NBC UNIVERSAL STATEMENT ON FILING AN ARBITRATION CLAIM AGAINST PAXSON COMMUNICATIONS CORPORATION
NEW YORK -- May 12, 2005 -- NBC Universal today filed an arbitration claim against Paxson Communications Corporation for breaching contractual agreements between the two companies.
Paxson's intention to terminate its network, national and local sales agreements with NBC Universal, and its desire to abandon its sales operations and advertiser-supported television network, violates the clear terms of those agreements.
We have expressed repeatedly to Paxson's Board of Directors and its management that their course of action is not in the best interest of the company or its stakeholders.
Paxson has left NBC Universal with no other option but to file this claim.