Radio Business ReportVoice Of The Radio Broadcasting Industry®

June 18, 2001 - Volume 18, Issue 25

SuperClubs-The Caribbean's only

Super -Inclusive Resorts,has a resort that's just

right for yourremote...FREE!

SuperClubs is now offeringthe opportunity to do your

next remote from the world'smost beautiful place and inone of the Top 10 Beaches

in the world.

Be treated like royalty...All absolutely FREE...

Call Now1 -800 -GO -SUPER

ext. 5636or visit

www.rbr.comfor more details

RADIO NEWS

NAB Board Meeting showcased elections, IBOC resolution 2

The NAB Board of Directors met last week to re-elect President/CEO

Eddie Fritts and make Susquehanna President/COO David Kennedythe new Joint Board Chairman.

Ali honored at NABEF Service to America Awards 2

Scott offers to swap (systems, that is) 4

Pirate Prayze FM praised by judge 4

Copps cops three new staffers 4

Ronald McDonald goes home (and takes WTIC ads with him)

RADIO ADBIZ

Spot buyers spout off about Clear Channel clearing out of NYMRAD 8

ENGINEERED FOR PROFIT

Radio manufacturers press the flesh at latest ARMA 9

MEDIA MARKETS a, MONEY

Millennium continues NJ buying spree 12

Charlie Banta's Millennium Radio Group grabs a big chunk of

The Jersey Shore, but insists the Garden State isn't where the buyingwill stop.

Cumulus puts shareholder suits in the closet, permanently 12

Mega skips (another) to Liu in DC 13

Doyle diligent on fixing COBS 13

Small Town fills a big board 15

Coen cuts ad growthoutlook to 2.5%

Noted ad guru Bob Coen, Sr.VP and Director of Forecast-ing for Universal McCann, said6/14 that he expects total USad spending to grow only2.5% this year, not the 5.8% heforecast in December (RBR12/11/00, p. 2). For radio, Coennow expects growth this yearof 2% for national (network

and spot combined), downfrom his original forecast of5.5%, and growth of 5% forlocal, down from 6.5%.

Coen observed that theeconomy was clearly slow-ing when he made the previ-ous projection, but the de-cline has been worse than hehad expected. "In the open-ing months of 2001, whenfinal numbers for the fourthquarter of last year were re -

Paul Weyland tells us howto sell during a recession.

Page 10

Everyone's up inA.R.M.A. in Baltimore.Page 9

P idIn RIICiVIPCC PPTIOrtVoice 01 The Radio Oreadcnehng Irrdurary

June 18 2001, Volume 18, Issue 25

BPA International membership

applied for September 2000

Executive Hilo' Jack Messmer

Managing Editor .Dave Sayler

Senior Editor Carl Marcucci

Production Michael Whalen

VP Administration .. Cathy CarnegieFCC Research Consultant Mona Wargo

Administrative Assistant .April OlsonPublisher Jim CarnegieVP/GM, Associate Publisher .Ken Lee

Senior Account Executive ..John Neff

Account Executive June Barnes

Editorial/Advertising Offices

6208-B Old Franconia RoadAlexandna, VA 22310

PO Box 782 Springfield, VA 22150

Main Phone: 703/719-9500Editorial Fax: 703/719-7910Sales Fax: 703/719-9509Subscription Phone: 703/719.7721Subscription Fax: 703/719-7725

Email Addresses

Publisher' JCarnegie@rbr.comEditorial: RadioNews@rbr.comSales: KLee@rbr.com

JNeff@rbr.com

Nashville Sales Office

June Barnes

Phone: 615/360-7875

Fax: 615/361-6075

Email: JBarnes@rbrcom

02001 Radio Business Report, Inc. Material may not be

reproduced without permission. All content may not be

reproduced, photocopied and/or transmitted without written

prior consent.Any violations will be dealt with legally.

Printed in USA.

Radio Business Report is published weekly by RadioBusiness Report, Inc. Publishers of Radio Business Report,

The Source Guide, www.rbr.com, RBR's Daily Email and the

Information Services Group database.

Subscription rate: One year $220.

RBR Family of Products

www.rbr.comRBR RADIORBR's Daily Email

Source Guideand Directory

The ill -Radio

Upcoming in RBRgmiRt,

June 25Feature: Radio Economic Outlook

Oa"July 2Hispanic Radio - Part 2

July 9Feature: Programming for Profit

it

Radio NMle.ised, it he, Awe evident thatI I le economy Was ii( )1 IwNI In( d-

el:11111g bit but could be iuuv-ing Wit I .1 I'tcc,,,1( in," he said.

With the e it of many dot -coin companies, Coen says manymedia are seeing 5-10% of theirad buyers disappear-and thoseadvertisers who remain arespending less. Looking forward,the guru is optimistic but cau-tious about 2002, noting thatthere is "still a great deal ofuncertainty" and that marketerswill be cautious about ad bud-gets for many months to come.His early forecast is that US adspending will grow 5% in 2002.

For the full revised chart go toour website www.rbrcom andclick on "Coen fomcast".-TM

NAB Board re-electsFritts; Kennedy new

Joint Board Chairman

At the 6/12 NAB board meet-ing, the NAB board reelectedEddie Fritts to NAB Presi-dent and CEO; KennethAlmgren was re-elected asSecretary/Treasurer for aone-year term. New board

members include JerryHanszen, Jerry Lee, JohnBarger, George DeVault,Carlos San Jose, AlexSnipe, Jo Ann Small Fisher,Stephen Levet, AlfredLiggins, Val Maki-Candido,Gunther Meisse, andMadelyn Bonnot.

Carl Gardner, RadioPresident of JournalBroadcast Group, nomi-nated Federated MediaPresident John Dille toRadio Board Chairman,succeeding Susquehanna Ra-dio President/COO DavidKennedy. The nominationwas seconded by Com-monwealth BroadcastingPresident/CEO StevenNewberry. Dille waselected unanimously.

Bill Stakelin nominated

tfid David Barrett ,01,1,(1

the nominm 'II IIt F01111,41\ as

\Alt 111111! 'aid .1.1111ii.ill.

\\,t, ()It'd 111

I ristt MacDonald (,arbor,I. ni ul \1.0 IP maid (,.arbor

lir(ad( a sling, 11()MillalcdI itibbard 10(lio Prcsi( 1(111 Vir-ginia Morris to Radio B(1.11dVI, e Chairman. Finmis RadioPresident Doyle Rose tier ntidedthe nomination and she waselected unanimously.

In other news from the boardmeeting, NAB EVP John Davidsaid that while NAB murtilship is at a near -record levels,the financial impact of InfinityRadio (RBR4/9, cover) and CBS -TV stations withdrawing memberships is being felt.

The National Radio SystemsCommittee (NRSC) and iBiquityDigital told the board that IBOCsystem testing is nearly cornpleted and a full report on Fperformance and data shoutbe delivered to the FCC by September. The AM system reportshould be ready early next year.The hoard issued a resolutionon IBOC DAB, which encour-aged the NRSC and iBiquity to

.1

Muhammad Ali honored by NABEF

"There is no one on earth more aware of the mediathan Muhammad Ali," declared Lonnie Ali at thethird annual NAB Education Foundation Service toAmerica Awards (6/11). And "The Champ" didn'tdispute his wife's claim-in fact, he just grinned whenshe said "his pretty face was always camera ready."Due to Muhammad Ali's ongoing battle with Parkinson'sDisease, Lonnie Ali delivered the main address at the

NABEF dinner in Washington, recalling her husband's career in boxing and use of his celebritystatus to battle hunger and promote peace and humanitarianism-work which the couple hopeto see carried on by the Muhammad Ali Center, to be built in their hometown of Louisville, KY.

