IBOC DAB Technology Developers Consolidate Efforts

COLUMBIA, MD, and MILPITAS, CA (December 14, 1999) - USA Digital Radio, Inc. (USADR), and Digital Radio Express (DRE), both privately-held technology companies, today announced a strategic alliance that will unify efforts and expedite the rollout of In-Band On-Channel Digital Audio Broadcasting (IBOC DAB). Under an agreement between the two IBOC DAB proponents, DRE will support efforts to commercialize USADR's IBOC DAB system. The companies will cooperate in the development of USADR's IBOC DAB technology and the regulatory process required for its adoption in the United States. DRE will focus its business on data ventures, including specialized data applications for USADR's system.

"This is a win-win venture for USADR, for DRE, for the broadcast and audio industries, and for the consumer" said Robert J. Struble, president and chief executive officer, USA Digital Radio, Inc. "Welcoming DRE into our growing coalition strengthens the unified effort to achieve our goal of moving IBOC DAB forward under one technical standard. Further, DRE's concentrated efforts to develop data applications for digital radio will greatly increase the value of IBOC DAB to broadcasters, manufacturers and consumers."

"To expedite the commercialization of IBOC DAB, it made sense for us to join forces with USA Digital Radio," said Dwight Taylor, Managing Director, Digital Radio Express. "We evaluated several options available to us. Becoming part of USADR's coalition was the obvious and best choice, in light of the superiority of their technological achievements, business plan and the strides they have made on the regulatory front. We plan to play an active role in implementing digital radio and capitalizing on the unlimited potential that data applications offer."

Digital Audio Broadcasting is a digital method of transmitting virtual CD quality audio signals to radio receivers. IBOC DAB is a broadcasting technology that uses the current radio spectrum to transmit existing AM and FM analog simultaneously with new high-quality digital signals. This technology provides a unique opportunity for broadcasters and listeners to convert from analog to digital radio without service disruption while maintaining current dial positions of existing stations. Listeners who purchase digital radios would receive their favorite radio stations with superior sound quality free from static, hiss and noise, and with reduced interference.

About Digital Radio Express Digital Radio Express

USA Digital Radio is developing technology in the field of wireless mobile data transmission and reception. Currently, DRE is using its intellectual property to implement new, more efficient utilization of radio subcarriers for the delivery of mobile data. In partnership with CUE Corp., a data services company, and ST Microelectronics, a semiconductor manufacturer, DRE has created a design which permits exponentially higher net data throughput, at low cost, for such products as internet appliances, car radios and a variety of mobile data communication devices.

About USA Digital Radio, Inc.

USA Digital Radio is developing and marketing In-Band On-Channel Digital Audio Broadcasting (IBOC DAB) technology for AM and FM radio. The Federal Communications Commission (FCC) recently took a key step in the regulatory approval process of IBOC DAB by issuing a Notice for Proposed Rulemaking on November 1, 1999. USA Digital Radio led the approval process with its filing of a Petition for Rulemaking with the FCC on October 7, 1998.

Owners of USA Digital Radio include: ABC, Inc., New York, New York (NYSE:DIS); AMFM, Inc., formerly Chancellor Media Corporation, Dallas, Texas (NYSE:AFM); CBS Corporation, New York, New York (NYSE:CBS); Chase Capital Partners, New York, New York, an affiliate of Chase Manhattan Corporation (NYSE:CMB); Citadel Communications Corporation, Las Vegas, Nevada (NASDAQ:CITC); Clear Channel Communications, San Antonio, Texas (NYSE:CCU); Cox Radio, Inc., Atlanta, Georgia (NYSE:CXR); Cumulus Media, Inc., Milwaukee, Wisconsin (NASDAQ:CMLS); Emmis Communications, Indianapolis, Indiana (NASDAQ:EMMS); Entercom Communications Corporation, Bala Cynwyd, Pennsylvania (NYSE:ETM); Gannett Company, Inc., Arlington, Virginia (NYSE:GCI); Hispanic Broadcasting Corporation, Dallas, Texas (NASDAQ:HBCCA); Radio One, Inc., Lanham, Maryland (NASDAQ:ROIA); and Sinclair Broadcast Group, Inc., Baltimore, Maryland (NASDAQ:SBGI).

USA Digital Radio's efforts include development agreements with several outside parties including Xetron Corporation, Cincinnati, Ohio; Fraunhofer Institut fur Integriete Schaltungen (IIS), Erlangen, Germany; BittWare Research Systems, Concord, New Hampshire; Nautel Limited, Nova Scotia, Canada; QEI Corporation, Williamstown, New Jersey; Broadcast Electronics, Quincy, Illinois; Kenwood Corporation, Tokyo, Japan; Texas Instruments, Dallas, Texas; Continental Electronics Corporation, Dallas, Texas; Andrew Passive Power, Gray, Maine; Energy-Onix, Valatie, New York; Orban, San Leandro, California; Shively Labs, Bridgton, Maine; and Telos Systems/Cutting Edge, Cleveland, Ohio.

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