9/08/2003
TRIAD BROADCASTING CHALLENGES CHANGES TO BROADCAST OWNERSHIP RULES FILES PETITION FOR RECONSIDERATION WITH FCC

Challenges Attribution of JSAs and Abandoning Contour-Based Local Market Definitions

TRIAD BROADCASTING, Monterey, CA September 8, 2003…Triad Broadcasting today went on record with the FCC challenging proposed changes to the Telecommunications Act of 1996 that would alter established broadcast ownership rules and market definitions. In its petition, Triad asks the Commission to reconsider its decision to make Joint Sales Agreements (JSAs) attributable for market ownership purposes, its decision to abandon contour-based local radio market definitions, and its failure to permanently grandfather JSAs under any anticipated changes. These new rules were recently released in the Commission's Biennial Review of the Telecom Act.

According to David Benjamin, President and Chief Executive Officer of Triad Broadcasting, his company's petition for reconsideration points out that the FCC overlooked key factors in drafting the new rules. "Specifically we object to the new rules governing Joint Sales Agreements (JSA's) and the new local market definitions. We urge the Commission to reconsider them."

In its Petition for Reconsideration, Triad challenges the following FCC rule changes:

▪ Joint Sales Agreement (JSAs) relationships to become attributable for ownership purposes in local markets
JSAs allow account executives to sell advertising time for a competing station, providing an opportunity to bundle advertising packages and synergies that are often unavailable to stand alone operators. All programming and operations of the stations are handled autonomously. By including JSA stations in the ownership cap, Triad alleges the ruling is "arbitrary and capricious" and is biased against smaller broadcasters. Many small broadcasters use JSAs to enhance their profile in consolidated markets. Triad further challenges that it is unfair for the FCC to refuse to grandfather existing JSAs under any new rules it imposes.

▪ Arbitron market definitions to replace contour overlap mapping for ownership attribution
With contour overlap mapping radio operators have historically provided objective evidence of a radio station's reach by mapping its signal in a given market. By abandoning the mapping procedure for a ratings based 'home market' definition, Triad points out that the new rule ignores the realities of the marketplace and is subject to misrepresentation. The new FCC rules were scheduled to become effective September 4, 2003, however, the 3rd Circuit Court of Appeals in Philadelphia, for reasons unrelated to this petition, filed an emergency stay and the rules are still pending.