"He knows he will not be able to travel and work as he has done forever," she noted.Muhammad Ali was surprisingly clear of voice, however, when he climbed the stairs and

walked across the stage (pictured above with NAB President Eddie Fritts joining in theapplause) to the podium and briefly addressed the crowd of broadcasters. Clips of his early fightsprovided by WAVE -TV Louisville had been interspersed in a video biography of his life, and Aliacknowledged that he was always attracted by media exposure. When he won his first fight atage 12, a clip from the bout was shown on local TV and seen by many classmates at his school."I enjoyed that. It made me feel good," Ali said.-JM

2 www rbr corn 6/18/01 RB

M10 The MaeHow does he getthese railings?

Teens 12-1) #1

Adults 18-24 #1

Adults 18-34 #1

Adults 18-44 #1

Adults 18-49 #16AM-10AM AUBE-FM/Seattle*

"N W IN SYNDICATION"

For more information contact Laurie Nickoloff at 818.461.5485

complete their tests as "rapidlyas practical," It also stated sup-port for an early decision by theFCC to adopt a single DAB stan-dard and stated its preferencefor IBOC as the best path fortransition to digital.-CM

Wicks and ComputerConcepts swap systems

In a rather unique businessarrangement, but one thatmakes complete sense, auto-mation systems provider Com-puter Concepts Corp. will"trade" its Visual Traffic soft-ware division for Wicks Broad-cast Solutions' Digital Universeautomation system.

Visual Traffic, with 500 clientstations, adds to Wicks' alreadysubstantial (8,000 clients) traf-fic/management software busi-ness, garnered from its acquisi-tions of CBSI and Datacount(RBR 2/14/00, p.4).

Digital Universe, originallydeveloped by CBSI, will fur-ther Computer Concepts' andparent Scott Studios' special-ties in the digital automationsystem business, adding to astable of 3,800 client stations.

Says Scott Studios/ComputerConcepts CEO Dave Scott: "Thisswap is a positive move forcustomers of both these prod-ucts because it keeps the mainthing the main thing. ComputerConcepts and sister Scott Stu-dios' core business is digitalaudio systems. Wicks' core busi-ness is radio traffic software.Neither company will be dis-tracted by commitments madeoutside its core business. Cus-tomers will be best serviced bya company that lives andbreathes and loves the productthat they have."-CM

CMR says (11 ad

spending fell 5.2%

National spot radio was hitharder than any other nationalmedium in Ql, according todata released 6/13 by Competi-tive Media Reports (CMR). Whiletotal ad spending dipped 5.2%to $22.6B, CMR said national

4

Radio News

spot radio fell 24.1% to $433.3M.Next worse was network radio,down 18.4% to $182.5M. Thebiggest gainer among the mediatracked by CMR was cable TV,up 6.6% to $2.46B.

Don't blame it all on dot -corn. CMR's figures show thatad spending by auto companieswas down 5.4% to $2.5B. Gen-eral Motors (N:GM) slashed ad-vertising 25.8% to $480M acrossall media, Ford (N:F) was down19.1% to $252M, and Hondadecreased 1.2% to $166M. Sur-prisingly, DaimlerChrysler(N:DCX) increased ad spending2.1% to $373M (Huh? Where didthey spend it?) and Toyota wasthe big gainer-increasing adspending 12.6% to $184M. CMRreleased figures only for the bigfive, so there was no data tobuttress reports from many ra-dio executives that other for-eign car makers had been takingadvantage of the ad slowdownby domestic car companies to goafter market share.-TM

Judge allows pirate tochallenge RadioBroadcasting

Preservation Act

U.S. District Court Judge War-ren Eginton has ruled thatMark Blake, who operates apirate FM on 105.3 mHz"Prayze FM" in Bloomfield,CT (Hartford), can challengethe Radio Broadcasting Pres-ervation Act of 2000's consti-tutionality. Congress' answerto Bill Kennard's LPFMquest, the act requiresthird -adjacent channel pro-tections for existing FMs,greatly diminishing thenumber of LPFMs that theCommission can license.

The station has operated ille-gally beginning in 11/96 andwas first shut down by a FederalJudge's ruling 9/98.-CM

CCU leaving NYMRAD

Clear Channel (N:CCU) ispulling all five of its NYC FMsfrom the New York MarketRadio Association (NYMRAD)7/1. CCU claims it can givemarketing presentations tolocal advertisers and agen-cies on its own, and savemoney in the process. Seeagency reaction, p. 8.-CM

Copps taps trio ofFCC insiders

New FCC CommissionerMichael Copps (D) hassigned on three veteran FCCstaffers as "interim membersof his personal staff" whilehe ponders who to hire on apermanent basis. For now,Jordan Goldstein will serveas Senior Legal Advisor andfocus on common carrier is-sues. He had been Legal Ad-visor to departed Commis-sioner Susan Ness. Of par-ticular interest to broadcast-ers, Susanna Zwerling hastaken a Legal Advisor post inCopps' office and will handlemass media and cable issues.She had been Assistant Bu-reau Chief for Planning andCommunication in the MassMedia Bureau. Also servingas a Legal Advisor is LaurenMaxim Van Wazer, who willfocus on wireless and inter-national issues.-JM

www.rbr.com

Terion paging askingstations to drop monthly

rent by 50%

Sub -carrier (SCA) paging andtwo-way messaging companyTenon Corp. is dropping sonicstations and asking the remain-ing stations to take a 50% cut inthe monthly subcarrier rent,_according to an RBR source whoadds Terion's sales to truckeare running behind projectio

Tenon and Q -Paging have athe key FM SCAs. Tenon waeven thinking of buying Q Pag-ing as late as April the sourcesays. "Their system is very goodand well designed. The systemmakes the stereo better by put-ting and active phase correctioninto the broadcast chain. It

samples the transmitted signal then shifts the 19 kHzphase to give sort of perfectstereo. Seems to reducemultipath by keeping the pi-lot dead on," adds our source.

Tenon is based in MelbourneFL. Calls asking for commenwere not returned.-CM

Media criticized forminority portrayals

Panelists at the NAB Educational Foundation Summit inWashington (6/11) complainethat radio and TV are not doinga good job of portraying minorities, despite evidence from th2000 census that America is morediverse than ever. Noting thegrowth of the Hispanic com-munity, La Raza PresidentRaul Yzaguirre complained,"We're portrayed more nega-tively than any other groupin this country."

Both he and National UrbanLeague President Hugh Pricecharged that broadcast newsfocuses only on extremists andignores the mainstream of mi-

6/18/01 RB

DICKSTEINSHAPIROMORIN&OSHINSKLX,

Legal Innovators

PRESENTS

BROADCAST FINANCING FOR THE NEW MILLENNIUM:RESPONDING TO CHANGING TIMES

An Annual Program of the NAB Radio Show

WEDNESDAY, SEPTEMBER 5, 2001

8:30 A.M. - 11:30 A.M.

