Radio One, Inc. Announces Officers' Repayment of Loans
WASHINGTON--(BUSINESS WIRE)--Sept. 9, 2005--Radio One, Inc. (NASDAQ:ROIAK and ROIA) today announced that loans made to two of its executive officers prior to the enactment of the Sarbanes-Oxley Act of 2002, have been repaid by those individuals, one partially and one fully. As previously disclosed, the Company extended loans of $7.0 and $2.0 million, respectively, to Scott R. Royster, the Company's Executive Vice President and CFO and Linda Vilardo, the Company's Chief Administrative Officer, in connection with their employment agreements. The loans to Mr. Royster and Ms. Vilardo were made in October 2000. The loans were made to enable Mr. Royster and Ms. Vilardo to purchase 1,000,000 and 250,000 shares, respectively, of the Company's common stock. The promissory notes underlying the loans permit repayment (plus any accrued interest) using cash and/or Radio One common stock. The loan to Mr. Royster is due in October 2010 and was paid down partially with a combination of 300,000 shares of the Company's Class A common stock and 230,000 shares of the Company's Class D common stock. The loan to Ms. Vilardo was due in October 2008 and was fully paid with 174,754 shares of the Company's Class D common stock. Following partial repayment of the loan, as of September 6, 2005, Mr. Royster's loan balance was approximately $1.5 million. All shares transferred back to the Company in satisfaction of the loans will be retired by the Company. As a result of these transactions, the number of issued and outstanding shares of Radio One's common stock will be reduced by 704,754.
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 radio broadcasting 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), a cable/satellite network programming primarily to African-Americans, which is a joint venture with Comcast Corporation and DIRECTV. Additionally, Radio One owns 51% of the common stock 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, and programs "XM 169 The POWER" on XM Satellite Radio.
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because these statements apply to future events, they are subject to risks and uncertainties that could cause actual results to differ materially, including the absence of a combined operating history with an acquired company or radio station and the potential inability to integrate acquired businesses, seasonal nature of the business, granting of rights to acquire certain portions of the acquired company's or radio station's operations, market ratings, variable economic conditions and consumer tastes, as well as restrictions imposed by existing debt and future payment obligations and agreed upon conditions to closing. Important factors that could cause actual results to differ materially are described in Radio One's reports on Forms 10-K and 10-Q and other filings with the Securities and Exchange Commission.
CONTACT: Radio One, Inc.
Scott R. Royster, 301-429-2642
SOURCE: Radio One, Inc.