TEXT-S&P release on Gray Television

(The following statement was released by the rating agency)

April 7 - On April 4, 2008, Standard & Poor's Ratings Services placed its
ratings on Gray Television Inc., (GTN.N) including the 'B' corporate credit
rating, on CreditWatch with negative implications, reflecting our concern about
Gray's ability to remain in compliance with its financial covenants, and the
potential costs if the company must obtain a waiver.

The Atlanta, Ga.-based TV broadcasting company had total debt of $925
million outstanding as of Dec. 31, 2007.

Gray had a modest margin of compliance--7.90x (using eight quarters'
average operating cash flow, as defined in the bank agreement), compared with
its 8.25x leverage covenant--as of Dec. 31, 2007. The covenant tightens to
7.75x on June 30, 2008, and further tightens to 7.25x on Dec. 31, 2008, which
would require Gray to improve its EBITDA significantly or pay down some of its
debt within the next few months. Even considering the benefit of political ad
revenues for the current year, we are concerned about the company's ability to
maintain headroom under the leverage covenant, given the recent slowdown in ad
spending in a number of industries.

In 2007, Gray's EBITDA margin declined to around 30.3%, from 38% in 2006.
The absence of political ad revenues and higher broadcast expenses related to
the operation of additional digital second channels caused the margin
shrinkage. The company's discretionary cash flow turned negative in 2007
because of reduced political revenue, higher broadcasting expense, and lower
favorable working-capital changes. We expect that election revenues will
benefit 2008 EBITDA, the EBITDA margin, and discretionary cash flow, but the
timing and scale of the improvement are uncertain. In 2009, the absence of
elections will again lead to a contraction of these measures, which could
further complicate compliance with tighter covenants.

In resolving the CreditWatch listing, Standard & Poor's will consider the
measures undertaken by the company's management to remain in covenant
compliance as the covenant levels tighten, and also its overall operating
performance in the election year. Based on our current view of the company's
business and financial profile, we could lower the rating one notch, to 'B-'.
Ratings List
Ratings Affirmed; CreditWatch/Outlook Action

To From
Gray Television Inc.
Corporate Credit Rating B/Watch Neg/-- B/Neg/--
Senior Secured B+/Watch Neg B+
Recovery Rating 2 2