PORTLAND, February 2, 2007 - Vulcan Inc. and Portland Arena Management LLC (PAM) today announced that they have signed a letter of intent under which an affiliate of Vulcan will acquire PAM, which owns, among other things, the Rose Garden Arena. Additional terms of the agreement were not disclosed. Vulcan is owned by Paul G. Allen, who also owns Trail Blazers Inc.

"With this letter of intent, we’ve taken a positive step forward. Assuming this deal gets finalized, it will be a major milestone which will strengthen the long-term financial health of the Trail Blazers," said Paul Allen. "First and foremost, we want to thank the City of Portland, David Stern and the NBA for their continued support and diligent effort as we progress towards a solution. We also want to thank our great fans, dedicated employees and loyal corporate sponsors for their patience as we work through these challenges now and in the future."

Thomas Luther, Chairman of the Board of Portland Arena Management, said that "PAM is pleased to have reached an agreement with Vulcan to ensure that the Trail Blazers will remain in Portland. The team has long been an integral part of the community, and we believe this resolution benefits all interested parties - PAM’s members, the City of Portland, and the team and its fans. I also want to thank David Stern and the NBA for their efforts in assisting the parties in reaching this agreement. We look forward to working with Vulcan, the Trail Blazers and the NBA to promptly conclude this transaction."

David Stern, Commissioner of the NBA, said "The ultimate winners here are the fans of the Portland Trail Blazers and the City of Portland, and I want to thank both the Trail Blazers and Portland Arena Management for going the extra mile to reach this important agreement."

Vulcan and PAM said that discussions were ongoing and neither party plans to make any additional public comments until a final agreement is reached.

About Portland Arena Management
Portland Arena Management LLC owns the Rose Garden in Portland, OR. The Global Spectrum-managed Rose Quarter includes 20,000-seat Rose Garden, 12,000-seat Memorial Coliseum, 6,500-seat Theater of the Clouds, 40,000-square foot Exhibit Hall and the Rose Quarter Commons. Home to the NBA Portland Trail Blazers, the National Lacrosse League Portland LumberJax which started play in the 2006 season, and the WHL Winter Hawks, the Rose Garden is a $262 million multi-purpose arena that opened in the fall of 1995. The Winter Hawks also play in Memorial Coliseum, which opened in 1960 and served as the original home of the Trail Blazers. Memorial Coliseum is attached to 40,000-square foot Exhibit Hall and seven meeting rooms. The Commons, Portland's largest outdoor public plaza, connects the Rose Garden and the Memorial Coliseum and can accommodate up to 5,000 people for outdoor events. Ovations Food Services is the official food and beverage concessionaire for the Rose Quarter.

About Trail Blazers Inc.
Founded in Portland, Oregon in 1970, the Portland Trail Blazers won its only World Championship in 1977 under the leadership of basketball great Dr. Jack Ramsay. The team has a rich history of community involvement supporting issues focused primarily on children and education. With a corporate culture that promotes volunteerism, the Blazers Community Builders employee volunteer program was a key centerpiece in the Trail Blazers receiving the prestigious National Points of Light Award for Excellence in Corporate Community Service. The Trail Blazers were the first and continue to be the only professional sports team to achieve this honor.

About Vulcan Inc.
Vulcan Inc. creates and advances a variety of world-class endeavors and high-impact initiatives that change and improve the way people live, learn, do business and experience the world. Founded in 1986 by investor and philanthropist Paul G. Allen, and under the direction of President and CEO Jody Patton, Vulcan oversees various business and charitable projects including real estate holdings and investments in more than 40 companies, from Charter Communications, DreamWorks Animation SKG and Digeo, to the Sporting News, the Seattle Seahawks NFL and the Portland Trail Blazers NBA franchises. In addition, Vulcan projects and affiliate organizations include the Allen Institute for Brain Science, SpaceShipOne, First & Goal Inc., independent film production company Vulcan Productions, the acclaimed Seattle Cinerama Theatre, Experience Music Project, the Science Fiction Museum and Hall of Fame, and the Paul G. Allen Family Foundation. For more information about Vulcan, visit www.vulcan.com.