CONDENSED CONSOLIDATING FINANCIAL STATEMENTS:

Sinclair Television Group, Inc. (STG), a wholly-owned subsidiary and the television operating subsidiary of Sinclair Broadcast Group, Inc. (SBG), is the primary obligor under the Bank Credit Agreement, the 5.375% Notes, the 5.625% Notes, 6.125% Notes, and 6.375% Notes. Our Class A Common Stock and Class B Common Stock as of September 30, 2015, were obligations or securities of SBG and not obligations or securities of STG. SBG is a guarantor under the Bank Credit Agreement, the 5.375% Notes, 5.625% Notes, 6.125% Notes, and 6.375% Notes. As of September 30, 2015, our consolidated total debt, net of deferred financing costs and debt discounts, of $3,891.0 million included $3,739.6 million related to STG and its subsidiaries of which SBG guaranteed $3,689.8 million.

SBG, KDSM, LLC, a wholly-owned subsidiary of SBG, and STG’s wholly-owned subsidiaries (guarantor subsidiaries), have fully and unconditionally guaranteed, subject to certain customary automatic release provisions, all of STG’s obligations. Those guarantees are joint and several. There are certain contractual restrictions on the ability of SBG, STG or KDSM, LLC to obtain funds from their subsidiaries in the form of dividends or loans.

The following condensed consolidating financial statements present the consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows of SBG, STG, KDSM, LLC and the guarantor subsidiaries, the direct and indirect non-guarantor subsidiaries of SBG and the eliminations necessary to arrive at our information on a consolidated basis.

These statements are presented in accordance with the disclosure requirements under SEC Regulation S-X, Rule 3-10.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF SEPTEMBER 30, 2015

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	97,996	$	259	$	21,134		$	—		$	119,389
Accounts and other receivables	—		—		358,831		30,119			(1,840		)	387,110
Other current assets	3,389		4,427		133,404		29,021			(4,491		)	165,750
Total current assets	3,389		102,423		492,494		80,274			(6,331		)	672,249

Property and equipment, net	3,168		21,815		558,045		171,961			(8,327		)	746,662

Investment in consolidated subsidiaries	445,261		3,448,508		4,179		—			(3,897,948		)	—
Goodwill	—		—		1,947,153		4,275			—			1,951,428
Broadcast licenses	—		—		116,239		16,935			—			133,174
Definite-lived intangible assets	—		—		1,618,218		206,671			(61,196		)	1,763,693
Other long-term assets	57,036		641,820		113,984		155,148			(754,747		)	213,241
Total assets	$	508,854	$	4,214,566	$	4,850,312	$	635,264		$	(4,728,549	)	$	5,480,447

Accounts payable and accrued liabilities	$	165	$	56,461	$	192,444	$	28,131		$	(4,731	)	$	272,470
Current portion of long-term debt	55		55,344		1,525		10,298			—			67,222
Current portion of affiliate long-term debt	1,603		—		1,238		1,320			(1,125		)	3,036
Other current liabilities	1,208		—		133,383		16,086			(1,485		)	149,192
Total current liabilities	3,031		111,805		328,590		55,835			(7,341		)	491,920

Long-term debt	—		3,607,345		33,179		164,353			—			3,804,877
Affiliate long-term debt	2,284		—		11,779		360,036			(358,229		)	15,870
Other liabilities	26,760		30,122		1,043,471		173,657			(557,491		)	716,519
Total liabilities	32,075		3,749,272		1,417,019		753,881			(923,061		)	5,029,186

Total Sinclair Broadcast Group equity (deficit)	476,779		465,294		3,433,293		(88,965		)	(3,809,622		)	476,779
Noncontrolling interests in consolidated subsidiaries	—		—		—		(29,652		)	4,134			(25,518		)
Total liabilities and equity (deficit)	$	508,854	$	4,214,566	$	4,850,312	$	635,264		$	(4,728,549	)	$	5,480,447

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2014

(in thousands)



	Sinclair Broadcast Group, Inc.		Sinclair Television Group, Inc.		Guarantor Subsidiaries and KDSM, LLC		Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Cash	$	—	$	3,394	$	1,749	$	12,539		$	—		$	17,682
Accounts and other receivables	—		164		359,486		25,111			(1,258		)	383,503
Other current assets	5,741		12,996		98,751		19,225			(11,733		)	124,980
Total current assets	5,741		16,554		459,986		56,875			(12,991		)	526,165

