Dear Radio Executive:

There's been so much discussion in newspapers, trades and at the water cooler regarding the competitive state of the radio industry that it's already beginning to be difficult to determine the realities vs. the fiction.

One of the things I find comfort in most about the research business is the comfort that can be brought on by empirical evidence. It's not always easy, but there are times that the facts can blow away the fog of theory and chatter.

At Bridge Ratings we wanted to get to the truth regarding the significant alternatives facing traditional radio. This has been our inspiration for the ground-breaking studies we've published recently about audience attrition and erosion and the soon-to-be-released study of the general radio audience and its intent to migrate to satellite or Internet radio.

We recently gathered as much data as possible regarding projected subscriber growth at satellite radio, Internet radio streaming useage and the projected availability of Wireless Internet. We graphed the results to see just where all this shakes out. You may be surprised. Digital Audio Market Projections

Looking back on our first full year serving the radio industry with reliable and affordable audience measurement, a couple of things have been confirmed by our clients:

1) The Vision. Bridge Ratings has succeeded in its goal to provide rapid-result, affordable and accurate predictive audience measurement. In market after market, clients tell us that Bridge Ratings' trending is more reliable and useful in determining overall station ratings performance often weeks before other ratings service information is published. This timely delivery of information on a weekly basis allows client stations to react to the information and correct course, if necessary.

2) Bridge Ratings is more than just a ratings company. As experienced radio station operators, the team at Bridge Ratings understands that audience measurement is more than just numbers on a page. There are stories behind those numbers and the analyses of our information provide more in-depth"why's" and "how's" than previously provided to the industry.

3) Bridge Ratings breaks new ground. The audience Attrition Studies we conducted early in 2004 were designed to clarify and confirm previous perceptions about radio listeners' behavior during commercial breaks. Over the years, the radio industry has elongated commercial breaks, in essence "training" our listeners to expect several commercials in a row. This ground-breaking study has been quoted by industry executives who have chosen to take a stand on audience attrition. Clear Channel's "Less Is More" initiative is an example of the industry leader attempting to do something about the short-term defection by radio listeners during long commercial breaks. Bridge Ratings will be monitoring the progress of this initiative in a number of markets during 2005 and will report those findings here.

"Attriton Study II: Listener Erosion", is underway at this time and is another revolutionary concept in audience research.

It is no secret that terrestrial radio has met increased competition from alternative audio choices. Internet and satellite radio as well as portable music players (MP3 and iPod) are most-often mentioned new choices by listeners who are talking to us about their current radio listening behaviors. Bridge Ratings is currently in the field conducting studies related to audience erosion, i.e. listeners to AM and FM radio who are tuning away part-time or have completely left to find what they seek with these new technologies.

As with our first Attrition study, you will be shocked at what the findings will show. Upon completion of these studies in late 2004, Bridge Ratings will release key findings of this report.

By the industry's response this year, it is clear that Bridge Ratings is filling an important need. Frustrations with inaccurate, nonrepresentative audience measurement has reached a fevered pitch. Advertising agency buyers who understand radio appreciate an alternative view. We salute the Bridge Ratings clients who have utilized our reports to balance other industry ratings information in both the sales and programming areas of their operations.

Market SnapShot has been used by several of our clients who this year launched unique and new formats. Seeking affirmation of their gut instinct, these clients learned quickly whether their new formats were delivering the expected audiences in size and profile. Some were pleased with the results, others found areas which needed improvement. In either case, these stations were informed months in advance of their station's health.

We look forward to serving the industry we love in the new year and promise that we will continue to deliver audience measurement that is both useable and reliable.

Your feedback is vital to our company's on-going success. I look forward to hearing from you.

Sincerely,

Dave Van Dyke - President