NEW ORLEANS CONVENTION CENTER

KEYNOTE SPEAKER

Drew Marcus, Deutsche Bank Alex. Brown

PANELISTS

David J. BenjaminTriad Broadcasting Co., 1-1,C

Anthony S. BrandonAmerican General Media Corp.

Charles BrownCIT Structured Finance

Lewis W. DickeyCumulus Media, Inc.

David KennedySusquehanna Radio Corp.

Jeff KilreaHeller Financial, Inc.

William K. LiseckyCIBC World Markets Corp.

Tom McKinleyMedia Services Group, Inc.

Brian W. McNeillAlta Communications

Lisa M. PellowFleetBoston Media ey Entertainment Group

Al PerrySatteOeld & Perry, Inc.

Lawrence R. WilsonCitadel Communications Corp.

MODERATOR: Lewis J. Paper, Dickstein Shapiro Morin & Oshinsky LLP

CON 11\ 1 \ I M. BREAKFAST SPONSORED 1W MEDIA SERVICES GROUP, INC.

I'oi< R/ (,I.STR/ITION INI'0101/1"110N, CONTACT j/IMIL 1-101,1DW21Y /1'1'202.861.9165 OR HOLLOWA YRODSMO.COM

nority communities. "If you'renot loud and outrageous, you'renot newsworthy," Price said.

Rising from the audience todefend the industry, CromwellGroup CEO Bud Walters com-plained that broadcasters aren'tgiven credit for all the servicethey do provide to their com-munities. Panelist Leo Ramos,GM, WSCS-TV Chicago, sug-gested that the real problemwas not with broadcasters whosupport public service ventureslike NABEF, but with thosewho weren't represented atthe Service to America Sum-mit. "We're all members of thesame choir," he noted.

As NABEF graduated the firstclass from its Broadcast Leader-ship Training Program, somesummit participants questionedwhether there were still owner-ship opportunities for minori-ties after deregulation and con-solidation. "We're going to havea lot of people with training, butno place to go for ownership,"said Lorain Ballard Morrill,News & Public Affairs Dir.,WUSL-FM Philadelphia.-JM

Opening at Radio& TV Marti

The Miami Herald reports thatHerminio San Roman hassubmitted his resignation toPresident Bush as Director ofthe US Office of Cuban Broad-casting-the governmentagency which operated RadioMarti and TV Marti. The movewas not a surprise, since SanRoman was a Democrat ap-pointed in 1997 by PresidentClinton. Although the post isnot one which requires con-gressional approval, its occu-pant normally changes witheach change of administration.

According to the Miami Her-ald, the Republican WhiteHouse already has a short listof Cuban -American candidates,including veteran Miami broad-casters Salvador Lew andNinoska Perez Castellon,documentary film makerEduardo Alberto Palmer andAntonio Navarro, a Demo-crat who has experience going

Radio Newsfor Inni-lie held the post dur-ing the administrat ion of thefirst President Bush.

RBR observation: Radioand TV Marti have long been asore point for US broadcasters.Jamming by the Cuban govern-ment is said to be pretty suc-cessful in keeping most of thepopulation of Cuba from hear-ing Radio Marti and TV Marti(launched during Navarro's ten-ure) apparently has virtuallyno Cuban viewers-even whenits Rube Goldberg -style bal-loon -antenna is able to stayaloft. Cuba, however, retali-ated for the attempts to pen-etrate its borders via the air-waves by boosting power onits AM stations and increasingjammingboth of which havecaused interference problemsfor US AM stations.-JM

Amber Plan going national

As Dallas -Ft. Worth broad-casters and law enforcementagencies were honored withthe NABEF Service toAmerica Samaritan Awardfor the ground -breakingAmber Plan, presenter DanSnyder, owner of the NFLWashington Redskins, an-nounced that the program isgoing national next month.

Details of the Amber Planfor quick, coordinated localaction to locate kidnapped ormissing children will be avail-able at the website of theNational Center for Missingand Exploited Children,www.missingkids.com, whereSnyder is a member of theboard of directors.

In accepting the award forthe Amber Plan, named for ayoung girl whose death in-spired the quick -responseplan in the Dallas -Ft. Wortharea, Tarrant County SheriffDee Anderson urged othercommunities to implementthe Amber Plan: "It'll make

you feel so much bettcr it

you have it and never needit-than if you need it andnever hay(' it."-JM

McDonald's pulls adsfrom INTIC-AM

From the Hartford Courant:McDonald's has pulled ads fromWTIC-AM Hartford after Talk -show host Colin McEnroe criti-cized a company visit to alocal high school. Mickey D'shad recruited students duringthe visit, which involved anassembly that was supposedto help them prepare for jobinterviews. When a student atthe assembly criticized the fast-food giant, he was forced toapologize to the entire school.During its visit, McDonald'srecruited students by offeringcoupons for free meals if theyfilled out a job application.

So, during his 6/4 show,McEnroe took up the student'scause and said the companyshould not have been in theschool in the first place. Thecompany has since suspendedadvertising with the station andis considering whether it willresume advertising in the fu-ture, a McDonald's spokes-woman said 6/12. "McDonald'shas pulled ads on WTIC-AMand is evaluating its advertisingpresence with the station basedon the extensive commentaryfrom an on -air personality," shetold The Courant. "McDonald'ssupports free speech, but I thinkin this case they felt that it wentmore beyond the reporting ofthe news and provided per-sonal commentary. That'swhat's going to be evaluated."

McEnroe responded:"McDonald's shouldn't havehad access to the school. It'snot a place where one com-pany should be allowed toproselytize. ... There's plentyof room for kids to ask ques-

How, ()I a major corporation../It's completely legitimate. Ithought it was impressive forthe kid to say."-CM

KM adds another 14programmers; adds to

artists stableXM Satellite Radio (O:XMSRtannounced 6/13 more additionsto its programming staff, as thecompany nears launch this sum-mer. WLVE-FM Miami MD Trin-ity Colon will program thecompany's Contemporary Jazzchannel; Smithereens leadvoaclist Pat Dinizio, will pro-gram a channel targeted towardunsigned bands and small inde-pendent labels; FAT Music Ra-dio Network chief Felton Pruittwill program XM's Bluegrasschannel; WQCD-FM NY MDRuss Davis will program theModern Jazz and New Agechannels; Nashville legendEddie Kilroy will serve as PI)for one of XM's Country chan-nels; WGUF-FM Ft. Myers, FLPD Bill Schmalfeldt will pro-gram the Broadway/ShowTunes channel; and EmmaWilson, a.k.a. Red, will program the Youth channel.

XM also hired seven newMDs: Brian Chamberlain ( softAlternative), Dan Dixon (Coun-try), Dermot Hussey (Reggae),Patrick Lemiuex (Dance), CurtMathies (Alt. Country), Crys-tal McKenzie ('80s) and Tobi(College/Alternative).

Two new additions to XMsArtists Family were also an-nounced: Junior Marvin,former lead guitarist for BobMarley, will help create pro-gramming for XM that fea-tures live Marley concerts.Platinum album act InsaneClown Posse will producetheir monthly jugga/o Show,which began in Detroit ra-dio, for one of XM's Rockchannels.-CM

Radio PuerTalented people, working together, generate a lot of energy. We've combined the talents of JonesRadio Network and Jones Broadcast Programming into one powerful team.

