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					   An Application to Ofcom for an FM

  Independent Local Radio Licence for

        MANCHESTER
             October 2006

Manchester Citylife Limited
TABLE OF CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . 1

GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . 2

SECTION 105(A): ABILITY TO MAINTAIN PROPOSED SERVICE . . . . 3

1.    OWNERSHIP AND CONTROL OF COMPANY . . . . . . . . . . . . . . . . . . . . 3

(a)   Board of Directors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

(b)   Proposed Investors and Shareholding Structure . . . . . . . . . . . . . . . . . 12

(c)   Involvement of the Applicant in Specified Activities . . . . . . . . . . . . . . . 13

2.    FINANCIAL AND BUSINESS PLAN . . . . . . . . . . . . . . . . . . . . . . . . . 15

(a)   Overall Financial Strategy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

(b)   Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

(c)   Financial Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

(d)   Audience Projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3.    TRANSMISSION PROPOSALS . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(a)   Transmission Site(s). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

(b)   Detailed computer predicted Coverage . . . . . . . . . . . . . . . . . . . . . . 25

(c)   Describe proposed arrangements for transmission provision . . . . . . . . . 27

(d)   Anticipated time-lapse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

SECTION 105(B) AND (C): CATERING FOR TASTES AND
INTERESTS/BROADENING CHOICE . . . . . . . . . . . . . . . . . . . 28

4.    PROPOSED FORMAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

5.    PROGRAMMING PHILOSOPHY . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

(a)   Overall Programming Philosophy & Vision for the Radio Service . . . . . . . . 29

(b)   Programming Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

         (i) Catering for the Tastes and Interests of Persons Living in the Area. . . . . . 35

         (ii) Broadening the Range of Local Commercial Services. . . . . . . . . . . . . 45

         (iii)Provision of Local Material . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

(c)   Typical programme-by-programme weekday schedule . . . . . . . . . . . . . 53




                                                                                       Table of Contents
SECTION 105(D): EVIDENCE OF LOCAL DEMAND OR SUPPORT . . . 54

6.    EVIDENCE OF DEMAND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

(a)-(e)Original Market Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

(f)   Summary of Main Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

            Population            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

            Market Gap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

            Listening Habits      . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

            Tastes & Interests    . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

            Qualitative           . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

            Broadening Choice     . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

            Monitoring            . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

            Demand                . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

            Effect on Listening Habits . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

(g)   Full Data Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

7.    EVIDENCE OF SUPPORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

DECLARATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88




APPENDIX 1 . . . . . . . . . . . . . CERTIFICATE OF INCORPORATION

APPENDIX 2 . . . . . . . . . . . . . . LETTER FROM ANGIE ROBINSON

APPENDIX 3. . . . . . . . . (CONFIDENTIAL) ADDITIONAL DIRECTORS

APPENDIX 4 . . . . . . . . . . . . . . . . . . RESEARCH DATA TABLES

APPENDIX 5 . . . . . . . . . . . . . . . . . . . . LETTERS OF SUPPORT

CONFIDENTIAL FINANCIAL APPENDIX & BUSINESS PLANS




                                                                                     Table of Contents
EXECUTIVE SUMMARY

 il is ce s l ra e h i
 yf l
   e        uy          c
Cti wl u c sfl bo d nc o e…


      by catering for a unique target market of 45 to 64 year olds in Manchester like no other station;

      by competing directly with BBC Radio for 45-64 year old ABC1s;

      by providing a distinctive speech service not currently available on ILR in Manchester;

      by playing 70% of music genres rarely heard on ILR these days.


 il ia p a …
 yf l
   e
Cti wl p e l

      with a unique emphasis on local speech features that are important to our consumer but not
      available on ILR;

      with a significant local news commitment of 24 hours a day, 7 days a week, way beyond the
      current watershed;

      with popular music from eras that generally ignored by ILR;

      to advertisers who highlight 45-64s as the most attractive audience not accessible on ILR.


 il aii d ma d
 yfe se
Cti s tf s e n …

      as 62% of 45-64 year olds would listen to our unique service. 45-64 year olds want a new
      station in Manchester to target them.

      as 74% of 45-64 year olds found our music proposals appealing. Demand exists for Citylife's
      brand of music.

      as 82% of our listening hours will come from fresh listening to ILR. Citylife will alleviate
      unsatisfied demand.

      as 58% of advertisers stated they would possibly advertise on the station. Commercial radio
      will be able to compete more effectively with local newspapers.


 il irma i l
 yf l
   e     n ae
Cti wl e i v b …

      as it is backed by CN Group, a hugely successful and profitable media company with its roots
      firmly in the North West;

      by creating a 'North West cluster' to ensure synergies are possible and best practice is shared;

      through access to cash from CN Group, supported by a radio division that is growing fast and
      is in excellent health;

      as it is operated by some of the most respected radio executives in Commercial Radio today.




                                                                              Executive Summary Page 1
GENERAL INFORMATION


(a)   Name of Applicant, Address, Telephone and Fax Nos., E-mail address
      Manchester Citylife Limited
      c/o Halliwells
        tJ me ’ o r
      S. a s C uts
      Brown Street
      Manchester                Tel:     0870 365 8000
      M2 2JF                    Email:   info@cngroup.co.uk

      A copy of the Certificate of Incorporation can be found in Appendix 1.



(b)   Main Contact (For Public Purposes)
      Name:                     Jon Hewson

      Telephone (daytime):      07776 404040

      Address:                  CN Radio
                                P O Box 969
                                St George's Quay
                                Lancaster
                                LA1 3LD

      Email address:            jon.hewson@cnradio.co.uk



(c)   Proposed Station Name
      Citylife 106.1FM.



(d)   Main Contact (For Ofcom Purposes)
      See separate sheet.




                                                                               General Information Page 2
SECTION 105(A): ABILITY TO MAINTAIN PROPOSED SERVICE


1.    OWNERSHIP AND CONTROL OF COMPANY WHICH WILL OPERATE
      THE LICENCE


(a)   Board of Directors

      (i)    Provide the name, occupation, other directorships, other media interests,
             background and relevant media experience of each director (executive and
             non-executive), including the proposed chairperson.

             Please see overleaf for details of each director of Manchester Citylife Limited.

             Since our previous application for a Manchester radio licence in February 2005, Angie
             Robinson, Chief Executive of the Greater Manchester Chamber of Commerce, has
             unfortunately had to stand down as a Director as the letter submitted at Appendix 2
             explains. Angie fully endorses our application and aligns herself to our bid. Should
             Manchester Citylife be successful, our special relationship with Angie will ensure we
             quickly become established amongst the business community in Manchester as the
             chamber is recognised as having one of the strongest public relation functions in the
             country.

      (ii)   If there are any firm plans to appoint any further directors, provide information
             (with details of any specific individuals in mind). This information may be
             submitted in confidence.

             Manchester Citylife Limited will appoint two further directors should a licence award be
             forthcoming. Details of both these directors have been submitted in confidence with this
             application and can be found in Appendix 2.

                 The Managing Director designate has extensive knowledge and experience of the
                 Manchester advertising market as they currently work here and have worked for
                 numerous media organisations across the region. With over 25 year's experience of
                 operating in all areas of the media, they have intimate knowledge of the inner
                 workings of the advertising market. They have excelled in radio management for
                 over 10 years, having launched and operated city-wide and regional licences in
                 many of the UK's major cities including Manchester. This experience, aligned with
                 extensive contacts amongst Greater Manchester's most influential media buyers,
                 will guarantee Manchester Citylife Limited a successful launch and fruitful operating
                 prospects.

                 The Strategic Development Director is a highly respected senior UK radio executive
                 who brings a wealth of launch, digital and general media experience to Citylife.
                 Their role as Strategic Director will ensure that our lifestyle brand continues to build
                 consistently across the many delivery platforms as quickly as possible.

             Since becoming Managing Director of CN Radio, Jon Hewson has built a strong
             management team around him with the talent and experience of operating, managing
             and launching large scale radio licences across the country.

             In fact, between the Jon Hewson, the Managing Director designate, the Strategic
             Development Director designate and the existing management team, they have
             launched and managed large-scale stations in every single major conurbation in the UK.




                                                                                        Ownership Page 3
Alec Craig
POSITION:                        Non-Executive Chairman
OCCUPATION:                      Senior Partner, Halliwells
OTHER MEDIA INTERESTS:           Halliwells LLP and its trading subsidiaries; The British Ski & Snowboard
                                 Federation; Broadscan Ltd; Borderdeal Ltd; City Partnership Homes Ltd;
ANY OTHER DIRECTORSHIPS          Tepnel Life Sciences PLC; Aberdeen Growth Opportunities VCT PLC; Leisure
HELD DURING PAST 5 YEARS:        Ventures PLC, Cleaningtec PLC; Formation Group PLC, Biolife Ventures II
                                 PLC; 24/7 Comms Ltd


Alec and his firm have just      Alec is Senior Partner & National Head of Corporate Group of
played a key advisory role       the commercial law firm Halliwells with offices in Manchester,
in one of the largest UK         Liverpool, London and Sheffield. Halliwells is a UK Top 30 law
corporate deals ever run         firm and is the North West's largest law firm.
outside London - the £1.46
billion sale of telecom giant
The Caudwell Group.              Alec qualified as a Solicitor in 1985, was made partner of
                                 Halliwells in 1989 and Senior Partner in 2000.


                                 Halliwells employs over 1000 people and over the last five
                                 years the business has grown in size fourfold.            For the
                                 2005-2006 financial year, the firm has had the most progressive
                                 period in its history recording a record turnover of £62.7 million,
                                 a rise of 25%. Halliwells' success is based on delivering client
                                 satisfaction and continually striving to improve the service it
                                 offers. The culture is one of teamwork and it prides itself on
Halliwells     was      voted
Corporate Law Firm of the        employing individuals who are prepared to go that extra mile.
Year 2004 by North West
Business Inside Magazine,
the    region's      principal   Alec specialises in management buy-outs, buy-ins, flotations
business publication and         and general corporate transactions and has particular
this year, the firm has been
                                 experience in the hi-tech/biotech sector acting for both private
judged the leading UK law
firm outside the Magic           and public companies. Halliwells is of the UK's top 10 MBO
Circle at The Lawyer             legal practices (Source: Corfin Worldwide, Nov '03-Nov'04).
Awards 2006.

                                 Alec is recognised, by both Chambers and Legal 500
                                 directories, as a leading expert in corporate law and is a
                                 member of the Power 100 list produced by North West
                                 Business Insider.


                                 As a leading North West business advisor in Entrepreneur
                                 Magazine Top 50 Guide, Alec is credited as being a leading
                                 legal manager by The Lawyer Magazine and named by the
Alec is an experienced           Manchester Evening News as "one of Manchester's top
corporate Chairman who is        rainmakers who can create deals and generate business".
skilled    in      building
businesses. He has many
contacts throughout the          Alec is a director/company secretary of several private and
North West, a region that        public companies and an advisor to publicly quoted and private
he knows and understands         companies, universities and institutions. He is secretary to
well and which will serve
Manchester Citylife well.        Snowsport GB, Governing Body of British Snowsport and on
                                 Enterprise Ventures Limited Advisory Board.



                                                                                      Ownership Page 4
Jon Hewson
POSITION:                      Executive Launch Director
OCCUPATION:                    Managing Director, CN Radio
OTHER MEDIA INTERESTS:         Centre Broadcasting Ltd; Bay Radio Ltd; The New 102 Ltd; Kix 96 Ltd; Oak FM
ANY OTHER DIRECTORSHIPS        Ltd; Lakeland Radio Ltd; Belfast City Beat Ltd; Rugby FM Ltd; Barrow
                               Broadcasting Ltd; 2Day FM Ltd.
HELD DURING PAST 5 YEARS:

Jon will become Citylife's     Jon Hewson is Managing Director of CN Radio and is
Launch Director - a role he    responsible for its eleven Commercial Radio stations across
has excelled in many times     the UK as well as for the strategic development of the division.
before. His expertise and
previous success in large
markets is unsurpassed.        Jon's creative vision and initiative along with the introduction of
Between them, Jon and the      strict management control and procedures has turned CN
Citylife directors will make   Radio around. Jon's natural drive and enthusiasm will ensure
a formidable team.             the division not only stays on target but continually grows to
                               become a large, successful radio group in the UK.

                               Jon was formerly Group Sales Director of Guardian Media
                                 ru ls a i is n H a n fh r i ta f
                                         c      o vi
                               G o pp ’ rd d io . ew so eo teoin le m o        ga
                               two people who founded GMG Radio and was instrumental in
                               building the group, which grew from scratch to become one of
                               the largest radio groups in the UK.

                               Jon set up GMG Radio Sales, recruiting, training and
                               developing the team that was voted 2004's Adline Agency
                               Sales Team of the Year by the advertising agencies.
Jon's previous roles at
Border TV and GMG saw
him heavily involved with      Jon was a Lead Director in the re-branding and re-launching of
the    original    Century     Scot FM to Real Radio in Scotland, one of the most impressive
Radio's and Real Radio's       turn-arounds Commercial Radio has ever seen. He trained
music and speech brands        every member of the team that won the Radio Sales Team of
and    their    subsequent     the Year at the 2003 Scottish Newspaper of the Year awards.
successes.
                               Jon was a Launch Director of the most successful launch to
                               date for a regional licence in terms of both audience and
                               revenue, with Real Radio in South Wales. He went on to
                               successfully launch the third and largest of the three Real Radio
                               stations in Yorkshire with a population of almost 3 million adults.

                               Whilst at GMG Radio and Border TV, Jon was a key member of
                               the management team that delivered remarkable growth in their
                               radio business. Jon has vast regional operational experience
                               gained whilst launching or re-launching six regional licences.
Whilst Jon has been
successfully improving the
performance of CN's radio      Jon is committed to innovative, interactive speech-based
division, he still harbours    programming and sees it as the future for commercial radio in
ambitions to re-kindle his     its challenging future competing against the BBC and new
talent    for   large-scale    technologies. This innovation has seen Jon commit CN Radio
licences and not let his       to a 24-hour news hub for its smaller stations in the Midlands, a
hard-earned skills and         commitment other groups would not contemplate at this time
experience go to waste.
                               when they are looking to reduce costs.



                                                                                       Ownership Page 5
Bryan Burgess
POSITION:                       Non-Executive Director
OCCUPATION:                     Managing Director, True Insight Ltd
OTHER MEDIA INTERESTS:          -
ANY OTHER DIRECTORSHIPS         Chairman of North West of England Marketing Society (2001); Chairman of
HELD DURING PAST 5 YEARS:       Manchester Publicity Association (2000-2002)


Bryan      has   extensive      A Mancunian, Bryan is Managing Director of his own business,
marketing and commercial        True Insight Ltd based in Manchester, a media consultancy
skills developed over 25        specialising in brand development and media communications.
years, operating in media
and sports marketing in the
UK.       This    includes
television, radio, press,       He has recently stepped down as Chairman of the Manchester
direct media, advertising       Publicity Association, a post he held for 2 years, and was
agency sales and sports         Chairman of the North West of England Marketing Society in
television.                     2001.


                                Prior to this, Bryan was the Commercial Director, Marketing &
                                Sales for Manchester United Television which is on the Sky TV
                                and ntl/Telewest digital platforms. Bryan developed the brand
                                strategy and positioning and oversaw all marketing,
                                promotional and commercial activities. He launched MUTV in
                                Ireland, Scandinavia and the Far East as well establishing
Bryan's advertising and         MUTV's wall garden interactive site on Telewest Cable. Under
sponsorship contact base        Bryan's leadership, MUTV increased subscribers in the UK
in Manchester and across        from 32,000 to 75,000 in two years and MUTV achieved major
the North West will provide     sponsorship deals with Going Places, Eurobet, Phone People,
Citylife with good access to    Kitbag.com and Umbro.
decision makers, as will the
relationships     he    has
established           whilst    Prior to MUTV, Bryan was Head of Regional Sales & Marketing
Chairman of the North
                                for Sky Television where he was responsible for a £12m
West of England Marketing
Society and Chairman of         turnover. He launched the North West greenfield operation and
Manchester's        Publicity   built revenue and sponsorship including a major sponsorship
Association, the largest        deal worth £1 million for Bristol & West Building Society
publicity association in        sponsoring Friends. Other sponsorships were: Worthington
Europe.                         Cup (All Sports), Sky News Sportline (Subaru Cars) and X-Files
                                (Gulp Drinks).


                                Bryan was responsible for the first affinity deal on Sky TV with
                                Guardian Direct Insurance and was part of the team that
                                launched Sky Sports, Nickelodeon and the Paramount and
                                History channels.


Bryan will prove invaluable     Before joining Sky Television in 1990, Bryan was General
to     Citylife.   Working      Manager of Red Rose where he increased revenue by 18% and
alongside the Managing          moved the station into the top 10 in the UK. Between 1986 and
Director designate, they        1988 Bryan worked at Radio City as Sales & Marketing Director
have a vast array of
                                where he ran the sales team that turned the loss making station
contacts and will prove to
be a formidable team.           into a £1.7m profit and established lucrative community links
                                through football.



                                                                                     Ownership Page 6
Don Douglas
POSITION:                      Non-Executive Director
OCCUPATION:                    Group Programme Director, CN Radio
OTHER MEDIA INTERESTS:         -
ANY OTHER DIRECTORSHIPS
HELD DURING PAST 5 YEARS:      -

With over 30 years             Don is currently Group Programme Director responsible for the
broadcasting experience,       audience figures and the day-to-day programming for all of CN
Don has been responsible       Radio's stations. He has recently implemented the on-air
for a network of News Talk
                               launch of Touch FM including CN Radio's news hub for the
stations as well as being
                               Midlands stations. Under Don's guidance, early indications
responsible for a group of
30 smaller stations.           show that Touch FM (Banbury) has launched with a reach well
                               ahead of its application target.

                               Don has over 30 years broadcasting experience. He has
                               worked internationally and has broadcast on, programmed and
                               managed large radio networks and individual stations in New
                               Zealand, Kenya and the UK. He holds a Diploma in Radio
                               Broadcasting (Higher Level) awarded by the NZBS.

                                o ’ a i ae r e a n 9 4 h n e o e h
                                   s     o
                               D n rd c re b g n i 1 7 w e h jn d te              i
                               Broadcasting Corporation of New Zealand as a presenter. He
                               has worked in a number of small community markets as well as
Don's      expert      music
                                e e l d w a e t i s I 9 8 h r ee o h
                                        a s        r       te
                               N w Z a n ’ tol g s ci .n1 7 , et v ldt te    a l
knowledge is second to
none and encompasses all       UK, working as a newsreader and presenter for BBC Radio 2.
tracks dating back to the
60s. As a 'walking, talking'   On returning to New Zealand, he moved into radio
music library, he will         programming, including Programme Director and Manager for
oversee the programming
to ensure the target market    91ZM Christchurch (1986-1991) and 89X Auckland (1991-92)
is musically satisfied.        before being promoted to a national role as Commercial
                               Programme Manager for Radio New Zealand, with
                               responsibility for a large group of stations including Classic Hits
                               (17), Community (10) and Classic Rock (3)

                               While in Christchurch, he was also a founder director of Access
                               FM, the first community access station in New Zealand, and a
                               tutor for the New Zealand Broadcasting School degree course.
                               (Bachelor of Broadcast Communication).

                               In 1999, Don moved back to the UK as Network Programme
Don is a determined and        Controller for the Classic Gold network, a position he held for 5
enthusiastic programmer        years until May 2004. He utilises his extensive knowledge of
who takes great pride in       classic hits music and audience research to launch the network
driving up audience and        on digital platforms, simultaneously developing and
delivering results for the     programming DAB network station Planet Rock (Nov 1999 to
business. He intends to        Dec 2002).
build on CN Radio's
reputation for providing
compelling and interactive     In May 2004 he joined CN Radio as Station Director for Oak
radio for the communities it   107FM, taking audience listening to 27% and increasing
serves.                        revenue by over 30%.



                                                                                 Ownership Page 7
Julie Fair
POSITION:                       Non-Executive Director
OCCUPATION:                     Group Operations Director, CN Radio Limited
OTHER MEDIA INTERESTS:          Century 105 Ltd (res'd); Century 106 Ltd (res'd); Century 100 Ltd (res'd);
ANY OTHER DIRECTORSHIPS         Birmingham Broadcasting Ltd (res'd); Digital News Network Ltd (res'd);
                                Absolute Radio International Ltd (res'd);
HELD DURING PAST 5 YEARS:

Energy,      drive    and       Julie is currently Group Operations Director of CN Radio and is
enthusiasm, with a radio        instrumental in the day-to-day operations of the business. She
career than spans some 20       was previously Regional Managing Director North for Capital
years, Julie is one of the      Radio plc.
most experienced and
visionary managers in the
UK radio industry.              Julie was responsible for the three Century brands (100
                                Newcastle, 105 Greater Manchester & 106 Nottingham), Sun
                                FM in Sunderland, Beat 106 and BRMB, where she was
                                Managing Director also overseeing Fox FM and Red Dragon.

                                Under Julie's management, Century 105's operating profit rose
                                by 73%, revenue increased by 23%, local S&P by 21% and
                                local airtime by 15%. Part of her overall improvement strategy
                                saw the implementation of the very successful Legends
                                phone-in.

                                 ue a s ae r t t t ri o n n 9 0 h r,
                                   is e                 ae          a
                                J l’ s l c re s r da Mec S u di 1 8 w ee
Julie has experience of         after four years, she became Sales Manager.
launching and operating
large-scale stations. She       In 1987, Julie joined BRMB as its Sales Manager. A year after,
was instrumental in the         Capital Radio took over BRMB in 1993 and Julie was promoted
re-launch of Century 105        to Sales Director.
and will be of great
assistance to our launch
team.                           In 1997, Julie was promoted to Managing Director of BRMB
                                during the most difficult period that the station has ever faced.

                                  ui ue e ue s
                                    n     is                 f R , ui c ec et
                                D r gJ l’ tn r a MD o B MB a d n era hw n  e
                                from 26% to 37%. Revenue rose by 45% despite the inventory
                                being reduced from 11 minutes per hour to only 9.

                                Whilst Julie was MD at BRMB, profit rose from £3.1m to £5.6m.

                                In 1999, Julie was promoted to Regional Managing Director
                                North, overseeing Fox FM and Red Dragon in addition to
                                BRMB.

Julie's             extensive   In 1998 and 2000, Julie was runner up in the West Midlands
experience will ensure not
only a successful launch        Businesswoman of the Year Award and is now on the Selection
for Citylife but also working   Committee.
alongside         the     MD
designate that the station's    Julie is a Radio Academy Judge for the Nations & Regions
policies are sound to           Awards, a Judge for the West Midlands RTS Awards and was
ensure its success over the
                                previously a Judge of the West Midlands Cream Advertising
duration of its licence.
                                Awards.



                                                                                       Ownership Page 8
Mark Wright
POSITION:                        Non-Executive Director
OCCUPATION:                      Group Sales Director, CN Radio Limited
OTHER MEDIA INTERESTS:           -
ANY OTHER DIRECTORSHIPS
HELD DURING PAST 5 YEARS:        -

With a real passion for          Mark is the Group Sales Director of CN Radio responsible for
radio, Mark's successful         growing airtime, sponsorship and promotions, commercial
career      in    sales          production and NTR revenue across the CN Radio network.
management over 16
years.
                                 He was previously the Group Commercial Planning Controller
                                 for the newly merged GCap Media plc. A strategic post, it was
                                 Mark's task to review all the commercial procedures
                                 independently at GWR and also at Capital Radio and formulate
                                 a structure and plan of how best the merged company should
                                 move forward in its commercial areas. Such initiatives included
                                 managing numerous sales integration projects and for setting
                                 up new airtime planning and regional marketing teams covering
                                 areas of selling, sponsorship and training.


                                 Prior to the merger of GWR and Capital, Mark had a very
                                 successful 15 years in sales management with the GWR Group
                                 and can proudly say that he never missed an annual budget.

Mark is recognised as an         He has held Sales Director positions at GWR FM Bath, Severn
innovative and strategic
                                 Sound, Wyvern FM and, one of their biggest sites, GWR FM in
thinker who is able to
successfully implement his       Bristol.
ideas to their full potential.
                                 Under Mark's tenureship, Wyvern FM and Severn Sound both
                                 made £1million profit for the first time in their history.


                                 Whilst at these stations, his successful initiative 'Sound
                                 Business Plan' conferences saw GWR take over 30 clients
                                 around the world to meet with experts in their various business
                                 fields. This, in turn, lead to a 40% year-on-year increase from
                                 the 10 clients he personally recommended for the venture.


                                 His time at GWR FM in Bristol saw him restructure the sales
                                 team at Bristol.


