LIC Lynch Interactive Corp

Lynch Interactive Continues Defense in Taylor Suit; Heartened that Court Drops Some Charges RYE, N.Y., Aug. 3 /PRNewswire-FirstCall/ -- Lynch Interactive Corporation (AMEX:LIC) Chairman Mario Gabelli confirmed that the company's defense in a 2001 action filed by Washington, DC attorney, R. C. Taylor, III, will continue following a court's ruling late last week on Lynch's motion to dismiss the suit. The court dismissed several of the plaintiff's specifications and ordered discovery to proceed on the remaining specifications in the complaint. "Unfortunately, we are still far from a hearing on the merits of this case, which is disappointing because it has no merit. We will continue to contest it vigorously and we are confident we will be exonerated," Mr. Gabelli said. Lynch has asked the court to refer this case to the Federal Communications Commission. "We are especially confident that the FCC, which is highly experienced in the matters involved, will quickly see this for the speculative, strike bar 'trial balloon' that we have always known it to be," Mr. Gabelli said. The Taylor case was filed under seal in Washington, DC federal court early in 2001. The seal was lifted January 11, 2002, pursuant to the court's granting of a motion by co-defendant Rivgam Communicators. For further details, see a Jan. 16, 2002 press release posted at http://www.lynchinteractivecorp.com/. The suit alleges that Lynch Interactive and various affiliates "secretly" controlled the minority and small business bidding consortia participating in the Federal Communications Commission bandwidth auctions from 1995 to 2000. It charges that this disqualified the consortia from bidding in some instances and from receiving various small company discounts in others, and that as a result the U.S. Treasury was damaged by an amount equal to the bidding credits received by the defendants. "Lynch complied fully with all details of the application process and reviewed them with our lawyers. At all times we adhered to both the letter and spirit of the FCC's auction regulations and the details of our ownership and advisory support of these designated entities were fully disclosed," Mr. Gabelli said. DATASOURCE: Lynch Interactive Corporation CONTACT: Mario Gabelli or Robert Dolan, both of Lynch Interactive Corporation, +1-914-921-8821 Web site: http://www.lynchinteractivecorp.com/

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