Azteca America Begins Operations In Los Angeles.

TV Azteca, S.A. de C.V. announced that Azteca America, the new broadcast television network focused on the rapidly growing US Hispanic market, began broadcasting in Los Angeles on July 28, 2001 on the new full- power station KAZA-TV Channel 54.

“We are delighted to launch our network in Los Angeles, the Hispanic capital of the United States, which accounts for 20 percent of the US Hispanic population,” said Ricardo B. Salinas, Chairman and Chief Executive Officer of TV Azteca. “Channel 54’s programming will bring the best of TV Azteca to a dynamic community that knows and appreciates our programming.”

Harry J. Pappas, Chairman and Chief Executive Officer of Pappas Telecasting Companies added, “TV Azteca’s programming on KAZA-TV Channel 54 represents the core values that all Hispanics hold dear wherever they live — ?family, generosity, honesty and passion. TV Azteca’s programming will help Hispanics both remember where they came from, and unite their communities wherever they are.”

The programming broadcast on Azteca America has proven its success in Mexico, where it gains over 35% share of the commercial audience, and has been lined-up to compete effectively against the other broadcasters currently serving US Hispanics. KAZA-TV will broadcast a full array of TV Azteca’s hard-hitting, highly popular novelas in weekday prime time, and will air predominantly entertainment programming during the morning and evening hours. Programming will also include exciting Mexican League Soccer and locally produced newscasts.

Azteca America’s initial programming lineup in Los Angeles includes TV Azteca’s top rated shows, Lo que Callamos las Mujeres, Ventaneando, Cosas de la Vida, El Ojo del Huracan, Tempranito 2000, and Con Sello de Mujer, among others. Sports programming includes live games of the winter tournament that is currently underway, as well as the popular sports analysis shows Los Protagonistas and DeporTV.

Viewers will also be able to watch A Quien Corresponda, popular current events program, and several daily editions of the Hechos newscasts. All of this programming is part of TV Azteca’s inventory, or current on-the-air shows, which do not entail additional production costs for TV Azteca.

“We expect that TV Azteca’s programming will prove popular in the Los Angeles market and build strong audience loyalty. Because a high percentage of US Hispanics are of Mexican origin, much of our audience is already familiar with our shows and our stars,” commented Luis J. Echarte, formerly CFO of TV Azteca, who was instrumental on behalf of TV Azteca for the launch of Azteca America. “Such brand awareness, combined with the proven popularity of our programming, will be key to generating revenue and competing aggressively for advertising dollars in the 2002 season.”

Azteca America will transmit programming on the newly-constructed KAZA-TV Channel 54, across the entire Los Angeles television market. Transmission tests for the new full-power station were successfully completed during the past two weeks. The station’s Maximum Power transmitting facilities utilize a state-of-the-art, circularly-polarized antenna system atop Mt. Wilson in the Angeles National Forest. In the Los Angeles market, all of the VHF television stations and the most popular UHF stations transmit from the same site.

“Los Angeles is the key market for Azteca America,” said Mr. Salinas. “KAZA-TV Channel 54, will serve that market with excellent transmission quality and will provide comprehensive market coverage with its 2.29 Megawatt broadcast signal,” Mr. Pappas added.

Plans for expansion into other major US Hispanic markets

“This is the first step in a promising long-range plan to capture a growing portion of the vibrant US Hispanic market. As we expand into other key Hispanic markets in the US, we expect Azteca America to serve a large share of the more than 35 million US Hispanics with TV Azteca’s exciting content,” commented Mr. Salinas. “Our national and local expertise in production and distribution in Mexico, will deliver a solid and dynamic expansion.”

Azteca America is currently negotiating with stations in other major US Hispanic markets to carry its programming. “I am optimistic that we will soon be able to launch Azteca America programming in other US markets,” added Mr. Echarte. “We know that there are many US Hispanics who want to see our shows and many US advertisers who are eager for more options to reach this audience than provided by the companies currently operating in this sector.”