                                 Mark was responsible for setting up the Midlands Agency Team
                                 for GWR. Previously, Midlands based agencies were being
                                 serviced from Manchester and it was Mark's vision of servicing
Having worked in small,          them locally and better which saw a 41% increase in the first
medium and large markets,        year from the Midlands agencies.
Mark will be innovative and
productive, working well
alongside the first class        Whilst at GWR, Mark sat on many committees including the
management             team      Group Training Committee and the Group Pricing Committee
proposed for Citylife.           as well as being involved in many project teams.



                                                                                Ownership Page 9
Robin Burgess
POSITION:                        Non-Executive Director
OCCUPATION:                      Chief Executive, CN Group Limited
OTHER MEDIA INTERESTS:           CN Group Limited and its trading subsidiaries; The Cumberland and
                                 Westmorland Herald Ltd; The Press Standards Board of Finance Ltd
ANY OTHER DIRECTORSHIPS
                                 The Lake District Calvert Trust; The Cumbria Inward Investment Agency Ltd;
HELD DURING PAST 5 YEARS:        Investment Cumbria Ltd; The Cumbria Community Foundation; The Carlisle
                                 Cathedral Development Trust; Border Television plc (res'd)


Robin      took     up     the   Robin is Chief Executive of CN Group Ltd, the local
ceremonial post of High          independent media business, based in Carlisle. He took up this
Sheriff of Cumbria in March      role in 1985, previously being the Advertisement Director and
this year, following in the      has taken the company from strength to strength.
footsteps of his father in the
late 60s.
                                 Robin has built up CN Group Ltd, based in the north of England,
                                 into a successful and cash generative company with revenue of
                                 £37 million.


                                 Under his leadership CN Group has acquired newspapers in
                                 South West Scotland and Barrow in Furness, launched new
                                 magazines, including Cumbria Life, and developed its contract
                                 printing which includes printing part of the Scottish Sun every
                                 night.
  o is t tg s o rw
     n r
R b ’ s ae yi t go
a significant group of
profitable   stations   by       During his period as Chief Executive, Robin has invested in and
acquisition and licence          embraced new technology, re-equipping the Group with
award. As a private                t      t
                                 s t-fh -r e u me to n ue h f e o eai f
                                                 ’ p
                                 ‘aeo- eat q i n t e s r teefi t p rt no      c
                                                                              i n          o
company, CN Group has            all the divisions, as well as taking full advantage of the
the luxury of being able to      opportunities presented by the Internet.
take     a    long    term
investment view.
                                 As part of the planned strategic development of the Group,
                                 Robin led the move into radio with the acquisition of The Bay
                                 and Belfast Citybeat in 1999. Since then CN Radio has grown
                                 the radio division with the acquisition of Kix 96 (now Touch FM
                                 Coventry), Centre FM, The Bear (now Touch FM Stratford),
                                 Oak FM and Rugby FM. The Group's radio division has also
                                 been successful with licence applications in Banbury, Warwick
                                 & Leamington Spa and Barrow-in-Furness.
Robin believes that being
an independent company           Robin has always championed CN Radio applying for new
applying for Manchester is       licences and has fully supported Jon Hewson since his
in the best interests for        appointment in this latest tranche of applications and is looking
Mancunians as we can not
only deliver what is needed      forward to CN Radio becoming a bigger player in the radio
but devote ourselves to this     industry.
larger licence for CN Radio
to ensure we superserve
                                  o is us e cvi n u
                                     n         i
                                 R b ’ o td a ti s i l e b i a Drc ro te
                                                       it  e cd eg         n         eo
                                                                                    i t fh
the listener. We are in the
luxurious position of not        Cumbria Inward Investment Agency. He is involved in various
having to jump to the tune        c         te cdg
                                 o l h ri n u n h r c ’ rs a d      n s
                                 l a c ai si l i T ePi e Tu t n the Cumbria
of public shareholders nor       Community Foundation. He is Chairman of the Trustees of The
to a blanket programming         Calvert Trust (Keswick), an organisation that arranges adventure
regime.                          courses for the disabled in the Lake District.



                                                                                       Ownership Page 10
Andy Swanston
POSITION:                      Non-Executive Director & Company Secretary
OCCUPATION:                    Finance Director & Company Secretary, CN Group Ltd
OTHER MEDIA INTERESTS:         CN Group Ltd; Belfast Citybeat Limited; Centre Broadcasting Limited; The New
ANY OTHER DIRECTORSHIPS        102 Limited; Furness Newspapers Limited; Oak FM Limited; Lakeland Radio
                               Limited; Eskdale & Liddesdale Newspapers Limited; J Catherall & Co (Printers)
HELD DURING PAST 5 YEARS:      Limited; Cumbrian Newspapers Limited; Kix 96 Limited; Jennings Brothers
                               Public Limited Company (res'd)


Andy brings a significant      Andrew Swanston is Finance Director and Company Secretary
level    of    commercial      of CN Group Limited, the multi media business delivering
experience and expertise       information, entertainment and advertising through radio
to the Board which, allied     stations, newspapers, magazines and new media.
with his direct media
involvement in       recent
years with CN Group, will
ensure the commercial
success of Citylife.
                               Andy holds an Honours Degree (BA) in Economics and
                               Accounting from the University of Newcastle upon Tyne and is a
                               Fellow of the Chartered Institute of Management Accountants
                               (FCMA).




                                 n y r y e p n ile i n N ru r h
                                     s ma                 bi s h
                                                            t
                               A d ’ pi r rs o s ii wti C G o p ae te
                               management of all financial and company secretarial affairs
                               and, together with the main Board, the strategic development of
                               the Group.

CN Radio will inject
significant        financial
expertise     into      the
day-to-day running of the
                               Andy was directly involved in 2001 with the successful
station.
                               acquisition by CN Group of Centre FM and The Bear 102 radio
                               stations and more recently with Lakeland and Rugby FM.




                                n y ae r a n u d e i f a c l x ei c i
                                    s               cd         o n a
                               A d ’ c re h si l e s n r i n i e p r n ewt       e        h
                               both UK (Burmah Oil) and US owned (ITW) multi-nationals and
                               smaller entrepreneurial companies (Jennings Brothers plc).




Andy will ensure all the
appropriate management         Prior to joining CN Group in 2001, Andy was Finance Director at
information systems are        Jennings Brothers plc, the brewer and pub operator, and
installed into Citylife to     managed its successful application, in 1995, to join the
allow the executive to         Alternative Investment Market (AIM) on the London Stock
manage       the   station     Exchange. In 1999 Andy led the takeover by Jennings of Café
effectively.                   Inns plc, a move which almost doubled the size of the business.



                                                                                       Ownership Page 11
(b)   Proposed Investors and Shareholding Structure
      Full details of the proposed shareholding structure should be provided.

      (i)      Names and addresses (the latter may be submitted in confidence) of all existing
               or proposed shareholders.

      (ii)     Total number, class/classes of shares and issue price of shares (specify voting,
               non-voting, preference, other etc)

      (iii)    All voting shareholders and holders of 5% or more of non voting shares and loan
               stock should be named. State the number of class/classes and price of shares to
               be issued to each investor.
              TABLE 1: Proposed Shareholding Structure

                                                  Ordinary
                Shareholder                                     Issue Price      Voting %       Funding %
                                                   Shares
                CN Group Limited
                Newspaper House
                                                 2,500,000          £1.00          100%           100%
                Dalston Road
                Carlisle CA2 5UA



      (iv)     Outline any shareholders' agreements or arrangements which exist.

               None.

      (v)      Where a corporate body other than a current Ofcom licensee will be providing
               30% or more of the required funding, details should be given of its directors and
               main shareholders, and of its activities.

               CN Group Limited is a multi-media business focused on serving local communities,
               delivering information and entertainment through newspapers, radio stations, electronic
               services, magazines and other related products. The trading operations comprise three
               divisions:

              Publishing:          Newspapers,     magazines    and    internet activities with
                                   publishing centres at Carlisle, Barrow, Hexham, Workington,
                                   Whitehaven and Langholm.


               TABLE 2: The Directors of CN Group Limited

                Lord Inglewood                               Chairman (Non-Executive)

                Mr R L F Burgess                             Chief Executive
                Mr C Bisco                                   Director
                Mr P G Simpson                               Director
                Mr A J Swanston                              Director
                Mr C D Brims                                 Director (Non-Executive)
                Mr C W J Burgess                             Director (Non-Executive)
                Mr J A Hancock                               Director (Non-Executive)
                Mr G H Mounsey-Heysham                       Director (Non-Executive)
                Mr D W Trimble                               Director (Non-Executive)




                                                                                            Ownership Page 12
              TABLE 3: Shareholders who own in excess of 3% of the issued share capital of CN
              Group Ltd

               The Sir John Burgess Settlement                                7.15%

               Mr C W J Burgess                                               6.65%
               Mrs A H Cartmell                                               6.15%
               Mr R L F Burgess                                               4.55%
               Mr T J Arnison                                                 4.13%
               The R L F Burgess Discretionary Trust                          3.82%
               Mrs J E Arnison                                                3.18%


             Radio:               Radio stations broadcasting in the Midlands, Northern Ireland and
                                  Lancaster.

             Printing:            Presses at Carlisle and Barrow printing company and external titles.

      (vi)    Ofcom may request additional information (e.g a bank's letter,
              statutory/management accounts) regarding the shareholders, or any other
              providers of finance listed in the application.

              CN Group Limited's Statutory Accounts for 2005 have been forwarded to Ofcom.



(c)   Involvement of the Applicant in Specified Activities
      Details are required of the involvement by the applicant and its participants (including
      shareholders or other subscribers of more than 5% of the applicant's total funding requirements)
      in any of the activities listed below, and the extent of the interest. For these purposes, the
      applicant includes associates of the applicant (i.e directors and their associates and other group
      companies).

      (a)     Advertising agencies;

              None

      (b)     Newspapers;

              CN Group publishes ten newspaper titles in Cumbria, Northumberland and South West
              Scotland through its subsidiary companies:

              Cumbrian Newspapers Limited:

                •     The Cumberland News
                •     News & Star
                •     Times & Star
                •     The Whitehaven News
                •     East Cumbrian Gazette
                •     West Cumbrian Gazette

              Furness Newspapers Limited:

                •     Northwest Evening Mail
                •     The Advertiser




                                                                                      Ownership Page 13
      J Catherall & Co (Printers) Limited:

        •     Hexham Courant

      Eskdale & Liddesdale Newspapers Limited:

        •     Eskdale & Liddesdale Advertiser

(c)   Other Broadcasting Interests;

(d)   Bodies whose objects are wholly or mainly of a religious nature

      Robin Burgess, who is a beneficial owner of more than 5% of CN Group Limited, is a
      Church Warden at All Saints, Scaleby. He is also a Trustee of Carlisle Cathedral
      Development Trust.

(e)   Bodies whose objects are wholly or mainly of a political nature

      TABLE 4: CN Group's Other Broadcasting Interests

      Radio Station Licensee                     Area                              Interest
      Bay Radio Limited                          Morecambe Bay                      100.00%
      Belfast City Beat Limited                  Belfast                            100.00%
      Kix 96 Limited                             Coventry                           100.00%
      Oak FM Limited                             Loughborough                       100.00%
      The New 102 Limited                        Stratford-upon-Avon & Banbury      100.00%
      Centre Broadcasting Limited                South East Staffordshire           100.00%
      Lakeland Radio Limited                     Kendal & Windermere                100.00%
      Rugby Broadcasting Company Limited         Rugby                              100.00%
      2Day FM Limited                            Warwick & Leamington Spa           100.00%
      Barrow Broadcasting Company Limited        Barrow-in-Furness                   30.00%


      None.

(f)   Local authorities

      None.

(g)   Other publicly-funded bodies

      Robin Burgess is a Trustee of Cumbria Inward Investment Agency.




                                                                             Ownership Page 14
2.    FINANCIAL AND BUSINESS PLAN


(a)   Overall Financial Strategy
      Provide a concise summary of how the applicant considers it is able to establish and maintain,
      throughout the licence period, its proposed service, and how this licence fits in with the investors'
      strategy.

         N a is ho o h s o rw i i a t ru f rf l t i s y c u i
               o       l                       gf
      C R d ’ p is p yi t go as n i n go po poi b s t n b a q it na d
                                                    c                   a
                                                                       t e ao                    o
                                                                                               si n
      licence award. As a private company, CN Group has the luxury of being able to embark on a long
      term investment strategy, which includes further acquisitions, for its radio division. CN Group is
      reluctant to continue solely as an operator of small-scale stations and, as acquisition targets
      become more scarce, has allocated considerable resource over the past three years in pursuit
      of a regional/citywide licence to bring a critical mass to the group alongside Citybeat in Belfast
      and ensure CN Radio retains the radio talent it has been fortunate enough to attract.

      A licence award in the North West would also provide a magnitude that CN Radio is accustomed
      to with its nearby newspaper business. The addition of Citylife will cement this position.

      CN Radio's business objectives in relation to Citylife will be to:

                •Create and build a local radio station for the underserved 45-64 year olds across the
                 Greater Manchester area with outstanding speech content and by playing
                 distinctive and enjoyable music.
                •Employ the best talent available, both on and off-air, creating an outstanding team
                 ethos that will maximise our impact amongst our target audience.
                •Deliver a new and substantial 45-64 year old audience profile that will prove alluring
                 to advertisers, who currently believe that ILR poorly targets older listeners.
                •Re-ignite the passion for Local Commercial Radio once more, in a sector that is
                 currently dominated by the BBC.

      Citylife will attain a loyal 45-64 year old listener base by:

                •Capturing the fervour of Greater Manchester, as seen and appreciated by 45-64
                 year olds, throughout our speech programming.
                •Providing the most appropriate mix of speech and music to 45-64 year olds in a
                 manner not adopted by any other commercial station in the market.
                •Utilising core speech values that are of most interest to 45-64s living in the area and
                 proven to improve listening hours, especially amongst ABC1s.
                •Providing music of specific appeal to 45-64s not currently available on any other
                 radio station in the market place.

      Citylife will maximise its revenue opportunities by:

                •Utilising our unrivalled sales management skills to create an award-winning local
                 sales team. This was yet again proven when The Bay won Local Sales Team of the
                 Year 2005 at the arqiva/CRCA Commercial Radio awards.
                •Converting a large number of BBC Radio listeners to Commercial Radio; our
                 research indicates that up to 664,000 current BBC Radio listeners will trial Citylife
                 and liked our Citylife music montage. These potential listeners indicated they would
                 listen for on average for 2 hours a day for at least 5 days a week. 53% of this ILR
                 elusive listener base indicated they would listen at breakfast.
                •Attracting 49% of BBC Radio most often listeners indicated they would listen to
                 Citylife, that's 546,000 BBC listeners that currently put the BBC first. This valuable
                 consumer group indicated it would listen for 11 hours a week on average. 52% will
                 listen at breakfast.



                                                                                          Financial Page 15
          •Welcoming up to 527,000 ABC1s who indicated they both liked the Citylife product
           and would listen to our new station. This BBC biased listener base indicated it would
           listen for 9.7 average weekly listening hours. 61% will listen at breakfast.
          •Introducing up to 93,600 new listeners to radio, who stated they would trial Citylife
           and liked our music product and were prepared to listen for up to 13 hours a week.
           72% of these listeners will listen to the morning show.
          •Adding a further 1.8 million weekly listening hours to Commercial Radio by enticing
           listeners to listen to the radio for longer and encouraging BBC Radio listeners to
           switch.
          •Persuading new advertisers to use Commercial Radio through association with our
           target market. These clients have hitherto found our target audience difficult to
           access; 58% of advertisers who made a decision in our advertisers' survey stated
           they would use the station to access our target audience.

Citylife will maximise its profits by:

          •Relying on the immense knowledge and talent of its designated Managing Director,
           Jon Hewson, designated Strategic Development Director and Julie Fair, who have
           vast experience of launching and operating large scale city-wide and regional
           stations, particularly in this market place.
          •Matching the revenue earning excellence of Citybeat, which constantly achieves
           double-digit market share and has a higher revenue yield than 16 regional stations;
           Saga WM, Saga EM, Saga Glasgow, Wave 105, Real Scotland, Real Radio, Real
           Yorkshire, Century 105, Heart 106, Vibe East, Galaxy 105-6, Galaxy 105, Galaxy
           102.2, Galaxy 102, Vibe Wales and Heart 100.7 (Source: latest statutory accounts)
          •Replicating the operating ethos of Citybeat which produces higher operating profit
           margins than: Saga WM, Saga EM, Saga Glasgow, Wave 105, Real Radio, Real
           Yorkshire, Century 105, Heart 106, Xfm Scotland, Vibe East, Galaxy 102, Vibe
           Wales and Heart 102.6 (Source: latest statutory accounts).
          •Utilising the vast cash resources of CN Group to invest heavily in marketing and
           promotion activities to entice as many 45-64s as possible to sample the station.
          •Providing specific investment into staff training programmes, which will facilitate
           defined personal career progression for all individual staff members at Citylife.

The adoption of these basic business principles will enable Citylife to exceed the cautious
audience and revenue targets contained within its business plans.

CN Radio believes speech content is as important as music in establishing a viable station for
45-64 year olds in the Greater Manchester area. What we do between our songs is what matters
to our listeners. To that extent, Citylife has consciously applied considerable resource towards
our speech product. This will allow us to hire a greater complement of high quality programming
and news staff and nurture this talent through a development and training programme. This
strategy will lead to higher audiences and subsequently improve revenue.

CN Radio is committed to producing superior programmes for the communities it serves and
Greater Manchester will be no exception. Through a commitment to localised programming,
particularly in news, CN Radio stations have been rewarded with the following:

          •Belfast Citybeat was awarded ntl/CRCA Commercial Station of the Year 2003 and
           has an impressive Sony award track record. With only 6 entries and 6 nominations
           in the past 4 years, Belfast Citybeat has won 6 Sony awards for speech and
           interaction, 5 Gold and one Silver.
          •The Bay was awarded arqiva/CRCA Local Sales Team of Year 2005 and nominated
           as ntl/CRCA Newsroom of the Year for 2004.
          •Centre FM is a three-time nominee for ntl/CRCA Station of the Year (2000, 2001,
           2003) and became Gold Award Station of the Year for the West Midlands in 2003 in
           the Radio Academy awards.



                                                                                Financial Page 16
                •The Bear received the Silver Award for Station of the Year for the West Midlands
                 Radio Academy Award in 2003.
                •Mid 106 was awarded Silver in the Northern Ireland Radio Academy Station of the
                 Year awards in 2003, less than a year after it commenced broadcasting.

      Citylife will be one of the most technically advanced stations in Europe using the latest RCS
      MasterControl digital broadcast software and state-of-the-art broadcast consol. By investing in
      technology our audience will be able to access programming, past or present, anytime of the day
      through downloading (mp3) and pod-casting (ipod). Citylife intends to be accessible on a
      multitude of delivery platforms dependent on the availability of carriage at the time. Citylife will
      prefer DAB to complement its analogue and internet carriage as this mirrors the platforms that
      our consumers are investing in currently.

      CN Group, is a multi media business focussed on serving local communities, delivering
      information and entertainment through its different media outlets. Its operational philosophy for
      radio is no different from that of its newspaper, magazines, printing or online businesses. It is
      very proud of the growth it has achieved in the radio sector, which now contributes more revenue
      to the group than its highly profitable print division. As a £40 million turnover business, with
      annual profits of £4 million and cash inflow of £5 million, CN Group is ambitious to consolidate its
      position in the UK radio market and sees this licence as the perfect opportunity to realise that
      vision.

      The proximity of Manchester to CN Radio's North West cluster of stations, surrounding the
      highly successful The Bay, make this a perfect opportunity for CN Radio to consolidate its
      presence in the North West and provide the group with a central resource from which to expand
      its operations across the region.

      CN Radio has already attracted top class, high profile radio executives with track records of
      operating at regional station level, all with experience of the North West market (see Confidential
      Financial Appendix for details). With its high calibre of staff and its structure in place, CN Radio is
      ready to take on this additional challenge and make a difference in Manchester, with an
      independent product specifically designed for local people and not by programmers in London.



(b)   Funding
      Detail the sources of finance that will be used to fund the licence, under the following headings:

      Our business plans provides for an investment of £2,500,000 for Manchester Citylife Limited.

      (i)     Share Capital

              Manchester Citylife Limited will provide this funding by subscribing for £2,500,000
              Ordinary £1 shares at par.

      (ii)    Loan Stock

              None

      (iii)   Leasing/HP Facilities (capital value)

              The station will enter into a total broadcast contract (TBC) with arqiva which covers the
              maintenance and capital value of the transmission equipment. The total payment to be
              made to arqiva for this service over the 12 year licence period is £420,000.




                                                                                            Financial Page 17
      (iv)    Bank Overdraft

              None. CN Group is cash generative and it is not envisaged that borrowings are required
              by the group to fund this project. In 2005 the net cash inflow from operating activities for
              CN Group Limited has risen to £5.3m.

      (v)     Grants and Donations

              None.

      (vi)    Other (please specify)

              None.

      Where relevant, provide information on:

      (i)     Loan terms (e.g interest rate, repayment terms, redemption/conversion terms)

              See (e) (ii) above.

      (ii)    Assets Leased

              Manchester Citylife Limited will contract hire its car fleet, refreshing it every three and a
              half years. The transmitter and transmission equipment will be funded through a TBC
              (Total Broadcast Contract) with arqiva. All other assets will be purchased from cash
              funds.

              Please see Detailed Assets in our business plans Excel file.



(c)   Financial Projections
      The applicant should provide financial projections on an annual basis for the licence. The
      projections must include:

      (i)     Profit and loss accounts

      (ii)    Balance sheets

      (iii)   Cash-flow forecasts

      Manchester Citylife Limited has submitted five year summary business plans.

      The first three years of the licence period are critical in establishing the audience platform and
      revenue build for the station and these have, therefore, been submitted in detailed monthly form.

      The applicant should detail how revenue figures were derived, distinguishing between local,
      national and sponsorship revenue.

      Please see the Confidential Financial Appendix for the business plans and underlying
      assumptions and detailed revenue projections.




                                                                                          Financial Page 18
(d)   Audience Projections
      The applicant should also address the following issues:

      (i)     The projected adult (aged 15+) population of the Total Survey Area (TSA)

      The adult population of Citylife's TSA is 1,531,640. This is based on 2001 Census population
      predictions for our coverage area (Source: CACI). This calculation was arrived at by CACI digitising
      arqiva's coverage prediction map, at 54dB, and overlaying it on population mapping software.

      The CACI population projections for our third year on air predict the incumbent adult population
      to have risen by 68,860 (4.5%) from 2001 Census data. This is despite Greater Manchester
      experiencing a net migration between 1991 and 2001. Historically Greater Manchester has had
      a slightly younger population profile compared to the UK as whole, however throughout the term
      of the licence period the population will age with 45+s outweighing 15-44s.

      In contrast to other regions of the UK, Greater Manchester is not regarded as one of the most
      affluent areas; although it is certainly not one of the poorest. Much inward investment and
      rejuvenation has led to job prospects in Manchester now being only slightly lower than the
      national average and house ownership stands at 65% compared to 69% for the UK. However
      there are lower proportions of ABC1s and less of the population employed in managerial and
      professional jobs.

      The area has a much higher proportion of working age adults that are laid off with long-term
      illness. Male Mancunians tend to work shorter hours than the rest of the region and nation,
      whereas females work longer hours than average.

      If this all conjures up visions of Lowry's matchstick men then it couldn't be further from the truth.
      Manchester has the second largest sub-regional economy outside of London, with a rich history
      of invention and culture and a burgeoning business community. More than 60 of the Financial
      Times' top companies have a presence in the city; BT, BUPA, Adidas, Kellogg's, Heinz, Fujitsu -
      as well as around 60 banks. In addition, companies which have invested in the Greater
      Manchester area in recent years or have announced an intention to do so include Avis Europe,
      Marks & Spencer, Michelin, Seamark, the Bank of New York and Ticketmaster.

      The new university of Manchester, an amalgamation of two academic centres of excellence in
      2004, is the biggest in the UK and currently working on advanced projects such as research into
      genes that cause chronic diseases and developing a revolutionary light alloy to make aircraft,
      cars and trains more environmentally friendly. There is the newly opened John Rylands library,
      containing one of the finest collections of books and manuscripts in the world, and Manchester's
      International Airport is among the Top 20 in the world and rising.

      Manchester has re-invented itself over the past 10 years - a contemporary metropolis with
      modern landmark buildings, thriving art and cultural scenes, fine dining and nightlife. The
      shopping too has come a long way with department stores now including Harvey Nichols and
      Selfridges, plus more retail therapy at the likes of Louis Vuitton, Hermes, Barbour, Vivienne
      Westwood, Armani and DKNY. Add first class theatre, major sporting events and festivals, the
      renowned Halle Orchestra and two of the Premiership's finest in Manchester United and
      Manchester City and not for nothing is this northern light recognised as the coolest city in Britain.
      It's an accolade that should be even more deserved in 2007 when the Manchester International
      Festival is to be launched to rival the annual bash in Edinburgh.