Property and equipment, net	3,949		17,554		569,372		168,762			(7,099		)	752,538

Investment in consolidated subsidiaries	395,225		3,585,037		3,978		—			(3,984,240		)	—
Goodwill	—		—		1,963,254		1,299			—			1,964,553
Broadcast Licenses	—		—		118,115		16,960			—			135,075
Definite-lived intangible assets	—		—		1,698,919		184,441			(65,097		)	1,818,263
Other long-term assets	65,988		555,877		134,454		128,247			(670,832		)	213,734
Total assets	$	470,903	$	4,175,022	$	4,948,078	$	556,584		$	(4,740,259	)	$	5,410,328

Accounts payable and accrued liabilities	$	541	$	46,083	$	201,102	$	26,802		$	(13,680	)	$	260,848
Current portion of long-term debt	529		42,953		1,302		68,332			—			113,116
Current portion of affiliate long-term debt	1,464		—		1,182		1,026			(1,047		)	2,625
Other current liabilities	1,208		—		107,867		9,749			(1,407		)	117,417
Total current liabilities	3,742		89,036		311,453		105,909			(16,134		)	494,006

Long-term debt	—		3,638,286		34,338		82,198			—			3,754,822
Affiliate long-term debt	3,508		—		12,802		319,901			(319,902		)	16,309
Other liabilities	35,771		28,856		1,003,213		169,935			(497,927		)	739,848
Total liabilities	43,021		3,756,178		1,361,806		677,943			(833,963		)	5,004,985

Total Sinclair Broadcast Group equity (deficit)	427,882		418,844		3,586,272		(94,632		)	(3,910,484		)	427,882
Noncontrolling interests in consolidated subsidiaries	—		—		—		(26,727		)	4,188			(22,539		)
Total liabilities and equity (deficit)	$	470,903	$	4,175,022	$	4,948,078	$	556,584		$	(4,740,259	)	$	5,410,328

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	515,097		$	53,845		$	(20,538	)	$	548,404

Program and production	—			—			185,371			19,548			(18,470		)	186,449
Selling, general and administrative	930			14,386			102,730			3,392			(33		)	121,405
Depreciation, amortization and other operating expenses	266			1,040			105,681			35,487			(1,530		)	140,944
Total operating expenses	1,196			15,426			393,782			58,427			(20,033		)	448,798

Operating (loss) income	(1,196		)	(15,426		)	121,315			(4,582		)	(505		)	99,606

Equity in earnings of consolidated subsidiaries	43,480			88,687			100			—			(132,267		)	—
Interest expense	(93		)	(45,784		)	(1,140		)	(7,721		)	6,172			(48,566		)
Other income (expense)	957			(407		)	3			(349		)	—			204
Total other income (expense)	44,344			42,496			(1,037		)	(8,070		)	(126,095		)	(48,362		)

Income tax benefit (provision)	107			20,235			(30,126		)	2,574			—			(7,210		)
Net income (loss)	43,255			47,305			90,152			(10,078		)	(126,600		)	44,034
Net income attributable to the noncontrolling interests	—			—			—			(799		)	20			(779		)
Net income (loss) attributable to Sinclair Broadcast Group	$	43,255		$	47,305		$	90,152		$	(10,877	)	$	(126,580	)	$	43,255
Comprehensive income (loss)	$	44,044		$	47,315		$	90,152		$	(10,078	)	$	(127,389	)	$	44,044

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	466,786		$	47,747		$	(19,577	)	$	494,956

Program and production	—			84			149,488			19,095			(18,404		)	150,263
Selling, general and administrative	1,129			13,474			94,829			3,589			(500		)	112,521
Depreciation, amortization and other operating expenses	267			1,187			103,969			25,393			(307		)	130,509
Total operating expenses	1,396			14,745			348,286			48,077			(19,211		)	393,293