Talents like Delilah, Lia, and Dave Wingert, who transform your nighttime into prime time. LikeChris Byron, Weissbach, and from Cox Radio, Clark Howard and Neal Boortz, who turn on talklisteners with help and humor.

Our music programmers empower hundreds of stations with everything from song -by -song music logsand consulting to live 24 -hour formats.

We're Jones Radio Networks. Two talented programming teams are now one focused radio company,committed to helping you become a Radio Power.

DaypertPersonalities

24 HourFormats News & Talk

MusicProgramming Research& Consulting & Prep

JONES RADIO NETWORKSSeattle 800.426.9082 Denver 800.609.5663 New York 888.644.8255 jonesradio.com

JONESR ADIONETWORKS.

CCU bids farewell toNYMRAD, NYC spot

buyers reactClear Channel (N:CCU), notlong after re -jiggering uppermanagement in the Big Apple,says it will pull all five FMs(WHTZ, WKTU, WAXQ,WLTW and WTJM) from theNew York Market Radio As-sociation (NYMRAD) 7/1.CCU claims it can give itsown marketing/new businesspresentations to local adver-tisers and agencies, savingmoney in the process. Thenation's largest broadcaster,it has been postulated, alsodoesn't like sharing stationdata with in -market competi-tors via NYMRAD. Could thisbe the start of other organi-zational pull-outs? If so, theimpact could be devastatingto the progess these groupshave made.

NYMRAD Executive Direc-tor Sandy Josephsen tellsRBR he's very disappointedwith the decision and hopesthey will reconsider: "TheNew York radio communityhas always taken the atti-tude, 'What's good for NewYork radio is good for theindividual stations' Eventhough they have been com-petitive as stations, theyhave always recognized theneed for someone withoutan order book in their pocketwho could be a non -threat-ening resource and counselthem about radio."

We asked two NYC spotbuyers a few questions onthe issue: Dennis McGuire,VP/Senior Spot Radio Man-ager, Carat USA; and Col-leen Kelly Senior BroadcastNegotiator, Initiative Media.

What's your reactionand what experiences

have you had withNYMRAD?

McGuire I'm surprised bythe move, I can certainly saythat. I think that NYMRAD isa wonderful organization thatsupports radio in its entirety

8

for all the stations. And Ithink that the seminars andthe parties that it hosts isreally a unifying effect foreverybody who is involvedwith radio. It lets people cometogether and really to discussideas, whether on a socialbasis, professionally and in-tellectually. And I'm sort ofsorry that Clear Channel willnot be part of that.Kelly I think it's unfortunate.I think it brings a lot of peopletogether and they can workas a nice media community,and I think they are going tolack that now by pulling out.

The information that theyprovided us and those busi-ness breakfasts that they haveare really informative. I thinkSandy has done a fabulousjob of running that wholeorganization and I think thathe's put so much work into itthat it's a shame. I mean thebusiness has been in a toughsituation right now as it is. I

just think this is just anothernegative impact on it.

We hear they may havewanted to stop sharing

data with other NY marketstations via the seminarsand presentations. What

do you think?

McGuire I can't commenton that because I don't knowthat to be a fact. But I thinkthat as an organization thatsupports radio in New Yorkand the work that SandyJosephsen does I think isjust terrific-you know to tryand get more radio dollarsdown. I think a certainamount of information canbe shared if it's going to helpthe entire radio community.Kelly I can't understand that,I'm not sure they were shar-ing that much with them.

McGuire

Apparently, Clear Chan-nel is going to do its ownpromotions and presen-tations for the NY spotbuying community. Do

you think it will have thesame positive impact for

the stations asNYMRAD?

McGuire I think it's going tolimit them somewhat becausethey're not going to have theshared experiences of otherstations to contribute to theirdecision -making policies.But I'll tell you something,they're not stupid people.The company is run by verysmart individuals and theyprobably feel that they canforward the cause of ClearChannel Radio on its own. Ijust feel that it's sad thatthey're not part of an outfitthat's trying to benefit allradio in NY. Yes, these arebright people, these are smartpeople, there's no denyingit, and they're probably go-ing to do their organizationsome good. Will they domore good than if they re-mained with NYMRAD?That remains to be seen.But I'll tell you one thing-people will always put agood spin on everything.So even if it proves to be a

www.rbr.com

1By Carl Marcucci

decision that they rue intime, you'll never hear it.Kelly I think it's unfortu-nate for the New York mediacommunity that they wouldkind of distance themselves.I had heard that they aregoing to do their own thingnow. I don't know what theirown thing is, they have beenvery quiet about that. It alldepends on how well theydo their own thing, becauseif they don't do it well, theyare going to suffer.

I will tell you, the biggestloss for radio is the Jimmyde Castro loss. That defi-nitely has not been a posi-tive. He was a powerful,positive influence. He madeit easy to do business, hemade you feel that you wereimportant to the stations.

How do you thinkNYMRAD will be changedwithout Clear Channel'sparticipation and rev-enues, especially the

annual Christmas party?

McGuire It's going to be asmaller event, but they willstill have it, I think. But that'sthe other thing-the Christ-mas party was always a goodevent for everybody really toget together. And eventhough it was a social occa-sion, a great deal of businessand exchange of ideas wenton at that Christmas party. Itwas a great forum for peopleto talk to each other, find outwhat's going on. I mean a lotof deals were made, a lot ofresumes were passed around.It was really a great clearing-house for the people in radioto do a lot.Kelly It's not just all aboutthe parties, it's the otherthings-the information theyprovide you. The parties justwon't be the same.

6/18/01 RBR

ARMA Expo 2001

:tactic) equipment makers struttedheir stuff at the fourth ARMA:American Radio ManufacturersAssociation) Expo 6/4-6/5, heldnidway between Washington andBaltimore (Columbia, MD) at the2.olumbia Hilton Hotel. The 10-;ession event, entirely organizedind funded by the exhibitors,ilso featured a combined Balti-more, Washington and Fortvleade SBE Meeting paired with'Digital Plant panel presentation)y Ray Esparolini of Klotz Digi-al, Russ Mundschenk ofbiquity Digital, Dan Braverman)f Radio Systems, Ken Tankel of)alet Digital Media Systems andKarty Sacks of Telos/Omnia.

Exhibitors this year included:Scott Studios, Klotz Digital, LPB,'7idelipac, Omnitronix, Gormanledlich, Studio Technology,VlediaTouch, Broadcasters Gen-eral Store, Dalet, Radio Systems,..ightner Electronics, Wheatstone,

is Management Data Media Systems,Dielectric, RF Specialties, Audio

5 ?recision, ERI and Telos Systems.' Vince and Robin Fiola of

Studio Technology did much ofhe work in setting up the event,mended by nearly 150. "The showwent great. A group of goodexhibitors and good sessions, andhe attendance was as good or)etter than last year's," says Vince.'ARMA originally started as aTroup to sell their products awayrom distributors, and was origi--tally a very prejudiced idea. Nowtnyone who is interested in be-:oming a part of it is welcome."