      In Commercial Radio terms, the North West is the most important region outside of London,
      producing more revenue than any other and has recently matched the North East as the two
      regions with the highest commercial revenue per listener and is now only £0.01 behind for
      revenue per listening hour (Source: MMS runs to May 2006). Our own analysis of individual stations'
      MMS runs for the past year suggests that most stations in this market are performing reasonably
      well in comparison to the UK average. However the results of our advertiser survey suggest that




                                                                                          Financial Page 19
Key 103 is the only local station for Manchester truely competing effectively with other media in
Greater Manchester in attracting local advertisers onto radio at present.

Our own advertiser survey suggests that radio still dramatically underperforms other media in
delivering outside of the 15-44 age bracket, whilst exceeding expectations amongst 15-34 year
olds. 100 of the top advertisers in the area were scathing in their view of how poorly radio targets
45+s (see Table 44) and also clear in dismissing 65+s as not a target market they are interested in
(see Table 43). With 81% of the top 200 advertisers targeting 45-54s and 67% targeting 55-64s
(only 20% target 65+s) it is a damning verdict that only 60% of those same advertisers consider
Commercial Radio in Manchester is good for targeting 45-54s and only 12% consider it good at
targeting 55-64s (see Table 44).

Citylife's research programme proves that 45-64s are the most sort after demographic that ILR
fails to cater for. In addition, our financial analysis of all other regional stations shows that
advertisers are likely to pay 70% more to access a 45-64 year old rather than a 65+ listener (see
calculations in our Confidential Financial Appendix). It also shows that the core target audience being
delivered by the most established, 45+ only, radio brand in the UK to date, Saga Radio, is 60-74
year olds - where it attracts 50% more reach than amongst 45-59s or 75+s and 83% more share
than amongst 45-59s. This means that Saga performs well in turning BBC Local Radio listeners
into ILR listeners but completely ineffectual in changing the listening habits of BBC Radio 2
listeners. For commercial radio the chasm between the audiences being delivered by existing
ILR stations in Manchester and Saga is too great for many advertisers to bridge.

With regards to new media take-up; with under-44s preoccupied with experimenting with TV,
MP3 and mobile phone as platforms to hear their favourite radio stations on, it is 45-64s in
Manchester that are leading the way with internet and DAB radio take up. Although only 16% of
adults own a DAB set, this rises to 22% amongst 45-64 males. Interestingly 24% of 45-64 male
BBC Radio listeners own a DAB set compared to only 17% of 45-64 male ILR listeners. The
disparegy in DAB ownership is even greater amongst solus listeners with 45-64 male BBC
Radio only listeners at 28% and 45-64 male ILR only listeners at 9%.

Amongst all adults, as listening to radio via TV (35%), internet (22%) and ownership of MP3
(23%) outstrip the ownership of DAB sets (16%), it is imperative that those age bands that are
currently most suited to DAB, 45-64 years olds, are given responsibility to drive this medium
forward. In fact it is the poor take-up of new technology by 65+s that is driving those all adult
figures downwards. These technology avoiders are also poorly valued by advertisers because
they no longer exert business influence in the community (only 3%) compared to 45-54s (47%).

Citylife's 45-64 target audience is the largest unserved audience with disposable income, time
availability and inclination to try something new. As the first generation of baby boomers, they
have lived life to the full but still have a lot to offer, a good proportion have parents that are alive
today and they still believe there is much ahead of them. Blessed with all their faculties and more
affluent and sort after than 65+s they are vested in property and pensions. They are caring and
concerned about the environment, job prospects for their children and have the means and
inclination to do something about it. They make a truly responsive and appreciative audience.

 Citylife has assumed a realistic adult TSA and has adopted a target audience that will continue
 to represent the population bulge throughout the licence period. It has also chosen a target
 demographic that is highly sort after and lucrative yet poorly served by ILR.




                                                                                       Financial Page 20
(ii)     Projections for listenership ratings over the first three years of the service

Manchester Citylife's audience projections for the year 3 of trading are as follows:
TABLE 5 : Summary of Citylife's Audience Projections

                                                Year 1                 Year 2                   Year 3
  Population                                   1,531,640              1,531,640                1,531,640
  Weekly Reach                                   14%                     16%                     18%
  Weekly Listeners                              217,907                249,507                 281,107
  Average Weekly Listening Hours                  5.8                    6.8                      7.6
  Total Weekly Listening Hours                 1,266,929              1,700,210                2,133,491
  Total Market Listening Hours                 29,193,301             29,490,151            29,787,000
  Market Share                                   4.3%                   5.8%                     7.2%



Citylife expects to attract 18% of the adult population to listen to the service each week by year 3.
This is a conservative estimate that is predicated on the results of our demand research, where
74% of our target audience indicated they would trial a new station for the area and 62%
considered they would listen to a station playing Citylife's music proposition.

Our target audience of 45-64 year olds is an audience segment where Local Commercial Radio
currently underperforms dramatically (see Table 8) and by broadening choice to this audience,
with a service that is attractive and fulfills a gap, Citylife will significantly increase listening to all
Commercial Radio in the area.

Table 6 shows the detailed audience breakdown of Citylife in year 3:
TABLE 6 : Detailed Demographic Breakdowns (Year 3) (Source: Ipsos, Demand, August 2006)

                                                            Average      Listening    Market
                     Population    Listeners     Reach                                                  Share
                                                             Hours         Hours      Hours
  15-24 Males         128,489       10,513         8%         5.3         55,200     1,914,842          2.9%
  25-34 Males         138,506       16,702        12%         6.4         106,750    2,685,018          4.0%
  35-44 Males         139,381       23,573        17%         5.8         137,672    2,592,319          5.3%
  45-54 Males         121,041       30,647        25%         8.7         266,750    2,820,318          9.5%
  55-64 Males         94,154        27,557        29%         9.9         273,481    2,587,737          10.6%
  65+ Males           115,451       26,549        23%         7.8         206,275    2,367,608          8.7%
  15-24 Females       129,242       9,765          8%         4.4         43,000     1,892,688          2.3%
  25-34 Females       143,231       16,940        12%         5.6         95,563     2,120,648          4.5%
  35-44 Females       140,997       24,118        17%         5.6         134,400    2,299,687          5.8%
  45-54 Females       119,705       29,118        24%         8.6         250,900    2,679,778          9.5%
  55-64 Females       96,468        28,711        30%         8.3         237,038    2,033,630          11.7%
  65+ Females         164,975       36,792        22%         8.9         326,463    3,842,726          8.5%



73% of weekly listening hours will be derived from 45+s, this is a factor of 134 on the whole
market and a factor 214 on Local Commercial Radio, which currently attracts 36% of its weekly
listening hours from 45+s.

Please see our Excel business plans for more detailed audience projections




                                                                                           Financial Page 21
(iii)   The expected impact of the proposed service on existing services, in listenership
        terms

In general, compared to other large markets in the UK, the Manchester market has remained
relatively static over the past 6 years. This is mainly because, unlike other areas of the country
where BBC Radio 2 has been making hefty gains, in Manchester it has always had a healthy
audience base. In reality, what has happened here is that BBC Radio 2 has consolidated its
popularity by rising from 26% to 27% reach, and most of the other stations have at best
remained the same and at worst, in the cases of Key 103 (from 31% to 23%), Radio 1 (21% to
17%) and Magic (9% to 4%), lost considerable audience. The only notable ILR success has
been Smooth which has raised its weekly reach from 4% to 11% in 6 years. However, 7 of the
top 11 stations are within 2% of their year 2000 reach.

The largest listener gains that BBC Radio 2 has made have come amongst 45-64s and mostly
women, where an increase of over 10% has been registered. BBC Radio Manchester/GMR has
also had success in that market with 24% of 55-64 females now listening to the station
compared to only 15% some 6 years ago.

The BBC's strength lies in the ability of its stations to encourage much longer listening hours out
of its audience base than ILR amongst 45+s. With only 2 ILR stations out of the nine main ILR
stations (XFM and Asian Sound are not in RAJAR) in the area having 45+ audience profiles,
then BBC Radio 2, BBC Radio 4 and BBC Radio Manchester are left to dominate the older
sector (see chart 4). Whereas, BBC Radio 1 has clearly suffered in recent years from the combined
efforts of Key 103, Galaxy 102 and Century 105.4, as well as the more local stations; Imagine,
Revolution and Tower FM.

The other notable observation is that all the ILR stations attract a higher C2DE profile than exists
in the adult population profile of the area. BBC Radio Manchester/ GMR is the only BBC station
with a C2DE profile. The two ILR stations with the oldest listening profiles, Magic 1152AM and
Capital Gold are the least attractive of all stations to ABC1s (see Chart 5).

The breadth and depth of programming offered by BBC Radio 2 ensures that it captures 17.6%
all adult market share and enjoys a healthy 7.3% margin over its nearest rival, BBC Radio 4. The
trend report for the last 6 years is similar to that for weekly reach with Key 103 and Magic
1152AM losing most market share. BBC Radio 2 this time has made gains amongst 45-64 males
and 35+ females, again with the largest gains amongst 45-64 females, where it has more than
doubled its market share.

Our product is designed to offer choice to the local commercial market and in doing so will be
more attractive to BBC Radio listeners, who can not find programming that interests them on ILR
in this area. Naturally, by concentrating our efforts on providing more of what they want, which is
distinctly different to what ILR is currently providing for them, we will be going head to head with
the BBC, particularly BBC Radio 2 and BBC Radio Manchester. We fully expect those two
services to suffer most from the introduction of Citylife into the marketplace (see Chart 8 - Demand).

Another promising statistic from of our research was the reception our product received from
non-radio listeners. Our survey suggested that as many as 34,000 non-radio listening 45-64
year olds will trial our station and they stated they would average 11.0 weekly listening hours and
that would bring 374,000 new weekly listening hours to Local Commercial Radio over the first
three years of trading. Clearly, the lack of a suitable radio station for these people has left such
an insatiable appetite for a quality product such as Citylife. For the sake of prudence we have
included only 12,885 new radio listeners in our projections at an average weekly listening of 4.4
average weekly listening hours by year 3.

In order to ascertain our impact on Greater Manchester, we ran our audience projections
through our market place model to ascertain the effect of Manchester Citylife on each station
currently operating in the Greater Manchester radio market. We estimated additional listening
hours to the market from those respondents who will listen longer in order to tune to Citylife, and
calculated which stations will lose listeners and/or listening hours to our station, based on the




                                                                                     Financial Page 22
direct results of those respondents who stated they will be definitely or very likely to listen to our
proposed station sound. Citylife's impact on the market place for 45-64 year olds is estimated as
follows:
 TABLE 7 : Citylife's Impact on Current Station Performances amongst 45+s (Source: Ipsos, Demand,
 August 2006 based on Qtr 2, 2006 RAJAR RSL-Ipsos)

                                                                                                        3 Year
  Share                          Year 0           Year 1            Year 2            Year 3
                                                                                                       Movement
  BBC Radio 2                    24.9%                23.7%         23.3%             22.9%                 -2.0%
  BBC Radio 4                    16.5%                15.8%         15.6%             15.3%                 -1.2%
  BBC Radio Manchester            8.5%                7.8%          7.6%               7.4%                 -1.1%
  Classic FM                      7.0%                6.6%          6.4%               6.3%                 -0.7%
  BBC Radio 5 LIVE                5.5%                5.2%          5.0%               4.9%                 -0.6%
  100.4 Smooth FM                 5.1%                4.9%          4.8%               4.7%                 -0.4%
  Key 103                         4.1%                3.7%          3.6%               3.5%                 -0.6%
  105.4 Century FM                3.1%                2.9%          2.8%               2.8%                 -0.3%
  BBC Radio 1                     2.7%                2.5%          2.4%               2.4%                 -0.3%
  Magic 1152AM                    2.6%                2.4%          2.3%               2.3%                 -0.3%
  talkSPORT                       2.3%                2.1%          2.0%               2.0%                 -0.3%
  Galaxy 102                      2.2%                2.0%          2.0%               2.0%                 -0.2%
  Capital Gold                    1.6%                1.4%          1.4%               1.3%                 -0.3%
  Manchester Citylife             0.0%                5.7%          7.7%               9.6%                 +9.6%


BBC Radio 2, BBC Radio 4 and BBC Radio Manchester (GMR) will lose more market share than
any other stations. (Please see Evidence of Demand, Chart 8 for absolute listening hours lost to Citylife).

Chart 1 shows the position of Citylife in the market in year 3 of operation:
CHART 1 : Share Profile - the Greater Manchester Market in Year 3 of Operation (Source: Ipsos,
Demand August 2006/ RAJAR Ipsos-RSL Qtr 2, 2006, excluding XFM as not in RAJAR.)




      Classic FM Radio 4
                                                          BBC GMR
                                            Radio 2

                                                                                               Magic 1152
                                                      Citylife


                                                                            Capital Gold

                                                                                                            MALE ---->
                              Sm ooth FM

 <--- FEMALE
                                                                    Tow er FM




                               Im agine
                                                                                       105.4 Century FM
                                  Key 103

                 Galaxy 102                                                 Radio 1

                                                                                      The Revolution




                                                                                                          Financial Page 23
Citylife will attract an older, slightly female biased listener profile than any other ILR station in the
market. Our listener profile will compete head-on with BBC Radio 2 and BBC Radio Manchester
(GMR).

 Citylife really will produce a distinctive product that will see ILR move into unchartered territory
 - older adults with a ABC1 bias.


(iv)     The basis on which the estimates above have been calculated

Our audience figures were derived directly from the responses to our demand research and
subsequently downweighted to ensure a robust forecast (see our Excel business plans for detailed
audience projections and market expansion calculations).

Following our detailed review of the market, through desk research, a commissioned market gap
and tastes and interests study, a monitoring exercise and our focus group discussions, we
further contracted Ipsos to present our proposed format directly to residents of Greater
Manchester.

Respondents were played a montage of our proposed music output and asked whether they
would listen to a station playing that music. 74% of 45-64 year olds stated they would listen to a
station with our music output. This rose to 94% amongst BBC Radio 2 most often listeners and
100% amongst BBC Radio Manchester/GMR most often listeners (see Table 41).

62% of 45-64 year olds stated they would listen to a new radio station for the Greater
Manchester area, if it was available tomorrow with speech output aimed at them with local news
and information, presenters with personality, coverage of local current affairs and comedy clips
and to a station playing Citylife's music montage.

Due to the exceptional demand for this product we found that we had to factor downwards the
responses of all demographics, particularly those within our target audience, in order to produce
a realistic but cautious audience projection.

Our year 3 audience projections closely mirror the propensity to listen of those respondents who
found our music programming proposals very appealing and are definitely or very likely to listen
to the station. We have, therefore, expelled any doubt from these forecasts by eradicating all
respondents who stated they were fairly likely to listen to the station (as opposed to definitely or
very likely).




                                                                                        Financial Page 24
3.    TRANSMISSION PROPOSALS


(a)   Transmission Site(s)
      Having considered the technical parameters laid down within the licence advertisement,
      Manchester Citylife has consulted with arqiva to establish the best transmitter configuration for
      the proposed service.

      (i)     Name and National Grid Reference of Site

              Sunley Building, NGR SJ 844 983.

      (ii)    Height of site above Ordnance datum (in metres);

              44 metres aod.

      (iii)   Height of transmitting aerial above ground level (in metres);

              130 metres above ground level.

      (iv)    Radiated power in either or both planes of polarisation, and aerial radiation
              pattern (if no aerial radiation pattern is submitted, it will be assumed without
              exception to be omnidirectional).

              500 watts vertical and 500 watts horizontal giving an omni-directional antenna pattern.

      arqiva has offered us site-sharing facilities at Sunley Building. No planning permission is
      required for the antenna already exists. The changes required are all accommodated within the
      building.

      Sunley Building by virtue of its location provides excellent coverage of Manchester and the
      surrounding area.



(b)   Detailed computer predicted Coverage
      Please see a coverage prediction for the transmission area overleaf at Chart 2.

      We understand that there is a remote possibility of increased interference from Emley Moor and
      for that reason we have been cautious in not extending our TSA to the full coverage as indicated
      by arqiva which provides comfort in our business plans should this worst case scenario ever
      occur.

      A computer prediction of this worst case scenario is available should Ofcom wish to see it.




                                                                                   Transmission Page 25
CHART 2 : Coverage Prediction for the Greater Manchester region (Source: arqiva)




                                                                                   Transmission Page 26
(c)   Describe proposed arrangements for transmission provision
      Citylife anticipates contracting with arqiva for the provision of its transmission facilities, both for
      the establishment of the service and for its ongoing maintenance under a Total Broadcast
      Contract. As a well-established operator in this field, arqiva is equipped to maintain the
      transmitters on Citylife's behalf in accordance with the requirements of the relevant regulatory
      bodies.

      arqiva operates a 24-hour customer service centre which would have remote monitoring and
      control facilities for the transmitter site enabling them to respond rapidly to fault conditions as
      they occur from time to time.



(d)   Anticipated time-lapse
      Citylife anticipates broadcasting within nine months of award of licence, frequency clearance
      allowing.




                                                                                        Transmission Page 27
SECTION 105(B) AND (C): CATERING FOR TASTES AND
INTERESTS/BROADENING CHOICE


4.       PROPOSED FORMAT

                                    Manchester's Citylife 106.1FM

Format Outline
 Station Name                       Citylife 106.1
 Licence Area                       Manchester
 Frequency                          106.1FM
 Hours of Broadcast                 24 hours a day, 7 days a week locally produced/presented.


Definitions
                                    excludes advertising, trails, sponsor credits and the like and will be
 Speech
                                    calculated over the period specified.
                                    percentages are calculated as a percentage of the total tracks
 Music
                                    broadcast in the specified period.
                                    refers to weekday breakfast and afternoon drivetime output, and
 Peaktime(s)
                                    weekend late breakfast.
 Daytime                            is 0600 to 1900 weekdays and 0800 to 1400 weekends.
                                    output produced and presented from within the licence area and must
 Locally Made
                                    include peak time where required.


Character of Service
A locally-focused speech, information and music station aimed at Manchester's
45-64 year olds.

Detail
Music: Citylife will play a distinctive and eclectic mix of music from the past 50 years. Current (up to 3 months) and
recurrent (3-12 months) chart material would not normally make up more than 15% of daytime output. Our music
policy will commit to 70% of music over 25 years old and 70% from nostalgia, easy listening and country music
genres.

Specialist Music: There will up to 10 hours of specialist music and/or speech programming each week, after
19.00, covering a subject matter of direct relevance to 45-64 year olds.

Level of Speech Content: Citylife is very much the voice of Greater Manchester for 45-64s and, as such,
speech is an important part of the Format and must include a daily weekday topical magazine and phone-in style
programme. Speech will include regular news, views, entertainment, comedy, information and listener interaction.
Speech should never fall below 50% of the daytime output (06.00-19.00).

Local Material: Traffic & Travel, Weather, What's Ons, Lifestyle Issues, Community & Social Action Issues,
Interviews, Business News, 24 hour news bulletins will contain local news as well as national and world news.

News: 24 hour locally produced, live news will run at least hourly. During weekday daytime two of the news
bulletins will be extended at 13.00 (15 minutes) and 18.00 (30 minutes). These bulletins will cover stories
extensively, be more investigative and in-depth and interrogate local current affairs. 24 hour national and world
news will also feature at least hourly.

                                                                               Catering for Tastes & Interests Page 28
5.    PROGRAMMING PHILOSOPHY


(a)   Overall Programming Philosophy & Vision for the Radio Service
      Vision for the Radio Service

      Citylife will be a locally originated, 24-hour full-service radio station designed to satisfy the tastes
      and interests of people aged 45 to 64 years old. The station will be the voice of Greater
      Manchester for this poorly served segment of the population, providing quality speech alongside
      a distinctive music policy.

      We will:

                 •Provide constant levels of speech throughout the day (50:50 music:speech) - in
                  keeping with BBC Radio's strategy and avoiding ILR's more erratic attitude to
                  speech programming.
                 •Provide more overall speech than is currently available on ILR and less than our
                  audience is used to on BBC Radio Manchester - which they think is too much -
                  adopting BBC Radio 2's perfect speech:music mix.
                 •Have a style and content that is completely different from the short sharp and more
                  immature delivery of most other ILR stations in the market - our news positioning is
                  authoritative and informative, not trivial and entertaining.
                 •Provide local speech content that is derived from news and information rather than
                  general chat and entertainment, fulfilling a vast gap in the market.
                 •Provide some football news, as Key 103 does, but not in tabloid style - just
                  informative, keeping our mission of intelligent speech. We will not be competing for
                  sports coverage and thus Century will maintain its 14% reach amongst 45-64 males
                  as hard core footie fans will need their Legends fix every night - our programming is
                  not designed for them at that time of the day.
                 •Avoid Magic, Century, Capital Gold and Smooth's adult contemporary and
                  soul/Motown based music and concentrate on an older sounding station with music
                  that BBC Radio 2 and BBC Radio Manchester listeners appreciate, avoiding rock
                  that is just not popular here in Manchester.

      Our research proves that 45-64s are the most dissatisfied element of the adult population with
      ILR in Manchester and considered the most viable segment that is currently inaccessible to
      radio advertisers:

                 •Our RAJAR analysis shows that BBC Radio dominates listening amongst 45-64s
                  (see Table 8), where 73% of the males listen to BBC Radio each week.
                 •Our tastes & interests survey revealed that although BBC Radio is superior to ILR at
                  serving the needs of 45-64s (see Table 9), there are still many specific music and
                  speech requirements that remain uncatered for to enable a new commercial station
                  to provide a unique and popular product in the market.
                 •Our focus groups confirmed that the best music and speech elements that appeal to
                  45-64 year olds are only currently available on BBC Radio.
                 •Our monitoring exercise confirmed that none of the existing ILR stations are
                  delivering a product dedicated to serving the needs of 45-64s and this is why BBC
                  Radio stations perform so much better.
                 •Our demand research confirmed that 45-64s prefer the Citylife product above other
                  alternatives and a viable audience will convert to the station when on air.
                 •Our advertiser research identified 45-64s as the most attractive target market
                  currently inaccessible through commercial radio advertising (see Evidence of Support).




                                                                        Catering for Tastes & Interests Page 29
Our overriding ambition for the service is to rectify the recent audience trends amongst 45-64
year olds, where ILR has lost 8% reach amongst males and BBC Radio has gained 7% reach
amongst females since Qtr 2, 2001 (Source: RAJAR/RSL-Ipsos).

It can be seen from Table 8 that BBC Radio dominates listening amongst both males and
females aged 45-64 years old. Between them BBC Radio 2, BBC Radio 4 and BBC Radio
Manchester/GMR capture 39.4% of male share and 48.9% of female share:
TABLE 8 : Top stations for 45-64s (Source: RAJAR-Ipsos/RSL, Qtr 2, 2006)

                                    Reach                     Share                  45+ profile
                            Males       Females       Males       Females        Reach        Share
 BBC Radio 2                38%             39%       23.2%           26.1%       67%          78%
 BBC Radio 4                25%             22%       10.6%           17.2%       75%          89%
 BBC GMR                    21%             17%        5.6%           5.6%        74%          86%
 BBC Radio 5 LIVE           24%             8%         8.2%           2.2%        53%          60%
 Key 103                    12%             18%        4.0%           7.4%        23%          25%
 Classic FM                 13%             14%        3.7%           3.8%        75%          89%
 Smooth FM                  13%             12%        6.1%           8.0%        43%          58%
 105.4 Century FM           14%             10%        5.0%           3.9%        28%          28%
 BBC Radio 1                 8%             10%        4.4%           3.3%        17%          17%
 Galaxy 102                  5%             11%        1.6%           4.0%        15%          19%
 Magic 1152AM                7%             5%         4.3%           2.1%        65%          78%
 Capital Gold                6%             3%         2.8%           1.5%        64%          63%
 BBC Radio                  73%             66%       59.0%           57.8%       59%          70%
 ILR                        45%             48%       28.7%           32.6%       36%          38%
 Citylife                   27%             27%       10.0%           10.3%       64%          73%


Our speech policy will provide 45-64 year olds with essential news and information to a depth
that is never contemplated on Local Commercial Radio in this area and we will become
renowned for our dedication to content.

Our music policy has been specifically designed to cater for those tastes that are rarely satisfied
by existing ILR stations and this will also become our trademark distinguishing us from all other
providers in Greater Manchester.

Overall Programming Philosophy

Citylife intends to build a loyal and viable audience amongst 45-64 year olds through an
excessive devotion to satisfying their music and speech requirements. Our research has proven
that this age group is not only poorly served by existing local radio but completely ignored. Our
monitoring exercise showed that none of the existing ILR stations in the market seem to fully
understand the tastes of 45-64 year olds, let alone supply a service that is appealing to them.

