PENS SELL OF BROADCAST AND MERCHANDISE RIGHTS TO KBL

     Penguins Owner Howard Baldwin sold the team's broadcasting
and merchandising rights to Liberty Sports cable channel KBL for
the next 12 years.  The deal extends the four-year $20M TV/radio
contract signed last year through the 2006-2007 season, and gives
KBL the rights to Penguins merchandise not sold in Civic Arena.
Baldwin reports the deal could be worth up to $65M, and even
higher depending on how the team fares in the playoffs.  The
team's entire marketing operation, including 20 to 30 employees,
four retail stores and a warehouse containing $1M worth of
merchandise will be transferred to KBL Merchandise Inc.  KBL GM
Bill Craig hopes to sell Penguins merchandise on a home-shopping
show, reconfiguring the team's four stores, and opening outlets
in different locations, including Pittsburgh International
Airport (Penguins/KBL).