RBR's Ken Lee, who attendedhe event, got some feedbackrom the exhibitors:

In May 2000, transmitter manu-acturer LPB acquired consolenanufacturer Fidelipac, and inDecember 2000, the companytcquired transmitter manufacturer)mnitronix. John Devecka, VP;ales, LPB, discussed his experi-ence with the show: "This is our'ourth time-actually Fidelipacvas doing it and LPB has been)articipating since we boughtidelipac. ARMA is a goodway to

un the flag up the flagpole, leteveryone know you're here and-)e able to show some solidarity

18/01 RBR

Engineered For Profitamong the manufacturers tryingto support radio. There isn't gen-erally a good small East Coastshow to get the local engineersinvolved and give them an op-portunity to see equipment andhave some of these sessions totalk about what's going on in theindustry. Not all of these guys canafford or get the sponsorship togo out to the NAB Show."

Says Matt Leland, FM Prod-uct Manager, Dielectric: "We'vebeen here a couple of yearsnow, with the previous showsbeing in Atlantic City. It's a

group of us manufacturers inthe radio industry that are get-ting a better response from in-dustry engineers and our cus-tomers to get them in to a moreconsolidated show. We're do-ing a lot of regional SBE showstypically. Our goal is to gettogether enough manufacturersthat we can go an consolidatesome of these smaller shows tomake them more worthwhile."

Marty Sacks, National SalesDirector, Telos/Omnia, broughtthe company's new "Smart Sur-face" control surface/consolethat will be shipping within sixmonths and the new ZephyrXStream codec. "We have beeninvolved with ARMA for twoyears now, this is our first yearexhibiting. We came up andparticipated in the panel lastyear at the Hyatt in Baltimore.In these regional shows, theattendance is quite a bit lessthan the larger venues likeNAB, but the advantage is youcan be very close to the endusers. That's the positive-thatpeople don't have to travel asfar to get to you. The downside is between ARMA andHarris and some of the re-gional SBE shows, there areonly a couple that you couldcall a tremendous success. Ithink that to a certain extent,you've got to do some regional

www.rbr.com

shows as a manufacturer be-cause less and less people arebeing given the resources togo away from the station forlong periods of time."

Fiola says the ARMA plan hasalways been, and it hasn't growninto that yet, is to do a series ofshows throughout the country asgrowth permits: "I think we'realmost there. We are determinedto have one in the Washington -Baltimore area every year fromthis point on and we will probablylook to do one in the South at theend of this year; and possibly onein New Hampshire or Vermont."

To hear more, go to\vw.rbr.com.

By Carl Marcucci

Jay Tyler of Wheatstoneshows off the company's

new digital router.

IBOC - Revolutionizing Radio

Interactive Buy Button

Ibiquity Digital's Broadcast Technical Manager Jeff Detweilerdiscusses the company's plan to roll out in New York, LA,

Chicago, San Francisco, Miami and Seattle (RBR 6/11, p. 3).

Dalet's Ken Tankel demos the company's latest andgreatest automation system: Dalet 5.1.

10 WAYS TO SELL

MORE EFFECTIVELY IN

A SOFT ECONOMY

By Paul Weyland

Here are 10 ways to improveyour attitude and work morelogically in a softer economy.

1. Avoid negative self -talk.Teach yourself to recognizethat little voice inside yourhead that tells you that youwill fail. Refuse to dwell onguilt from the past or worryabout the future. You haveno control over events fromthe past. You can't accu-rately predict the future. Allyou really have control overis "right now". So logically,anguishing about somethingfrom the past or fearing thefuture is a complete wasteof time. You must stay fo-cused in the present mo-ment, which is really theessence of your life.

2. Discipline yourself tomake more calls. Take a lookat the white business pagesof your phone book and geta good idea of how manybusinesses there are in Ourmarket. Keep in mind that inan average month a typicalradio station will have fewerthan 50 direct accounts onthe air. This means that mostof the businesses in your areahave never been called onproperly, or have never been

10

Salescalled on at all and thatmeans tremendous opportu-nities for those who botherto just make the calls.

3. Distance yourself fromnegative people, office gos-sip and any other negativeconversation. Refuse to par-ticipate. Negativity spreadslike a virus. Practice TheThree C's...Try not to CRITI-CIZE, CONDEMN OR COM-PLAIN. Remember that youcan change your internal"operating system". You canchoose to replace your nega-tive thought with a positiveone. When you catch your-self thinking negatively,consciously bring yourselfback into the present mo-ment and focus on some-thing positive.

4. Change the way you thinkabout your closing ratio. I

always believed that the oldadage, "Call on ten...get threeappointments...close onesale" seemed bleak. So I

changed my closing ratio toNINE OUT OF TEN. Here'swhat I mean. If I believe thatI can help a client and thatthe client has the resourcesto allow me to help, I'll closethat client EVENTUALLY.Maybe not today...maybe nottomorrow, maybe not thisquarter. But sooner or later,sometime this year I'll closethat sale.

5. Stop selling spots andstart educating clients. Edu-cated clients buy more thanuneducated clients. Most di-rect clients know very littleabout the overall marketingprocess and much less aboutadvertising, the strengthsand weaknesses of differentmedia, the difference be-tween a good spot and abad spot or how to calculate

return on investment from amedia campaign. (See RBRarticle, "The 10 EssentialThings You Must Do To SellMore Direct Business in aRecession" by Paul Weylandin the 4/2 and 9 issues).

6. Instead of "ganging up"on the same direct clientseverybody else in town iscalling on, go out into neigh-borhoods you rarely frequentand call on clients who areunlikely to have been con-tacted by other stations andother media.

7. Always ask for long-termcontracts every time youclose a sale. Otherwise, yourclient will have the impres-sion that you are always try-ing to "sell" him. Get theselling over with as quicklyas possible and then you canmove on to properly build-ing and maintaining a long-term relationship with yourclient. Remember... if youdon't ask for a long-termcommitment from your cli-ent, you won't get one.

8. Remind clients that everytime rumors of a recessiondevelop, big publicly tradedcompanies tend to cut backon advertising. These are ex-cellent times for smaller cli-ents to really start buildingbrand awareness. There ismore available inventory andless market "clutter". And re-mind the client that providedhe does not have marketingproblems, even in softereconomies X% of any marketpopulation will be buying yourclient's product or service fromsomebody this week.

9. If you come up with abrilliant campaign for a clientand he doesn't buy it, don'tjust shelve the idea. Pitch a

www rbr com

similar idea to everybody elsein that product category untilyou sell it.

10.To get a meeting with aprospective client, use aheadline to break throughthe clutter. "I just wanted totake a few minutes to talkabout your advertising" justdoesn't cut it any more. Abetter way would be to use animmediate attention -getting de-vice, just like we do when wewrite a spot. Here are someheadlines you might try .

A. "I think I've figured out away that you haven't thoughtabout yet to get more qualifiedtraffic into your store. Is there agood time this week when Icould show you what I've dis-covered?"

B. "I have a great idea for acommercial for you. I'vesketched it out and I'd love toshow it to you. When would bea good time for me to come by?"

C. "I've learned a logical way tocalculate return on investment(Paul Weyland RBR article from4/9 issue) on any advertisingyou do. It will make it mucheasier for you to track yournewspaper, direct mail, anyadvertising you do. When wouldbe a good time to meet so I canshow it to you?"

D. "I've been studying yourbusiness and I think I've dis-covered a marketing problemwith your store and a way toovercome it. But perhaps I'moverlooking something impor-tant. Could I come by and showyou what I've found?"

