 150,000 150,000
Deferred income taxes 729 45,274
Other liabilities 31,214 27,692
----------- -----------
Total liabilities $ 243,388 $ 252,537
----------- -----------
Stockholders' equity, other than accumulated
other comprehensive income 215,743 152,718
Accumulated other comprehensive income, net of
income taxes 30,585 80,679
----------- -----------
Total stockholders' equity 246,328 233,397
----------- -----------
Total liabilities and stockholders' equity $ 489,716 $ 485,934
=========== ===========

Fisher Communications, Inc.
GAAP to Non-GAAP Reconciliations
(in thousands)

The following table provides a reconciliation of income (loss) from
operations to EBITDA in each of the periods presented:

Six Months ended Three Months ended
June 30 June 30
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------

Income (loss) from operations
(per GAAP, Statements of
Operations) $ (2,957) $ 3,968 $ (3,904) $ 3,302

Add:

Amortization of program rights 9,461 9,434 7,015 7,011
Depreciation and amortization 6,253 5,857 3,126 3,016
Stock-based compensation 426 328 261 181
Non-cash charge resulting from
forfeiture of non-refundable
deposit 1,000 - 1,000 -
Net non-cash charge resulting
from change in national
advertising representation firm 4,990 - 4,990 -

Subtract:

Payments for television and
radio broadcast rights 9,588 9,704 6,105 6,148
Amortization of non-cash
benefit resulting from change
in national advertising
representation firm 533 434 316 217

-------- -------- -------- --------
EBITDA (Non-GAAP) $ 9,052 $ 9,449 $ 6,067 $ 7,145
======== ======== ======== ========

EBITDA as a percentage of Revenue 10.9% 12.5% 13.4% 17.3%
======== ======== ======== ========

The following table provides a reconciliation of television segment income
(loss) from operations to television segment broadcast cash flow in each
of the periods presented:

Three Months ended June 30
--------------------------
2008 2007

Television segment income (loss) from
operations (per GAAP) $ (242) $ 4,472

Add:

Amortization of program rights 1,988 2,128
Depreciation and amortization 2,029 1,907
Net non-cash charge resulting from
change in national advertising
representation firm 4,990 -
Corporate and internet expenses 3,164 1,576

Subtract:

Payments for television broadcast rights 1,927 2,076
Amortization of non-cash benefit
resulting from change in national
advertising representation firm 316 217
Non-convergence internet revenue 556 373

----------- -----------
Television segment Broadcast Cash Flow
(Non-GAAP) $ 9,130 $ 7,417
=========== ===========

Television segment Broadcast Cash Flow
as a percentage of Revenue 30.3% 28.1%
=========== ===========

Contact:

Sard Verbinnen & Co
Paul Kranhold or Ron Low
(415) 618-8750
Robin Weinberg
(212) 687-8080

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