3/5/98

Purchase Lays Foundation for Communications Division

OMAHA, NEBRASKA - Gold Circle Entertainment has announced the establishment of a communications operation, to be known as Waitt Radio, Inc., with the acquisition of KOTD FM 106.9, a family-owned radio station based near Omaha, Nebraska. The $1.1MM deal, initiated last July when principals began negotiations, was concluded at the end of January, 1998. As of February 1, Gold Circle management filed the transaction with the FCC and expects to obtain final approval from the regulatory agency sometime in May or June.

"The launch of Waitt Radio, Inc., with this acquisition fits in Gold Circle's strategy to take an innovative approach to building a broad-based promotion and marketing network for our music products," says Michael Delich, Gold Circle President and COO. "For example, we see a greater integration between music and the Internet and between the Internet and radio as key elements to our strategy, and our purchase of KOTD represents a first step in that direction. At the same time, taking Gold Circle's concept into the world of formatted radio is a test for us. We've made a commitment to take a decidedly non-traditional approach to programming the station, as well as other aspects of our communications strategy, and we will continue to look at other communications opportunities that station ownership provides beyond pure music programming."

Whether Gold Circle's approach to programming will set a new trend in radio is unknown at this time. However, it wouldn't be the first time that a revolution in radio programming started in Nebraska. In the late 1950's, when radio was still a program-oriented medium, Todd Storz, the owner of Omaha-based daytime radio station KOWH, decided to reprogram the station's playlist with the songs that drew the most plays on the jukebox in a local bar. The idea proved to be an immediate success—quickly drawing more than a 50 percent audience share—and spurred thousands of imitators while evolving into today's prevalent format for music radio. The irony is not lost on Delich.

"This move is a step into the unknown for Gold Circle," adds Delich, "but we're excited about the possibilities. We think that the timing is right because it will allow us to bring a new energy and focus into the medium of formatted radio. And, where better to do that than in Omaha, Nebraska, where formatted radio was born."

Gold Circle Entertainment is an Omaha, Nebraska-based full-service music-based enterprise. The company takes a strategic, long-term approach to artist development and the commitment to innovation in the marketing and distribution of its products, which include CDs/albums released under Gold Circle subsidiary label, Samson Music, or catalogs/rights administration handled by Samson Publishing, Inc. The company was founded by Norm Waitt, Jr., and a team of respected music industry pros in 1997. In addition to Waitt, who serves as Chairman and CEO, management includes Michael Delich, President and COO; Richard Musil, Director of Sales and Marketing, and Michael Shrieve, Director of A&R. Headquarters for Gold Circle and Samson Music are located at 13906 Gold Circle Drive, Suite 201, Omaha, Nebraska, 68144. The company also maintains a satellite office in Seattle, Washington. Both Gold Circle and Samson maintain sites on the World Wide Web, at www.goldo.com and www.samsonmusic.com, respectively.