Paul Weyland is president ofPaul Weyland Training Semi-nars. He can be reached at (512)236-1222 or by email atweyland@swbell.net

6/18/01 RBR

AMERICAN URBAN RADIO NETWORKSPRESENTS

The Hottest Galaxy of Star Power Programming... Ever !!!Music, Entertainment, News and Information

MUSICMAGAZINE

This 2 -hour countdown show ishosted by John Monds, fresh with

celebrity interviews and hot AC urbancontemporary hitz !

The "Back in the DayHouse PAR -TAY"Hosted by industry VET Mitch

Faulkner, this 2 -hour old skool partyfeatures the biggest old skool

and party classics.

COMING

Find out the coolplaces to go onthe NET. Prostake you there toget connected.

Daily reviews ofthe newest filmsreleased by themovie industry.

Surfing the1111111IN-w-

mmidem Immo EllNW% 7 =1"-- EllIA WI MIN

gummy Inv

Centur

111\51grSONI D's

SURVEYfIB d 4811POL:

Younger audiercevZit(ilnYt- iritegiAdown packed with hitz,

entertainment features, andcelebrity interviews. Featuring Skip

Cheatham of K 104 -FM in Dallas andQueen of Gossip Wendy Williams from

Power 99 -FM in Philadelphia.

WI I II -FANYA HART

Daily entertainment news on celebritiesdirect from the entertainment capital.

AMERICANURBAN RADIO

NETWORKS

It's hit after old skool hit... perfect ifyou're trying to reach young adults.

THE

WALL STREET

rGiving you the down low about

your money!

ii AMERICAN URBAN NEWS

SRN SPORTS4% emu

Satellite delivered daily broadcastsof major News, Sports, and

Information reports.

THE

HOWW

The Millennium Music Special for Black Music Month.An eight -hour chronicle of Black Music in America which brings history to life for our listeners.

Journey through time... celebrate the musicmakers that shaped our country and the world !

The only AfricanAmerican orientednational nightly 4 -hourtalk show. We exploretoday's hot topics.

NEW YORK CHICAGO DETROIT ATI.AN I A LOS ANGELES WASHINGTON D.C. PITTSBURGH

Interep & Katzsettle suit

Interep (0:IREP) and Katz M

Group have settled their couibattle over rep contract compen,sation. Interep had sued Katz an

Clear Channel (N:CCU) in Apr

2000, alleging that its national rep

contract hadbeenbreachedwhClear Channel acquired Katz an

took its rep affiliations in-house,.just months after Interep hamade buyout payments to Kafor stations newly acquiredClear Channel. Interep haclaimed it was owed buyoupayments for the Clear C,hannstations moved en masse to Ka

-:and it shouldn't have to mak-any more buyout paymentsKatz for stations which were no'longer Interep clients. Katz hadcountersued, claiming contract

';.breachesbyInterep.Tennsofthe.settlementhaventbeenrevealed

12

Media arkets a !I ones

Banta strikes againwith yet anotherNew Jersey deal

Charlie Banta insists that Mil-lennium Radio Group isn't go-ing to be limited to New Jersey,it's just worked out that waywith the new company's firstthree buys. The latest has Mil-lennium buying the Monmouth -Ocean superduopoly that wasassembled by Lou Mercatanti'sNassau Broadcasting. Millen-nium is paying $90M for WADB-AM, WOBM-AM & FM, WBBO-FM & WJLK-FM.

Repeating his observationthat New Jersey is underservedby local media, Banta said, "Our

acquisition of Nassau's fiveMonmouth -Ocean County ra-dio stations will be an impor-tant part of our efforts to prop-erly serve the entire state ofNew Jersey." But he's also mak-ing it clear that the new groupwon't be confined to The Gar-den State. "We are interested inlooking at further radio acqui-sitions in New Jersey and therest of the US."

For his part, Mercatanti saysthe deal will allow Nassau tocontinue expansion in CentralNew Jersey and Pennsylvania."Our goal and focus will be toestablish the new Nassau asthe leading suburban groupserving the greater Philadel-

Millennium Radio Group, LLCa joint venture of

UBS Capital Americas, LLCand Mercury Capital Partners, L.P.

has agreed to acquire the assets of

New Jersey 101.5 (VVKXW-FM),WBSS-FM and WBUD-AM

serving

New Jersey

from

Press Communications, LLC

Total Value

$1109

000 000StarMediaGroup, Inc.

"Radio's Full ServiceFinancial Specialists" ni

5080 Spectrum Drive, Suite 609 East Addison, TX 75001* (972) 458-9300

www rbr corn

oy Jack Messmer

phia market," he said.Peter Handy of Star Media

Group represented Millenniumin the transaction. Salomon SmithBarney represented Nassau.

RBR observation: Now weknow why Press Communica-tions didn't include itsMonmouth -Ocean stations inits group sale to Millennium(RBR 6/11,p. 12).This deal hasobvious advantages for bothparties. Millennium adds re-gional bulk with an already -assembled cluster. Nassauneeded to de -leverage afterthe sudden economic down-turn spoiled Mercatanti's IPOplans last year and Monmouth -Ocean was a valuable clusterthat wasn't vital to the rest ofthe Nassau. The other non-contiguous market in his stableis a combo in the Newburgh -Middletown, NY market. Wewouldn't be at all surprised tosee that sold to FrankOsborn's Aurora group.

Cumulus settlesshareholder lawsuits

Putting the past behind it willcost Cumulus Media (O:CMLS)$16M. The company announced6/12 that it had settled the classaction lawsuits filed by angryshareholders after Cumulus re-stated its 1999 financial resultsand began an executive suiteshakeup (RBR 3/27, p. 12).

Under the settlement, peoplewho bought Cumulus sharesduring the time period coveredby the suits will receive com-pensation from a pool of $13Min cash and 240K shares of newCumulus stock (worth a bit

over $3M). $7.25M of the cashportion will be paid by Cumu-lus' insurers, so CEO LewDickey Jr. is free of this head-ache with only $5.75M in cashleaving Cumulus' coffers.

"These lawsuits were the re-maining vestige of an old prob-

1/15/01 RBR

lem, and it was time to putthem behind us," said Dickey."Their resolution constitutesstill another step forward inour plan to make the newCumulus the premier com-pany in our industry."

Mega AM skips to Liu

Arthur Liu's Multicultural Ra-dio Broadcasting is picking upa fourth AM in the Washing-ton, DC market-and onceagain the seller is MegaCommunications. AlfredoAlonzo's Mega has been build-ing up its Spanish FM pres-ence in the DC market, so\VKDM-AM, licensed toRockville, MD, will segue toLiu's stable of time -brokeredEthnic stations for $800K. An[MA began 6/5. According tothe sale filing with the FCC,WKDM, on 1600 kHz, has nocity -grade contour overlap withLiu's existing three AMs in theI )C market-two of which werealso acquired from Alonzo.

FCC working on CDBS

problems

The Federal Communications-Commission's Mass Media Bu-reau is attempting to resolve theproblems with its electronic fil-ing system cited in RBR's recentpetition asking for an emer-gency shut -down of the trouble -plagued CDBS system (RBR 6/11, p. 1). Peter Doyle, ActingChief of Audio Services, saysthe FCC staff is now checkingeach station sale filing (Forms314 & 315) to ensure that allrequired attachments are indeedpresent and that the sale con -

(tract includes price information,is required by the FCC's rules-and that all of the required in-formation is available to thepublic via the CDBS Internetsite. He assured RBR that ap-plications will not be allowedto go on public notice untilthey are complete.

