21
The YO: P1 From 1 GJ MAr. CAM SlASH 50 AN BOOS - AMERICAN MEDIA SERVICES,uc CHARLESTON 'I i BROKERAGE & DEVELOP11DJT : , .. 843.972.2200 SAN LUIS OBISPO, OA Aside from embracing technological change, Mays says that radio must also further consolidate over the nex.t ten years if its wants to stand toe-to·toe with other, more consolidated industries that are using their scale to gain stronger footholds. Fellow panelist and Greater Media CEO Peter Smyth shared Mays' sentiments. "As evolutionary things happen, people want to get on bandwagon," he said. "People in the industry needl0 take chances. and not be afraid to fail. We are on the way to great renaissance in American radio." "Look at radio versus other mediums," Mays said, noting that the cable, newspaper and television industries have all. consolidated. "We are going to have to be broader." Mays even joked with Emmis Communications CEO Jeff Smulyan, another panelist, that he would have left Emmis' KZLA Los Angeles as a Country station - Emmis recently flipped the station to Rhythmic AC as "Movin' 93.9 - insisting that the scale Clear Channel has in the market would have allowed it to keep the market's sole Country outlet on the air. Under his breath and with a smile, Smulyan said. 'No you wouldn't have'." Mays continued, "We have two customer bases; our advenising customers and our listening customers. We need to do a better job of looldng at how to reach those two customer bases, because there is more competition today. for listeners. We're just trying to gain entertainment space in people's minds. We need to create very innovative environments in the future." "For radio to propsper, we will have to do a lot things differently," he said during the Dickstein Shapiro Broadcast Financing 2006 session at the NAB Radio show. "We need to be taking content, repurposing it, and giving it to people in a format that they want. We have to be constantly evolving and changing what we're doing, and asking ourselves what changes can we continue to make to make radio viable." 'We Have To Do A Lot Of Things Differently' Clear Channel CEO Mark Mays said Wednesday that the radio industry must embrace new methods of reaching listeners and populating new forms of media with its content if it hopes to compete in the widening world of consumer media. Today-'s News . .I!UIl!i<md Businoss HSlvs .. CUIDI/aIlY Hews .. CaN/ere8D1sr/ .. ClassiDedS Industrv Lmks .. September 26, 2006 Radio Inlt lislS .. FealUres Columnists About Us Contact Us Advertise Publishers' Notes Subscribe Subscribe To Daily Headlines Streamline Press Industry Q&A Radio Revenue Market Profile Calendar of Events Reader Feedback Radio', Pr.m/« MInas-! & Mark.fIng /Iog_ http://www.radioink.oornlHeadlineEntry.asp?hid=135 18S&pt=todaysnews 9/2612006

Today-'s News - Federal Communications Commission

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TheYO:

P1

From 1

GJMAr.CAM

SlASH 50

l1ME~

ANBOOS-

AMERICAN MEDIA SERVICES,uc CHARLESTON

'I i BROKERAGE & DEVELOP11DJT G~~::.t; :;~~~, .. 843.972.2200 SAN LUIS OBISPO, OA

Aside from embracing technological change, Mays says that radio must also further consolidateover the nex.t ten years if its wants to stand toe-to·toe with other, more consolidated industriesthat are using their scale to gain stronger footholds.

Fellow panelist and Greater Media CEO Peter Smyth shared Mays' sentiments. "As evolutionarythings happen, people want to get on bandwagon," he said. "People in the industry needl0 takechances. and not be afraid to fail. We are on the way to great renaissance in American radio."

"Look at radio versus other mediums," Mays said, noting that the cable, newspaper and televisionindustries have all. consolidated. "We are going to have to be broader." Mays even joked withEmmis Communications CEO Jeff Smulyan, another panelist, that he would have left Emmis'KZLA Los Angeles as a Country station - Emmis recently flipped the station to Rhythmic AC as"Movin' 93.9 - insisting that the scale Clear Channel has in the market would have allowed it tokeep the market's sole Country outlet on the air. Under his breath and with a smile, Smulyan said.'No you wouldn't have'."

Mays continued, "We have two customer bases;our advenising customers and our listeningcustomers. We need to do a better job of looldng athow to reach those two customer bases, becausethere is more competition today. for listeners.We're just trying to gain entertainment space in people's minds. We need to create veryinnovative environments in the future."

"For radio to propsper, we will have to do a lotthings differently," he said during the DicksteinShapiro Broadcast Financing 2006 session at theNAB Radio show. "We need to be taking content,repurposing it, and giving it to people in a formatthat they want. We have to be constantly evolvingand changing what we're doing, and askingourselves what changes can we continue to make tomake radio viable."

'We Have To Do A Lot Of Things Differently'Clear Channel CEO Mark Mays said Wednesdaythat the radio industry must embrace new methodsof reaching listeners and populating new forms ofmedia with its content if it hopes to compete in thewidening world of consumer media.

Today-'s News

E·maiHh~lillHy ..I!UIl!i<md

Sign!!lltQLA~jQJ"I!!"d.!i'U!l!

Businoss HSlvs ..CUIDI/aIlY Hews ..

CaN/ere8D1sr/ ..ClassiDedS

Industrv Lmks ..

September 26, 2006

Radio Inlt lislS ..

