Radio First's business strategy is to use digital audio technology in order to create The Fan Radio Network, a network of regional digital commercial radio stations, that cover the key marketing areas of the United Kingdom.

Each of the radio stations will be a joint venture with a leading football club in each region. The joint ventures will operate the 'official' digital radio station owning the exclusive non-national digital audio rights for each football club.

This strategy is based upon:

• A new type of media partnership with leading football clubs
• A popular programme format
• New broadcast technology

Each radio station will be a separate joint venture company between Radio First and a leading football club. Each will operate as the club's 'official' station and will own the exclusive non-national digital audio rights of the club. Four of the United Kingdom's leading football clubs, Aston Villa, Chelsea, Derby and Southampton - have signed joint venture contracts with Radio First for a minimum of twelve years. Negotiations are continuing with other clubs.

Together, the network of stations will be presented to national advertisers, advertising agencies and sponsors as The Fan Radio Network, offering a one-stop buy of an attractive, sought-after audience across the United Kingdom.

Each radio station will broadcast 24 hours a day, 365 days of the year. The programme format of each station will be simple and popular: "Hot Music. Hot Football." (see "Radio Stations" page for more information.)

The change from analogue to digital broadcasting is well underway. Digital audio distribution offers consumers a range of new benefits, and listeners to Radio First's joint venture audio services will have a variety of new digital audio platforms with which to access the stations.

Radio First's management has the appropriate combination of skills and experience in order to achieve its strategic goal. It possesses an excellent record in commercial radio programming, marketing, and sales and the company's board of directors has a proven record in the football industry and sports broadcasting.