In our tastes & interests survey there was not one commercial station that was voted best in any
one programming discipline by 45-64s (see Table 9). In fact, in the six essential programming
features we tested, only Key 103 managed to score in excess of 10% in anyone category, local
Manchester news, but still well below BBC Radio Manchester (GMR).

Unfortunately ILR stations all perform poorly in all programming disciplines and are left trailing in
the wake of the BBC stations. In fact, judging by the size of the 'none/don't know' vote for some
categories, local news alone, if the BBC doesn't provide it then no-one does.




                                                                  Catering for Tastes & Interests Page 30
TABLE 9 : Best stations for Important Programming Elements ..... 45-64s (Source: Ipsos, July 2006)

                   Music that     Presenters that      Local                                  Plays
                                                                  Intelligent   Comedy &
                   suits your    you can relate to   Manchester                             written for
                                                                    speech       humour
                     taste        & entertain you      news                                   radio
 BBC Radio 2          25%              21%               -           10%          15%           5%
 BBC GMR               3%               3%              26%          15%          3%             -
 Key 103              10%               9%              16%          8%           9%             -
 BBC Radio 4            -              17%               -           23%          20%          40%
 Smooth FM             9%               6%              4%           2%           2%            1%
 Classic FM            8%               4%               -           2%           1%             -
 Century 105           7%               4%              6%           3%           3%            1%
 Magic 1152AM          4%               3%              3%           3%           4%            1%
 None/don't know       9%               9%              27%          18%          31%          44%
 BBC Radio            34%              49%              28%          54%          41%          49%
 ILR                  36%              27%              32%          16%          19%           2%

It is evident that the immense popularity of BBC Radio 2 in our area is founded on its music
provision and presenter talent, whereas BBC Radio Manchester (GMR) is renowned for local
news and other information (see Table 9). For those 45-64 year olds who prefer more speech BBC
Radio 4 provides an intellectual speech offering that exceeds any expectations on ILR.

The table does, however, highlight the lack of essential local news on BBC Radio 2, the lack of
respect for the music and presenters on BBC Radio Manchester (GMR) and of course BBC
Radio 4's inability to completely satisfy our consumer's combined music and speech needs.

Citylife has taken much care and attention in designing a product that will provide sufficient
quantities of all of the most important programming elements, augmented with a good proportion
of those items not found on any other station in the market other than BBC Radio 4.

This more comprehensive and rounded product will attract listeners from BBC stations, with the
emphasis on attracting higher proportions of ABC1s than ILR currently achieves. Currently the
only two ILR stations that have an older audience profile, Magic 1152AM and Capital Gold, fail to
attract more than a third of their audiences from ABC1s. In contrast, our demand research
revealed that Citylife would attract 55% of ABC1s amongst 45-64s.

Localness

The lack of reputable supplier of essential local news and information to both male and female
45-64 year olds (see Table 38) has convinced Citylife of the gaping void for the type of quality local
speech that there is clearly a strong demand for in the market (see Table 37).

Localness will be the foundation on which Citylife is built. Local Commercial Radio must reclaim
ownership of local news and information provision amongst 45-64 year olds if it is to dramatically
reverse recent audience trends in favour of ILR. Music alone, whilst undeniably important, is not
sufficient to attract a consistent and loyal audience amongst older listeners and BBC Radio 2's
presenter rating amongst 45-64s is testament to that fact. The findings of our tastes & interests
survey where 45-64 year old BBC Radio lovers attributed greater levels of importance on many
of the local speech features tested than 15+s as a whole (see Table 37, Evidence of Demand) proves
that lack of supply is not a consequence of lack of demand.

At the same time, BBC Radio is admired for best providing all of those essential speech
elements to the 45-64 market, particularly males (see Table 38). Table 10 shows that no ILR station
registers with 45-64 years olds as a good provider of the most essential of the speech elements.
With respect to Key 103, which provides a popular local service to 15-39 year olds, it is a very
sad indictment of Local Commercial Radio in Manchester that no other station, even those that




                                                                  Catering for Tastes & Interests Page 31
claim to include 45-64s in their target market are not considered any good at providing these
essential local speech elements:
TABLE 10 : Best stations for Essential Local Speech Features ..... 45-64s (Source: Ipsos, July 2006)

                  Freq. News                     Interviews    What's-ons &                     Freq.
                                Freq. traffic,                                     Local
                    reports                          with      entertainment                   sports
                                  travel &                                        current
                     about                       interesting     news for                      info &
                                weather info                                      affairs
                  Manchester                       people       Manchester                     scores

 BBC GMR             34%            22%             5%             25%             28%          20%
 Key 103             14%            10%             3%             15%              4%           6%
 Century FM           6%             6%             2%              3%              2%           6%
 Smooth FM            3%             2%               -             3%              1%           1%
 Magic 1152M          3%             4%             3%              3%              1%           3%
 Capital Gold         1%             2%             1%              2%              1%           2%
 None                25%            24%             31%            34%             39%          33%
 BBC Radio           37%            44%             56%            34%             45%          41%
 ILR                 28%            26%             7%             27%             10%          17%


BBC Radio Manchester (GMR) is regarded as the superior provider of essential local speech
features to the community. For other essential non-local speech features tested, such as
national & international news and interviews with interesting people, BBC Radio 2 and BBC
Radio 4 were favourably viewed.

Citylife will provide for these fundamental speech elements and deliver them to a high standard.
CN Radio has a distinguished track record of providing quality speech for the communities it
serves and Manchester will be no exception. Our target audience not only requires
professionalism and excellence, they also require depth. Consequently our speech
programming is designed to deliver breadth and depth in our reporting.

Our philosophy is to build a positive reputation amongst 45-64s across Manchester for good
quality local radio. Our reputation for reporting local, national and world news will be one of
impartiality, professionalism and accuracy. Our reputation for delivering local current affairs
coverage will be one of depth and neutrality. Our reputation for producing interesting interviews
and listener debates will be one of intelligence, balance and sensitivity. Our reputation for
presenting light entertainment features will be informative, educational and humorous. Our
reputation for playing music will be variety, distinctive and alluring. We will produce local radio
worth listening to.

To ensure we deliver on our objectives, Citylife will invest heavily in programming and news
staff, with roving reporters at peak times and each daytime show having its own dedicated
producer/researcher to keep the information and entertainment fresh and flowing. In addition,
our programming will be interactive through our online capability and accessible via our OB
vehicle where presenters will broadcast live from every corner of the TSA from Knutsford to
Oldham.

Our commitment to localness will resonate strongly amongst our listeners, eradicating one of the
key strengths of BBC Radio Manchester/GMR to our target audience, and something they still
admire in Key 103, is the proliferation of locally born and bred presenters. Local knowledge,
local accents, local history and local affinity are the essential ingredients we will use to develop
the best localness and information service targeting 45-64 year olds in the area.

"It's something comfortable about the tone, it's something about the way they direct the speech
as though they are talking to you. It's personalised." Focus Group Male, 45-54.

Citylife will be the only truly Local Commercial Radio station that disseminates local news and
information in a manner that is gratifying to 45-64s in Manchester.




                                                                  Catering for Tastes & Interests Page 32
Music:Speech

Whilst our target audience is more comfortable with higher proportions of speech content in their
favoured format than younger listeners, they also want music in their lives. There are clear signs
in the tastes & interest survey that there should be reasonable proportions of music and our
focus groups warned that too much speech and not enough music, as occurs on BBC Radio
Manchester/GMR, would have a detrimental effect on our listening hours. We have therefore
calculated that the preferred music:speech percentage should be 50:50, very similar to BBC
Radio 2.

We have strived hard to understand the perfect mix of music and speech for 45-64s, not just
through research in this market but our continual research programme encompassing;
Edinburgh, Belfast, Southampton, Portsmouth, Newcastle, Middlesbrough, Liverpool and
Manchester (twice) and their surrounding areas. People's perception of the perfect mix of music
and speech provides programmers with the ultimate dilemma. In all of our tastes and interests
surveys we ask what respondents to consider the perfect music to speech mix and in our focus
groups we ask what attendees consider Radio 2's mix to be. In both scenarios the amount of
music required and thought to be delivered is greater than 45-64s are willing to accept from the
stations they regularly listen to. This is because good quality speech, presented well, is as
welcome as a favoured track.

In Manchester the demand for speech is far greater than the supply from ILR stations purporting
to include 45-64s within their target market. For this reason we intend to ensure that our daytime
speech provision exceeds that of any other ILR station in the area. Our daytime speech will
average 50%.

Music
TABLE 11 : Important Programming Elements for 45-64s (Source: Ipsos, July 2006)

                                     BBC        ILR      BBC                  BBC Radio
                                                                     ILR                    ILR best for
                                    station   station    Radio                 best for
                  Males   Females                                  best for                 Manchester
                                     most      most     best for              Manchester
                                                                    music                      news
                                     often     often     music                  news
 Music that
 suits your        79%     83%       64%       97%       72%        94%          87%            92%
 tastes


CN Radio has surveyed over 10,000 adults in 13 surveys, across 7 regions up and down the
country and it is clear to us that 45-64 year olds require a music format that:

     (i)      is easy to listen to and sing along to,
     (ii)     is familiar but distinctive,
     (iii)    has breadth and depth in the choice of tracks,
     (iv)     has variety and quality,
     (v)      is for today but also reflects yesterday.

The preferred music choices of 45-64s has remained constant across the land throughout our
extensive research programme with little variation from region to region. In Manchester, soul
and country scored highly as did perennial high achiever, easy listening. Nostalgia was not quite
so popular here amongst all 45-64s but did perform well amongst 45-64 year old core BBC
Radio listeners. Rock and jazz did not perform well at all. Rock never scores well in
Manchester, the home of soul. Table 36 shows that easy listening, country, soul and nostalgia
are definitely 45-64 year old biased genres. However, due to the abundance of soul tracks
already played on ILR stations in the marketplace, we will concentrate on nostalgia, easy
listening and country as our core genres.

Whilst preferred styles of music may slightly differ geographically, eras do not. 45-64 year olds
up and down the country are in unison over the eras of music they prefer. Predominantly, songs
spanning the 50s to 80s but concentrating specifically on 60s and 70s. Table 35 shows that 50s,
60s and 70s music are 45-64 biased and for this reason our music policy will put these eras



                                                                   Catering for Tastes & Interests Page 33
before any others. 50s music did not score as well as 60s to 90s music amongst all 45-64s but
did do particularly well amongst BBC Radio lovers compared to ILR lovers and had a high index
rating over all adults. Our research here revealed that 45-64s also have a healthy appreciation
of 90s and current music but these are generally ILR listeners and these eras are readily
available on other stations in the market. Therefore, we will only play an occasional and
appropriate 90s or current track.

Another key ingredient is variety. All stations in the market rotate tracks on an extremely tight
basis. Whilst this is expected for newer, less familiar tracks, our listeners outgrew the need for
repetition in their lives a long time ago and when they hear a 60s track that has been
reintroduced into the playlist recently for the 3rd of 4th time they are fed up with it by then.

"The problem with a lot of stations is that you know what songs are coming on each and every
day. To me, it's just stick the tape recorder on and that's all it seems to be. Certain parts of the
day seem to be pre-recorded." Focus Group Male, 45-54.

Citylife will adopt an expansive back catalogue of nostalgia, traditional easy listening and
country tracks from past decades and will never play the same (non-current) track more than
once a month.

Our programmers have married the tastes and interests of 45-64 year olds with the lack of
variety on Local Commercial Radio in this area. An example of this, is the much greater
preference for country music and nostalgia than rock amongst 45-64s in our area, only
exceeded by soul and easy listening. This has led us to include country music as a genre in our
music format and discount rock - a step that was vindicated by our focus group sessions. None
of the other stations are playing nostalgia, traditional easy listening and country music and so we
will broaden audience choice completely.

Our music montage was founded on this variety of music and proved exceptionally popular
amongst our target audience - 43% were very likely and 31% likely to listen, in our focus groups
the score was even higher (see Table 39) with 59% of attendees stating it was excellent and 22%
considered it was good.

Presenters
TABLE 12 : Important Programming Elements for 45-64s (Source: Ipsos, July 2006)

                                        BBC        ILR      BBC                  BBC Radio
                                                                        ILR                    ILR best for
                                       station   station    Radio                 best for
                     Males   Females                                  best for                 Manchester
                                        most      most     best for              Manchester
                                                                       music                      news
                                        often     often     music                  news
 Presenters you
 can relate to and   71%      85%       77%       83%       86%         76%         78%            89%
 entertain you


As speech forms an important element of the format, the personalities and presentation style of
our presenters are crucial to the success of our speech provision. Our tastes & interests survey
points to the allure of having good quality presenters with intelligent speech elements that drive
up listening to BBC Radio 2 and BBC Radio 4. However, residents do value the empathy that
can be generated between a listener and a local presenter with a likeable disposition and local
knowledge. Both BBC Radio Manchester (GMR) and Key 103 drew many plaudits from our
focus group attendees in this respect.

Citylife will invest in professional, well-respected and mature local broadcasters with a local
accent and an unsurpassed passion for and knowledge of the area. The ability to inform and
engage with our listeners or contributors will be seen as their greatest attribute.

 Through these programming ideals Citylife will immerse itself into the social fabric of the City's
 over 45s, attracting significant new audiences to Local Commercial Radio.




                                                                      Catering for Tastes & Interests Page 34
(b)   Programming Strategies
(i)   Catering for the Tastes and Interests of Persons Living in the Area

      1.        Speech to Music Mix

      TABLE 13 : Speech to Music Requirements for 45-64s (Source: Ipsos, July 2006)

                                               BBC         ILR         BBC                     BBC Radio
                                                                                 ILR best                   ILR best for
                                              station    station       Radio                    best for
                        Males    Females                                            for                     Manchester
                                               most       most        best for                 Manchester
                                                                                  music                        news
                                               often      often        music                     news
       All speech        3%          6%         8%             -        7%         1%             5%             -
       Mostly
                        16%          8%         24%            -        18%        3%             21%           7%
       speech
       Equal speech
                        31%          31%        35%       27%           35%       27%             39%          33%
       & music
       Mostly music     42%          49%        30%       62%           40%       59%             30%          56%
       All music         7%          5%         3%        11%            -        10%             6%            5%

      It is clear that 45-64 year old BBC Radio listeners prefer higher quantities of speech than ILR
      listeners. This reflects the policies of the stations they currently listen to. By ensuring that we
      deliver a 50:50 music to speech policy throughout daytime means we are increasing the
      probability of attracting higher proportions of BBC listeners to our service, particularly BBC
      Radio core listeners and ABC1s.

      Our commitment to significant quantities of speech throughout the day will not only set us apart
      from other ILR stations in the area but also prove alluring to the many 45-64s that regularly
      migrate to BBC Radio Manchester/GMR to appease their desire for local news and information.

       Citylife will average 50% speech throughout the day.


      2.        Speech Programming

      The majority of 45-64 year olds in our tastes & interests survey (67% of those that made a
      decision) believe there is room for improvement in the quality of speech on radio serving
      Manchester, this rose to 72% amongst 45-64 year old BBC Radio most often listeners.

      Of the six main programming elements that BBC Radio stations deliver so well to the 45-64
      market (see Table 9) only plays written for radio was not deemed important for a new station for
      Manchester:

      TABLE 14 : Importance of Main Programming Elements ..... 45-64s (Source: Ipsos, July 2006)

                          Music that        Presenters that          Local                                     Plays
                                                                                 Intelligent     Comedy &
                          suits your       you can relate to       Manchester                                written for
                                                                                   speech         humour
                            taste           & entertain you          news                                      radio
       Very Important         59%                45%                  35%           36%            33%          16%
       Important              22%                33%                  24%           37%            28%          24%
       Not Important          10%                14%                  19%           17%            23%          23%
       Not Important
                                9%               8%                   22%           10%            17%          38%
       At All


      Music and presenters are the primary reasons why listeners choose a particular radio station to
      listen to and stick with. In addition, a good station must support those elements with intelligent
      speech content, strong local news and comedy and humour if it is to achieve the perfect blend
      for 45-64s.



                                                                                 Catering for Tastes & Interests Page 35
"I feel as if he is talking to me. It's not necessarily Jonathan Ross but a lot of presenters on Radio
2. They're not patronising, they're not trying to influence you one way or the other as far as the
music is concerned. They don't have to." Focus Group Female (55-64).
TABLE 15 : Important Programming Elements for 45-64s (Source: Ipsos, July 2006)

                                        BBC        ILR      BBC                  BBC Radio
                                                                        ILR                    ILR best for
                                       station   station    Radio                 best for
                    Males    Females                                  best for                 Manchester
                                        most      most     best for              Manchester
                                                                       music                      news
                                        often     often     music                  news
 Speech such as
 intelligent
 presenter chat,
 discussion progs
 on news stories
                     65%       81%      75%       72%       81%         75%          81%           73%
 and topical
 issues, detailed
 information on
 what's going on
 in the city, etc


The speech features that were considered by 45-64 year olds to be most important on a new
station for Manchester (see Table 37 in Evidence of Demand) were;

           •frequent national & international news reports from around the world (87% of those
            that believe BBC Radio is best for Manchester news),
           •interviews with interesting people (76%, BBC Radio best for music),
           •frequent local news reports about Greater Manchester (63%, females),
           •frequent traffic, travel & weather information (60%, males),
           •local what's-ons & entertainment news for Manchester (48%, females),
           •local current affairs coverage & debate (53%, BBC best for Manchester news) and,
           •frequent local sports information & scores (50%, males).

ILR is not considered best at any of the essential speech elements by 45-64s (Table 38) although
a glimmer of hope that the BBC's monopoly is not invincible is the fact that 45-64 females only
voted BBC best for national/international news and interviews with interesting people and
preferred not to name a station that was best for the other 7 categories. BBC Radio listeners
place a higher premium on intelligent speech.

Our focus groups provided first hand evidence that interesting and intelligent speech, delivered
by competent, local professional broadcasters, who know the area and can inform the audience,
will draw in listeners but they are not to be 'stuffy', as one of our focus group attendee
commented when asked who BBC Radio Manchester (GMR) is targeting, "pensioners at home"
(Source: Male 45-54, Focus Group).

Our strategy for delivering informative, engaging and entertaining speech programming is:




                                                                      Catering for Tastes & Interests Page 36
News
TABLE 16 : News Requirements for 45-64s (Source: Ipsos, July 2006)

                                                           BBC
                                        BBC        ILR                ILR     BBC Radio
                                                           Radio                            ILR best for
                                       station   station             best      best for
                     Males   Females                        best                            Manchester
                                        most      most                 for    Manchester
                                                             for                               news
                                        often     often              music      news
                                                           music
 Frequent news
 reports about       53%      64%       50%       77%      53%       74%         59%            83%
 Manchester
 Frequent national
 & international
 news reports        74%      71%       84%       69%      82%       73%         85%            77%
 from around the
 world



Citylife will provide a live, home-mixed, locally presented, 24-hour news service with no IRN or
syndicated national news service overnight. It will establish a reputation for breaking news and
its commitment to looking beyond the headlines will ensure it is seen as a serious news provider.
It will invest heavily in news and production and has committed to a well resourced newsroom
complement of 11 to facilitate our policy of intelligent news gathering with live, on-the-scene
reporting, providing greater depth to relevant news stories that are pertinent and interesting to
the older residents in Greater Manchester.

"On the hour every hour. Or even half hour, headlines on the half hour. If it was in-depth every
hour then that would be fine. I think what we are talking about, is that we don't want 15 minutes
breakdown of the casualties in Lebanon." Focus Group Male (45-54).

We won't offer repetitive bulletins but will continually refresh and update a story as it unfolds
throughout the day. Our monitoring exercise found that most stations are just repeating the
same local stories and generally with the same copy throughout the day (see Monitoring in Evidence of
Demand). This will not happen on Citylife.

We will provide local news long after other stations have stopped (Century's local news ceases
at 22.00) and our home mixed bulletins will continue right through the night as a response to the
needs of our listeners. Rolling news will also be available on our website.

With 5 minutes of news every half hour throughout peak times (07.00-09.00 and 16.00-18.00)
and 4 minutes hourly during the rest of the day, our listeners will stay tuned to satisfy their
curiosity for Greater Manchester news or news from around the world. During peak times there
will also be 2 minutes on the half hour. We will offer extended news at 13.00 and, at 18.00, our
half hour local current affairs news programme, Citylife Tonight, will round off the day.

In addition, our website will be put to full use when it comes to polls, being interactive with our
listeners and providing a platform for them to comment without necessarily going to air but
perhaps sparking an on-air debate. Recent examples of this would be:

           •Doctors and nurses could face the sack for not washing their hands at a Greater
            Manchester Hospital. MRSA infection rates at Tameside have increased this year,
            giving the hospital the 10th worst record in the country. Citylife would ask if being
            dismissed is fair? How would this be policed? And why is MRSA so prolific in our
            local hospital?
           •Comprehensive plans detailing the whole scale transformation of Miles Platting are
            being revealed to residents for the first time this week. Over 1,000 new family
            homes and apartments will be built in this area of east Manchester and around
            1,500 council properties will be refurbished over the next five years with new
            kitchens and bathrooms, re-wiring, new central heating and double glazing and
            improved outdoor spaces. But some homes will be pulled down and there has been




                                                                   Catering for Tastes & Interests Page 37
              a wave of concern that some local people will lose out in the massive regeneration
              scheme. Citylife will debate for and against.

Our tastes & interests survey proved BBC Radio stations to be regarded as superior providers of
national and international news compared to Local Commercial Radio stations. As this is the
most important speech element to 45-64s, we believe it is crucial to include a quality national
news service in order to extend listening hours and discourage listeners from switching back to
BBC stations for quality news, which presents our greatest threat once we are on air.

Our breakfast news provision will be the most important element of our speech programming in
attracting new listeners and it will be professional and comprehensive, encompassing all the
day's major local, national or international stories. However, Citylife will take its news reporting
further than any other local commercial station in our area. We will foster the key news story of
the day and explore it in detail. We will send a reporter out to feed back live interviews into both
drivetime shows. The relevant issues surrounding the day's main story will be discussed and
debated in our lunchtime phone-in show between 12.00 and 13.00.

 Our news provision will be extremely important to our listener. The high professional
 journalism standards set during our breakfast show will be maintained throughout the day.

Interviews with Interesting People and Local Current Affairs Coverage & Debate

TABLE 17 : Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                       BBC        ILR      BBC                  BBC Radio
                                                                       ILR                    ILR best for
                                      station   station    Radio                 best for
                    Males   Females                                  best for                 Manchester
                                       most      most     best for              Manchester
                                                                      music                      news
                                       often     often     music                  news
 Interviews with
 interesting        53%      63%       70%       46%       76%        50%          70%            48%
 people
 Local current
 affairs coverage   42%      38%       44%       37%       50%        37%          52%            45%
 & debate


Alongside news and traffic/travel/weather, the other two most important speech features to
45-64 year olds are interviews with interesting people and local current affairs coverage &
debate. These also happen to be two features that Local Commercial Radio stations perform
poorly at (see Table 10).

There is a stark contrast between the overwhelming desire for interviews with interesting people
and local current affairs displayed by BBC Radio core listeners and the relative indifference
shown by 45-64 year old ILR listeners. This is another programming element that will set us
aside from other ILR stations and ensure we superserve our target consumer group effectively.
Our programmers will ensure both subject matter and sources are refreshed regularly. Our
intention to get under the skin of the most pressing issues for Greater Manchester but keeping a
balance between hard hitting investigative journalism and flogging a story to death. The general
principle is that a station will set up and forward promote an issue to be debated, it will then give
both sides a chance to put their case forward and then open up the lines for public reaction and
comment. However, we will not drag out discussions for too long and not allow our listener to
become disenchanted.

At Citylife we will take a serious and in-depth view of a subject and for those listeners who have
the time to follow it through and participate there will be plenty of opportunity. For others, there
will be plenty of good music and regular news updates and summary and review of such debate
at our lunchtime and evening extended bulletins.

Citylife considers interactive speech programming as integral to its objective of offering choice
and diversity in the commercial market and by doing it well, is confident of attracting many
listeners from BBC Radio Manchester.



                                                                     Catering for Tastes & Interests Page 38
Throughout the day our presenters will interact with listeners about the issues that are of interest
to them which will include comment on the day's news events, serious and humorous. At least
twice a day, outside of news reporting, our presenters will be interviewing interesting people on
subjects that will spark curiosity amongst our listeners. Our audience will be invited to pose
questions to our guests or pass comment on the discussion subject via text, email or phone. All
interesting and appropriate interviews will be available for pod casting via our website.