FealUres

Columnists

About Us

Contact Us

Advertise

Publishers' Notes

Subscribe

Subscribe To DailyHeadlines

Streamline Press

Industry Q&A

Radio Revenue

Market Profile

Calendar of Events

Reader Feedback

Radio', Pr.m/« MInas-!& Mark.fIng /Iog_

http://www.radioink.oornlHeadlineEntry.asp?hid=135 18S&pt=todaysnews 9/2612006

ATTACHMENT 2

LOS ANGELES METRO RADIO MARKET REVENUE SHARE DATA

..'""~

In 2005, the L.A. Metro Radio Market hadrevenues of $1.080 billion.*

••••••••••••••••••••••••••••••rl;j~.~•••H_III~'N\~IlIIl1iI..!il1III.1lll"'1i-"-'''''~·.£1",••·..n '..a'(.i~;!.;'t~..i-'t~kp.'l:::~~:.0i~.:;;.'i{'-.~~:j-~.;::I-.:+-;~-.~"';I¥~ £~

Source: 'SCBA Reporting Stotlorn Jan.-Dec, 2005 for 59 Radio statIons In l.A. and Orange Counties.··Shares based on Spring 2006. Arbilron Los Angeles Metra Ratings. Monday-Sunday. 6A-12M. Pl2+. 07/25/06

,Lotus Kalmenson (0.8)**

KIRN-AMKWPA-AMKWKW-AM

830AM;{P~

KMXE-AM

Multienltural (0.9)**.

KALI..AMKAI.J-FMKAZiN-AMKMNY-AMKMRB-AMKYPA-AMKBLA:-AM

Hi Favor (0,5)**

KLTX-AM

Sporting News (0.2)**

KMPC-AM

Calvar:y Chappel (0.8)**

KWVE-FM

K.JLH-FM

Mi. Wilson PM Ct-4)**

Taxi P'dtns h.5)**

EntravisioD (3.8)­

KLYY-FMKSSE-FMXSYY-FMKVYY-FMKDLD-FMKDLE-FM

Sl!Ieml2.2)**KXMX-AMKKLA-FMKRlA-AMKFSH-f'M

llbcrman C4.7)**

KBUE-FM/KBUA-FM/KEBN-PM

KHJ-AMKWIZ-FMKMXN-FM (simulcast with KBUB) KMZT-FM

• KSU~AMSpaDlsh B'csl (6•.Ll-KLAX-:FM Styles Media (0.7)**

KXOL-FM KDAY-FM

Radio One <1.6)*'*

KKBT-FM

Em.mis(4.~

KPWR-FrrII<ZLA-FM

~Disney (5.6)**KABC-AMKDIS-AM[(LOS-FMKSPN-AM

Univision Radio ha.41**

KLVE-FMKRCD-FM/KRCV-FMKSCA-FMKTNQ-AM

W RadiQJo..Ll**XTRA-AM

Clear CMnnel (20.6)­

KBIG-FMKHHT-FMKFI-AMKlIS-FMKLAC-AMKOST-FMKTLK-AMKYSR-FM

CBS Radio (18,4)­

KCBS-FMKFWB-AMKLSX-FMKNX-AMKROQ-FMKRTIi-FMKTWV-FM

~..,.,..":>'""....."-

~

......

,.,"",.,......:>...,.,

•"'"z;=>

'"-l...~

=

-gJU4!...,

~•

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In 2004, the L.A. Metro Radio Market hadrevenues of $1.045 billion.*

m t ;:{'-:,....·,~~~\:n:.:;;~5~..=.~...;;;:;:'::;;rn~J.0~~~~~~ri:~~i!t

Radiovisa (0.7)*"

Hi Favor (OM*"KLTX-AM

Sool.'ting News (oJ1~

KMPC-AM

Calvary Chappel (0,5)**

KWVE-FM

KMXE-AM

Multicultural (o.8)*"

KALI-AMKALI-FMKAZN-AMKMNY-AMKMRB-AMKYPA-AMKBLA-AM

Lotus Ka]menson (0,6)'"

KIRN-AMKWPA-AMKWKW-AM

Mt, Wili!on FM h.o)""

SpapiBh B'est (6,o)....I

KLAX-FMKXOirFM

Entravisioll (5.1)'"

KLYY-FMKSSE-FMKSYY-FMKVYY-FMKDLD-FMKDLE-FM

Taxi P'dtns h,4)H

KJLH-FM

Salem (l,g)*"

KXMX-AMKKLA-FMKRIA-AMKFSH-FM

liberman (4,6)"*

KBUE-FM/KBUA-FM/KEBN-FM

KHJ-AMKWIZ-FMKMXN-FM (simulcast with KBUE) KMZT-FM

Public Radio Stalioos KSUR-AM(4,6)"" Styles Media (o.g)*"

KUSC-FM KDAY-FMKPCC-FMKCRW-FMKKJZ-FMKCSN-FMKCLU-FM

Emmis (6,o)....

KPWR-FMKZLA-FM

"RAdio One (3,21**

ABC/Disney (4.9)**

KABC-AMKDIS-AMKLOS-FMKSPN-AM

KKBT-FM

Uoivision Radio bL3)"*

KLVE-FMKRCD-FM/KRCV-FMKSCA.-FMKTNQ-AM

Clear Channel(20~KBIG--FMKHHT-FMKFI-AMKIIS-FMKLAC-AMKOST-FMKTLK-AMKYSR-FM

Infinity h8,4)""

KeBS-FMKFWB-AMKLSX-FMKNX-AMKROQ-FMKRTH-FMK1WV-FM

~..........",.,

.,"""......"..."

...II

III..§~~

"'

~

~cl.,

~•

"":>'"'-.....'-

":>

Source: 'SCBA Reporting Stations Jun.-Dec 2004 for 59 Radio stations in LA. and Orange Coun1ies."Shores based 00 Spring 2005. Arbltron los Angeles Metro Ralings, Mon.-Sun" 6A-12M, P12+. 09/22/05

..oo'SiI

In 2003, the L.A. Metro Radio Market hadrevenues of $1.035 billion.*

______________a ....._~~.*,it:f'~'>:_~..:'.c.....'M~l:I:w-N-·P~.;'H!H~I, ..;;,,"::.~:,,~~

SIwrtins News (o;llu

KMPC-AM

Calvary ChIQJlJd (0.6)**

KWVE-FM

MultieulturaI (o.s>...•KALI-AMKALI-FMKAZN-AMKMNY-AMKMRB-AMKYPA-AMKBLA-AM

Hi Favor (0.7)**

KLTX-AM

Radiovisa (0.5)*":

KMXE-AM

Lotus Kalmenson (0.7)'"

KlRN-AMKWPA-AMKWKW-AM

EntravisioD (4.41""

XTMCom. Co.S>**Xl'RA-AMXTRiI\-FM

KLIT-PMKSSE-FMKSYY-FMKVYY-FMKDLD-FMKDLE-FM

Mi. WUson PM (2.0)....