Doyle admitted that two ap-plications were granted whichdid not have all of the requireddocumentation, but all of thedocuments for four other5/01 RBR

granted applications cited inRBR's petition have been lo-cated and are being made avail-able to the public.

Changes are also beingmade to the engineering data-base portion of CDBS to cutdown on errors, Doyle said.Software enhancements willprevent acceptance of typosand other human errors wherethe entry is obviously wrong-such as entering a TV fre-quency for an FM station.

Delayed contractssurface

As the FCC works to straightenout problems with its elec-tronic filing system, some ofthe missing contracts havebeen located and made avail-able on the CDBS system. We now know that ErnieAnastos and his Anastos Me-dia Group is paying $2.1M forKeating Wilcox's Willow Farmgroup AM stations: WMSX Bos-

ton, WGAW Worcester, MA,WPEP New Bedford, MA, WNRIProvidence, RI and WMVUManchester, NH. We now know that HectorVillalobos is paying $5.75Mfor the spin-offs that had beenplaced into trust when Z -Span-ish Radio was merged intoEntravision (N:EVC). Villaloboswill launch his new WolfhouseRadio Group Inc. with KCTY-AM, KTGE-AM, KHMZ-FM,

The RadioInde X Tm

Stock prices flattenedout. The Radio IndexTMgained 0.417 for theweek to close 6/13at 214.353.

220

210

200

Radio Business Report'

5/23

Voice Of The Radio Broadcasting Industry`

5/30 6/6 6/13

PATRICK COMMUNICATIONS

Station BrokerageDebt & Equity Placement

Fair Market & Asset Appraisals

Larry PatrickPresident

Susan PatrickExecutive Vice President

Terry GreenwoodVice President

Greg GuyVice President

(410) 740-0250, www.patcomm.com

www.rbr.com 13

McCoy Broadcast Brokerage, Inc.

REAL RESUINS.Closed!

KWIC 99.3 FMKQTP 102.9 FM

Topeka, KS

JOSEPH BENNETT MCCOY, 111COLORADO SPRINGS, COLORADO

719-630-3111 PHONE

719-630-1871 FAx

HAMMETT & EDISON, INC.CONSULTING ENGINEERSRADIO AND TELEVISION

Serving the broadcast industry since 1952...

Box 280068 San Francisco 94128

HE707/996-5200202/396-5200

engr@h-e.comwww.h-e.com

Mullaney Engineering, Inc.

Consulting Telecommunications Engineers

9049 Shady Grove Court

Gaithersburg, MD 20877

phone//301-921-0115 fax//301-590-9757Member AFCCE mullener@aol.com

eataworm® Market Analysis

Custom Mapping

Ethnic/Demographic Data

Sales Marketing Packages

Pinpoint Target Audience

www.dataworld.com800-368-5754

Read about thesetransactions and moreat our website rbr.com

Transaction Tgestby Dave Seyler & Jack Messmer

The deals listed below were taken from recent FCC filings.RBR'sTransaction Digest reports on all deals that involve assignment of a station license (FCC Form 314)and substantial transfers of control of a licensee via a stock sale (FCC Form 315), but not internal corporaterestructurings (FCC Form 316). All deals are listed in descending order of sales price. Broker credits arebased on contracts filed with the FCC.

$2,600,000 KEWE-AM & KHHZ-FM ChicoCA (Oroville) from Entra vision HoldingsLLC (Walter F. Ulloa) to Clear ChannelBroadcasting Licenses Inc. (Lowry Mays), asubsidiary of Clear Channel Communica-tions (N:CCU). Superduopoly with KPAY-AM, KMXI-FM & KHSL-FM in the Chicomarket. Also overlaps KFBK-AM & KSTE-AM from the Sacramento market, formingtwo distinct markets, each with no morethan six stations. LMA since March.

$1,800,000 WFAL-FM Falmouth VA. 66.7%of Rappahannock River Broadcasting LLCfrom RJ Broadcasting Co. LLC (33.3% to 0%)& Stafford County Broadcasting Inc. (33.3%to 0%) to Soundwaves Inc. (33.3% tO 100%)(Carl W. Hurlebaus). $90K escrow, balancein cash at closing. Station calls were WGRX.

$800,000 WKDM-AM Washington DC(Rockville MD) from Mega Communications(Alfredo Alonzo, George & Adam Lindeman)to Multicultural Radio Broadcasting Inc.(Arthur & Yvonne Liu). $40K escrow, bal-ance in cash at closing. LMA since 6/5. Note:No contour overlap with WKDV-AM, WZHF-AM & WKCW-AM, which are Liu -ownedstations licensed to communities in the Vir-ginia suburbs of Washington DC.

$750,000 KAIQ-FM Littlefield TX from 21'Century Radio Ventures Inc. (James Primm)to Littlefield Broadcasting LLC (AndrewGuest, Edward Seeger, James Fort). $37.5Kescrow, balance in cash at closing.

$675,000 KMBQ-FM Anchorage (WasillaAK). 100% of KMBQ Corporation from JohnN. Klapperich to Ubik Corporation (AaronD. Wallender, Michael Robbins, DavidCherhoniak). Ubik's prior loan of $75K toseller will be canceled at closing. Additional$50K cash at closing, $550K note. $250Kallocated to five year consulting agreementwith John Klapperich, $350K allocated toKlapperich under a non -compete agree-ment. Duopoly with KNIK-FM.

www.rbr.com

$650,000 WBNZ-FM Traverse City MI(Franfort) from Crystal ClearCommunciations Inc. (Marc & VickiRosseels) to Fort Bend Broadcasting Co.(Roy E. Henderson). $20K escrow, balancein cash at closing.

$650,000 for 51% WTVY-FM Dothan AL,51% stock sale of Jarrell CommunicationsInc. from James Jarrell (0% thereafter) toTom DiBacco (100% thereafter). $650Knote. The agreement also states that JarrellCommunications will borrow $700K fromTextron and settle litigation with formerstation owner Woods CommunicationGroup in conjunction with this deal. Note:This sale does not include Jimmy Jarrell'stwo other stations in the Dothan market,WQLS-AM & WJRL-FM.

$ 275,000 WOKX-AM Greensboro/Win-ston-Salem/High Point NC (High Point NC)from Key Broadcasting Corp. (Joel Key) toAlliance Broadcasting Group Inc. (JoeNewman, Thomas Kearney, O:RADO).$27.5K escrow, balance in cash at closing.Broker: John Willis, Satterfield & Perry

$180,000 WFAD-AM Middlebury VT fromLakeside Media Inc. (Thomas & L. KathrynMessner) to Addison Broadcasting Co. Inc.(Jane Cole, Steven Silberberg, EdwardFlanagan). $10K escrow, additional $83.6K(less LMA payments and assumed bankdebt of approximately $73K) in cash atclosing, $86.4K under consulting agree-ment. LMA since May.

$64,654 for 50% WANY-AM & FM Albany KY,

50% stock transfer of Albany Broadcasting Co.from James T. Butler (widower of PhyllisButler) and Marsha Norris to Pamela Allred(100% thereafter). $1 cash and $5K note to eachseller, balance in debt assumption.

