Radio One, Inc. Responds to District Court Decision in the Preston Wilson and Steve Morrison Matter
WASHINGTON--(BUSINESS WIRE)--April 26, 2005--Radio One, Inc. (NASDAQ:ROIAK and ROIA) today issued the following statement responding to an order issued by the United States District Court for the Eastern District of Pennsylvania. The order grants an injunction prohibiting Radio One from enforcing non-competition provisions contained in employment agreements for radio personalities Preston Wilson and Steve Morrison.
Commenting on the decision, Zemira Jones, Radio One's Vice President of Operations stated, "We are deeply disappointed by the District Court judge's decision and intend to appeal. This decision not only impacts Radio One, but will have an adverse impact on all broadcasters, as it calls into question the enforceability of valid non-competition agreements when a format change occurs, which is common in the radio industry.
"This decision is ironic in that it was Preston and Steve's decision to depart Y100 that led Radio One to change Y100's format and that change now serves as the basis for the judge's decision to bar enforcement of the non-competes. Contrary to press reports, Radio One made every effort to renew Preston and Steve's contracts with Y100 beginning last fall. In spite of our efforts, Preston and Steve made a decision to leave for a competing station. In January, they announced their intent to depart Y100 upon the expiration of their contracts in February. Radio One attempted to find replacement talent, but ultimately made a business decision to introduce a contemporary inspirational format in the market.
"We continue to believe that we have a legitimate business interest in enforcing the non-competes, despite Y100's format change. We will continue to press our arguments on appeal and believe that we will ultimately prevail."
Radio One, Inc. (www.radio-one.com) is the nation's seventh largest radio broadcasting company (based on 2004 net broadcast revenue) and the largest company that primarily targets African-American and urban listeners. Radio One owns and/or operates 69 radio stations located in 22 urban markets in the United States and reaches more than 13 million listeners every week. Radio One also owns approximately 36% of TV One, LLC (www.tvoneonline.com), an African-American targeted cable network, which is a joint venture with Comcast Corporation and DIRECTV. Additionally, Radio One programs "XM 169 The POWER" on XM Satellite Radio and recently acquired 51% of Reach Media, Inc. (www.blackamericaweb.com), owner of the Tom Joyner Morning Show and other businesses associated with Tom Joyner, a leading urban media personality.
CONTACT: Radio One, Inc.
Zemira Jones, 301-429-4688
SOURCE: Radio One, Inc.