Taxi P'dbts h.g)**

KJLH-FM

Salem (2.9)....

KXMX-AMKKLA-FMKRLA-AMKFSH-FM

KLAX-FMKXOIrFMKZAB/KZBA-FM

Libennan (4.8)"

KBUE-FM/KBUA-FM/KEBN-FM

KHJ-AMKWIZ-FMKMXN-FM (simuIeast with KBUE) KMZT-FM

how. B'~ (7.3)** KSUR-AM

ABClDisoey (S,z)"*

KABC-AMKDIS-AMKLOS-FMKSPN-AM

Radio One (3.0)"*

KKBT-FM

Emmis (7.4)**KPWR-FMKZLA-FM

Infinity (lg.o)*"

KCBS-FMKFWB-AM.KLSX-FMKNX-AMKROQ-FMKImi-FMKlWV-FM

Univisioo lladio (7.z)­

KLVE-FMKRCD-FM/KRCV-FMKSCA-FMKTNQ-AM

Clear Channel (zo.zlnKBIG-FMKHlIT-FMKFI-AMKlIS-FMKLAC-AMKOST-FMKXTA-AMKYSR-}o'M

.,,.,

~

'"~-1~

"~

,.,...'",.,......:>...,.,~...

~

~u..,">

1!l..•

..........:>

"'",.....Souce: ·SC8A Reporting StatiOns Jan.-Dec. 2003 for 57 Radio stations in LA. and Orange Couniies.••Shares bosed on SprIng 200". Arbi1ron L03 Angete3 Melro Roiings. Mon.-Sun.. 6A-12M. P12+. Arbitron dolo used Wifhpermission from lhe Arb/Iron Company and may not be quoted or reproduced wifhov1 written permssion from Arbifron. 07m/~

"

""

In 2002, the L.A. Metro Radio Market hadrevenues of $950 million.*

••••••••••••••••••••••••••••••••••••••••••••11lil!l1'~•.111111!I!.1I••••••••II'·.·';!i~.i!t,.~~:-~1Aj9iKEt·-wrlltilt~~?~~~tI~l!jt:f,!,~.M~v-2."~a UII

Source: 'SCBA Reporting Stations Jan.-Dec. 2002 for 57 Radio stations in LA. end Orange Counties.'"Shares based on Fcil2002. Arbitron Los Angeles Metro Ratings. Mon.-Sun.. 6A-12M, P12+. Arbitron do1a used wi1hpermission from fhe Arbitron Company and may no1 be quo1ed or reproduced without writ1en permission from .....rbiITon.

,••,•••>•,3"-•~

~

o~~'.,.....,"~

(:lear Channel hg,q>**

KBIG-FMKHIIT-FMKFI-AMKll8-FMKLAC-AMKOST-FMKXTA-AMKYSR-FM

Ipfipitv (19,5)**

KCB8-FMKFWB-AMKLSX-FMKNX-AMKROQ-PMKRTH-PMKTWV-FM

Higanie R'es! Cor (g,al'"

KLVE-FMKRCD-FM/KRCV-FMKSCA-FMKTNQ-AM

Radio One (3-6)**

KKBT-FM

Emmis (7,3)**KPWR·FMKZLA-FM

ABC/Disney (S,g)*"KABC-AMKDIS-AMKL08-FMKSPN-AM

Liberman (5.g)**

KBUR-FM/KBUA-FMKHJ-AMKWlZ-FMKMXN-FM

SWlDWb B'cst (5-4)­

KLAX-FMKXOL-FM

Salem (2,5)*·

KEZY-AMKKLA-FMKLTX-AMKRLA-AMKFSH-FM

FourSquare Go8,peI (g,al'"

KFSG-FM

Taxi f'ehn.. h,g)­

KJLH-FM

Entravision (2,,6)··

KLYY-FMKSSE-FMKDLD (formerly KSSC-FM)KDLE (formerly KSSD-FM)KSYY-FMKVYY-FM

Mi. Wilson FM (2.41**

KMZf-FMKSUR-AM

Multicultural (0.8)**

KALl-AMKALI-F'MKAZN-AMKMNY-AMKMRB-AMKYPA-AM

Radio Unica (0.8VO·KBLA-AM

Lotus J(aJmc118OD (0,6)**

KIRN-AMKWPA--AMKWKW-AM

SPorting News (0.1)

KMPC-AM

CRN (o,:U*"

KI'LS-FM

Public Radio Stations (4,6)"KUSC-FMI<l'CC-FMKCRW-FMKKJZ-FMKCSN-FMKCLU-FM

01/22/03

-I-I,iI

In 2001, the L.A. DMA had radio revenues ofover$925 million.*

-r" ~ _. .~ .'~ <~ ''''~''''J, .-A -_ )_.

Sauce: 'BIA/SCBA estimotes"Soooes based on FolI2001 Arbitron los Angeles Metro Ratings, Mon.-Sun., 6A-12M, Pl2+. Arbitron data used wi1hpermission trom 1he Arbltron Company and moy nol be quoted or reproduced wilholJt wrft1en perrniiSlon from Arbitron.

-I

g~,~~,

~:.

