ATLANTA, May 22 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that total revenue from continuing operations for the third quarter
ended March 31, 2001 was $35,645,000 compared to $39,426,000 for the same
period last year.  Primarily all the revenue is attributable to the operations
of Host Communications, Inc., Bull Run's wholly owned subsidiary, acquired
December 17, 1999.  Total revenue from continuing operations for the nine
months ended March 31, 2001 was $95,533,000 compared to $46,816,000 for the
same period last year, including $95,514,000 in 2001 and $45,513,000 in 2000
attributable to Host Communications.
    Bull Run reported several non-cash items that impact its net results.
Amortization of acquisition intangibles, including goodwill, negatively
impacted operating results by $1,127,000 and $3,285,000 for the three months
and nine months ended March 31, 2001, respectively, and by $1,113,000 and
$1,300,000 for the same respective periods ended March 31, 2000.  Equity in
earnings (losses) of affiliated companies, which is Bull Run's proportionate
share of net results reported by Gray Communications Systems, Inc., Rawlings
Sporting Goods Company and others, negatively impacted Bull Run's pretax loss
by $1,105,000 and $2,577,000 for the three months and nine months ended March
31, 2001, respectively, and by $514,000 and $648,000 for the same respective
periods ended March 31, 2000.  Investment valuation adjustments, including
charges to reduce the Company's investment in Quokka Sports, Inc. common stock
and gains resulting from the Company's dilution in its investment in Gray,
negatively impacted Bull Run's pretax loss by $1,656,000 and $7,836,000 for
the three months and nine months ended March 31, 2001, respectively, and
favorably impacted pretax results by $2,492,000 for the nine months ended
March 31, 2000.  Debt issue cost amortization negatively impacted the pretax
results by $557,000 and $1,810,000 for the three months and nine months ended
March 31, 2001, respectively, and by $415,000 and $529,000 for the same
respective periods ended March 31, 2000.
    The Company recognized income of $3,160,000 in the nine months ended
March 31, 2001 from the cumulative effect of adopting a new accounting
standard for accounting for derivative instruments and hedging activities.
The non-cash change in value of derivative instruments is reported as income
or expense in the current fiscal year, and amounted to $(1,359,000) and
$4,569,000 for the quarter and nine months ended March 31, 2001, respectively.
    The Company's revenue and operating results were negatively impacted in
the current year by economic conditions that affected corporate spending on
advertising and promotions.  Primarily as a result of (a) the non-cash items
discussed above representing approximately $5.8 million in pretax loss for the
quarter and $10.9 million for the nine months ended March 31, 2001; (b) the
decline in revenue for the quarter ended March 31, 2001 compared to the prior
year; and (c) the cumulative effect of the accounting change, the Company
reported a net loss of $6,261,000 for the quarter and $9,464,000 for the nine
months ended March 31, 2001, compared to a prior year net loss of $2,076,000
for the quarter and $12,786,000 for the nine months ended March 31, 2000.
Non-cash items discussed above represent approximately $2.0 million of the
pretax loss for the quarter ended March 31, 2000.
    Robert S. Prather, Jr., Bull Run's President and CEO, commented, "Although
our operating results for the quarter were disappointing, we have initiatives
in place to strengthen our Events businesses, such as the Hoop-It-Up(TM)
3-on-3 basketball tour now in full swing, and we are working towards
significant enhancements in our Collegiate marketing business.  An economic
rebound, along with our strategic initiatives, should substantially assist our
efforts to improve our results over the coming year, and we will continue to
focus on potential cost savings to increase our operating cash flow."
    Bull Run also announced that it and its independent accountants have
completed an analysis concerning the accounting methodology used by Universal
Sports America, Inc., a company acquired by Bull Run in December 1999.  The
Company discovered material errors in Universal's accounting for and reporting
of certain asset and liability accounts specifically related to Universal's
Affinity Events business segment (also known as "Streetball") in financial
statements issued by Universal prior to, and financial information provided
subsequent to, the acquisition. Universal was merged into Host Communications
on July 1, 2000, and Host recently completed the integration of Universal's
accounting functions with those of Host.  The errors were detected by Host's
Chief Financial Officer almost immediately following the completion of the
integration.  The most significant amount of Universal's accounting errors
accumulated prior to Bull Run's acquisition of Universal.
    The accounting errors do not impact cash, nor do the errors materially
impact Bull Run's previously reported operating results for the six months
ended December 31, 2000, nor do these errors have any future impact on the
ability of the Company's operations to generate cash flow.  The Company
believes that it has identified all of the errors, and that there are no other
material accounting errors pertaining to Universal's accounting practices that
could ultimately result in any future restatements.  The consolidated
financial results presented in this announcement have been restated to reflect
the correction of the accounting errors.
    As a result of the accounting errors, the Company's net assets were
overstated by approximately $11.3 million as of the December 1999 acquisition
date, $13.7 million as of June 30, 2000 and $13.7 million as of
December 31, 2000.  The Company corrected its financial results for the year
ended June 30, 2000 by reporting an $11.3 million non-cash charge related to
the reduction in net tangible assets acquired from Universal as a result of
the correction of USA's accounting errors, plus an additional $2.4 million net
loss resulting from a correction in USA's operating results.  The Company
intends to restate the consolidated financial statements included in its Form
10-K for the fiscal year ended June 30, 2000, as well as the condensed
consolidated financial statements included in Form 10-Q's for the quarters
ended September 30, 2000 and December 31, 2000, as soon as practicable.
    The restatement of its financial statements reflecting a decrease in
certain assets and a change in historical operating results constituted an
event of default under Bull Run's credit facility; however, the Company is in
the process of obtaining a waiver from the lenders for all events of default,
and is currently working with the lenders on a modification to the current
credit facility which would revise future financial covenants and provide for
an extension of the current facility.
    "While the accounting errors were significant, they will not negatively
impact our financial stability since much of the error occurred before we
purchased Universal," stated Prather. "I am proud that our financial staff
discovered the mistakes and promptly reported them to the board of directors.
Although we have now quantified these errors and have procedures in place to
assure us that these or similar errors will not recur, we will continue to
investigate these matters and potential remedies for Bull Run."

