THE VIRGINIAN-PILOT 
              Copyright (c) 1997, Landmark Communications, Inc.

DATE: Thursday, January 9, 1997             TAG: 9701090352
SECTION: LOCAL                   PAGE: B2   EDITION: NORTH CAROLINA 
SOURCE: BY ESTES THOMPSON, ASSOCIATED PRESS 
DATELINE: GREENSBORO                        LENGTH:   42 lines

FOOD LION SHOW EARNED LESS THAN EXPERT CLAIMED, ABC OFFICIAL SAYS

ABC Inc. made $58,970 in profit on a ``PrimeTime Live'' segment about Food Lion stores in 1992, a network finance official testified Wednesday.

The testimony came as a federal jury heard evidence in the punitive damages phase of the grocery chain's lawsuit against ABC over a hidden camera investigation.

ABC's profit figure was about half the lowest estimate made by an accountant who testified a day earlier for Food Lion. The number the jury believes is the true profit is important because it is expected to be a factor in determining punitive damages.

The six-man, six-woman jury ruled last month that ABC committed fraud, trespass and breach of loyalty when two producers used spy cameras in two Food Lion stores in 1992. The jury has awarded Food Lion $1,402 in compensatory damages.

ABC began its testimony after Food Lion rested its case at mid-morning. ``PrimeTime Live'' anchor Diane Sawyer is expected to testify later.

Food Lion has not said how much it wants in punitive damages, but has said it lost between $1.7 billion and $2.5 billion in stock value and sales after the Nov. 5, 1992, broadcast questioned its food-handling procedures.

The grocery chain can ask for punitive damages if it proves the network purposely violated the law and profited from the actions.

ABC's John Walters, executive vice president for finance, testified for the network that the ``PrimeTime Live'' show that night had $1,059,000 in revenues. After expenses and taxes, the profit on the Food Lion segment was $58,970, Walters said.

On cross-examination, Walters said the costs attributed to the show included costs for the network's bureaus in London, Los Angeles, Miami and Washington. He said it's routine to include overhead expenses for bureaus that weren't involved in the story in such calculations.

Food Lion lawyer David Potts said ABC's expense calculations also included corporate salaries and public relations expenses.

The pre-tax profit for the show that night, before other expenses were subtracted, was $381,877, Walters testified.

KEYWORDS: FOOD LION ABC LAWSUIT