~1-I

-I•

,••,,,,,-I•~•,,-I•,,,•,-I

•,

Clear ChAnnd (al.g)**

KBIG-FMKHHT-FM (formerly KCMG)KFI-AMKlI8-FMKlAC-AMKOST-FMKXTA-AMKYSR-FMKGGI-FMKKDD-AM

Infinity (21.0)**

KCB8-FMKFWB-AMKlSX-FMKNX-AMKROQ-FMKRTH·FMIQWV·FMKFRG-FM

"_nie B'csl Cor (94)**

KLVE-FMKRCD-FM/KRCV-FMKSCA-FMKTNQ-AM

ABC/Disney (Se9)'"KABe-AMKDIS-AMKLOS-FMKSPN·AM (fonnerly KRLA)

Libennan Ln t.'.*_____,l...l..t;l~_._

KBUE-FM/KBUA-FMKWJL-AM (formerly KKHJ)KWIZ-FM

Emmi.. (6.2)**

KPWR-FMKZLA-FM

8.pani..h 8'CIt l4.1l"KLAX-FMKM.JR.-FM (formerly KFOX)KREAKXOL-FM (fonnedy KFSG)

Rndjo One C4t3)**

KKBT-FM

~tyC1.O>'"KI,YY-FMKSYY-FMKVYY-FM

TeD P'dtpa{l,U··

KJlJl-FM

Bntrayiaion h.gy*

KCAL-AMKOLA-FMKSSZ-FMKSSC-FMKSSD-FMKSSR-FM

Mi. Wilson PM C1.~

KMZf-FM (formerly KKGO)KJAZ-AM (formerly KGIL)

Multieulturu £1.0)**

KAIJ-AMKAlJ-FMKAZN-AMKMNY-AMKM:RB-AMKRRA-AMKYPA-AM

Kel"ll'WfJllOD (,,0)"

KIltN-AMKWKW-AMKWPA·AM

lWtio Uniea h.).)**

~LA-AM

Astor (0.2)**

KMXN-FM (fonnerly KIKF)KMXN-AM (fonnerlyKIKA)

S,porting News (0,1)­

KMPC-AM (formerly KcrD)

salPm (2.8l**

KKLA-FMKLTX-AMKRLA-AM (formerly KIEV)KFSH-}'M (formerly KXMX)KEZY-AM

GoJdCoM1KCAQ-FMKKBE-FMKKZZ-AMKOep-PMKVNX-AMKVTA·AM

CUmulus (0.1)"

KRU2-FMKVBN-AMKBBY-FMKHAY-FMKMGQ-FMKIeSB-FM

01/02

ATTACHMENT 3

CLEAR CHANNEL PRESS RELEASE AND STAR-TELEGRAM ARTICLECONCERNING CLEAR CHANNEL'S SECOND QUARTER, 2006 PROFITS

Clear Channel Communications Reports Second Quarter 2006 Results

San Antonio, Texas August 8, 2006.•.Clear Channel Communications. Inc. (NYSE: CCU) t'Jday reportedresults for its second quarter ended June 3D, 2006.

The Company reported revenues of approximately $1.9 billion in the second quarter of 2006, an increase of7% from the $1.7 billion reported for the second quarter of 2005. The increase in revenues came across alloperating segments led by the Company's outdoor advertising segment with 9% growth and t.he radio segmentwith 6% growth.

Clear Channel's income before discontinued operations decreased 7% to $197.5 million, sscumparedto$213.2 million for the same period in 2005. The Company'S diluted earnings befOre discontir,ued operationsper share remained at $0 39 for both periods.

The Company'S OIBDAN (defined as Operating Income before Depreciation & Amortization, Non-cashcompensation expense and Gain (loss) on disposition of assets - net) was $647.2 million in the second quarterof 2006, a 10% Increase from the second quarter of 2005. See reconCiliation of OIBDAN to lie,t income It theend of this press release.

"We are successfully resh3ping our Company to capitalize on the changes in the global media market,' $llidMark P. Mays, Chief Executive Officer. "Through e systematic and prudent investment stralegl', we arecontinuing to strengthen our content resources while efficiently expanding our distribution channels. As we takesteps to secure our growth over the long-term, we remain committed to generating profitable growth and cashreturns for our shareholders."

"We remain very optimistic 3bout our growth prospects in 2006," Mays added. 'Our operating momentum hilScontinued into the cvrrent quarter. Our radio division's performance surpassed our expectations and onceagain far outpaced the industry. Our top-25 radio marKets performed partiCUlarly well, generating the highestpercentage growth of any of our markets. And our outdoor business continued the trend of posting consistentlystrong revenues and profits, with considerable gains from the fast-growing sunbeit marKets in the U.S., as weilas solid results in France, Italy and Turkey.'

'Our second quarter resul1s reflect strong growth and healthy fundamentals across our operations," addedRandall Mays, President and Chief Financial Officer. "As we continue to convert our audience gains into top­line growth, we will continue to generate profitable returns for our shareholders. Looking eheed, our solidbalance sheet and tremendous financial fleXibility support our efforts to maximize the value of our a$S6ts."

Revenue, Direct Operating and SG&A Expenses and OIBDAN by Division

(In thousands) Three Months EndedJune 30,

2008 2005

%Change

RevenueRadi0 8 roadcastingOutdoor JI.dvertisingOtherEliminations

Consolidated revenue

$ 983,523748,403150,235(31.514)

$1 850647

$ 931.929684,509135,792(29498)

$1 72a 132

6%9%11%

7%

Direct operating and SG&A expensesRadio BroadcastingLess: Non-cash compensation expense

Outdoor AdvertisingLess: Non-cash compensation expense

OtherLess: Non-cash compensation expense

Eliminations

Plus: Non-cash compensation expense

Consolidated divisional operatingexpenses

$ 5BB.310 $ 554,217(6,310>

682,000 554,217

493,758 460,000(1,573) ----

492,185 460,000

114,556 107,901(975)

113,583 107,901

(31,514) (29,49B)

8.858

$1,165,112 $1Jl9262Q

5%

7%

5%

7%

OIBDANRadio BroadcastingOutdoor AdvertisingOtherCorporate

Consolidated OIBOAN

$ 401,523 $ 377,712 6%256,218 224,509 14%36,652 27,891 31%

(47,159) 140957>W 47.2M S 589155 10%

See reconciliation of OIBDAN to net income at the end of this press release.