Operating (loss) income	(1,396		)	(14,745		)	118,500			(330		)	(366		)	101,663

Equity in earnings of consolidated subsidiaries	47,744			84,122			—			—			(131,866		)	—
Interest expense	(138		)	(44,986		)	(1,209		)	(7,119		)	5,502			(47,950		)
Other income (expense)	2,449			(100		)	5			248			(23		)	2,579
Total other income (expense)	50,055			39,036			(1,204		)	(6,871		)	(126,387		)	(45,371		)

Income tax benefit (provision)	(318		)	21,961			(31,678		)	2,511			—			(7,524		)
Net income (loss)	48,341			46,252			85,618			(4,690		)	(126,753		)	48,768
Net income attributable to the noncontrolling interests	—			—			—			(447		)	20			(427		)
Net income (loss) attributable to Sinclair Broadcast Group	$	48,341		$	46,252		$	85,618		$	(5,137	)	$	(126,733	)	$	48,341
Comprehensive income (loss)	$	48,490		$	46,293		$	85,618		$	(5,456	)	$	(126,455	)	$	48,490

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,514,173		$	153,757		$	(60,584	)	$	1,607,346

Program and production	—			—			535,098			59,947			(56,493		)	538,552
Selling, general and administrative	3,432			40,598			302,656			9,715			(138		)	356,263
Depreciation, amortization and other operating expenses	799			2,624			317,240			95,873			(2,498		)	414,038
Total operating expenses	4,231			43,222			1,154,994			165,535			(59,129		)	1,308,853

Operating (loss) income	(4,231		)	(43,222		)	359,179			(11,778		)	(1,455		)	298,493

Equity in earnings of consolidated subsidiaries	114,176			238,635			—			—			(352,811		)	—
Interest expense	(301		)	(134,626		)	(3,481		)	(21,898		)	17,428			(142,878		)
Other income (expense)	3,250			(116		)	269			3,222			—			6,625
Total other income (expense)	117,125			103,893			(3,212		)	(18,676		)	(335,383		)	(136,253		)

Income tax benefit (provision)	430			60,435			(113,403		)	5,567			—			(46,971		)
Net income (loss)	113,324			121,106			242,564			(24,887		)	(336,838		)	115,269
Net income attributable to the noncontrolling interests	—			—			—			(1,999		)	54			(1,945		)
Net income (loss) attributable to Sinclair Broadcast Group	$	113,324		$	121,106		$	242,564		$	(26,886	)	$	(336,784	)	$	113,324
Comprehensive income (loss)	$	115,447		$	121,132		$	242,713		$	(24,885	)	$	(338,960	)	$	115,447

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
Net revenue	$	—		$	—		$	1,287,200		$	136,701		$	(61,161	)	$	1,362,740

Program and production	—			274			409,661			58,998			(57,328		)	411,605
Selling, general and administrative	3,169			42,019			255,655			9,500			(1,647		)	308,696
Depreciation, amortization and other operating expenses	801			3,432			284,248			69,358			(1,102		)	356,737
Total operating expenses	3,970			45,725			949,564			137,856			(60,077		)	1,077,038

Operating (loss) income	(3,970		)	(45,725		)	337,636			(1,155		)	(1,084		)	285,702

Equity in earnings of consolidated subsidiaries	117,093			221,774			—			—			(338,867		)	—
Interest expense	(446		)	(118,816		)	(3,675		)	(20,646		)	15,974			(127,609		)
Other income (expense)	4,036			282			563			533			(63		)	5,351
Total other income (expense)	120,683			103,240			(3,112		)	(20,113		)	(322,956		)	(122,258		)

Income tax benefit (provision)	121			58,437			(108,411		)	4,435			—			(45,418		)
Net income (loss)	116,834			115,952			226,113			(16,833		)	(324,040		)	118,026
Net income attributable to the noncontrolling interests	—			—			—			(1,245		)	53			(1,192		)
Net income (loss) attributable to Sinclair Broadcast Group	$	116,834		$	115,952		$	226,113		$	(18,078	)	$	(323,987	)	$	116,834
Comprehensive income (loss)	$	118,432		$	116,073		$	226,113		$	(17,793	)	$	(324,393	)	$	118,432