At lunchtime, the presenter will pick up on a topic of interest for the day and again open the
phone lines. This may be a spin on the main news story at breakfast or a breaking news issue.
Our target audience likes to debate matters of importance to the community and we have
designed our programme schedule to provide this outlet in our lunchtime show (12.00-13.00).
We will also ensure our phone-in programme has structure as this would be more acceptable to
a mature listener who can follow the logic and become engrossed in the subject matter.

"It depends what the subject is and who's talking and who's pitching because you get some and
the phone goes awol because its not structured. ...If you have unstructured phone-ins and
everyone is talking gobbledygook, for example, it just knocks it on its side." Focus Group Male
(45-54).

In the evening news magazine programme there will be further interviews with the day's news
makers and opinion formers, alongside our in-depth local current affairs coverage. Our roving
reporters will allow us to access breaking news stories and obtain comment from those most
affected by or driving the day's news agenda.

 Local current affairs coverage and debate are important to our target market and Citylife will
 be the local receptacle and forum in which to air those views.

Local Sports Information & Scores and Traffic, Travel & Weather

TABLE 18 : Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                        BBC        ILR      BBC                  BBC Radio
                                                                        ILR                    ILR best for
                                       station   station    Radio                 best for
                     Males   Females                                  best for                 Manchester
                                        most      most     best for              Manchester
                                                                       music                      news
                                        often     often     music                  news
 Frequent
 traffic, travel &
                     58%      53%       50%       72%       54%        64%          56%            76%
 weather
 information
 What's-on    &
 entertainment
                     37%      48%       37%       54%       47%        53%          40%            57%
 information for
 Manchester
 Frequent local
 sports
                     49%      16%       27%       46%       34%        42%          46%            42%
 information &
 scores

Citylife will include regular sports news during its normal news bulletins and on match days we
will supply regular updates whilst the teams are playing. Whilst it is acknowledged that Key 103
and 105.4 Century FM provide excellent sports coverage, primarily to younger males, our own
male listeners need to be kept abreast of emerging sporting information and at the very least a
scores update service.

Citylife will therefore provide a complementary service to Century and concentrate on basic
information and scores to the less fanatical football fans, leaving in-depth football analysis and
interviews to Century. Instead, our references to football will be more of a general nature and
less expert analysis. Indeed, we will make a concerted effort to cover other sports across the
region in greater depth than existing stations, something our focus group attendees considered
was a big attraction of BBC Radio Manchester.




                                                                      Catering for Tastes & Interests Page 39
"GMR is very good. It does locals. There are lots of local matches not just the two big ones.
Speedway, local amateur rugby league, local cricket leagues." Focus Group Male (45-54)

As such a sporting community, fans want to know what weather awaits them when they venture
out to watch or play their favourite pastime. Manchester Citylife will provide regular weather
bulletins and traffic and travel information to not only enable attendees to get to their matches on
time but avoid the A56 and junctions 10 and 9 of the M60 as fans make their way to Trafford Park
or the A635 for Manchester City fans. Traffic and travel bulletins will also include the traditional
bottlenecks in the city centre - Mancunian Way and Deansgate.

As part of our community information remit, Manchester Citylife will provide regular local
entertainment news and information - what's on at The Palace Theatre, Manchester Opera
House, the Lowry Theatre or at the other end of the scale at the famous comedy venue, the Frog
and Bucket.

 Our speech commitment will extend to a more light hearted view of the local sports scene and
 the provision of essential what's-on, weather, traffic & travel information.

Comedy Classics & Humour

TABLE 19 : Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                        BBC         ILR       BBC                   BBC Radio
                                                                           ILR                    ILR best for
                                       station    station     Radio                  best for
                     Males   Females                                     best for                 Manchester
                                        most       most      best for               Manchester
                                                                          music                      news
                                        often      often      music                   news
 Comedy          &
                     59%      63%       66%        62%        67%         64%          63%            62%
 humour
 Plays written
                     31%      49%       55%        19%        51%         30%          63%            23%
 for radio

Responding to the tastes of our target audience Manchester Citylife will include comedy classics
clips. Humour is often cited in our focus groups as being very important and almost expected
from a listener's favourite station. However, they generally expect spontaneous humour, as
would occur between two friends in a conversation rather than the contrived jokes that seem to
work for younger audiences. They also thought that classic comedy clips would work well,
specifically in the mornings to make the day begin with a smile.

Late Night Phone-ins
TABLE 20 : Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                         BBC         ILR       BBC         ILR      BBC Radio
                                                                                                  ILR best for
                      Male              station    station     Radio      best       best for
                             Females                                                              Manchester
                       s                 most       most      best for      for     Manchester
                                                                                                     news
                                         often      often      music      music       news
 Informative   &
 entertaining         32%      36%       26%        52%        23%         51%         33%            52%
 phone-in shows
 Competitions &
                      16%      25%       15%        30%        12%         30%         17%            28%
 quizzes
 Will phone in
 live for a
                      27%      21%       30%        21%        26%         22%         23%            29%
 discussion &
 debate
 Will phone-in
 live for a
                      19%      32%       20%        36%        19%         38%         18%            41%
 competition or
 song request




                                                                         Catering for Tastes & Interests Page 40
Whilst in our quantitative study ILR station most often listeners over BBC station most often
listeners consider phone-ins and competitions & quizzes as essential speech features, our
focus group attendees were very wary of stations that spend the whole day promoting a phone
line or text poll and would prefer an interesting phone-in that will provide them with useful
information as BBC Radio Manchester (GMR) did with the local solicitor covering legal matters.

"What I find annoying about Key 103 is after lunch it's all just 'text in' and if they could just put the
flaming music on instead of hearing about texting in." Focus Group Male (55-64)

Citylife will encourage listeners to interact with the station, but bearing in mind only a small
proportion of listeners actually want to phone in live, our phone-ins will seek to augment the main
subject matter in that element of programming and ensure the station doesn't sound stale with
repetitive contributors.

Citylife will provide a nightly weekday phone-in, full of relevant and topical debate including
controversial issues as well as competitions and late night dedications.

Quiz & Game Shows

Just as BBC Radio 4 does with its Just a Minute, weekly topical News Quiz and Masterteam,
Citylife will similarly host compelling and entertaining quiz and game shows. Providing they are
done well, intelligent quizzes and game shows are always popular with a 45+ consumer.

Our programme producers will sift through the week's local newspapers and draw up a list of
questions for our local 'celebrity' panel on a Friday morning with subject matter encompassing
politics, education, health, housing, lifestyle, arts and funny stories. They will also ensure all
competitions are creative, well produced and well thought through so they are not trivia.

Ask The Expert

Each day, Citylife will provide 'must have' appointments to listen as local experts will talk on a
subject and then invite questions from the listeners. Our close association with Angie Robinson,
Chief Executive of the Greater Manchester Chamber of Commerce will allow us to tap into such
experts who will more than likely be members of the Chamber. For instance, our financial expert
can cover subjects such as equity release schemes, saving for retirement, debt management
inheritance tax and financial planning. Our gardening expert will chat with listeners about when
best to prune and plant, our health and fitness expert about how to stay fit and healthy and our
consumer expert will keep a tab on prices and provide a round-up of how to make savings on the
weekly shop.

Local Presence

Manchester Citylife believes it is important to be seen as well as heard, especially to ensure we
make an impact across the whole of Greater Manchester. We have provided for an extensive
promotions and marketing budget to allow for our outside activities, which will include a
Winnebago outside broadcast vehicle as well as other marketing tactics.

The Winnebago, with fold-out plasma screens, will be used for our Open Access programme on
a Saturday morning, broadcasting from anywhere in the TSA, guests will be invited to join us to
co-present the show. We will be able to take it anywhere to broadcast and will absolutely ensure
we are seen across the area from the Triangle to the D:Percussion festival or from Salford
Quays to Bolton. We will not be missed!

 Citylife's marketing philosophy includes visual, community based initiatives to improve
 awareness amongst our target audience and allow us ground-zero access to the community
 at large.




                                                                   Catering for Tastes & Interests Page 41
3.         Music Programming

Two-thirds of 45-64s (who made a decision) believe that there is room for improvement in the
type or quality of music currently supplied by existing stations in the Manchester market. This
rose to 81% of 45-64 year old BBC Radio most often listeners.

In order to ascertain the music tastes of the general public in our proposed TSA, we tested 7
eras of music and six genres on 600 adult respondents across the area:

TABLE 21 : Attractiveness of Music Eras to 45-64s (Source: Ipsos, July 2006)

 45-64s                               50s     60s     70s    80s       90s     00s    Current   Average
 Males                                2.41    2.58    2.60   2.58      2.50    2.08    1.99      2.39
 Females                              2.56    2.84    2.76   2.73      2.99    2.30    2.42      2.66
 ABC1s                                2.51    2.69    2.62   2.54      2.64    2.15    2.01      2.45
 BBC Radio best for music             2.80    2.95    2.78   2.64      2.71    2.07    2.14      2.58
 ILR best for music                   2.39    2.62    2.86   2.92      3.16    2.61    2.41      2.70
 BBC Radio listened to most often     2.56    2.84    2.65   2.54      2.56    2.09    2.07      2.47
 ILR listened to most often           2.39    2.61    2.83   2.96      3.13    2.53    2.52      2.71
 Key 103 most often listeners         2.28    2.61    2.94   3.06      3.44    3.17    2.72      2.89
 Magic 1152AM most often listeners    2.75    2.75    2.38   2.75      2.88    2.13    2.38      2.57
 Smooth FM most often listeners       2.44    2.44    2.44   2.69      2.81    1.94    2.38      2.45
 Century 105 most often listeners     1.91    2.18    3.09   3.27      3.27    2.82    2.45      2.71
 Capital Gold most often listeners    3.14    3.43    3.14   2.71      2.71    1.71    1.86      2.67
 BBC Radio 2 most often listeners     2.84    3.09    3.00   2.81      3.00    2.44    2.56      2.82
 BBC GMR most often listeners         3.50    3.50    3.25   3.25      3.00    2.00    2.00      2.93
 BBC Radio 4 most often listeners     2.40    2.64    2.43   2.43      2.35    2.00    1.89      2.31


Our core target market of 45-64 year old BBC Radio listeners displayed a healthy appreciation
towards music from the 50s through to the 80s. 45-64 year olds that consider BBC Radio best for
music and BBC GMR most often listeners were drawn towards music from 50s through to 70s.
45-64 females displayed a wider, and slightly younger, appreciation of music than any other
demographic.

With the majority of ILR stations playing music from 80s to current (see Table 29), Citylife will
concentrate on music from the 60s and 70s. This will be supported by some 50s and 80s music
with other eras used sparingly to ensure we cater for the breadth of music appreciation of our
target market.




                                                                   Catering for Tastes & Interests Page 42
With regards to genres, most of the styles appealed to at least one of our 45-64 listener groups:
TABLE 22 : Attractiveness of Music Genres to 45-64s (Source: Ipsos, July 2006)

 45-64s                              Nostalgia   Easy   Country     Soul    Rock     Jazz     Average
 Males                                 2.35      2.38     2.42      2.64     2.34    2.09       2.37
 Females                               2.54      2.94     2.76      2.73     2.28    2.60       2.64
 ABC1s                                 2.44      2.46     2.45      2.55     2.24    2.36       2.42
 BBC Radio best for music              2.69      2.59     2.59      2.55     2.44    2.63       2.58
 ILR best for music                    2.35      2.96     2.77      3.19     2.39    2.19       2.64
 BBC Radio listened to most often      2.52      2.45     2.45      2.42     2.39    2.46       2.45
 ILR listened to most often            2.37      3.04     2.86      3.28     2.33    2.19       2.68
 Key 103 most often listeners          2.50      3.33     2.94      3.11     2.28    2.06       2.70
 Magic 1152AM most often listeners     2.50      3.00     3.00      3.00     2.13    1.50       2.52
 Smooth FM most often listeners        2.25      2.94     2.69      3.50     2.25    2.81       2.74
 Century 105 most often listeners      1.82      2.64     3.00      3.27     2.45    1.90       2.51
 Capital Gold most often listeners     3.00      2.57     2.14      3.00     2.43    2.00       2.52
 BBC Radio 2 most often listeners      2.81      2.91     2.78      2.69     2.71    2.67       2.76
 BBC GMR most often listeners          3.25      3.00     3.50      2.00     2.25    2.50       2.75
 BBC Radio 4 most often listeners      2.38      2.17     2.15      2.38     2.23    2.47       2.30


Rock and jazz were the least attractive genres to 45-64 year olds. Soul, easy listening, and
country had the highest appeal to all 45-64s with females also showing strong interest in easy
listening and males liking soul. Nostalgia scored well amongst BBC Radio core listeners and,
bearing in mind its elusiveness on ILR, is seen as a strong inclusion in our format. In contrast
soul is very much a taste of ILR listeners and is excluded from our music policy.

Rock is not a popular genre in Manchester, the home of soul, and will not be included as a main
element in our music format. Citylife will concentrate on nostalgia, easy listening and country,
the three main choices of BBC Radio Manchester (GMR) and BBC Radio 2 core listeners, to
provide the most attractive music policy and ensure diversity from the rest of ILR.

Citylife's music policy reflects the results of our tastes & interests survey and majors on tracks
from the 50s, 60s and 70s and some 80s and the occasional current track, the vast majority from
within the nostalgia, traditional easy listening or country genres.

We tested this philosophy by playing a sample montage to 611 respondents and our music
format was found to be extremely appealing with 74% of 45-64s agreeing they would be likely to
listen were it to come on air. The rating for Citylife's montage was even higher amongst our
target listener groups; BBC Radio 2 and BBC GMR core listeners (see Table 41).

Our demand research also tested two competing music policies known to find favour with 45+s
and we found these formats to be much less popular amongst our target audience. When we
asked 45-64 year olds to choose a preference, 55% chose Citylife (see Table 40). To illustrate the
strength of our proposition, 62% of 45-64s stated they would listen to our station speech concept
and liked our music.

In our focus groups, the Citylife montage received unanimous support in their opinion of our
music montage compared to those of similar targeted radio stations (see Table 39). 79% rated it
excellent or good, compared to 21% for the BBC Radio 2 montage and 50% for the Nostalgia
only montage.

"It's music that I like". "I think it was a quality time for me". "I would start to sing along to most of
those in the car". "Joining in music." "Good mood." Focus Groups (45-64)




                                                                   Catering for Tastes & Interests Page 43
Citylife's music output has consistently proven to be the most appealing to a 45-64 audience up
and down the country. By providing a good cross section of music from their formative years with
an emphasis on the genres that tend to have more appeal in this area, supported by a few tracks
from new artists that suit their mood, we were able to achieve higher appreciation levels
amongst our target audience than existing stations in the market.

Citylife's typical music line-up across four hours would look something like this:

TABLE 23 : Example 4-hour Playlist

 Artist                     Track                                 Era          Genre
 Elvis Presley              Suspicious Minds                      50s          Rock
 The Beatles                Fool On The Hill                      60s          Album/Easy Listening
 James Morrison             You Give Me Something                 Current      Album/Easy Listening
 Perry Como                 Magic Moments                         50s          Nostalgia
 Freddie Mercury            Barcelona                             80s          Nostalgia
 Daniel O'Donnell           Crush On You                          Current      Album/Easy Listening
 The Shadows                The Young Ones                        60s          Easy Listening
 Robbie & Nicole            Something Stupid                      00s          Easy Listening
 Edison Lighthouse          Love Grows                            70s          Easy Listening
 The Beach Boys             God Only Knows                        60s          AC
 Terry Jacks                Seasons In The Sun                    70s          Easy Listening
 Frank Sinatra              I've Got You Under My Skin            50s          Nostalgia
 Simon & Garfunkel          Bridge Over Troubled Water            70s          Easy Listening
 Glen Campbell              Wichita Lineman                       60s          Country
 Fleetwood Mac              Little Lies                           90s          AC
 Gerry & The Pacemakers     You'll Never Walk Alone               60s          Nostalgia
 Chairman Of The Board      Give Me Just A Little Bit More Time   80s          AC
 David Bowie                Changes                               70s          Rock
 Crickets                   That'll Be The Day                    50s          AC
 Cilla Black                Anyone Who Had A Heart                60s          Easy Listening
 John Denver                Annie's Song                          70s          Country
 Kinks                      Tired Of Waiting                      60s          Easy Listening



 Manchester Citylife will play a variety of music styles that have an exceedingly strong appeal
 to its target audience - reflecting the broad tastes of their CD collections.

Our other consideration was whether to proceed with an ubiquitous music policy or provide
specific programmes devoted to single music or speech styles. BBC Radio is well-known for its
capacity to produce specialist music and speech programmes in the evenings and so we
decided we should venture into this arena with relevant material for our audience.

Our focus group attendees greeted the idea of a specialist evening country & western show
warmly. It was felt that these shows present an opportunity to learn more about the music as
knowledgeable presenters tend to give out more information about a track than they do in
normal daytime programming.

Manchester Citylife will feature music from genres that are particularly appealing to them. A
country & western or nostalgia specialist show would not be a turn off to our target audience but
these genres are included in copious amounts within our daytime programming and add nothing
extra to our overall output. We will include specialist music programming but will be mindful to



                                                                    Catering for Tastes & Interests Page 44
        ensure it is directly relevant to our target listener and not just showcase local artists unless they
        are appealing to our listeners - as one of our focus group attendees commented "Sometimes
        they have these rock groups on that you have never heard of, somebody who can hardly speak
        and you think God I know these are going to spoil my tea!". Focus Group Female (55-64).

         Manchester Citylife will provide ad-hoc specialist evening programmes where we consider it
         of appeal to our target audience.

(ii)    Broadening the Range of Local Commercial Services

        Citylife acknowledges the importance placed by Ofcom on criterion (c) of Section 105 of the
        Broadcasting Act in the decision making process for this licence and has promoted this criterion
        above all the others in preparing our submission.

        We have not totally ignored the other three criteria and have ensured that our format not only
        extends choice but, importantly, caters for the tastes and interests of the most underserved
        residents in Manchester, has the support of our potential listeners and advertisers, and so will be
        viable.

        Driven by the specific preferences of 45-64 year olds, our music to speech ratio of 50% music
        and 50% speech reflects the additional speech requirements of our target audience, being
        considerably older than the average ILR listener in the area. We also find this philosophy to be
        congruent with the tastes of BBC Radio Manchester (GMR) listeners and older BBC Radio 2
        listeners who are accustomed to receiving a greater proportion of speech than ILR listeners.

        All the existing local commercial stations in the market are averaging between 59% and 77%
        music, before accounting for commercials, during daytime programming:

        TABLE 24 : Speech to music ratios (Source: Monitoring, 06.00-19.00, May 2006)
                                                    Speech                                Music
         Smooth FM                                   23%                                     77%
         Capital Gold                                25%                                     75%
         Key 103                                     26%                                     74%
         Magic 1152AM                                28%                                     72%
         Century 105                                 41%                                     59%
         Citylife                                    50%                                     50%


        The general market strategy of existing local Commercial Radio stations is to produce more
        speech at peak times and more music during the daytime, off-peak (see Table 25). Only 105.4
        Century FM has a programming segment with more speech than music, when it attributes 3% to
        music during its two-hour long Legends programme at 18.00.
       TABLE 25 : Music Composition of Daytime Output (Source: Monitoring, May 2006)

                                                                 Daytime        Evening
                                                   Breakfast                                        Daytime
                                                                 Non-peak         Drive
                                                  06.00-10.00                                      06.00-19.00
                                                                10.00-16.00    16.00-19.00

         Smooth FM                                   70%           82%            76%                 77%

         Capital Gold                                67%           80%            75%                 75%

         Key 103                                     63%           80%            76%                 74%
         Magic 1152AM                                63%           80%            69%                 72%
         105.4 Century FM                            58%           72%            34%                 59%
         Average                                     58%           77%            64%                 68%

         Citylife                                    50%           50%            50%                 50%




                                                                          Catering for Tastes & Interests Page 45
All stations are extremely music-led between 10am and 4pm, with Smooth FM, Capital Gold and
Key 103 carrying on this ploy into evening drive. Table 26 below illustrates the lack of speech
programming on all local commercial radio, particularly on the two stations targeting older
listeners, Magic 1152AM and Capital Gold.

The only station with an significant element of speech at breakfast, 105.4 Century FM, attracts
the majority of its listeners from the 15-44 audience, 72% (see Table 8). Century follows that with
high music content during the day and two hours at the end of the day with almost entirely
speech. This is very different than our proposal both in the mix of speech and music and the
content of the speech and music.

The fact that 52% of BBC Radio most often listeners have pledged to tune into Citylife at
breakfast is a giant step in the right direction. Current listening habits show that once listeners
have started the day on the BBC, ILR has an uphill battle from 8am onwards to encourage
45-64s to make the switch. Our research proved that commercial choice for 45-64s in our area is
so poor that if they do make the switch during the day it is very likely to be to another BBC station
as 83% of 45-64 year old BBC Radio listeners choose to listen to a BBC Radio station most
often.

In contrast to existing local commercial stations in the market, Citylife will provide a more
consistent format throughout the day. By retaining our speech content at around 50%
throughout the day, not only will we be distinctive from other local commercial stations, but we
will have the structure to ensure a happy compromise, allowing us to compete with BBC Radio
Manchester for local, important and interesting, speech and BBC Radio 2 for music and light
entertainment. Our relatively large proportion of speech between 10.00 and 16.00 will set us
apart from existing local commercial stations in the market and we will soon gain a reputation for
up-to-date local news and current affairs and informative, entertaining speech programming
amongst 45-64 year olds across the region.

 Citylife has designed its programming format to reflect the demands of 45-64s, it will compete
 fiercely with BBC Radio and provide a distinct alternative in the local Commercial Radio
 market.

Speech Content

Whilst speech content on the small scale stations; The Revolution, Imagine FM and Tower FM is
confined to their specific areas, and Smooth FM and 105.4 Century FM have a regional remit,
Capital Gold, Galaxy 102, Key 103 and Magic 1152AM are charged with serving the Greater
Manchester area. However, our monitoring shows that none of these stations are adequately
providing speech in sufficient quality and quantity suitable to our target audience's needs. Asian
Sound serves Asians in our area with speech and music directly aimed at them.

Table 26 shows how Citylife's daytime speech commitment will vary from that of the other ILR
stations (Galaxy 102 and XFM have been excluded because of their lack of relevance):
TABLE 26 : Speech provision of most popular ILR stations for 45-64s (Source: Monitoring, May 2006)

                         News &                 Local     Regional
                                                                     Gen Info
                         Current    ID/Promo    Info &     Info &                 Travel      Total
                                                                      & Ent
                         Affairs                  Ent        Ent
 Century 105             01:11:04   00:50:00   00:00:00   00:35:29   01:32:54    00:13:18    04:23:45
 Magic 1152AM            00:53:17   00:57:17   00:09:14   00:00:00   00:56:17    00:14:14    03:10:19
 Capital Gold            00:33:42   00:49:47   00:04:11   00:00:00   01:17:22    00:09:44    02:54:46
 Key 103                 00:27:24   00:50:32   00:35:54   00:00:00   00:34:55    00:10:24    02:39:09
 Smooth FM               00:34:51   01:54:57   00:00:00   00:31:11   00:15:27    00:12:42    02:29:08
 Citylife                02:11:00   00:32:30   01:49:00   00:00:00   00:32:00    00:22:00   05:48:30




                                                                Catering for Tastes & Interests Page 46
Of all the stations serving our area, 105.4 Century FM devotes the greatest amount of time to
speech. However, whilst it supplies a greater amount of news than other stations, it relies upon
the football phone-in show to bolster the amount of speech it transmits. Likewise, Key 103 also
indulges in a great deal of local info-tainment to make up its speech commitment, which consists
of a massive amount of breakfast mentions of what listeners thought of a TV programme the
previous night and phone-ins in the afternoon on a random place in Manchester.

Whilst there is nothing wrong with this strategy, the delivery of speech adopted by these two
stations is designed to appeal to 15-44 year olds. Our more mature (and generally more
upmarket) listener wants intellectual stimulation and interaction as well. Light entertainment is
essential in a rounded programme schedule but it will be a substitute for local news coverage.

Of the three stations concentrating on Manchester only, Magic 1152AM has the greatest local
speech commitment, this is despite the station being networked for 8 hours a day. Ironically, and
maybe out of guilt, Magic 1152AM attributes the highest minutage towards local news coverage
of all the stations (see Table 27). The quality of Magic's local news output is far superior to other
local stations in Manchester even though Key 103 is supplied by the same newsroom. Magic
makes an effort to refresh its audio throughout the day and localise national stories. However,
its poultry 41 minutes (in 16 hours of monitoring) has little impact on the daily lives of 45-64 year
olds in Manchester of whom only 4% have the opportunity to hear it.