Radio Broadcasting

The Company's radio broadcasting revenues increased 6% dUring the second quarter of 2006 as compared tothe second quarter of 2005 primanly from an increase in both local and national sales, driven by increases Inyield and average unit rates. The number of 30 second and 15 second commercials broadcast as a percent oftotal minutes sold increased in the seC".ond quarter of 2006 as compared to the second quarter of 2005. TheCompany's top 25 markets performed well, experiencing,the highest percent revenue growth ,;If any of itsmarketa. Strong advertising categories during the second quarter of 2006 as compered to the second quarterof 2005 were services, automotfve and retail.

The Company's radio broadcasting direct operating and SG&A expenses increa$ed $34.1 million for thesecond quarter of 2006 as compared to the second quarter of 2005 This growth includes an increase in non­cash compensation expense of $6,3 million as a result of adopting FAS 123(R). Also contributing to theincrease were increased costs rel<lted to progr<lmming, sales and distribution initiatives.

'-------,---,-

U~'UtJ/,jwutJ lU:14 l'U J1U 44i J~:l~ JlT.l"'lL:)UN 1"11. ... lJVlJ ....~ ... VIJ ...

AP W". I08/o&/2M5 I Clur Cloonnel :ZQ profit fillis

•CUrrent"'·

19':1'"GQnPl.... fOAeM\

II 0 ReIn W' ~ ROil ffOllOUi'ltl• e Ch-..4 eo...n'lnte:ltklM

·u ..­-r_·T...",....

• EilHtrontU

'OflMu... lII~a

SAN ANTONlO • Ctear CNlnnel ~ommu..llc..Joos Inc" the natlOl\'S Iaf9llSt o';)Gl'Itor orradio elation.... aaid Tl.lB8d:ay ~ seconct..quMef NrrMOl fell MOrt tl'Ial\ ",0 p8fc.nt athighit' q.erating wsb , ...... as revenue rose.

•!"fet income fe. to $1 &7.5 ml!Iie", Of 30 cents per s!'Wre, tn tt\e~ mcncn.s I!Jf'\Oed Juno:30 from S220, 7 milld'i. or oliO DerQi per el'Jiltt.. In ttl, year... pef.Od.

An"lym were IookIn; fer ptOtlt Of.'1 QBAI& ~r ahare in the mt.'$! rocent qual1ef'•~ to • .survey by Thon"lSCn I=lnanQiill.

~nue rose 7 pt;~r;t ~ ".85 lJilion trQm$1.12 binlon b yo« ~rlla. bel!IingIImdysts' estImalM kit '1.6 bilmn

The to'TIJ*')"tll'Pl seement. ndJo !x'cMIdCIIsttng, polJted a e ~roent ino..... In..venue. '10 'oea.$ m~won. M\'OIQitlg rev..... ~ i181.200 $I.'lIonS grew. Ie" Dy 1MBUtomQtllWe, servk:el ana r1IbIiI NCto~.

TCI stern the lOA d listeners to satCllllital radio 81d COlI. Slln AntonJo..taMed CINrChanfl<e! M' Q.It. bed< on eommeroiela but ct:arga ,dvet1lWI more •• 'tl'MeO'f dLLtled..... iI!:mor.,..

Chief Executive~ P. May: "ld ItMlo cnmper,y', momentt.lm tl. c:otltmued in the newq..--.

Shal'u of ¢leer Ct'UIIYW Communic:atiorl$ rete 21 cents to $2tU~ In morning ~r$ding c·nthe New 'YOO'\ $txk ~nge.

"OUr l'8I1iO divilion" pe!fQrmanee surpassed cur ttX;X!CtoUOIl$ and 00Cf' aglin hitoutpaced !he lr.tbtry," he takl. "Our mp.-:'5 rudio mllf'km pef10rmec partleular'ly well,generating tt'te highest pMc:entegl; growth of any of our marie. And aur outdoorbutln", continued ll'1'l tsvnd of \Xl$UnQ consistentlr lliOOliI rlMtf1uI' and pcb ~

Fred Mor.,., media steck analye,t for Boca Raton. Aa.·bfJ~ StBdord GroYp, MIld tNl~ quarW'l tadio ~venue gr:wtr'I pttNeI the 5UCQ8111 oI1h1 "!en Ia mor'II" strateoy.

"Alt.-ertlsers feellkl they all! getting m~e fOf IMIl money tl6C8....1l natiny5 .~ tj&I'rbiOVwhile Q1;lmpet!ng facile :ltatlo!'W ate Ifl di:!c:lil'lO.R MoriIn Mid. ~And the ev'der.;e "v... thegrowt; hIS lU""'" IlrOng".1'0_ deopitfo lIMI ,..10 In<lu<lby aIlIl ""'lIlI*'II:'

Jonsttwn JIiCiO'bY, $01'1 "nfll)'st fur Bani< of~enc. $te:'","'JU LlC. uid In a neD ttwtIi!Idio f1!venue grolill'tt. "should ouIpilOE! tne !nOu,try for tne b;Vane6 of thII year"

AI\Dfylts expect eamlngc: of 39 osnl$ per sf'tart !n tt'l" ltlirc! qlJill'te(, '0 oen\l C*' th.re .,the tourti"' quart.,.. .rid 51 341 per 'hllre for tI'I.11.11 year.

ONTHEN!!T

MorIln .aid Cle,r ChanMl'S radiO and culdoor...d'oI6rtllll'l; te¥tnlle &ha\l.lt1 CIQfIU;tlue 101 glOW in the thlll! ~U_. E_ tMullh 'o<:onOoquallOt ..~. "S1;g/11ly miNOd"

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The wtdoor ad>Jettlsln, a-.olflenl. which M!lts b1CbOard and btJe-,top ad5, had f1!W(lue,_! of $741.4 mMMoI\. up 9 peIQltOt from a rear ear!W.

