Produced by Institutional Investor SumZero Columbia University Business School s Uris Hall Auditorium SumZero

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1 Produced by On Tuesday, November 12, 2013, Institutional Investor and SumZero, the world s largest online membership community of buy-side investment professionals, hosted an idea competition at Columbia University Business School s Uris Hall Auditorium. Nineteen emerging managers were selected from within the SumZero community on the basis of strong performance and high-quality peer reviews. Each manager gave a three minute pitch on their best idea to an audience of analysts and investors who rated their pitch for validity of the thesis, strength of the argument, feasibility of the trade and originality. We invite you to view these ideas and register to download each presenter s bio and full pitch paper. If you re a professional investment officer or analyst, we invite you to register to vote for the winning idea. Institutional Investor and SumZero are not registered investment advisors or broker-dealers, and are not licensed nor qualified to provide investment advice. There is no requirement that any of the Information Providers presented here be registered investment advisors or broker-dealers. Nothing published or made available by or through Institutional Investor and SumZero should be considered personalized investment advice, investment services or a solicitation to BUY, SELL, or HOLD any securities or other investments mentioned by Institutional Investor, SumZero or the Information Providers. Never invest based purely on our publication or information, which is provided on an as is basis without representations. Past performance is not indicative of future results. YOU SHOULD VERIFY ALL CLAIMS, DO YOUR OWN DUE DILIGENCE AND/OR SEEK YOUR OWN PROFESSIONAL ADVISOR AND CONSIDER THE INVESTMENT OBJECTIVES AND RISKS AND YOUR OWN NEEDS AND GOALS BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTMENT DOES NOT GUARANTEE A POSITIVE RETURN AS STOCKS ARE SUBJECT TO MARKET RISKS, INCLUDING THE POTENTIAL LOSS OF PRINCIPAL. You further acknowledge that Institutional Investor, SumZero, the Information Providers or their respective affiliates, employers, employees, officers, members, managers and directors, may or may not hold positions in one or more of the securities in the Information and may trade at any time, without notification to you, based on the information they are providing and will not necessarily disclose this information, nor the time the positions in the securities were acquired. You confirm that you have read and understand, and agree to, this full disclaimer and terms of use and that neither Institutional Investor, SumZero nor any of the Information Providers presented here are in any way responsible for any investment losses you may incur under any circumstances.

2 David Atterbury Whetstone Capital Age: 32 Title: President & Portfolio Manager Location: Mission Woods, KS Education (Undergrad/Grad/Certifications): Dartmouth 04, Columbia 10 (MBA) Previous Employers/Positions: Brown Brothers Harriman, DS Advisors, Return Holdings Bio: A Kansas City native, David attended college at Dartmouth graduating with a BA in History in Following his graduation, David worked at various buy and sell side firms in New York before enrolling in Columbia for graduate in school. David returned to Kansas City shortly after business school to start Whetstone Capital. Favorite Investment Book: Competition Demystified Favorite Quote/Author: The stock market is a no called strike game. You don t have to swing at everything you can wait for your pitch. Warren Buffett Most Attractive Area of the Market Right Now: Equities Least Attractive Area of the Market Right Now: Bonds Best Past Investment Made: Whetstone initiated a long position in late 2010 in Atlas Energy LP (ATLS). With its unique duel GP interests in two rapidly growing MLPs, ATLS was and still is uniquely levered to the domestic energy revolution occurring in the United States. Worst Past Investment Made: In early 2011, Whetstone initiated a long position in SIGA Technologies (SIGA). The failure of the market to attribute value to catalysts as expected coupled with our failure to account for political risk resulted in a significant loss. Personal Investing Style: Value with a bias towards high quality businesses. Areas of Personal Expertise: Energy, MLPs, Media, Software Languages Spoken: English Fund Description: Whetstone Capital employs a value-oriented, research intensive investment process centered on identifying businesses with discernible competitive advantages in industries benefiting from secular growth. We focus our research efforts within specific circles of competence including North American energy and MLPs, media, software, and information services. Our long portfolio is typically concentrated in high conviction ideas where we are comfortable owning the underlying businesses for the long term. On the short side, we maintain a thesis-driven portfolio of 5-10 ideas consisting mostly of struggling businesses in declining industries where exhaustive research can provide us with an edge. AUM: $80 million Firm Focus: US equities with concentration in energy, MLPs, media and software companies Firm Strategy: Provide a concentrated value focused long/short equity portfolio to fee conscious family offices, high net worth individuals and other investors. Past Ideas Submitted on SumZero: N/A Fund Disclaimer: Please see section 11 of appendix.