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2015

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(8,709	)	$	(66,929	)	$	390,101		$	(21,156	)	$	18,181		$	311,488
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(7,687		)	(64,693		)	(1,603		)	1,507			(72,476		)
Payments for acquisition of television stations	—			—			(15,514		)	—			—			(15,514		)
Purchase of alarm monitoring contracts	—			—			—			(31,340		)	—			(31,340		)
Proceeds from sale of broadcast assets	—			—			23,650			—			—			23,650
Investments in equity and cost method investees	—			(7,486		)	(27		)	(35,555		)	—			(43,068		)
Other, net	3,776			539			530			6,370			—			11,215
Net cash flows (used in) from investing activities	3,776			(14,634		)	(56,054		)	(62,128		)	1,507			(127,533		)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			349,559			—			29,922			—			379,481
Repayments of notes payable, commercial bank financing and capital leases	(473		)	(370,011		)	(937		)	(3,683		)	—			(375,104		)
Dividends paid on Class A and Class B Common Stock	(47,104		)	—			—			—			—			(47,104		)
Payments for deferred financing cost	—			(3,604		)	—			(243		)	—			(3,847		)
Repurchase of outstanding Class A Common Stock	(28,823		)	—			—			—			—			(28,823		)
Increase (decrease) in intercompany payables	82,410			200,108			(335,447		)	72,757			(19,828		)	—
Noncontrolling interests distributions	—			—			—			(6,655		)	—			(6,655		)
Other, net	(1,077		)	113			847			(219		)	140			(196		)
Net cash flows (used in) from financing activities	4,933			176,165			(335,537		)	91,879			(19,688		)	(82,248		)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			94,602			(1,490		)	8,595			—			101,707
CASH AND CASH EQUIVALENTS, beginning of period	—			3,394			1,749			12,539			—			17,682
CASH AND CASH EQUIVALENTS, end of period	$	—		$	97,996		$	259		$	21,134		$	—		$	119,389

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014

(in thousands) (unaudited)



	Sinclair Broadcast Group, Inc.			Sinclair Television Group, Inc.			Guarantor Subsidiaries and KDSM, LLC			Non- Guarantor Subsidiaries			Eliminations			Sinclair Consolidated
NET CASH FLOWS (USED IN) FROM OPERATING ACTIVITIES	$	(27,282	)	$	(77,257	)	$	426,702		$	22,125		$	14,109		$	358,397
CASH FLOWS (USED IN) FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	—			(8,482		)	(47,961		)	(1,708		)	—			(58,151		)
Payments for acquisition of television stations	—			—			(1,071,428		)	—			—			(1,071,428		)
Purchase of alarm monitoring contracts	—			—			—			(15,647		)	—			(15,647		)
Proceeds from sale of broadcast assets	—			—			83,200			—			—			83,200
Decrease in restricted cash	—			(9,600		)	(82,983		)	—			—			(92,583		)
Investments in equity and cost method investees	—			—			—			(7,958		)	—			(7,958		)
Payments for acquisition of assets in other operating divisions	—			—			—			(8,273		)	—			(8,273		)
Proceeds from termination of life insurance policies	—			17,042			—			—			—			17,042
Other, net	1,000			—			5,000			936			—			6,936
Net cash flows (used in) from investing activities	1,000			(1,040		)	(1,114,172		)	(32,650		)	—			(1,146,862		)

CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES:
Proceeds from notes payable, commercial bank financing and capital leases	—			1,040,796			—			20,694			—			1,061,490
Repayments of notes payable, commercial bank financing and capital leases	(408		)	(280,121		)	(743		)	(5,145		)	—			(286,417		)
Dividends paid on Class A and Class B Common Stock	(45,322		)	—			—			—			—			(45,322		)
Repurchase of outstanding Class A Common Stock	(108,438		)	—			—			—			—			(108,438		)
Increase (decrease) in intercompany payables	178,331			(821,116		)	663,350			(6,456		)	(14,109		)	—
Other, net	2,119			(15,010		)	(784		)	73			—			(13,602		)
Net cash flows (used in) from financing activities	26,282			(75,451		)	661,823			9,166			(14,109		)	607,711

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			(153,748		)	(25,647		)	(1,359		)	—			(180,754		)
CASH AND CASH EQUIVALENTS, beginning of period	—			237,974			28,594			13,536			—			280,104
CASH AND CASH EQUIVALENTS, end of period	$	—		$	84,226		$	2,947		$	12,177		$	—		$	99,350