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ATTACHMENT 4

LOS ANGELES TIMES ARTICLE CONCERNING LOS ANGELESFCC FIELD HEARING ON MEDIA OWNERSHIP

.-1- . "J. L::JU~~ r_.... uvu ..

b!k Exprenu Fru$.tra.tlan O\;er Broad<:ut M..d~ - Lai AI\OfII:$l1me5 1Xl/06/2006 10:00 AM

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'MORE 8IJSH<leSS NEWS

• Bot\r1g El.lc. 10 T.1tt Over n Fl!lt'll CEO• Fot R'ftt: Aides, WIng....." HUlb_11ds

- QreY. Je;tb PlCt\lrlf ~P"'YI Wlurky• 5landard p.cHlc Abandonli l)~.nown L.A. CO-Ado....,- all 'uel. ItOck.' Smlllil Gal"

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• Now r". '" a TOU(:thC~ u.."PM Rent Alan, WI,....",",. Hulla"d_- WhbtN to q ..atn....

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"VIM are right bact to 5CIuora one,"..Id toIloIl.., J. Coppo, "". of twor'CC fTl8l1'lblwl at the l"MIetr14~

Thumo,.

III 2003, tho "9"0'" voted 3 to 2 toallow companiu to own m(M'ti TVsl1ltlona IQ'OIf the oountr)' and to~f'I)l bot!'1 II ItaIJon and •nrwspaper in the SlrJ'IlI mdatAllOr an oulpouring of pro1Oot fromconsume.-g~ Ind oNn,Congre81 Wt!I/ilhed in. undercuttingthe FCC'S Ic1Ion. SO~...tely, theU.S. 3'" C1rcu~ coun 01 Appe'"""'1Bd till .- nogulillonsu__ and M.lll1em back to\hi ageoey lot ....ulon.

Print Edition: Busioess

Deep t.usn1ton OIJQf Ule madIa's Qf\en tr1volQlJlS and oC~$iOnatly "'nllflve broadcutt;bl.ibbl8d over lata last we" in L06 Angeles .... ~ilrad. of &P881Wr1 spem , 1n hoursimp~orlng '\w(l federW regulators t\J enforce hiftllr "tendatd5 and halt any 1UrtMrconsolidetb'l of radio lind televiiiOn sttltion owner1hip.

Nearly 250 people showll<! up for a heomg at USC, Doe of .._al ....... 1he 00l.U'lltytnlll wtl be ~ld as 1hal Federal CommunlcatkmG Commilf,ion emblJrkli, Y*t ag,in, on anoverhl:.Jl of media. OWI'ler&hij:l ruin•

';it was a neill'-dlsaster 'lot the United Slates of America, and we cannot let that n.ppenagQin,- seid COPPS. who, .tong will tt!. other Democrat on the commiMion. JonatMnS. Melstein. had yoted agalnst the ~u..s,

The fu!1 ~CC Is expeded to yote on the medii ownef'5hip rules next y••r. Ttle i...... I.COl)liid6"d ~ te5t tot r:CC ChRi'mln Kevin J. MaI1N1, wno took the helm last y..r In theW&lk* of the ogntrouarsy,

On Thl,1f5day, Copps .nd Adafstein were the on!)' two FCC fI1.mbllrs 10 8UMiI thenelliflQ, otganlr:ed by the Ne~on ..1Lallno Med~ Council. AU flV. had beer! invtled.

The hearing brought lnto rocu, high level, of dlsHt'-flIc:lion ~h the "*'18.

Spelkef1., wM ~duded m.mbers of Congress. IlbOr Ieldel'$, Ibranans ,nd 8V8fI IIIImol,l$ine eitNer. Iccuud the mIIjor corpou;tionli thlt own broadca6ting oudlitl of.blOg.~oO th.ir ..s",,""fuilly to ••rv. tile pvl>llc Infemt in !hell p.raul cI Profilo.

Mona Mangan, president of lhe Writ8t' Guild 01 Arr'8l'1ca. E'I5t, aeeuled th.bro,dcaEltIrs of p,ndering to "the I(lweat common de-nomir.atot" In their qU9lt to find aI,rge enougn 8\,loience t() drive radllgs,

MlocallO~iaQ'l I, one of the mO$l ]l,Iuat!ve partt of the n.uril;.... she SIItd. "11 is thesourw of 10 much money."

The two corlllT'lililioners recei~t'd an earful tom dozens of spe,"'''', who 1'H:r1lId thetI tM ecnlooltdation 01 station own8l"shlp tNtd lad t(l 8 ~onounccd ditdlMlIn in-da.~lh new.

....~or1Ing, _rsilV of 1Iiewpolo1U; and QUO"'" child"'"'. progrommlng.

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t;.OvotaQe of Uf\5itnb.ry kltc!wtns by KCBS·1V Charm~ 2 itI 1997 \nat aetl to 'the A, B, Cgtadea that now nang in re5t~uranl windows..

"LOCitl 5tOrkls are expensive, and that type of Inwstigatlon is net done 8n)'PlQI".... she..Id.

one s.pea!t(er, D,.ve Adelson. ~8id 'hat sea(l;!"iing tor s~!'ltlal prognuJvntng on TV'1'18' like trying to get a bllllnc&d meal frr>m II vendlng ITlillcnk1e.

"The machirw ~5 tiDee wtth product, maida by con~iQf1'\4lrates," Adelson said. ''You canGel anything YQo\.l want, e.eept nutrit!OI'I. g

TtlI;< hllililrtng was trlfl Irct of rol,lr In.t Copps 8I'\d Ade18tll:in .te planning to speCIallyiilddfe$S [he ccnceMS of latinOi. Los Angela i£.rwme to the "ation'sl'tg8lt LltiPopopulatIon, - 1.& ml"lon nolon••hold., 8COOfCling to Niel$en Media Re....rcn, The twoFCC membel'$ plan otl"ler ai.JCh helril"lO& th~ year in New York. Chicago and Auitin.Tax..,

Several latlno speakers Ml;rled tl;e practIce" of $panlah.lquage medii. tJlaj«S~nir.h-Iangua;:e l;lrDaOtaSlers typically buy mlJd'l of their e""'llUinment pr'OgrllmminglrDrn ptodUdlon firmt in Mexloo lind other L.tin Arnerk;an l;Our\trtlrS, This, ptac:llce,severai speaker" ~ard. denies l.Btlno proch.:wn,;, actors end wriferl In LeI, Al\gelea •vwuable sol.l~ of employment.

