Lynch Interactive Continues Defense in Taylor Suit; Heartened that Court Drops Some Charges

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, [phone]



Web site:  http://www.lynchinteractivecorp.com/ 

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