    Bull Run, through Host Communications, provides affinity, multimedia,
promotional and event management services to universities, athletic
conferences, associations and corporations.  Bull Run also has significant
investments in Gray Communications Systems, Inc., an owner and operator of
13 television stations and four newspapers; Rawlings Sporting Goods Company,
Inc., a leading supplier of team sports equipment in North America; iHigh
Inc., a marketing company focused on high school students; and Sarkes Tarzian,
Inc., an owner and operator of two television stations and four radio
stations.

    Forward-Looking Statements
    Certain statements contained herein are forward-looking statements that
are made pursuant to the safe harbor provisions of the Private Litigation
Reform Act of 1995.  Wherever used, the words "expect," "plan," "anticipate,"
"believe," "may" and similar expressions are intended to identify forward-
looking statements.  Forward-looking statements involve known and unknown
risks and uncertainties, which may cause the Company's actual results in
future periods or plans for future periods to differ materially from what is
currently anticipated.  Those risks include, among other things, those risks
set forth in the Company's Annual Report on Form 10-K and other reports and
documents filed with the Securities and Exchange Commission.  The Company has
no obligation to publicly update or revise any forward-looking statements made
herein or elsewhere, whether as a result of new information, future events or
otherwise.

    Summarized financial results for the quarter and nine months ended
March 31, 2001 and 2000 follow:



                                  BULL RUN CORPORATION
                     Comparative Results of Operations (Unaudited)
                        (in thousands, except per share amounts)

                                      Three Months Ended   Nine Months Ended
                                           March 31,           March 31,
                                         2001     2000      2001       2000
                                              (restated)           (restated)

    Revenue from services rendered    $35,645  $39,426   $95,533    $46,816
    Operating costs and expenses:
      Direct operating costs for
       services rendered               26,050   28,151    66,770     33,025
      Selling, general and
       administrative                  10,496    9,074    28,381     11,346
      Amortization of acquisition
       intangibles                     1,127     1,113     3,285      1,300
                                       37,673   38,338    98,436     45,671
        Operating income (loss)        (2,028)   1,088    (2,903)     1,145
      Equity in earnings (losses) of
       affiliated companies            (1,105)    (514)   (2,577)      (648)
      Gain on issuance of shares by
       affiliate                          181                181      2,492
      Reduction in valuation of
       investment in affiliate         (1,837)            (8,017)
      Net change in value of certain
       derivative instruments          (1,359)             4,569
      Correction of purchase price
       allocation                                                   (11,330)
      Debt issue cost amortization       (557)    (415)   (1,810)      (529)
      Interest and other, net          (2,398)  (2,401)   (7,190)    (4,533)
        Loss from continuing
         operations before income
         taxes and cumulative
         effect adjustment             (9,103)  (2,242)  (17,747)   (13,403)
      Income tax benefit                2,842      307     5,123        354
        Loss from continuing
         operations before
         cumulative
         effect adjustment             (6,261)  (1,935)  (12,624)   (13,049)
      Cumulative effect of accounting
       change, net of tax                                  3,160
        Loss from continuing
         operations                    (6,261)  (1,935)   (9,464)   (13,049)
      Income (loss) from discontinued
       operations, net of tax                     (141)                 263
      Net loss                        $(6,261) $(2,076)  $(9,464)  $(12,786)

      Earnings (loss) per share -
       Basic and Diluted:
        Loss from continuing
         operations before cumulative
         effect adjustment             $(0.18)  $(0.06)   $(0.36)    $(0.48)
        Cumulative effect of
         accounting change                                  0.09
        Discontinued operations                  (0.00)                0.01
        Net loss                       $(0.18)  $(0.06)   $(0.27)    $(0.47)
      Weighted average shares
       outstanding:
        Basic                          35,213   34,699    35,128     27,082
        Diluted                        35,213   34,699    35,128     27,082

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