A few Q\heNi said It'ley were offenl;1ed by the VU1g4!lrlllel and t11'N content ttJeysomEti'T;.s hear on Spanlsh..lal'1guagl!' ra;o pr~,.I"M.They~ '!he FCC tel d\) •bettor job of mQnitOlring the Spani&n--languagB illi'Navtl'e,

Tt;e mo$1 i!'tlpaSSfoned grauJ:! was one sM6ated with a marter Khool In EI Sereno. InJur~e, a Illk show hOit on AABC..AM (19D) a!tegeij that the ScllOOr, leaders we... radltsep,rsti'" and ca.lad fol' Its clOSIJre. Tn. sr.hClcl ret:ei\l8d I bomb 1hreat and h..:J to be.....c:a.:atM.

1'1'11 school's c·o-foLt'der plal)o"ed .I" audio t.pe ()f to. KABC btoadealt. and demandedtl'lat the FCC r.vok. the .,iotl·$ Malnle:, Or"" fa1t\er accl"I$e(l the statiOJ1 of lipr.adilghate 804 'iel.

-They tl'r!'8atttWd tn" nWe& of Oll" ctI~dren/ he cried ~, hie bcomlni VQiot ftIIlng the~nfaront* room.

KABC e»;li!eutlWS dId not ret\Jff! calls aeekinu comment frithtY. and excwUwe at parentfinn w.lt Diline)' CO. dedfn~ to comment.

On FtiUY. Melslsin Slid t\Ct WII allWfTled "Y whi"t he hflIrd and WOUI'd inv,'t1gate thelTl*tter fur1h6r. He liiIid 1\1 VIii impreililld b)' the IU'OQI,l1 and !he Yilriet)' of iatUcs raisedBl: th8 helling.

"Thill w... powerful stalemenl of !he deep _, .f concern within thl Hlspol1lCcommunity 8bOut the stllte of the media irI L.OI Angel",," he "itt. "TM fruIImiun itunderstantlll)le."

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MORE eUSIHUS ....EWS, Borin, Esec: to 1'1111 o...r .ilI 11'0'4 CfO

- For Rtftt Aldtl, WlnOiTl9fl, Muab.n9~ Gt'~'$ Job Pktur. A!tP4'.... Murky

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ATTACHMENT 5

RADIO AND RECORDS ARTICLES CONCERNINGCLEAR CHANNEL'S PROFESSED FEAR OF "I-PODS"

AND SATELLITE SUBSCRIPTION SERVICES

4lR&R - Radkl & Itec:"rd•• lhe:. 01/071200610,33 ""

America's largest radio group wants to get even bigger and Is leaning onthe FCC to make it happen.

NEWS SUMMARJES :,---- -----' -

Updated A"OUft 7, 2005lO:50am eTClear Channel Lob"'/in; ForMedia-Ownership RulesChange~merlca's largest radio group wantsto get even bIgger and Is Ittanlngon the FCC to make It happen.Oeer Channel, an adil't memberof the radiO industry', "'ooe.tlobbying operlltion and tnode••sodation, the NAB, t><,ganbuilding its own lobbying presencein Washington more than e yearaQo .nd has met wltt1 FCCcommjssjoners end tt1.lr startsnume:rous times.fVU ·*,"

....,_ ~,._~_., rtf ~ _.I ..f1_"._.~ ~

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Clear CMnnel, an active member of the radio Industry's biggest lobbyingoperation and trade a$Sociatlon, the NAB, began building its own lobbyingpresence In Washington more than a year ago and has met with FCCcommissioners and their $taff~ numerous times.

Mond8Y, August 7, 20"

Clear Channel Lobbying ForMedia-Ownership Rules Change

According to a report this morning on Lllw.com, Clear Channel has ql"etlyfloated a plan that would allow It and companies like It to expand theirholdings in the largest U.S. m9rkets. The publication says Clear Channel Isconsidering a formal petition With the FCC to raise the caps on the numberof stations a company can own In big markets.

Lead by Chairman Kevin Mertin, the FCC In June announced it would reviewmedia-ownership rule:; and would conSider permitting comi>"nie. to ownmore tl1en eight stations in the lergest markets where 8t leest 45 full-powerstations operate.

'Euing the ownership restrictions will help level the playing field end letfree radio compete with iPodiii, onlfne music services and satellite radio, II

Law.com quotes a Clear Channel spokeswoman as saying. 'Certainly,seeing that satellite radio hes 150 unregulateD stations in every market andfree radio is limited to just eight shows the apparent dlsperity'

- Jeffrey Yo!"/(e, R&R washington Bureau Chief

pr!>du'i1! I AdverSi,in. I f!2 I About Us r 'pOIDS' u. I sit. Mlp

_____~C~2~OO~6:..:R:.d:i:O~&.~R:ec:o:rd:.~,~.-J:I~R~I~oh:ts:..:R~.:s:erv::'d~p~r~iv~a~Fl/~!>lI~"~"'~ ___, /

Updated August 7, 20064:30am ETForgy Joins RadioOne/Cleveland a5 GMRadio One hilS ilonouneul ChrisForgy to the position rtf VP/GM ofits Clevel~nd cluster, O'JerReingUrban WENZ, Gospel 1I'1MO, UrbanTalk WERE, and Urban I'/ZAK.Full stpry

Updated August 4, 20067:15pm I!TSmulyan Withdraws Offer ToTake Emmis Prlvat.ECC Acc;ulsitlon, Inc. owner JefTSmulyan today withdrew ~Is

company's Mey 7 non-binding ofTerto buyout !mmis shares to tokethe company prtvate. 5....."ly"n,who i, also tne fllundBt ar.dChairman/CEO of EmmlsCommunications Corporation, madehiS IntentiOns known In a letter toth. !mmls Broad of Dire<."10n0.fl!!!..2lIa

'-...._---------_.../LATEST HEADLINES i-----~-~ - - -

Updated August 7, 2006lO,so.m ET92 Earnings Rrepd.

