WHAT - AM Talk Radio “People Make the World Go Round”

1. WHAT - AM Talk Radio“People Make the World Go Round” KBT Communications, Inc. Presented By: Ramon Jones Brian Leatherberry Tina Moore Michele Muhammad April 1998

2. WHAT - AM Talk Radio “People Make the World Go Round” Radio Industry Background • Deregulation…Consolidation • 12,200 Radio Stations • 15 Largest Broadcasters own 11% of stations • 99 out of 100 HH has a radio • Business is Good… Ad Spending up 72% since 1992

3. WHAT - AM Talk Radio “People Make the World Go Round” Industry’s Keys To Success • Attract a Specific Demographic Group… • with program formats… • and on-air talent… • that appeal to your target, because… • Obtain High Advertising Rates... • based on a station’s ability to attract clearly segmented audiences

4. WHAT - AM Talk Radio “People Make the World Go Round” KBT Communications, Inc. • Acquired WHAT in 1989 (mixed format) …switched to All-Talk by 1991 • Today... • Family owned…30+ Employees • Privately held • Philly’s Only 24 hour Talk Radio Format Targeting the African-American Segment

5. WHAT - AM Talk Radio “People Make the World Go Round” Company’s Guiding Principles • Station’s Mission “To inform, educate, and provide an interactive forum around issues of relevance to the African American Community” • President’s Vision • Create a regional network of AM Talk- Radio stations • Operating Principle • Provide service to the community while remaining profitable

6. WHAT - AM Talk Radio “People Make the World Go Round” Regional Network Strategy PA NJ 43,689* Trenton **49.3% Pittsburgh Philadelphia Harrisburg 95,362* 708,574* * Total Black Pop. ** Black Pop. Percent Source: 1990 U.S.Census 26,502* **25.8% **41.3% **50.6%

7. WHAT - AM Talk Radio “People Make the World Go Round” Management Team • Cody Anderson, President & CEO • Kyle Anderson, V.P. & Station Manager • Bill Anderson, V.P. & Programming Director

8. WHAT - AM Talk Radio “People Make the World Go Round” Audience Loyalty Programming WHAT Targeted Demographics On-Air Talent Organization’s Core Competencies • Subject • Knowledge WHAT • Listener • Loyalty

9. WHAT - AM Talk Radio “People Make the World Go Round” • Environment print WDAS-FM WUSL-FM WHAT-AM internet television other radio

10. WHAT - AM Talk Radio “People Make the World Go Round” Time Perspectives • Past • Cody’s 35 years of industry experience • Family tradition of community service and leadership • Present • Advertising Revenue • Profitability • Future • Six Months to One Year- Options to Gain Capital • Long-Term- Regional Network

11. WHAT - AM Talk Radio “People Make the World Go Round” • Selection Rules • Working Capital • Level Of Control • Management • Programming • Payback Period • Comfort Level

12. WHAT - AM Talk Radio “People Make the World Go Round” Issues For Discussion • WHAT-AM’s Direction • Leader in the Community vs. Commitment to the Regional Plan • Leadership Succession Issues • “Developing the next generation of leaders” • Cody’s Change • Balancing National Exposure vs. Local Presence