None of the three Manchester stations; Key 103, Capital Gold or Magic 1152AM have local news
after 19.00. In fact, Century is the only station covering the area that extends its news into the
evening. However, it only covered three local stories in those three hours and concentrated
mainly on national or regional stories. At Citylife we will continue its four minutes news on the
hour right through the night and provide residents of Manchester with up-to-date local news, 24
hours a day.

Citylife will allocate over two hours a day to local news and current affairs, injecting a refreshingly
new purpose to local news and information provision on ILR in Manchester. Our on-air staff will
be from the Manchester area, with a history and tradition of broadcasting to the city. Our speech
remit will also ensure that we include all areas in our TSA and not just ply everyone with
wall-to-wall Manchester-centric news and issues.

Our news commitment will be much more in-depth and locally focussed than the other stations,
our penchant for investigative journalism and breaking local news stories will bring a fresh
impetus into local news reporting in the area. Our local information & entertainment features will
also differ considerably from the other stations, whose content in this category tends to revolve
around football, ours will concentrate on more serious local current affairs issues and stimulate
debate.

Local Speech
TABLE 27 : Proportion of Local Manchester Programming (Source: Monitoring, 06.00-22.00, May 2006)

                      News & Current      Presenter                       Traffic &
                                                         Advertising                      Total Time
                         Affairs            Links                          Travel
 Key 103                 00:20:46         00:40:51        00:49:53        00:10:24         02:01:54
 Magic 1152AM            00:41:31         00:09:14        00:43:10        00:14:14         01:48:09
 105.4 Century FM        00:09:09         00:24:46        00:08:31        00:01:06         00:43:32
 100.4 Smooth FM         00:08:21         00:07:47        00:08:41        00:00:59         00:25:48
 Capital Gold            00:13:37         00:05:33        00:45:30        00:09:44         01:14:24
 Citylife                03:10:30         01:04:30        01:40:00        00:26:00         06:21:00


The allocation of valuable airtime towards local speech aimed at residents in our TSA is pitifully
low. Table 27 shows that Key 103 and Magic 1152AM devoted the largest proportion of daytime
output to local speech but the vast majority of this was through carrying local advertisements. If




                                                                  Catering for Tastes & Interests Page 47
adverts were excluded from the analysis, then no station devotes more than an hour and a
quarter on local speech material. Citylife intends to offer a much more comprehensive news and
local information service that will put existing stations commitment to local speech content in the
shade.

The consequence of these local programming policies is a gaping void for quality speech aimed
at 45-64 year olds in the Manchester area and this results in BBC Radio 2, BBC Radio 4, BBC
Radio Five Live and BBC Radio Manchester/GMR between them attracting a large number of
listeners amongst this consumer group. BBC Radio currently attracts 73% of 45-64 year old
male listeners and 77% of 45-64 year old ABC1s.

In order to cater for the speech tastes and interests of this alienated listener group, a new station
for the area must offer more than just a headline news service. Citylife will provide a
comprehensive and regularly updated local news and speech service for the area. We will allow
our presenters to talk about news items and open up the phone lines to take fresh opinion from
the general public, we will invite commentators into the studio and allow our listeners to drive the
discussion agenda.

We are cogniscent, however, of the major strengths and weaknesses of our main competitors
and we believe that our speech and music offering will fill a void between these BBC stations, not
only combining the main key ingredients of their success but offering improvements, particularly
on BBC Radio 2's music and BBC Radio Manchester/GMR's local speech and presenter quality.

An area where Citylife believes it will significantly improve the local service to 45-64s is that of
local news provision, as currently no local commercial station offers more than 19 minutes of
local news across 13 hours (see Table 28). Century and Smooth are vastly short of that sum and
our target audience migrates elsewhere in order to satisfy its needs.
TABLE 28 : News & Current Affairs stories (Source: Monitoring, 06.00-19.00, May 2006)

                                                      National &           Total News         Local News
                        Local (#)   Regional (#)
                                                   International (#)         (time)             (Time)
  Key 103                  67             -               25                 00:27:24          00:19:03
  Magic 1152AM             87             -               47                 00:53:01          00:18:53
  105.4 Century FM         25            30              100                 01:11:04          00:05:30
  100.4 Smooth FM          22            29               57                 00:34:51          00:07:55
  Capital Gold             36             -               58                 00:33:42          00:04:22
  Citylife                 110           13              103                 02:11:00          01:05:30



Citylife has allocated over 2 hours a day (weekday daytime programming) to the provision of its
news and local current affairs coverage and over half will be dedicated to local news stories.
This is twice as much as its nearest local commercial speech rival, 105.4 Century FM, which
apportions just over an hour a day to serious news provision. Our dedication to local news will
allow us to air almost 10 local news stories an hour and with our rotation policy will ensure we
cover stories that other stations miss.

Naturally, the time we have allocated to news & current affairs allows us to allocate much more
minutage to a story than is customary on the other ILR stations. With our roving reporters,
supported by a team of producers and researchers, we will be able to probe deeper and get to
the heart of every story and issue we tackle. Importantly we will also be able to provide a first
class national/international news service.

 Citylife will attract listeners in Manchester from BBC Radio by being first with the news.

Our local speech commitment is not just about local news and information, Citylife's one hour
and 49 minutes of local information & entertainment features will be centred around our
presenters, interesting interviews and interaction with our listeners, including the phone-in &



                                                                       Catering for Tastes & Interests Page 48
debate show at lunchtime, which will focus on a topical local current affairs' issue and not be
confined to a single hour at the end of the day.

Our focus group attendees have impressed upon us the need to provide a lighter, less
protracted forum for debate about the area's social and political issues, in comparison to the
service that BBC Radio Manchester/GMR currently offers.

No other local Commercial Radio station operating in Greater Manchester market place is
producing this kind of programming aimed at 45-64s. 105.4 Century FM's speech is
unashamedly football biased and Magic 1152AM, although it gives local news priority over
national news, is content to supply short bulletins, less than 3 minutes at peaktime plus
headlines on the half hour, giving listeners a brief glance at the news without any deference to
explanation or consequence of the actions it is reporting on.

 Citylife will be the only local Commercial Radio station in Greater Manchester where 45-64
 year olds' views can be heard and issues of importance debated.

Music

The main current local commercial stations in the market provide the following music:

              •Galaxy 102 - mix of breaking new music, chart and dance, mainstream hits not more
               than 50% of output and new music at least one-third.
              •105.4 Century FM - up to 50% AC and remainder easy listening and soul/Motown.
              •Key 103 - up to 90% can be less than 3 years old and up to 50% over 3 years old.
              •Magic 1152AM - classic pop over 5 years old. Hits less than 5 years old account for
               no more than 30%.
              •100.4 Smooth FM - broad jazz, soul, blues and r'n'b.
              •The Revolution, Tower FM and Imagine FM - classic hits or AC from the past 40
               years.
              •Asian Sound - Asian music.
              •XFM - modern rock music for 70% daytime.

The main stations in Manchester are currently playing music from the following eras:
TABLE 29 : Music by Era of Main Stations (Source: Monitoring, 06.00-19.00, May 2006)

   # of Tracks                   50s      60s     70s      80s       90s         00s        Current
   Key 103                        -        -       1        9         42         41           40
   Century 105                    -        -       4        47        26         22           13
   Smooth FM                      -       13       49       53        13          6           11
   Magic 1152AM                   -       29       61       56        1           3            -
   Capital Gold                   4       75       52       29        3           0            6
   Totals                         4       117     167      194        85         72           70
   Average %                     1%      17%      23%      27%       12%        10%          10%
   Citylife                      15%     30%      25%      10%       5%          5%          10%


Only 41% of music output on the local Commercial Radio stations we monitored is devoted to
music from 1979 and before. Only Magic 1152AM and Capital Gold are supply that music in
earnest whereas the other three stations and the three small-scale stations, devoted the
majority of their playlist to music from the 1980s through to current. Even Magic 1152AM plays a
high proportion of 80s music as it attempts to shift its music policy younger to attract more
35-44s.




                                                                 Catering for Tastes & Interests Page 49
        Citylife's music will predominantly comprise 60s and 70s supported by some tracks from the 50s
        and 80s and a few current tracks. 70% of Citylife's music will emanate from prior to 1980.

        The main stations in Greater Manchester are currently playing the following genres:
        TABLE 30 : Music by Genre of Main Stations (Source: Monitoring, 06.00-19.00, May 2006)

                                                     Dance/    Soul/
          # of Tracks                AC     Rock                          Easy     Country       Nostalgia
                                                      R&B     Motown
          Key 103                    75       15       30        11        0          1             1
          105.4 Century FM           60       6        11        29        5          1             0
          Smooth FM                  29       0        1        104        11         0             0
          Magic 1152AM               89       5        1         35        9          2             9
          Capital Gold               92       18       1         44        0          1             13
          Totals                    345       44       44       223        25         5             23
          Average %                 49%      6%        6%       31%       4%         1%             3%

          Citylife                  20%      10%       0%       0%        40%       15%            15%


        Of the stations we monitored, the majority of them are playing adult contemporary or
        soul/Motown styles of music. Citylife will avoid soul/Motown altogether and keep AC tracks to a
        minimum, focusing on country, classic easy listening and nostalgia. 70% of our music will come
        from these genres. We will include a small element of rock from the 50s to the 70s that
        complements our output but due to its lack of appeal it will not form an integral part of our music
        policy.

         Citylife will broaden music choice for 45-64 year old listeners by producing an eclectic mix of
         nostalgia, classic easy listening, country and some contemporary tracks that will be of
         significant appeal to our target audience.

(iii)   Provision of Local Material

        CN Radio has an impressive track record of supplying good quality local radio in all of its markets
        and prides itself on providing successful locally focused programming especially where news
        and information is concerned. Citylife will offer something different and unique to Manchester
        through its relevant, intelligent and quality programming which will encourage loyalty as listeners
        are kept well informed about their area.

        Citylife will meet the needs of 45-64 year old residents in Greater Manchester - a group which
        remains least well-served by Commercial Radio - by being a locally-originated service, with
        news and features. We will have the resources and expertise to respond to events in the area.
        By doing so, we will fully reflect and develop the interests of our target audience.

        Citylife will provide:

                    •24 hours of live programming every day with 50% speech and 50% music which will
                      be locally produced and presented from our studios in Manchester.
                   News
                    •24-hour, live, locally produced, home mixed local news bulletins of at least 4
                      minutes in duration once an hour, at least 5 minutes in peak with half hour
                      headlines.
                    •Extended news at 13.00 to include a business and financial news update.
                    •Local and national sports news.
                    •Half hour news magazine programme (Citylife Tonight) at 18.00 (100% speech) to
                      include a business and financial news update.
                    •Live, on location reports, by our roving reporters.



                                                                        Catering for Tastes & Interests Page 50
         •Local current affairs, views and debates - lunchtime phone-in (12.00-13.00)
          regarding the news issue of the day for local residents to comment on.

News will be regular, first class, fast and accurate extending across the TSA. Delivered in an
authoritative, clear and distinguishable way. Our news reporting will have breadth and depth.

       Features/Speech
        •Local traffic, travel and weather bulletins throughout the day, every 15 minutes at
          peak and at intervals throughout the day as required.
        •Regular what's ons and entertainment features. "You don't want to read through the
          Manchester news and read through pages and pages to see what's on. If you are
          travelling in the car and you've got the radio on or you are in the house and it says
          right starting the 9th til the 15th August, such a body is at such a place and sometimes
          it sticks." Focus Group Female (45-54)
        •Interviews with interesting people, local current affairs coverage, debate and
          comment and interaction through phone-ins, texting and emails.
        •Regular Crimestoppers - an issue that affects and interests everyone, especially
          those living in the cities in our region.
        •Open Access - On Saturday mornings our OB vehicle will be broadcasting from
          somewhere in the TSA and inviting listeners to visit the mobile studio.
        •Daily Ask the Expert feature from local experts in the TSA covering subjects such as
          finance, gardening, health & fitness.
        •Decision Makers - Sunday mornings will see leading members of the community
          co-present the show, reviewing the papers and talking about their life, issues they
          feel strongly about and issues affecting the community.
        •Quizzes, Competitions & Game Shows - Citylife's news quiz is scheduled on a
          Friday morning with other competitions throughout the week.
        •Jobspot - 45+ is not considered old in the job market anymore. With the Age
          Discrimination Act coming into force, this feature will offer advice on re-training
          opportunities and jobs suitable for our target listeners.
        •First-rate interviews on a plethora of subjects and a range of people from local
          celebrities to world celebrities. In the morning it will usually be lifestyle and
          consumer related, at lunchtime serious and thought provoking and during drive we
          will focus on fun and entertainment becoming more serious as the news agenda
          unfolds up to Citylife Tonight, our evening magazine programme. On a Sunday, a
          presenter will host Celebrity on the Sofa. A great feature to be sponsored, sofa chat
          interspersed with their tracks whether it be Tom Jones, Michael Ball, Barbara
          Dickson and the like.
        •With our creative producers helping presenters along, a humourous spin can be put
          on most things if appropriate. Humour will feature in presenter chat and comedy
          clips will feature at breakfast and drive.
        •The Lunchtime Debate - at lunchtime, we will extol the virtues of residents in Greater
          Manchester who like to have their say. CN Radio has won awards for its current
          affairs phone-ins and debates before. A big issue of the day will be discussed and
          debated on-air, sometimes with invited guests in the studio. We will ensure that our
          presenter will have done this for many years and is experienced at handling callers
          without being too opinionated or argumentative!

Speech features will be an integral element of Citylife's output. Our informed features will be
lifestyle driven, a local voice giving listeners the opportunity to interact with their radio station.
Citylife will be company to our listeners and, like a trusted friend, be there at all times of day
when needed.




                                                                 Catering for Tastes & Interests Page 51
              Presenters
               •Our focus groups clearly wanted local presenters with a local accent - it makes them
                 local which adds credibility to the listener and they feel the presenter knows what
                 they are talking about!
               •Citylife will recruit presenters who have a sound knowledge of the area and are
                 informed about day-to-day issues. They will have lived life as our listeners have and
                 their style won't 'shout' from the radio.
               •Citylife's point of difference will be its personality radio - what we say between the
                 records - entertaining speech that our presenters will be experienced and
                 well-known for. "Some of them just like the sound of their own voices you know they
                 are just talking for talking sake but saying nothing and you just, that's when I flick
                 over, oh shut up you're boring me." Focus Group Female (55-64)

(iv)   Proportion of Locally-Made Programming

       Citylife will provide locally made, produced and presented programming 24 hours a day, 7 days
       a week, 365 days a year.




                                                                    Catering for Tastes & Interests Page 52
(c)     If appropriate, the applicant may also provide a typical programme-by-
        programme weekday schedule, to give a flavour for the direction of the
        station.

                  Citylife - Living the Life of Greater Manchester
 Time          Programme                                                                      Features

               Breakfast - Presenter 1 & Producer 1                                           5' news on the hour
               Our breakfast presenter will certainly entertain listeners with their          2' news on the half-hour
               unique style that listeners warm to. The breakfast show will major on          Live roving reporting
 06.00-10.00   the news stories of the day including world headlines and international        Traffic & travel every 15'
               news, interspersed with Greater Manchester news. Our roving                    Weather
               reporter will expand on the most important story of the day which will         What's ons
               be the subject of the lunchtime debate.                                        Comedy clips

               Daytime & Lunchtime Discussion & Debate -                                      4' news on the hour
                                                                                              Extended news at 13.00
               Presenter 2 & Producer 2                                                       Weather
               A traditional 'old style' ILR morning show hosting guests for interviews       What's ons
 10.00-14.00
               on local issues, lifestyle, home and finance features with Ask The             Jobspot
               Expert. The presenter will add their own style of entertainment and            Local guests
               'tease' the audience for the live phone-in discussion and debate at            Ask The Expert
               lunchtime between 12.00-13.00 with when they pick up the lead story            Crimestoppers
               from the breakfast news and debates the views with the audience.               Listener Interaction

               Afternoons - Presenter 3 & Producer 3                                          4' News (14.00/15.00)
                                                                                              5' News (16.00/17.00)
               A presenter who will provide the perfect alternative to Steve Wright           2' News on the half hour
 14.00-18.00   and stimulate listeners with a locally-led speech agenda. They will            Traffic & travel every 15'
               make light of many of Greater Manchester's burning issues in their             Interesting interviews
               own unique style. A challenging quiz will keep listeners hooked and            Quiz
               celebrity guests will be invited into the studio. Melodic, but uplifting,      Weather
               music to drive home to.                                                        Comedy clips

               Citylife Tonight - News Editor                                                 Live roving reporting
                                                                                              Traffic & Travel every 15'
 18.00-18.30   In-depth coverage of the day's news and current affairs hosted by our          Weather
               News Editor from 18.00-18.30. Live contributions on the scene from             Sports news
               our roving reporters and comment from local news makers.                       Business & finance news

               Evenings - Presenter 4
               Foot tapping tracks from eras not genres - playing classics from               4' News on the hour
 18.30-22.00   across the decades. Interspersed with knowledgeable information                Specialist Music
               about the artist this show will be informative as well as enjoyable. This      Invited Guests
               show will also include specialist music as applicable.

               Late Show - Presenter 5
               An appointment to listen for consumers which will generate audience            4' News on the hour
 22.00-02.00   peaks at a time when radio has normally haemorrhaged listeners to              Phone-in
               TV. An entertaining and challenging presenter is needed to host this
               show.

               Overnight - Presenter 6
 02.00-06.00   A full repertoire of Citylife's timeless classics with live news on the hour   4' News on the hour
               through the night for those who can't sleep or are working nightshifts
               around the city.




                                                                                 Catering for Tastes & Interests Page 53
SECTION 105(D): EVIDENCE OF LOCAL DEMAND OR SUPPORT


6.    EVIDENCE OF DEMAND

      This section should provide an analysis of the reasons as to why it is considered that there is a
      demand for the type of service proposed, with reference to the size and nature of the proposed
      target audience.

      Citylife has accumulated conclusive evidence that existing local stations in the marketplace are
      not satisfying the tastes and interests of local residents in Greater Manchester and that there is
      exceptional demand for music and speech content not currently provided for on any single
      station audible in the area.

      62% of 45-64 year olds found our station sound appealing and indicated they would listen to
      such a station if it were available.



(a)-(e)Original Market Research
                                                                         (c) How                (d) Size &         (e) Where &
                       (a) Key objectives     (b) Specific questions
                                                                         conducted              composition        when
                                              What        is  the        In-depth analysis
                                              demographic make-up        was performed
                                              of the area.               on         RAJAR
                                                                                                                   From       two
                       To    understand                                  population
                                              How      does    this                                                months prior to
                       the                                               statistics and on
      Population                              compare to the UK as                                                 one      month
                       socio-economic                                    national statistics    Not applicable.
      review (desk)                           a whole.                                                             post        the
                       composition    of                                 population
                                              How       will     the                                               licence
                       the area.                                         figures and CACI
                                                                                                                   advertisement.
                                              population      profile    population
                                              change     over    the     predictions      for
                                              licence period.            the area.
                       To determine the       Which are the most
                       main      listening    popular stations for
                       patterns      within   each    demographic                                                  NAA
                       the area.                                         Published
                                              cell.                                                                performed this
                                                                         RAJAR figures
                       To establish the                                                                            research over
      Market gap                              What listening trends      for the past 6
                       listener profiles of                                                                        a two month
      analysis                                are evident from the       years        were      Not applicable.
                       the main stations                                                                           period before
      (desk)                                  past six years.            interrogated
                       and       discover                                                                          and after the
                                              Which segments of          using     etelmar
                       which      stations                                                                         advertisement
                                                                         software.
                       are popular with       the local population                                                 of the licence.
                       each                   are most underserved
                       demographic cell.      by ILR.

                                                                                                600
                                                                                                respondents
                                              What      is     driving
                                                                                                aged        15+,
                                              listeners to listen to
                                                                         Ipsos used CATi        quotas
                       To determine the       individual stations.       to      interrogate    consistent with    Between
                       music        and       What are the music         respondents on         age,        sex,   Wednesday
      Tastes &
                       speech tastes &        and           speech       their      listening   social       and   19th      and
      interests
                       interests of the       requirements on a          habits and music       ethnic             Tuesday 27th
      survey
                       adult population       new local station for      and          speech    classifications    July   across
      (quantitative)
                       of        Greater      the area.                  preferences for a      as determined      proposed
                       Manchester.            Is there a requirement     new station for        by population      TSA.
                                                                         the city.              profile       of
                                              for another station in
                                              the market place.                                 postcodes
                                                                                                across       the
                                                                                                proposed TSA.




                                                                                                   Evidence of Demand Page 54
                       To gauge existing                                Radio     Monitor
                       stations' format      What music is each         recorded       16
                       obligations.          station     playing,       continuous hours
                                             defined by era and         of station output
                       To reveal the         genre.                                           Key      103,      All    stations
      Format                                                            simultaneously
                       music          and                                                     Magic              were
      review (desk)    speech content of     What is the speech         on    one    day,
                                                                        chosen          at    1152AM,            monitored on
      and              the main local        content of each local
                                                                        random.               Century 105,       Wednesday 3rd
      Monitoring       commercial            station, categorised by
                                                                                              Smooth    FM       May       2006
      exercise         stations in the       local and non-local.       Independent           and    Capital     between 06.00
      (qualitative)    area           and                               consultant,
                                             What speech and                                  Gold.              and 22.00.
                       ascertain       the   music requirements         Caroline Birnie
                       precise     format    are          currently     analysed    and
                       interpretation of     unprovided for.            reported on the
                       each station.                                    data.
                       To        reaffirm
                       conclusions from
                       the quantitative                                                       Each     group
                                             What do core listeners
                       research.                                                              comprised 5
                                             think of their stations
                                                                                              males and 5
      Focus            To establish          and other stations in      Millward Brown                           Evening      of
                                                                                              females.
      groups           popular views on      the market.                conducted     two                        Tuesday      8th
      (qualitative)    existing stations.                               focus groups.         One      group     August.
                                             What is missing and
                                                                                              comprised
                       To     determine      does Citylife's format
                                                                                              45-54s and the
                       market reaction       fill that void.
                                                                                              other 55-64s.
                       to       Citylife's
                       proposals.
                       To        gauge
                       demand for a new      What proportion of the                           611
                       station for the       public would listen to                           respondents
                       market.               Citylife's  proposed                             aged        15+,
                                             format.                    Ipsos used CATi       quotas
                       To establish the
                                                                        to     interrogate    consistent with    Between
                       demand          for   When will they listen.     respondents on        age,        sex,   Friday 11th and
                       Citylife's
      Demand                                 What effect would that     their     listening   social       and   Friday      18th
                       proposals    and
      survey                                 have     on     radio      habits and their      ethnic             August 2006
                       quantify       the
      (quantitative)                         consumption.               view of Citylife's    classifications    across      the
                       potential
                                                                        proposals for a       as determined      proposed
                       audience size.        Which        individual    new station for       by population      TSA.
                       To assess the         stations will suffer       the area.             profile       of
                       impact of Citylife    from          Citylife's                         postcodes in
                       on       existing     introduction into the                            the proposed
                       stations in the       market.                                          TSA.
                       area.
                                             What media options
                                             are        currently
                                             preferred.                                       CN Research
      Advertiser                                                                              questioned
                                             Would advertisers use      CN      Research
      survey           To        quantify                                                     100 decision
                                             an alternative.            was      provided                        Between
      (quantitative)   advertiser                                                             makers of the
                                                                        with a list of the                       Monday       3rd
      - see            demand for a new      Is our target consumer                           top 200 local
                                                                        top           200                        and Thursday
      Evidence of      station    serving    congruent           with                         direct     and
                                                                        advertisers in the                       13th July 2006.
      Support          the area.             advertisers'      target                         agency
                                                                        area.
      section                                market.                                          advertisers in
                                                                                              the area.
                                             How would Citylife
                                             change market usage.