Dr. Lau.... ]9;n, $.anti ",rb"."NeWS-P(,SI A! Columnist

C.r..ba"d iPo. Threil1taDTerrestrial And $;Item,. 8,dlo

lp; I Iwww.t.di~ndrecords.com ; Nw,t$ room/2006.08.071cdobbyl ng. itsp page 1 of 2

Aug 9111, 20"

~ I E""AL I ESWI i YOST PQPl.Jt..AR I~!Ill RC:pRiN"TS

Report: Clear Channel Wants Bigger Piece Of The PicAug. 07. 2006By Ken Tucker

oesptte the certainly of another high-prof~. baIlie wtth opponents of me~ia........................Mn rl80r ("'h5","..1 10\.,. ,...I.i.th, fln~aA • "10'" th.t ...,r'llIl(1 :;\I1I~u, "'0 ""'1,,

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• Jadcfon Named Po Of Sopsa'1 "'9' HadiMII1I

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giant and other station owners to boos! Iheir holdings in the largest U.S. markets,according 10 the Deal

The company is oonsiderir,g filing a formal petition with the FCC seeking to raisethe caps li"'itlng hOW many stations Cn. company can own in the largestindividual U.S. markets, acrording to the story.

W1ile current rules specify that a company may own no more than eight I'Idiostations in Ihe largest U.S marllets, such as Los Angeles, New York andChicago. where at least 45 full-power radio station. operate, Irs believed !hetClear Chl!iilflel 16 aeekfng approval from the FCC to own 10 stations in marketswith 60 radio station. end 12 radio outlet. in the largost U.S. markets that he"'l75 radio stations or more.

"Easing 1M ownership restrielions will help level the playing field and let free radiocompete with iPods. online musle servi"". and salelllte radio," a Cleer Clwln""spokeswoman told the O""r. "Certainly. seeing that set"II~, radio has 150unregUlated stations in every merl<et,nd Iree radio Islimilid 10 just eight ShOWllthe apparent disparity."

In June. the commission launched itS oongr.s.ionally-mandiltea review 01 FCCfUIee. which it must conduct every tour years,

.~ i iM!tL 1~ I MQST pgrul ..6 I En. _i j REpBIMlS

SUElSCF!I~ :'0 8!U..!QAr1!D RAQ!Ct MONITOR»

"ewsr(>om I Legislation & RegUlation I Networks & SyndicationL c=:-,~a"te"!!,it,=e.;&:..::D::iil'~Ia~I.L:R_'e"s:::e"'il"'r.,c,,h..l:..:S~I~re~e~I:...T"a~l~kcL;T:.:r.:.~n~.a:::ct~io~n~I'L J

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ATTACHMENT 6

RADIO INK AND FMQB ARTICLES CONCERNINGAMERICAN MEDIA SERVICES STUDY REFLECTING

CONTINUED STRENGTH OF BROADCAST RADIO

--------- --~~-

R&dio IlIMc - The \,ioke: of Ril,dtQ: ktw!utlon 0911"/2006 U:SI PM

From the Pl\.lbliah.1'

1--

llearn&Earn

Today '$ News--~

e-mail this stOry to a friend

When asked to look ahead five y~. only 11 perc"", .!lid tiler ex""", to be lilltel1;r.11 to ,h..adio I... thon they 00 now. Nearly throe out of four (74 percent) soid they expect to list....about Ute $Orne, and 13 percent ",;d tllcy .,peel to listen more.

Despite the i"\'BHabiJi[)' Qf various new media to rectlvc music QDd news, onl)' Q little more thanone in four American. (27 perunt) .~y they lire now Ii,tenini (0 <he radio IC5B thon they didfive years aQ:C. Accordi"&: to a survey Q)mmissioned by AmeriCRn MediI. Servioest abow. hulf(51 percent) .aid Iheir ",dio listening has. 'I chllJllled during <he post five years. and 2\ pacer.tsaid the)1 are now Iisleninlil: mure.

Radio Listening Remains Strong

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The survey found that A~l1eriC4nJ rate radio as their primary ,.,urct to learn about new music.'A'hen asked which wal& ttc:y learn about new m:.$ie. 63 percent said by listening 10 the redio.In compari.on, 43 perotn; mta II can be throUgh 11llkjut wj\h friends, 41 perecm cited w8Ichi"lltdevi,lon. 24 percent cited reviews in n~wspapers Of magazineJt. and 16 percetlt ci~ thelntemcl.

·'.Radio play~ a vita' rDle in American life. Reports ofraOio'~ deat'" seem greatlyexaggcriAtedtsaid Ed 5e<:Fr. president IVld chiefexecutive officer of American Media Sr-rv~. whichcommissioned the survey.

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A new OmniteUAmerioan Media Services (AMS) study finds that despilelhemu~itude of new media options, most people are stili listening to radio in thesame amount as always. Approximately 27 percent of those surveyed arelistening to less radio than they did ~ve years ago, Just over half said theirlistening habits are unchanged, w~h 21 percent saying they now 'ieten to evenmone radio.

September 13, 2008

Additionally, 63 percent said they fond neW music via radio, with friends (43percent), TV (41 percent), print reviews (24 percent) lind the Internet (16percent) eiled liS other sources for new music, Also, men were foUnd to bemore likely than women to listen to Intemet radio, but the gender gep ise"pected to shrink in the near future,

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Thursday, S~ptember 14, 2006 HOME CURRENT £"Q. ADVERnSE ABOUT US SUBSCRIBE CONTIhCi I1JSSI mIl•New Study Says Radio Listening Habits Are Unchanged BREAKING

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