MXR and Command Audio Bring Local ``Personal Radio'' to UK; New Partnership to Deliver Revolutionary Service Via Digital Audio Broadcast System

Business Wire, Feb 14, 2001

Business Editors

LONDON--(BUSINESS WIRE)--Feb. 14, 2001

Digital radio multiplex operator MXR, has today reached exclusive agreement with Command Audio, the U.S.-based technology firm, to launch local on-demand audio. It will be available across the regional multiplexes operated by the consortium, which includes a potential 8 million listeners in the North East, the Severn Estuary & South Wales and West Midlands, as well as being proposed exclusively as part of future MXR licence bids, which include a further 18 million listeners in the North West, Yorkshire and London.

This deal will for the first time, provide digital listeners with totally local news, sports, traffic and travel and business bulletins (provided by MXR's data partner UBC Digital), wherever and whenever they want. In addition, by using Command Audio's unique technology, listeners will have full control over how and when they listen, scanning a whole spectrum of relevant programming. All of this can be personalised by each individual listener, thereby providing a truly personal radio experience.

Command Audio and MXR will use their combined technology and audience coverage to encourage manufacturers to include this technology into the next generation of radio receivers, which it is hoped will be available by the end of this year.

Phil Riley, Chairman of the MXR Consortium said, "MXR are delighted to be working alongside Command Audio to bring personalised, on-demand and interactive audio to the UK's digital radio listeners. This groundbreaking deal offers a revolutionary service, guaranteeing a new and exciting radio experience for the future.

"MXR has promised in each of its bids to be 'Local from Launch.' The importance of local programming is imperative to listeners as we discovered through extensive research undertaken across the country. By joining up with Command Audio, MXR are adding even more value to that promise."

Don Bogue, Co-founder and CEO of Command Audio added, "By joining with MXR, Command Audio is ensuring that on-demand interactive audio will achieve the widest possible distribution in the shortest possible time. Since on-demand interactive capabilities give listeners a compelling new experience of personalisation, choice and control, they clearly differentiate digital radio services from any other media. As a consequence, we believe receiver manufacturers will want to make this innovative functionality available to consumers in their next generation products."

About MXR

MXR is a consortium founded by radio operators Chrysalis Radio, Capital Radio, jazz fm and Guardian Media Group, who between them control all of the analogue regional licences covered by the five digital regions being applied for. Joining the operators in the consortium are urban music operator Soul Media plc and data service providers UBC Media and Psion, via their JV UBC digital. Finally, the consortium also has as a founding shareholder the global car manufacturer Ford.

The radio operators have pledged to offer their existing analogue stations exclusively to the MXR consortium (Century and Galaxy in the North East, Century and jazz in the North West, Galaxy in Yorkshire, Heart in the West Midlands and Galaxy and Real radio in the Severn Estuary/South Wales), along with a range of additional digital-only programming. As a founding shareholder in MXR, Ford UK intends to fit digital radios as original equipment in Ford new cars sold in the UK by 2004, and to promote digital radio upgrade availability in its authorised dealerships, subject to the technology meeting the Company's standards in terms of quality, affordability and market demand.

Many of the Local Digital Radio multiplex licences covering the same areas as the regional licences listed above have already been awarded. Full details of all awards can be obtained from the Radio Authority.

Digital radio is a new transmission system that provides the listener with bundles (multiplexes) of audio services to new portable radios, in-car receivers and personal computers, with unprecedently clear reception. Being digital, it can also broadcast data services, which may or may not be related to the radio programming. As such, digital radio will provide an excellent opportunity to both enhance the quality of existing radio services and introduce new services and formats across the UK.

About Command Audio

Command Audio developed launched and test marketed in the U.S. the world's first broadcast on demand interactive audio service. Now, it is the first company to enable digital broadcasters to deliver personalised on-demand interactive radio services. Command Audio brings to the new joint venture real world experience in delivering on-demand audio services and an extensive portfolio of intellectual property in on-demand media technology. Command Audio's U.S. operation will continue to provide on-demand interactive program production tools for broadcasters and the software and hardware solutions to receiver manufacturers that will enable listeners to receive personalised, on-demand radio. (Command Audio has recently partnered with Motorola to integrate on-demand interactive audio technology into Motorola's next generation telematics system, the iRadio, to bring on-demand functionality to the car.)