3 Gray Matters GTN: A Well Positioned Regional Broadcaster David Atterbury November 12, 2013

4 Gray Television Business Overview: Local TV broadcaster with CBS/NBC weighting In 31 mid size markets #1 in local news in 23 markets Strategic focus on college towns and state capitals markets with above average demographics and revenue growth 17 markets are college towns 8 markets are state capitals Controlled by the Robinson Family Why We Like Gray Today: Substantial leverage to 2014 political advertising Well positioned to grow through acquisitions using company s new duopoly model Above industry local ad growth New retransmission contracts Leverage to all of the above via current balance sheet

5 Investment Overview Ticker: Company Name: Asset Class: Expected Timeframe: Situation: GTN Gray Television US Equity 1-2 Years Special Situation Current Price: $8.25 Target Price: $14.50 Diluted Shares: 57.9 Market Cap Cash: Debt: Non-Controlling Interests: 475M 23M 833M NA Catalysts: 2014 Currency: US Dollars

6 Significant Industry Tailwinds Retransmission: Broadcasters continue to extract significant recurring revenue from cable/satellite providers (MVPDs) on a monthly per subscriber basis allowing MVPDs to retransmit network content Political Advertising: Citizens United v. FEC allows corporations, associations and unions to spend freely on political advertising significant implication for broadcasters as 45% of political spending goes through local TV Auto Advertising: Pent-up demand/aging fleet driving robust ad spend Debt Refinancing: Companies have accessed debt markets to refinance high cost debt and fund industry consolidation Industry Consolidation Wave Significant private & private equity backed opportunities remain available for acquisition 50% of operators own less than 15 stations and are non-public More privately owned properties will likely sell in 2014 Public market consolidation likely to follow Broadcasters with scale can better negotiate with networks, MVPDs and national advertisers

7 Industry Tailwinds Continued

8 Industry Valuations 2014/2015 EV/EBITDA Averages Gray Television, Nexstar Broadcasting, LIN Media trade at ~8.5x Pre recession multiples approached 10x EV/EBITDA But these are better businesses now: Retransmission, political and digital revenue streams have greatly expanded Advertising revenue appears to be benefitting from the decline of the local newspaper Balance sheets have significantly improved

9 2014: A Breakout Year for GTN GTN has significant upcoming coming catalysts: The broadcaster with most leverage to political ad spend (21% of 2012 revenue, 11.9% industry wide CAGR ) Substantial retransmission growth as all of GTN s MVPD subscriber base renews by 1/1/2015 Likely to continue benefiting from superior revenue growth Revenue growth in college towns and state capitals trending 2-4 pts. above industry averages Auto ad spend grows further as auto recovery continues Digital revenue streams continue strong double digit revenue growth Ability to now actively acquire duopolies and create duopolies in existing markets Achieved through the establishment of Excalibur Broadcasting in August 2013 Excalibur will be run by a former GTN executive and financially supported by the company Excalibur will effectively become a sister company to GTN Duopoly markets typically have broadcast cash flow margins +500 bps higher than nonduopoly markets creates strong merger synergies Ex: GTN s Yellowstone acquisition on 11/4/13 for 23M at 6.2x PF 2013/2014 BCF

10 Strong Cash Flow Supports Valuation $14.50 share price achievable by end of 2015 using undemanding assumptions and multiples 9x 2014/2015 blended EBITDA of 160M Results in a 1.44B EV Assuming all cash flow goes to debt repayment, GTN will end 2015 with 625M in net debt Implies a value to the equity of 815M or $14 a share when divided by 57.9M shares A 12% FCF yield on 2014/2015 blended FCF implies a $15 share price including cash accumulation Implies a $14.50 blended target price or a 29% IRR from now until 12/31/15 An additional $ a share of upside exists if GTN uses FCF on accretive acquisitions Assuming a stable macro environment, three paths exist for GTN over the next 1-2 years Scenario 1: Management elects to focus on debt repayment, directing +185M in FCF generated between 6/30/13 and 12/31/15 to delevering the company Scenario 2: Using the FCF that GTN will generate over the next two years, the company acquires small market operators at a 6-7x buyers multiple Scenario 3: Some combination of debt repayment and accretive acquisitions occur at which point GTN sells to a larger operator Substantial upside to $14.50 exists: Company chooses to focus on creating duopolies within existing markets Political spending comes in above our expectations Local and auto revenue growth continues at current rates

11 Management Signaling a Transition First, I want to say the company is simply not for sale. But, let it be known that I'm certainly aware that a lot of people would love to buy us. And I am not and would not say absolutely never, but where we stand today, we have a long road ahead where we can grow and expand and increase the shareholder value of all of our shareholders. I think that Gray Television has really a vital and integral role to play in the consolidation of this industry. As you saw, we really have the first opportunity that we have had as a company through the foundation of Excalibur and the acquisition with the station in Grand Junction to really expand our duopoly footprint. There are a wide variety of different permutations that we're looking at. And who knows what the future's going to be. Our plans are to stay independent, but that doesn't necessarily preclude almost anything because there's a large number of ways to structure transactions to make sure that we enhance the shareholder value of the Gray Television shareholders. Hilton Howell Gray Television CEO During Q Conference Call