(f)   Summary of Main Findings
      Population
                  •The age profile of the proposed TSA is similar to that of the country as a whole, but
                   with a higher proportion of 15-29 year olds and less 55+s than average.
                  •National Statistics Office data for the metropolitan county of Greater Manchester
                   (an area encompassing Manchester, Bolton, Bury, Oldham, Rochdale, Salford,
                   Stockport, Tameside, Trafford and Wigan confirms this population pattern to be
                   consistent with our transmission area.
                  •Greater Manchester experienced a net migration of 71,200 people between 1991
                   and 2001 Census. However, CACI predicts that the adult population within the



                                                                                                 Evidence of Demand Page 55
         proposed TSA will increase by 17% over the licence period, leading to there being
         more 45+s than 15-44s.
        •This is because Manchester is a rejuvenated commercial centre of the North West
         and, although it still lags behind the rest of the country in many wealth indices, it has
         been improving all of the time. As the second largest sub-economy outside of
         London and the South East, Manchester's financial clout continues to grow .
        •Currently, despite much regeneration, Greater Manchester still fares poorly in
         comparison to the UK, with 6% less ABC1s and home ownership at 65% against
         69% across the country.
        •Unemployment levels are comparable at 3.5% although there are less actively
         employed due to long-term illness (some 500,000 people). Working hours for males
         tend to be lower, with 65% of men working a 38 hour week or more, compared to
         72% in the North West and 76% in England. Whereas women work longer; 62% in
         Manchester work more than 31 hours a week, against 56% in the North West and
         58% in England. For over-50s, there are 14% in work, as opposed to 10% across
         the North West and only 9% in England.
        •The proportion of non-white ethnic minorities stands at 9% which is average for the
         UK. The largest single ethnic minority is Pakistani, of which there are 75,000.
        •Despite the excellent further education facilities Manchester retains few highly
         qualified residents, with the area home to 18% less than the country as a whole and
         13% more that have no qualifications at all.
        •Residents of Manchester have been embracing new technology, with 86% having
         access to digital TV, only 65+s are lagging behind in the take-up of digital TV.
        •38% of all adults listen to the radio via the TV; 42% of 15-44s and 39% of 45-64s
         (only 22% of 65s). 45-64 year old males are very fast adopters and users of new
         technology with 45% listening to radio via TV, much more so than females (33%).
        •22% of adults listen to the radio over the internet, mainly 15-54 year olds, although
         45-64 males (30%) displayed a much higher propensity than average to listen over
         the internet. 45-64 male BBC Radio solus listeners (42%) were way ahead of their
         ILR counterparts (17%) in listening to radio on the internet.
        •There are stark differences in listening habits on the internet dependent in the age of
         the listener. Young listeners will tend to choose their local stations, whereas 45+s
         will listen to a national station more often than not. For example, 31% of 45-64 year
         old male BBC Radio solus listeners listen to national radio over the internet.
        •MP3 is another technology that has attracted users, with 23% of adults now owning
         an MP3 player. However these are mainly 15-44 year olds.
        •Whereas 45+s are lagging behind in their use of MP3 players they are much more
         aware of and likely to own a DAB set. 75% of adults in Manchester are aware of DAB
         and 16% won a DAB set. Mainly 25-64 year olds are most appreciative of this new
         medium.
        •In fact, it is 55-64 year olds who own the most sets (21%), again this is supported
         most by males with 22% of 45-64 males owning a set. 45-64 male BBC Radio solus
         listeners (28%) are much more likley than 45-64 male ILR solus listeners (9%) to
         own one.

The population bulge is moving towards 45+s, which is the least served community by ILR and
this will only grow larger over time. 45-64s, especially males, are leading the way in the
take-up of digital technology.


Market Gap
Desk (RAJAR analysis)
        •ILR stations are dominating weekly listening amongst 15-44 year old females,
         where Key 103 and Galaxy 102 combine to outperform BBC Radio 1 and BBC




                                                                       Evidence of Demand Page 56
             Radio 2, with support from both Smooth FM and 105.4 Century FM (Source:
             RAJAR/RSL-Ipsos Qtr 2, 2006).
            •However, ILR is much weaker amongst 35+ males than females, see chart 3 below,
             where BBC Radio 1 and BBC Radio 2 combine to much greater effect and BBC
             Radio is the market leader amongst 35-44 males.
            •These listening patterns set the theme for 45+ listening where BBC Radio performs
             better amongst 45+ males. This is mainly due to Key 103 and Smooth FM both
             maintaining greater popularity amongst 45-54 females than males, although both
             stations experience poor conversion of reach into hours amongst older females.
CHART 3 : BBC v ILR Reach (Source: RAJAR Qtr 2 2006, RSL-Ipsos)

 80%
                          All BBC                                           All ILR
 70%

 60%

 50%

 40%

 30%

 20%

 10%

  0%
          15-24   25-34     35-44   45-54    55-64   65+        15-24   25-34     35-44     45-54    55-64   65+

                               Males                                                Females



            •In fact BBC Radio has increased its market share amongst 45-64 females from
             50.1% in 2001 to 57.8% in 2006, which is now on par with 45-64 males, having risen
             from 56.5% to 59.0%.
            •The main driving force behind the BBC figures is BBC Radio 2 which has increased
             its male share from 20.1% to 23.2% and female share from 19.3% to 26.1%. So
             although Citylife is cogniscent that more 45-64 males (73%) listen to BBC Radio
             than females (65%), we are also aware that BBC Radio's average hours are better
             than ILR and thus result in high market share amongst females.

The performances of the most popular stations for 45-64 years olds, in order of wealth, are:
TABLE 31 : Reach by Age Band of Main Stations for 45-64 Males (Source: RAJAR Qtr 2 2006, stations
with a 45-64 male reach of 10%+)

  Males                     15-24           25-34      35-44              45-54              55-64           65+
  BBC Radio 2                8%             17%        29%                37%                40%             43%
  BBC Radio 4                6%              6%        15%                20%                31%             27%
  BBC Radio 5 LIVE           8%             18%        27%                27%                21%             13%
  BBC GMR                    6%              9%        10%                20%                22%             23%
  105.4 Century FM           16%            24%        23%                14%                14%             3%
  Smooth FM                  8%              8%        15%                13%                13%             7%
  Key 103                    32%            36%        25%                15%                10%             4%
  Classic FM                 4%              4%            5%             10%                16%             23%

                          BBC Radio    BBC Radio     BBC Radio          BBC Radio         BBC Radio      BBC Radio
  Market Owner
                              1            1             2                  2                 2              2




                                                                                          Evidence of Demand Page 57
            •It is evident that ILR stations concentrate their efforts on the 15-44 market, with Key
             103, Galaxy 102, Century and Smooth all achieving their best male reach figures
             amongst 15-44s.
            •This effectively leaves BBC Radio 2, BBC Radio 4 and BBC Radio Manchester/
             GMR to dominate 45+ male listening, only Classic FM amongst 65+s performs well.
            •It is this audience segment that is most in need of a dedicated local radio station.
TABLE 32 : Reach by Age Band of Main Stations for 45-64 Females (Source: RAJAR Qtr 2 2006,
stations with a 45-64 female reach of 10%+, excluding XFM as not in RAJAR.)
 Females                  15-24       25-34           35-44             45-54             55-64                   65+
 BBC Radio 2               7%          14%                26%           37%               42%                 33%
 BBC Radio 4               1%          6%                 10%           18%               26%                 26%
 Key 103                   36%         39%                31%           24%               11%                     5%
 BBC GMR                   4%          6%                 5%            12%               24%                 21%
 Classic FM                6%          6%                 7%            11%               18%                 22%
 Smooth FM                 8%          11%                18%           16%                7%                     3%
 Galaxy 102                56%         27%                21%           17%                4%                     2%

 Market Owner           Galaxy 102   Key 103         Key 103       BBC Radio 2        BBC Radio 2        BBC Radio 2


            •As with males, BBC Radio 2, BBC Radio 4 and BBC GMR combine to ensure that
             ILR is less effective amongst 45+s and only Key 103 has a reasonable audience
             amongst 45-54s, despite targeting younger listeners.
            •Yet again, like males, not one of the ILR stations that are most popular with 45-64
             females (i.e. over 10% reach) has an audience peak amongst 45+s .

The supremacy of BBC Radio amongst 45-64s is largely driven by listening to BBC Radio 2,
BBC Radio 4 and BBC Radio Manchester/GMR (see Table 8 and Table 31 & 32):


CHART 4 : Share Profiles - All Adults by Sex & Age of Main BBC Radio & Local Commercial
Radio stations in Greater Manchester (Source: RAJAR Ipsos-RSL Qtr 2, 2006 - Key 103 TSA, excluding
XFM as not in RAJAR).

                                            OLDER
                          Radio 4
   Classic FM                                                                                             Radio 3
                                            MARKETBBC GMR
                                     Radio 2 GAP

                                                                        Magic 1152

            Other Listening



                                                                                                   Capital Gold

                Sm ooth FM

                                                                                                             MALE
 FEMALE
                                                            Tow er FM




                                                                                105.4 Century FM
                          Key 103
                                               Im agine
                                                                                                The Revolution
           Galaxy 102
                                                                    Radio 1
                                      YOUNGER




                                                                                       Evidence of Demand Page 58
              •BBC Radio 2 is the most popular station amongst our target audience as it is in fact
               for 35+ males, ably supported by BBC Radio 4 and BBC Radio Manchester/GMR.
              •Of the main ILR stations, Key 103, 105.4 Century FM, Smooth FM and Galaxy 102
               have younger audience profiles and only Magic 1152AM and Capital Gold can
               boast an audience profile that is older than average for the market, although their
               listener base is inconsequential to BBC Radio listening (see Chart 4).
              •No ILR station has an older, ABC1 bias:

CHART 5 : Market Share - All Adults by Class & Age of Main BBC Radio & Local Commercial
Radio stations in Greater Manchester (Source: RAJAR Ipsos-RSL Qtr 2, 2006 - Key 103 TSA).

                                                 ABC1



               Radio 4



 Classic FM                                Radio 2

                                                                              Radio 1
                                                MARKET GAP
          Other Listening

                                                                                                   MALE

 FEMALE                                              Im agine

                                                                BBC GMR
                                                                                         105.4 Century FM
        Galaxy 102
                             Key 103

                Sm ooth FM                                        Tow er FM

                                                                                                  Capital Gold

                                                                                  Magic 1152
                                                     C2DE




              •BBC Radio also monopolises ABC1 listening with all of its stations except BBC
               Radio Manchester/GMR having ABC1 biased profiles (see Chart 5). By contrast, none
               of the ILR stations have an ABC1 biased listener profile and the two stations with the
               oldest average listener base, Capital Gold and Magic 1152AM, are the most C2DE
               biased of all the stations.

The market gap is, therefore, for a station targeting 45-64s with an ABC1 profile:

              •With BBC Radio 2 and BBC Radio 4 having an older age bias the new station needs
               to be older than existing ILR stations.
              •Another area where ILR performs poorly is amongst ABC1s. Despite ABC1s
               contributing 53% of all listening hours in Greater Manchester, ILR only attracts 29%
               of ABC1 weekly listening hours.
              •Of all the BBC stations in the market only BBC Radio Manchester/GMR attracts
               lower than average proportions of ABC1 listening hours, whereas all ILR stations
               are C2DE biased.

 The market gap is 45-64s with an ABC1 bias.




                                                                                 Evidence of Demand Page 59
Listening Habits
(Ipsos Tastes & Interests Survey)

Our commissioned surveys across the region, proved that ILR stations do not attract the loyalty
that BBC stations possess amongst their listeners, especially with 45-64 years olds:

         •In both our surveys, BBC Radio 2 and BBC Radio 4 were, by far, the most popular
          stations for our consumers. Over one-third of 45-64s listen to BBC Radio 2 each
          week and 30% listen to Radio 4. By contrast Key 103, the leading ILR station, only
          attracts 18% of 45-64s each week.
         •BBC stations were most popular amongst 45-64 males where, as most often
          listened to stations, BBC Radio 2 (18%), BBC Radio 4 (19%) and BBC Radio 5 LIVE
          (12%) were the only stations into double figures.
         •Despite not being a first choice listening preference for our consumers, BBC Radio
          Manchester/GMR did "own" a number of important local programming elements
          ahead of Key 103 (see Tables 9 & 10). This indicates that Key 103 is not particularly well
          regarded for its local news and information provision, but does retain a habitual and
          musical advantage over BBC Radio Manchester/GMR amongst 45-64s.
         •Although BBC Radio Manchester/GMR was the top station for every local speech
          feature we tested; Local Manchester news, frequent news reports about
          Manchester, frequent traffic, travel & weather information, what's-ons &
          entertainment news for Manchester, local current affairs and frequent sports
          information & scores, there are many doubts amongst our consumers as to whether
          a reputable supplier actually exists in the market.
         •BBC Radio Manchester/GMR's score was beaten in all but one of those categories
          by none/don't know. Only for frequent news reports about Manchester did it score
          higher than none/don't know.
         •In fact there was a disconcertingly high proportion of none/don't know scores
          against all the essential speech elements indicating a massive chasm in the market
          for quality speech features - local and otherwise.
         •BBC Radio is strongest amongst 45-64 males, with 69% listening to BBC radio each
          week (73% more than ILR stations) and 54% choosing to listen to a BBC station
          most often each week (twice as many as those who choose an ILR station), proving
          a higher conversion ratio of listeners to most often listeners at the BBC.
         •As an illustration of this loyalty towards BBC Radio amongst 45-64s; 76% of BBC
          Radio 45-64 male listeners choose a BBC station to listen to most often.
         •In comparison, 45-64 female BBC listeners are slightly less loyal with 71% choosing
          a BBC Radio station for their most often listening.
         •This means that 45-64 listeners are much more likely to gravitate towards BBC
          Radio stations than ILR, especially males.
         •So, not surprisingly, BBC Radio proved to attract a much higher respect rating for
          music, presenters, Manchester news and intelligent speech amongst 45-64s, than
          ILR stations (see Table 9). These ratings can be compared to the importance placed
          on each element, by 45-64 males (Table 33) and 45-64 females (Table 34).
         •Clearly 45-64 males are primarily drawn to stations for music, but with presenters,
          local Manchester news, intelligent speech and comedy/humour also being
          important. Plays written for radio were not considered important and 45-64 males
          were less convinced about local Manchester news.
         •45-64 females placed significantly more importance on all programming elements
          than males, even plays written for radio. Like the men, women feel that BBC Radio
          stations are best at all disciplines except music and local Manchester news, which it
          was felt was not delivered best by BBC or ILR.
         •When asked to consider which station in the market "owned" each programming
          element, BBC Radio 2 was thought as the best station in the market by all 45-64s for




                                                                        Evidence of Demand Page 60
               music and presenters. BBC Radio 4 was the most revered for its intelligent chat,
               comedy/humour and radio plays and BBC GMR for local Manchester news.
TABLE 33 : Importance of Programming Elements & Best stations for 45-64 Males (Source: Ipsos,
July 2006)
                        Music that    Presenters that      Local                                 Plays
                                                                      Intelligent    Comedy
                        suits your   you can relate to   Manchester                            written for
                                                                        speech      & humour
                          taste       & entertain you      news                                  radio

 Very Important            61%             43%              25%          33%          31%         13%
 Important                 18%             28%              27%          32%          28%         18%
 Not Important             12%             17%              19%          20%          20%         27%
 Not Important At All      10%             12%              29%          16%          21%         43%
                                                                                       BBC
 Best Station for       BBC Radio      BBC Radio 2        BBC GMR     BBC Radio                BBC Radio
                                                                                     Radio 4
 Category                2 (25%)         (21%)             (26%)       4 (21%)                  4 (38%)
                                                                                      (22%)
 BBC stations best         32%             54%              29%          58%          40%         50%
 ILR stations best         32%             21%              33%          15%          14%          3%
 None                      8%               7%              23%          11%          26%         42%

             •It is clear that 45-64 males consider BBC to be far superior at delivering all these
              essential programming elements, whereas females are less convinced that there is
              a service at all in the market that provides local Manchester news, comedy/humour
              and plays written for radio. Add to this their views on other essential speech features
              (see Table 37) and there is certainly a large gap in the market for local news and
              information and speech programming.

TABLE 34 : Important Programming Elements & Best Stations for 45-64 Females (Source: Ipsos,
July 2006)
                        Music that    Presenters that      Local                                 Plays
                                                                      Intelligent    Comedy
                        suits your   you can relate to   Manchester                            written for
                                                                        speech      & humour
                          taste       & entertain you      news                                  radio

 Very Important           56%              47%              45%          39%          35%         19%
 Important                27%              38%              22%          42%          28%         30%
 Not Important             8%              11%              18%          16%          26%         19%
 Not Important At All      9%              3%               13%          3%           11%         32%
                                                                                       BBC
 Best Station for       BBC Radio      BBC Radio 2       BBC GMR      BBC Radio                BBC Radio
                                                                                     Radio 4
 Category                2 (24%)         (21%)            (25%)        4 (27%)                  4 (41%)
                                                                                      (17%)
 BBC stations best         36%             44%              28%          50%          37%         49%
 ILR stations best         41%             33%              30%          18%          23%          1%
 None                      11%             10%              31%          24%          37%         45%


             •An additional poke in the eye for ILR is the fact that 45-64s believe that both TV and
              newpapers are a better source of local news and information about the Manchester
              area than radio. 45-64 females were most convinced about the disparity between
              media with 39% believing TV was best versus 22% for radio.
             •45-64s were also the most vociferous of all age groups in denying that existing
              stations serving Manchester provide enough local news and information, led by
              55-64 males and 45-54 females. For those 45-64s who did believe there was
              enough, BBC Radio Manchester/GMR was the single station that was attributed
              with adequately supplying the market with local news and information.
             •This will explain why 58% of 45-64 males (68% of those that made a decision) and
              53% of 45-64 females (65% of those that made a decision) believe there is room for
              improvement in the type or quality of speech radio serving Greater Manchester. This




                                                                                Evidence of Demand Page 61
            increased to 72% of 45-64s (that made a decision) who choose to listen to a BBC
            station most often. A clear indication that something is missing in the market.
           •There is a similar disenchantment over music provision in the area with 56% of
            45-64 males (66% of those that made a decision) and 55% of 45-64 females (67% of
            those that made a decision) believing that there is room for improvement in music
            radio for Greater Manchester. This rose to 81% amongst 45-64 year olds (who
            made a decision) that listen to a BBC station most often.

 There is a distinct lack of appropriate speech and quality music on radio for 45-64 year old
 residents in Greater Manchester.

Tastes & Interests
(Ipsos Tastes & Interests Survey)

Even though 45-64s want a music-led station they do require higher proportions of speech than
younger age groups. This was evidenced by the fact that 55-64 females demanded the highest
proportion of mostly speech with some music of all demographics.

31% of 45-64 males and females demanded equal proportions of music and speech but 42% of
males and 49% of females wanted more music than speech as opposed to 16% and 8%
respectively who want more speech than music. Speech is important to our target audience and
the only other ILR stations with an older audience profile, Capital Gold and Magic 1152AM, have
a music content of 75% and 72% respectively. Therefore, in order to further differentiate our
product from theirs, Citylife will incorporate higher proportions of speech (see Table 24).

We tested music from 7 different eras and found:
TABLE 35 : Music Preferences by Era of Main Listener Groups (Source: Ipsos, July 2006)

                                                                BBC Radio
                                        45-64s v      BBC                    ILR best    ILR best for
 For                                                             best for
              All     Males   Females      All     Radio best                   for      Manchester
 45-64s                                                         Manchester
                                         Adults    for music                  music         news
                                                                  news
 50s         48%      46%       50%       130         58%          60%        43%           43%
 60s         62%      60%       63%       141         66%          75%        57%           62%
 70s         60%      59%       61%       133        68%           70%        69%           60%
 80s         59%      59%       60%       120        62%           65%        71%           65%
 90s         61%      53%       68%        98        60%           55%        73%           70%
 00s         34%      35%       34%        69        33%           29%        52%           49%
 Current     35%      28%       44%       103        30%           37%        42%           36%


           •45-64s show a higher preference towards 60s to 90s, however there is a difference
            of opinion between males and females over 90s music. 45-64 males much prefer
            60s to 80s music, whereas females are more appreciative towards 90s than males.
           •In comparison to other age bands, 45-64s show a much greater inclination towards
            50s, 60s and 70s music and this is very much driven by the wishes of BBC Radio
            listeners. 45-64 year olds that predominantly listen to ILR tend to have much
            younger musical tastes and it is those respondents that have driven up the response
            rate on 90s music.
           •This point is highlighted further in Table 21, where it can be seen that the most often
            listeners of Key 103 (the station with the largest 45-64 audience) much prefer 80s,
            90s and 00s music to 50s, 60s and 70s. Whereas BBC Radio most often listeners
            choose 60s and 70s above all other eras.
           •Table 35 shows why many ILR stations choose to populate their music
            programming with high proportions of recent music rather than older music, due to



                                                                         Evidence of Demand Page 62
               the tolerance showed by 45-64 females towards 80s and 90s. However, the table
               illustrates the appreciation of 50s music by BBC Radio listeners being very close to
               that shown towards 80s and 90s, yet ILR programmers ignore this fact.

We also tested music from 7 different genres and found:
TABLE 36 : Music Preferences by Era of Main Listener Groups (Source: Ipsos, July 2006)

                                                                  BBC Radio
                                          45-64s v      BBC                    ILR best   ILR best for
 For                                                               best for
                 All    Males   Females      All     Radio best                   for     Manchester
 45-64s                                                           Manchester
                                           Adults    for music                  music        news
                                                                    news
 Easy
                56%     46%      68%        127         52%          58%        71%          64%
 listening
 Jazz           43%     35%      51%        113         58%          50%        33%          40%
 Country        55%     53%      58%        128        55%           60%        62%          57%
 Soul           59%     62%      55%        123        54%           52%        80%          76%
 Rock           43%     48%      37%        116        47%           45%        45%          46%
 Nostalgia      49%     44%      53%        132        59%           62%        43%          45%
 Current        35%     28%      44%        103        30%           37%        42%          36%



             •It is no coincidence that the 45-64s v all adult index shows 45-64s have higher
              preference ratings for all the genres tested. Thus is because we deliberately chose
              tracks representative of each genre that were likely to have appeal to 45-64 year
              olds and generate a level playing ground in accessing the merits of each genre
              amongst our target listeners.
             •45-64 males displayed less enthusiasm towards all genres than females except for
              soul and rock. They were also appreciative of country music
             •45-64 females like easy listening most, ahead of country, soul and jazz.
             •In order to allure BBC Radio listeners, the new station must concentrate on
              nostalgia, country and easy listening (this has been a reoccurring theme throughout
              our research over the past 6 regional licence applications).
             •In addition, the occasional jazz and soul track, subject to broadening choice would
              also go down well with the target audience.

 The music preferences of 45-64 year olds are nostalgia, country and easy listening tracks,
 predominantly from the 50s, 60s and 70s, with the occasional 80s track.




                                                                           Evidence of Demand Page 63
Essential speech features for 45-64 year olds are as follows:
TABLE 37 : Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                                                   45-64s     BBC Radio      BBC Radio best
                                               Males     Females
                                  45-64s                            v All     best music     for Manchester
                                               45-64s     45-64s
                                                                   Adults     for 45-64s     news for 45-64s
 Frequent national &
                                       74%      75%        72%       109         82%                87%
 international news reports
 Interviews with interesting
                                       59%      55%        63%       98          76%                70%
 people
 Frequent news reports about
                                       57%      54%        63%       98          51%                57%
 Manchester
 Frequent traffic, travel &
                                       57%      60%        52%       104         55%                57%
 weather information
 What's-ons & entertainment
                                       42%      36%        48%       93          45%                38%
 news for Manchester
 Local current affairs
                                       41%      44%        38%       111         49%                53%
 coverage & debate
 Frequent sports information
                                       34%      50%        16%       83          32%                37%
 & scores
 Informative & entertaining
                                       33%      30%        36%       85          22%                31%
 phone-in shows
 Competitions & quizzes                19%      15%        25%       73          11%                15%

           •National news, interviews with interesting people, local Manchester news and travel
            & weather information are all important to 45-64 year olds.
           •In addition, local current affairs coverage & debate scored higher amongst BBC
            Radio listeners and frequent sports information & scores is important to males.
           •When indexing the results of 45-64s against 15+s, 45-64s placed a much higher
            importance on local current affairs coverage & debate and also frequent national &
            international news reports.
           •Informative & entertaining phone-ins shows and competitions & quizzes were not
            deemed important to 45-64 year old listeners.
           •45-64s who considered BBC Radio as best for music or Manchester news displayed
            the greatest levels of importance towards national & international news reports and
            interviews with interesting people.

TABLE 38 : Who Is Best For....... Essential Speech Features for 45-64s (Source: Ipsos, July 2006)

                                                        Males                           Females
                                             BBC Best   ILR Best   None     BBC Best     ILR Best     None
  Frequent national & international
                                               77%        6%       7%         54%          12%        31%
  news reports
  Interviews with interesting people           61%        6%       22%        51%          7%         39%
  Frequent traffic, travel & weather
                                               57%       23%       10%        30%          29%        37%
  information
  Frequent news reports about
                                               45%       23%       22%        30%          32%        29%
  Manchester
  What's-ons & entertainment news for
                                               33%       25%       30%        24%          28%        39%
  Manchester
  Local current affairs coverage &
                                               50%       11%       31%        40%          8%         48%
  debate
  Frequent sports information & scores         50%       19%       18%        31%          16%        47%
  Informative & entertaining phone-in
                                               30%       21%       37%        24%          19%        54%
  shows
  Competitions & quizzes                       23%       25%       44%        10%          27%        57%




                                                                                    Evidence of Demand Page 64
         •When considering where these elements were best found on radio in Manchester,
          BBC Radio was considered the best by 45-64 males for 7 out of 9 features. For the
          other two features, males could not decide on a station that was best (Table 38).
         •For males, the only essential speech feature that ILR comes close to competing with
          BBC Radio on is what's-ons & entertainment news for Manchester and competitions
          & quizzes, although both of these categories attracted high none/don't knows.
         •Females were much more undecided, choosing none/don't know for 6 out of the 9
          features. ILR only ahead in frequent news reports about Manchester. BBC Radio is
          considered best for frequent national & international news reports and interviews
          with interesting people.
         •It is clear that there is certainly a gap in the market so far as females are concerned
          and that a quality news and information service will prove vital in attracting listeners
          from BBC Radio.

