Radio One To Launch TV Network For African-Americans.

Comcast Corporation and Radio One, Inc. announced an agreement in principle to launch a new television network featuring entertainment, news, opinion and sports-related programming targeted primarily towards 25-54-year-old African-American viewers. The network, which has not yet been named, is expected to launch in mid-2003.

“We are very pleased to partner with Radio One, an innovative leader in reaching African-American audiences with programming that entertains and informs,” said Brian L. Roberts, chief executive officer and president of Comcast. “Comcast serves 21 of the top 25 U.S. markets, where 50% of African- Americans reside. In the interest of providing the best possible multicultural programming for our subscribers, we have committed to launch this channel across a significant number of our markets and to work with other cable and satellite providers to reach as many total viewers as possible.”

The network will include a broad mix of original and existing programming designed to appeal to the African-American community, which both Comcast and Radio One believe is one of the most underserved demographic groups relative to targeted television programming. African-Americans comprise approximately 13% of the U.S. population and had 2001 aggregate buying power of approximately $572.0 billion. At approximately $2.7 billion annually, cable television constitutes the largest entertainment expenditure in African- American households.

“For more than two decades Radio One has been successful at providing high quality programming to African-Americans through the many radio stations we own,” said Alfred C. Liggins, chief executive officer and president of Radio One. “African-Americans have experienced explosive population and per-capita income growth and are one of this country’s most attractive consumer demographic groups. We have known for over a decade that this group is woefully underserved in the television space and have long believed that we could leverage our radio experience to become successful in targeting African- Americans through television. We have searched the last four years for the right distribution and content partner that shared our vision,” Mr. Liggins continued, “and are very excited to have found Comcast as that partner. Their cable distribution and network operations expertise combined with our experience in programming to African-Americans, and marketing and selling the African-American demographic is an absolute formula for success. We are very excited about the prospects of this new enterprise.”

The network is a joint venture between Comcast and Radio One. Radio One will make a direct cash investment, not expected to exceed $70.0 million. This investment will be made pro-rata alongside an additional $60.0 million from Comcast and other parties, over approximately a four-year period. Radio One will provide radio advertising time over a multiple-year period in exchange for an additional equity interest in the network. As part of a management arrangement between the network and Radio One, Mr. Liggins will become Chairman of the network and Radio One will receive an annual management fee plus an additional equity interest in the network. Radio One expects that its fully diluted ownership in the network will be less than 40%. Comcast will commit both financing and a substantial number of subscribers for a similar- sized equity interest. Additional details will be available before the channel launches.