$62,500 WCOP-AM Warner Robbins GAfrom Toccoa Falls College Inc. (W. WayneGardner, Exec. VP) to Chase BroadcastingInc. (Gordon Van Mol). $62.5K cash.

1/15/01 RBR

KHNZ-FM, KRAY-FM & KZSL-FM. He's been LMAing the(luster since 3/1.

Berkadia winsFINOVA bidding

Federal Bankruptcy Judge Pe-ter Walsh has given his ap-proval to a bail -out of FINOVAGroup (N:FNV) by BerkadiaLLC, a joint venture of Berk-shire Hathaway (N:BRKa) andLeucadia National Corp.,'N:LUK). All that remains is aformal vote by FINOVA's.creditors, whose representa-tives have already given theplan a thumbs -up.

The Berkadia bid was origi-nally valued at $6B, but acompeting $7B bid by Gen-!ral Electric's (N:GE) GE Capi-:al and Goldman Sachs;N:GS)-urged on by thecreditors-forced Berkadia toap the ante. It's difficult tosay exactly what any bid isreally worth, when a sub-stantial portion is in the formDf securities, rather than cash.Reuters values the winningDid at $8.1B, but Bloombergcalls it $7.35B.

RBR observation: GECapital may have been taken=or a ride by FINOVA's credi-:ors, but we wouldn't be sur-prised to see it come rightpack and bid for whateveroan portfolios Berkadia de-cides to sell to improveFINOVA's balance sheet. One3f those might well be mediaoans worth close to $1B. Lookfor Heller Financial (N:HF) to3e in the bidding as well.

Salem selling 5150in bonds

ialem Communications (0:SALM)s going back to Wall Street fornore cash so it can buy more,tations. The Religious radio gi-int is selling $150M in senior>ubordinated notes in a privateplacement. The proceeds will heused to pay down bank debt, huthat will just free up borrowingrapacity for Ed Atsinger to gothopping for more stations.

15/01 RBR

Adelphia bondsgobbled up

Cable MSO (and single ra-dio station owner) AdelphiaCommunications (O:ADLAC)had planned to sell $400Min new bonds, but WallStreet's appetite for the is-sue was to great that thecompany expanded the saleto a cool $1B. Adelphia soldthe 10 -year senior notes 6/6at a yield of 10.25% in anoffering led by SalomonSmith Barney and Banc ofAmerica Securities.

With the stock marketdown in a soft US economy,bonds have been attractinglots more interest from in-vestors. Reuters reports thatwith Adelphia's $1B sale,total US junk bond sales thisyear have totaled $44B-al-ready beating 2000's fullyear total of $42.75B.

RBR observation: Oops,it was Reuters which used theterm "junk bonds." As weknow, Wall Street no longerhas any junk bonds, whichgot a lot of bad publicity inthe 1980s. Instead, compa-nies with credit ratings be-low investment grade sell"high -yield bonds." Now ap-pears to be a good time forradio companies to thinkabout selling some of thosehigh -yield bonds.

Small Town Radio namesboard members

Small Town Radio Inc. is nowa public company, having com-pleted its merger with World-wide PetroMoly and spinningoff the company's petroleumassets. The stock symbol isstill MOLY on the over-the-counter bulletin board, butthat's likely to change.

What Small Town Radiodoesn't have yet is any radiostations, although the com-pany insists that it has dealsin the works. It also doesn'thave a CEO, although thehunt is underway.

Three new members havebeen added to thecompany's board of direc-tors-veteran broadcast in-vestment banker BillFleming of William Fleming& Associates, Laurie Kahn,President of Media StaffingNetwork, and JohnMcMullen, CEO of CamdenReal Estate Co. They joinSmall town Radio co-founders William Ross, apsychologist, and R.S."Robin" Vail, a CPA who isnow the company's CFO,and two directors fromWorldwide PetroMoly,Lance Rosmarin andNorton Cooper!,

NORTHERN COMMUNICATIONSACQUISITION CORP.

has acquired

SHOCKLEY COMMUNICATIONSCORPORATION

Television Stations in: Madison, Wausau, Eagle River,La Crosse, Eau Claire, Rochester

Six Radio Stations in: Duluth/SuperiorProVideo A Post Production Facility

The undersigned acted as exclusive brokerin this transaction and assisted in the negotiations.

Kalil & Co., Inc.3444 North Country Club Tucson, Arizona 85716 (520) 795-1050

www.rbr.COITI

Never Go Off the Air!Get Scott Studio's'

CABLEFail -Proof

Digital Audio System

Scott Studios Delivers Radio's Only SelfHealing Redundant Digital SystemMajor stations in major markets choose Scott Studios' Invincible.It's a mirrored pair of top -of -the -line SS32 digital audio systems,plus Scott's exclusive diagnostic watchdog that double-checks ev-erything several times every second by fast USB. At any hint oftrouble, the backup automatically starts playing where the prob-lem unit left off! Invincible switches so fast that most listenershardly hear a glitch. In fact, one touchscreen controls both sys-tems seamlessly so some announcers don't notice a switch.Hands -free redundancy is one of many reasons why major sta-tions in New York, Chicago, Los Angeles, Houston, Dallas,Philadelphia, San Francisco, DC, San Antonio, Phoenix andToronto installed Scott Studios SS32 recently. 3,500 stations in theU.S. have Scott systems and those of our sister company,Computer Concepts Corp. More stations use our systems thanthe second and third largest digital vendors combined! Our cus-tomers benefit from the biggest and best service and support staffin radio's digital audio industry, with 105 people at your service.Scott's Invincible SS32 is the most robust digital system of all! SS32delivers more streams of perfect uncompressed and MPEG audiothan any other system. You get industrial rack computers, the fast-est CPUs, mega -memory, hot swap redundant power supplies, ul-tra -fast RAID mirrored hard drives, extra cooling, NT networking,two premium four -output stereo audio cards per system, the bestflat panel touchscreens and up to a 5 -year exchange warranty!Nothing else gives so much peace of mind as Scott's Invincible.Scott Studios SS32's user-friendly intuitive touchscreen is the sim-plest for announcers to use and gives all the features that creativemajor market air talent demands.

(972) 620-2211 FAX: (972) 620-88118 8 8 4 I 8 7 2 6 8 8

1 -888 -GET -SCOTT

For example, SS32 delivers: 30 sets of 30 hot keys for instant play of jingles and effects.. Cart walls that play song requests within 1 to 3 seconds.. Display of last play and next scheduled play dates/times.. Ripper puts CD music on hard disk digitally in 18 to 28 seconds!. Easy voice tracking in context in air or production studios.. Fast "no -dub" production uploads from Sound Forge.. Phone recorder with audible scrub and waveform editing.. SS Enterprise supervises 24 stations over the Internet!For details about SS32 Invincible, go to ss32.com or call toll -free at1 -888 -GET -SCOTT

Shown above is the top -rated "Big Boy" morning drivepersonality pointing to the SS32 touchscreen at KPWR.Power 106 FM in Los Angeles. For details. visit ss32.comor call 1 888 GET SCOTT

13375 Stemmons Freeway, Suite 400Dallas, Texas 75234 USA

Internet: scottstudios.com