FCC ASKED TO SANCTION COMSAT/LOCKHEED MARTIN FOR DISTRIBUTION OF PORNOGRAPHIC FILMS TO HOTELS IN US

Litigation Recovery Trust has petitioned the FCC to order the divestiture of $3 billion to be realized by Lockheed Martin from the sale of Comsat because the company for 10 years operated a division which distributed pornographic films to hotels throughout the US. LRT has proposed that the $3 billion in proceeds be used to underwrite the digital conversion of small market, public and minority owned tv stations and cable systems.

PRESS RELEASE....For Immediate Release

LITIGATION RECOVERY TRUST RENEWS CALL FOR FCC RULE PROHIBITING OPEN CHANNEL TRANSMISSION OF INDECENT MOVIES OVER HOTEL CABLE SYSTEMS

LITIGATION CLAIMS GROUP ALSO SEEKS SANCTIONS AGAINST COMSAT CORPORATION REQUIRING DIVESTING OF ESTIMATED $3 BILLION IN LIQUIDATION PROCEEDS

COMSAT TO BE PUNISHED FOR PAST CONDUCT SEEN AS OUTRAGEOUS" AS THAT OF ENRON,TYCO AND WORLDCOM

New York, NY June 30, 2002. Litigation Recovery Trust, a New York based claims group, has renewed its six year petition to the Federal Communications Commission to restrict the distribution of adult movies via in-hotel cable systems. The group has also asked the FCC to sanction Comsat Corporation, which for a decade operated a division that distributed indecent films to upwards of 1 million hotel rooms throughout the U.S.

The latest filing by the Trust came in the form of a letter to FCC Chairman Powell and the other Commissioners, which followed a recent meeting held at the agency on the subject of indecent TV programs. The Washington meeting was attended by leading proponents of family viewing fare on TV.

In his letter to Chairman Powell, LRT Trustee William L. Whitely states: LRT has determined that a critical and serious loophole exists that permits the unrestricted distribution of indecent or so-called adult" programming, via closed circuit cable tv systems operated in thousands of hotels throughout the United States.

To correct the situation, LRT has proposed a new Commission rule to prohibit the open channel distribution of adult movies via hotel closed circuit cable TV systems throughout the US. Under the proposal, all movies would be transmitted through so-called lock-box" scramblers, assuring that minors could not access the adult movies.

In addition, LRT renewed its call for the sanctioning of Comsat Corporation, which, until 1997, ran the countrys largest in-hotel movie business, reaching 1 million hotel rooms. When Comsat operated the hotel system, it is estimated that 50% of the movie titles were adult" type films, described as pornography by the New York Times and Forbes Magazine. By distributing these films, Comsat violated the public interest. Comsat is presently being liquidated by its owner, Lockheed Martin Corporation.

To properly sanction Comsat for its past conduct, LRT has proposed that the FCC order the divestiture of all proceeds realized by Lockheed from the Comsat liquidation to be placed in a special fund to help finance the digital conversion of small market, public and minority owned TV stations and cable systems. It is estimated that upwards of $3 billion will be generated by the liquidation of Comsat assets.

The Whitely letter states: [Comsat] engaged in conduct of the most reckless, reprehensible and dangerous character. The possible harmful impact which Comsats transmission of sexually graphic films has had on a generation of the youngest Americans can never be excused. This irresponsible and illegal conduct by this government sponsored corporation must be properly sanctioned." This conduct is seen as outrageous and indefensible, especially in light of the new emphasis on business morality and ethical standards, following the Enron, Tyco and WorlCom scandals.

LRT observes that the divestiture of the billions in proceeds to be realized through Comsats pending liquidation will be fully supported by small market, minority owned and public tv station owners and cable tv operators that lack ready access to funds necessary to convert to the digital standards as required by the Commission rules.

In addition, the Trust notes that its proposed use of the Comsat liquidation proceeds should also enjoy wide support in Congress. As stated in the Whitely letter, The members can properly take credit for enlightened legislation, which first led the nation and the whole world into the satellite age, and then, at the close of Comsats useful but flawed life, took the proceeds from its liquidation and applied them to the digital conversion of the countrys television stations and cable tv systems."

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For more information call William L. Whitely, Trustee 212-752-5566