The speech features on Citylife will prove attractive to BBC Radio's core listeners.

Qualitative
(Millward Brown Focus Groups)
         •BBC Radio 2 is the most highly regarded station by 45-64s, enjoying broad support
          across ages and genders.
         •BBC Radio 2 is revered for its music, playing nostalgic songs from eras our
          attendees can identify with. Its presenters were considered professional, not
          patronising, with no silly prattle or self-indulgence. Overall its speech programming
          was thought to be relaxing, at calming pace, with good motorway travel information.
          Attendees felt a major difference versus ILR stations was that Radio 2 does not
          harass listeners to phone or text all the time and it has broad cross section of people
          on its phone-ins.
         •BBC GMR attracted mostly praise but with some criticism. Particularly our
          attendees did not like the older presenters and felt it was less entertaining and not
          as slick as Radio 2. However, they did appreciate the localness of the station,
          especially its promotion of charitable causes, local sports coverage (not just
          football, but speedway, rugby and cricket), local events information and detailed
          local travel news (burst water pipes, closed smaller roads, etc). Overall the station
          was considered to be a friendly local station which involved local people (such as
          the solicitor advice spot) and aimed at pensioners.
         •In contrast, Key 103 was seen as a station aimed at younger audiences, playing
          mainly chart music and dominated by competitions. Our attendees felt the daft
          banter was demeaning with rarely a conversation with any depth aired and felt the
          constant demand for listeners to text or ring in was too obsessive.
         •The only other local station that provoked reaction and comment amongst the focus
          groups was Century. They felt the station was quite modern and the chart music
          played was not as head banging as that on Key 103. They give away lots of tickets
          and play more music with less presenter chat, but it was felt there were far too many
          phone-ins on the station.

There are no appropriate ILR stations aimed directly at 45-64s in this market.




                                                                       Evidence of Demand Page 65
We played 3 music montages to our groups:
TABLE 39 : Appeal of music montages (Source: Millward Brown, August 2006)

                                      Radio 2                 Citylife           Nostalgia Only
 Excellent                                -                     57%                    36%
 Good                                   21%                     22%                    14%
 Okay                                   72%                     21%                    50%
 Poor                                    7%                      -                      -

 Total appreciation levels              21%                     79%                    50%



             •The Radio 2 mix, which was based on its current playlist, was deemed to sound
              more like Capital Gold than any other ILR station, and thought to target those in their
              40s & 50s.
             •The oldest music mix, Nostalgia Only (50s & 60s music), was popular with the older
              attendees. They considered it to be classic easy listening, whereas the younger
              attendees felt it was dated and made them feel old before their time. It was thought
              that this music was aimed at 60 to 80 year olds.
             •The Citylife montage comprised songs that were mainly from the 50s, 60s and 70s
              and with more emphasis on country and nostalgia tracks (which scored highly in our
              tastes & interests survey) and this was favoured by both groups. It appealed
              because it sounded more like Radio 2, good all round quality music to relate and
              sing along to. Both focus groups felt it was aimed at them.

Citylife will provide music from eras that are hardly played today on local Commercial Radio
and supply recognisable music from genres that are currently ignored.

             •For a new station serving Manchester our attendees thought it should combine all
              that is local and good about GMR with the local information that can be obtaining
              from MEN (the Manchester Evening News), with music of the quality of Radio 2.
             •They felt that serious commitment to the latest up-to-date world and local news at
              breakfast would be excellent, something not available on ILR at present. They
              would like news on the hour and headlines every half hour and felt that an in-depth
              news item every hour would be an added bonus. However, they don't want the same
              item every hour and they don't want "15 minute breakdowns of the casualties in
              Lebanon at that time of the morning". Focus Group Male (45-54)
             •It was acknowledged that a local speech intensive station, like GMR, has an
              advantage over Radio 2 by covering very important local issues, such as when the
              Metro was cancelled. Local traffic is another area where GMR excels over the
              competition, along with local sports and local what's ons and these elements were
              considered extremely important on a new local station for Manchester.
             •In-depth current affairs and discussion programmes should be mid-morning to
              lunchtime, and not too early in the day. Unless something tragic has happened
              people prefer to be eased into the day and not greeted with a string of dramatic bad
              news headlines dreamt up by journalists in the middle of a circulation war.
             •Our attendees felt is was very important for the station to create the right mood for
              the day in music, presentation and the news stories they report on.
             •A magazine style programme early evening was welcomed, although the timing was
              criticised as too late to provide sufficient ideas of what's on and entertainment for
              that evening in Manchester.
             •We were advised that the quality of local sports on Citylife should emulate that on
              GMR, where it's not just the big football matches that are covered but all other
              sports, including local cricket and rugby league.




                                                                          Evidence of Demand Page 66
           •Phone-ins were thought to be acceptable if there was a structure to them, a
            presenter should act as a chairman and remain neutral, keeping their own views to
            themselves, and concentrate on ensuring contributors stay on track.
           •Our attendees were not over enthused by the prospect of specialist music although
            they did concede there was not enough Country & Western music on the radio at
            present and would listen to a specialist programme on that theme. They felt that ILR
            in general opts out of proper Country & Western by constantly defining it as Shania
            Twain and Dixie Chicks because they are popular with younger listeners.
           •Our target age group appreciates the snippets of information that Radio 2's
            specialist presenters provide, during their shows, about the song and the artist, not
            just back announcing tracks so quickly that the information can't be digested.
            Therefore, anyone presenting a specialist show must sound knowledgeable and
            authoritative on the subject matter.
           •There is considered to be a stark contrast between BBC Radio presenters who
            speak to you as if you are the only person in the room, and ILR stations who have
            multiple presenters firing inane "in" jokes at each other making you feel like an
            uncomfortable intruder.
           •Our attendees' biggest gripe concerning ILR stations was the lack of breadth in their
            playlists, they consider these stations' music policies to be predictable and stale,
            akin to putting a tape recorder on and were sure certain parts of the day must be
            pre-recorded.

 Citylife's speech programming will have a depth and quality that will draw listeners into
 interacting with our presenters over issues that are important to 45-64 year olds.

Broadening Choice
Format Review

A summary of the main points in each stations' format:

             Character of Service                 Music                                Speech
             A rhythmic-based music-led
                                                  A mix of contemporary and
             service for 15-29 year olds
                                                  classic     rhythmic     music,
             supplemented       with     news,                                         Not exceed 25% of output.
 Galaxy                                           including current and recurrent,
             information and entertainment.                                            Local news bulletins during
 102                                              dance, club genres, soul and
             The     service   should     have                                         weekday peaktime.
                                                  r'n'b. Classic tracks not more
             particular appeal for listeners in
                                                  than 50% of output.
             their 20s.
                                                                                       Important, challenging regional
                                                                                       content with phone-ins (daily &
                                                  Up to 50% adult contemporary
             A full service talk and music                                             at least 3 hours per week) and
                                                  and the remainder a mix of
 Century     station with 24 hour news for the                                         extensive sports coverage.
                                                  modern easy listening, classic
 105         North West region, targeting                                              Between a third and a half of
                                                  easy      listening       and
             primarily 25-54 year olds.                                                daytime output. 24 hour news
                                                  soul/Motown.
                                                                                       bulletins at least 3 mins at
                                                                                       peaktimes.
                                                  Up to 90% can be up to three         At least 10% of weekday
             A contemporary and chart music
                                                  years old and up to 50% may be       daytime output. Local news
 Key 103     and information station for 15-44
                                                  over three years old. Specialist     bulletins run hourly during
             year olds in Greater Manchester.
                                                  in non-daytime is possible.          peak-time.
                                                  Classic pop hits over five years
                                                  old. Hits less than five years old   Not less than 15% of weekday
 Magic       Magic is a music-led over-30s
                                                  account for no more than 30%.        daytime output. Hourly bulletins
 1152AM      service for Greater Manchester.
                                                  Themed genre days allowed            with local news at peaktime.
                                                  occasionally.
             Smooth FM is targeted at             Music from broad jazz, soul,         News bulletins each hour
 100.4
             North-West listeners of all ages     blues and r'n'b categories. At       during peaktime. At least 3
 Smooth
             who particularly like jazz, soul,    least 45 hours of recognised         during breakfast will include
 FM
             blues and R'n'B.                     jazz each week.                      North West news.




                                                                                        Evidence of Demand Page 67
                                                        Mix of film music, mixed geets
               A music and information service                                              At least one-third in Urdu, Hindi
Asian                                                   and ghazals, folk, Asian oldies
               for Asian listeners in East                                                  or Panjabi. Not less than 15% of
Sound                                                   and Asian pop, bhangra and
               Lancashire.                                                                  weekday daytime output.
                                                        qawalis.
                                                        Music from the last 15 years
               An adult orientated rock and
                                                        should not make up more than
Capital        quality easy listening station                                               Hourly bulletins containing local
                                                        50% of the music output.
Gold           aimed primarily at over-35s in the                                           news during peaktime.
                                                        Themed music days are
               Manchester area.
                                                        permissible.
               XFM will provide an alternative
                                                        Current or recurrent alternative
               music format for 15-34 year olds
                                                        rock, modern alternative, Brit
               in the Manchester area, playing                                              Local listings, cultural events,
                                                        pop and pop rock for 70% of
               generally    guitar-led,   quality                                           music news and international,
XFM                                                     daytime, the balance from
               modern and classic "music with                                               national and local news each
                                                        classic rock and indie tracks. 45
               attitude" created by artists who                                             hour during daytime.
                                                        hours of specialist shows each
               challenge the mainstream pop
                                                        week.
               aesthetics.
                                                                                            Not less than 15% of daytime
               A full service local station for adult   A blend of classic hits from the
                                                                                            output. Local news hourly
               listeners within the area providing      previous 25 years with current
Tower FM                                                                                    during peaktime, at least two
               information and entertainment            chart hits not exceeding 25% of
                                                                                            weekday daytime bulletins to
               about and for the locality.              output.
                                                                                            be 10 minutes duration.
               A truly local full service station       A       mix      of       adult
                                                                                            Not less than 20% during
               aimed at 25-54 year olds and             contemporary/soft rock/ballads.
96.2 The                                                                                    daytime. Hourly local bulletins
               playing primarily a broad mix of         Other genres should not
Revolution                                                                                  with at least two extended to a
               adult contemporary and soft rock         comprise more than 50% of
                                                                                            minimum of 5 minutes.
               hits.                                    output.
                                                        A spread of ex-top 40 hits from     Not less than 20% during
               A locally focussed music and             the 60s to the present day.         daytime. Local news bulletins
Imagine
               information station for Stockport.       Current and recurrent never         hourly weekday peaktime and
                                                        more than 45% of output.            extended twice each weekday.
                                                        Past 50 years. Current and
                                                                                            Not less than 50% during
                                                        recurrent material not more
                                                                                            daytime. Speech to be topical
               A     locally-focused speech,            than 15%. 70% of music is over
                                                                                            and include news, views,
               information and music station            25 years old, 70% from
Citylife                                                                                    entertainment,          comedy,
               aimed at Manchester's 45-64              nostalgia, easy listening and
                                                                                            information      and     listener
               year olds.                               country. Up to 10 hours of
                                                                                            interaction. 24 hour local news,
                                                        specialist        programmes
                                                                                            including 2 extended bulletins.
                                                        weekday evenings.


             •Of the eleven existing stations above, all are music biased and none of them
              exclusively target over-45s.
             •The majority of music is classic hit, adult contemporary or soul/Motown. Although
              Capital Gold's format states it should play easy listening it actually plays mostly soul
              and adult contemporary (see Table 30).
             •No station has a 50% commitment to speech and 24 hour local news enshrined in
              their formats.

There is limited choice in the local commercial market for 45+ listeners.

             •The eleven stations in the Manchester market currently offer a wealth and breadth
              of music. There is provision for pre-release, current chart and hits of the last 40
              years, with genres ranging across classic hits, adult contemporary, soft rock, Asian
              music, modern easy listening, alternative/modern/adult orientated rock, rhythmic
              dance/r'n'b and soul/motown/jazz. However there are obvious omissions, most
              notably; country, nostalgia, traditional easy listening and 50s music.
             •There is also a distinct lack of regulation over the provision of music from older
              decades. The only stipulated restrictions are that at least 70% of Magic 1152AM's
              music must be over 5 years old and Capital Gold must play 50% of its output from
              music over 15 years old. Other stations, such as Tower FM and Imagine have
              restrictions to ensure they don't play too much current/recurrent material but no
              guarantees on music over a certain age.




                                                                                             Evidence of Demand Page 68
          •Stations that have genre restrictions, such as Smooth, Asian Sound and Century do
           not contain restrictions on the age of music.
          •There being only one station with a format restriction on the age of music over 15
           years old means that all ILR stations sound young and contemporary and this drives
           45-64 listeners over to the BBC (see Table 8).
          •Similarly, in speech terms, only Century is bestowed with a significant commitment
           to speech and this is deemed to be sports and phone-ins based. However, Century
           105's youth-biased output is not aimed at our target market, as illustrated by its
           music strap line "80s, 90s & now", and this is evident through the fact that 72% of
           Century's listener base and 72% of its hours come from the 15-44 age group.
          •The result is two-fold; not one local commercial station in the market is charged with
           delivering quality speech in sufficient quantity to 45+s and there is no enforcement
           order on Commercial Radio to stretch itself journalistically and provide hard hitting
           local current affairs and in-depth, investigative journalism.

 Citylife will address the lack of older music in the market by committing to 70% of music over
 25 years old, complemented by a highly resourced, strong journalistic speech policy of not
 less than 50% of daytime output.

Monitoring
          •Five of the 11 local commercial stations were monitored on Wednesday 3rd May.
           The smaller, local stations that are dedicated to individual towns in our area were
           omitted on the premise that their classic hits music formats were not dissimilar from
           each other and resembled a blend of that available on Key 103, 105.4 Century FM
           and Magic 1152AM. It was also accepted that their speech policies are parochial to
           their particular area of Greater Manchester and that their target audiences were not
           congruent with that of Citylife.
          •The analysis and commentary of our monitoring exercise is based on the period
           06.00 to 22.00 unless otherwise stated. We believe this to be substantial enough to
           elicit an accurate representation of news, general presentation style (including
           travel and weather), community information, music and commercials.

A brief synopsis of our findings for each station follows:

        Key 103:

          •The overall impression of Key 103 is that it is thoroughly a Manchester station when
            h e s s e g ra c s h e t fh i h r o s ’ p e ro e n
                            n             .                   me
           ten w i b i bo d a tT ers o tet teed e n a p a t b a y              t
             o s tn yn t rs nes r s , f te it g h t n t f e 1 3
                 s          s                      c ei y ln
           c n ie c i i pe e tr o mu i efcv ldui tes e gho K y 0 ’             r                s
             rn s Ma c e t ’ e 0 ” H w v r h e s n ma i o s tnl
                                  es
           ba da “ n h s r K y1 3. o e e ten w a di g gc n ie t                    n      s y
           defines Key 103 as a Manchester station, with a good proportion of presenter-led
           local entertainment and information backing this up.
          •The news is extremely similar to that broadcast on Magic 1152 (see analysis later).
           News bulletins are not exactly the same, with some local stories being broadcast on
           Key which are not on Magic and vice versa (for example the Shipman report is not
           broadcast on Key). Key also falters behind Magic where the Rooney story is not
           always localised and local stories are mostly, but not always top. Another difference
           between Key and Magic news is that time given to news bulletins on Key 103 is less
           than that given to news bulletins on Magic. There are no extended bulletins on Key
           103 and bulletins are very short and concise. Although Magic news tends to be a
           maximum of 3 minutes, it has longer bulletins at 5pm and 6pm. Key 103 broadcasts
           news at the top of the hour every hour from 6am until 6pm. There are headlines and
           sport at 6.30am, 7.30am, 8.30am, 5.30pm and 6.30pm. There is no news at all after
           6.30pm.
          •Imaging is very good on Key 103, with constant references to Manchester and
           longer jingles involving a located listener from the area talking about what music she




                                                                       Evidence of Demand Page 69
 likes and why. There are no males involved in these jingles and they are similar to an
 idea taken on by Century in recent times, suggesting that Key is directing itself at the
 adult female market within its huge 15-44 demographic in order to compete with
 Century.
    h l o c n ie c rf c b K y 0 ’ n oi p r d h f t f
         c         s         ee
•T ea k fo s tn y el td y e 1 3 mo i r g ei c i ls msrm
                                                 s      tn          o     ey e        o
 the wide range of music it plays, from Luther Vandross to Keane. Key 103 brands
  t l s Ma c e t ’ i
   sf                 e s Mu i tt n, h hsh o l h me y g h d esy
                                   c
 ie a “ n h s r Ht s Sai ”w i ite n te tn te i ri
                                          o      c             y          i       v t
 of music together. Breakfast plays mostly recent music with a couple of classics hits
 thrown in, but plays an assortment of genres and eras between 9am and 10am
 during the non-stop music hour. Following that, between 10am and 1pm sounds like
 a random VH1 jukebox with hardly any presenter content, which has the effect of
 making the already substantial commercial content appear even larger. In addition,
 local comic Justin Moorhouse (from 1pm-4pm) plays Incognito, The Police, Jamelia
    n L te V n rs fr x mp n d e n s u d sf k o sh s n s h n
                                   e             t
 a d uh r a do so e a la d o s ’ o n a i e n w te o g w e       h
 he back announces them, or interested in them being part of his show.
•The ubiquity of the image Key 103 is going for would require a very tolerant most
 often station listener. However, there is something for everyone; local
 personality-led (in the case of Justin Moorhouse), or polished music / personality
 presenter-led appealing to adults to compete with Century (in the case of breakfast
 and drive), or fast-paced speedlinks appealing to teens (in the case of evenings) or
 no real need for a presenter at all, video jukebox style (in the case of mid-mornings).
•In keeping with this policy, local content is variable, with breakfast containing the
 most local speech content both in relation to information and entertainment,
 including the listener interaction where their opinions are sort on certain
 light-hearted, popular culture-type topics. Justin Moorhouse is more local in favour
 of entertainment, with a feature asking listeners to name the best and worst about a
 randomly chosen area in Manchester. Drive is local in favour of information.
 However, information on the Take That concert in Manchester takes up a sizeable
 proportion of the total amount, with not a great deal of emphasis on listener
 interaction and mentions especially in drive-time.
•Out of all the stations monitored, commercial breaks are far more pronounced and
 longer on Key 103. They appear to override the music; an element perhaps noted by
 Key 103's presenters as the breakfast presenters make a fuss over the 9am-10am
 hour being commercial free, rather than non-stop music. Most advertising is
 national, with presenter-read scripts contributing to the national weight. Up until
    p h r r ne ni eee c s o h Wok o r y o h S ”
                         e n
 7 m tee ae u rl t g rfrn e t te “ r Y u Wa T T e U A
 competition which is sponsored by a national advertiser.
•The local speech content percentage breakdown for Key 103 is as follows:
        e s a n w rl i ttei n e S oae 20
                l         an            c               l
    •N w – l e s e t g o h le c T Attld minutes and 46 seconds:
      75.79% of total news output / 2.16% of all output
    •Presenter links relating to the licence TSA, including listener mentions / phoners
      totalled 40 minutes and 51 seconds: 4.26% of total output
    •Advertising concerning the licence TSA totalled 49 minutes and 53 seconds:
      5.20% of total output
    •Traffic news totalled 10 minutes and 24 seconds: 1.08% of total output
    •Total time devoted to Manchester licence TSA = 121 minutes and 54
      seconds = 12.70% of total 16 hour output
    e 1 3 oa t
            s      i ec na e s h rae t f li t i s n oe ; r
•K y 0 ’ttlmep re tg itege ts o a fes t n mo i rd moe    lv a o               t
 than 3 times that of Century and over a percent more than that on Magic (aided by
 Magic being networked for 50% of the monitored time). The largest contribution to
    e 1 3 o lp e h o tn p re tg oin e f o ld eti ,ah r
            s c                                   ga
 K y 0 ’l as e c c ne t ec na e r i tsrm l aa v rs g rte      o c            in
 than editorial. Nevertheless, Key 103 news is over 75% in favour of time given to
 local stories and over 70% in favour of numbers of local stories across the entire
 monitoring period. The local element in presenter links in comparison to general
    net n
        a me t n t n ln r t n s 05 . e 0 ’
                       o
 e tr i n / ai a i omai i 5 /0 K y1 3 mo i r gp r da o
                              f        o                               tn
                                                                s n oi ei l      o s
 illustrates a 75% bias towards national advertising.




                                                             Evidence of Demand Page 70
 •Finally, amidst the vast variety of eras and genres depicted on Key 103, the
  monitoring period was dominated by 90s A/C, with respectable amounts of 00s /
  current and dance in second place.

Magic 1152AM:

 •Although Magic 1152 is a station serving Manchester, a good proportion of the
  monitoring period was networked across the whole Magic network covering various
  sizeable TSAs in the UK. Locally-based programming took place only between 6am
  and 10am and from 3pm to 7pm. This means that out of the entire monitoring period,
  only 50% of it was based in Manchester. The only localness attributed to networked
  periods came from local advertising and news which always came from
  Manchester.
      g ’ e s s a l t d r n t c e un : uei v r o r ev rd
        c
 •Ma isn w i fi s n adi i sh d lg b lt se eyh u d lee
                          r a
                           y                s           i      ln                       i
  locally until the final bulletin at 6pm, which is a 10-15 minute news programme called
   Ma i t ”H a le ae e d n h h lh u wt n x d d p r o n -p
         c               i                         f
  “ g A 6. e dn s r ra o te a -o r i a e tn e s otru du     h         e            s
  at 6:30am, 7:30am, 8.30am and 9.30am. Although there are half-hour bulletins at
  4.30pm and 5.30pm, sport does not feature. IRN takes over at 7pm until the
  following morning.
 •Magic directed the majority of its news output to local stories, both in numbers of and
  time given to them. Every top story was always local. The 5.30pm headlines were
    o le o l ye o n y n r
         e y c.                          s j
  c mp tl l a Wa n R o e ’ iuy–ab s r a rs tec u t –w s  g o
                                                        i t y co s h o nr             y    a
  present in every bulletin from 6am and almost always top. Not only that, the story
  was localised through locally sourced cuts and voxes, engaging the opinions of
    e p n h t es f n h s . h s n t k o t to e tr M’
         e             r                    e      s
  p o l o tes e t o Ma c e tr T i i i s r c nrs t C nuyF s   a         a
  handling of the story, which did not localise it or feature it in every bulletin throughout
  the monitoring period.
 •Magic 1152 is served by the same news team which serves sister station Key 103.
  By far and away their news throughout the monitoring period was superior to news
  output on other stations' monitored: not only because they placed greater
  significance on localising national stories but also by broadcasting a much greater
  mix of local stories, with locally sourced and packaged cuts and voxes rather than
  just read copy and a couple of cuts here and there. Examples of stories not
  broadcast by other stations monitored include a report on serial killer Harold
  Shipman; new passport office in Manchester (related to passport regulation
    h n e )G e t ra ’w e l a a k ta ta
                          tn            c r
  c a g s; ra Bi is h e h ib seb le m ma i i oac a i s il            n t h mp n h
                                                                   k gt                o p
  event being held in Manchester in the future and Take That playing in Manchester,
  with a reporter speaking from outside the MEN Arena.
 •In contrast, local speech content consisting of presenter links was comparatively
  poor even for non-networked shows. The breakfast show was particularly lacking in
  localness, with only 2 located listener mentions. The presenter also played out a
  pre-recorded comedy sketch concerning Wayne Rooney, which was localised.
  Although the presenter constantly reminded listeners to take part in a competition
    in w y i es o te a e h t o c r i
    vg             c
  g i a a tk t fr h T k T a c n etnMa c e tr te“ n h s r               e
                                                               n h s ,h Ma c e t ”        e
  mention was incidental, with more focus placed on repeating the strapline for the
  competition sponsors: Phones 4 U, making the link a national ad. Some jingles
   o td h a i t i , i Ma c e t ’ ra f t h w ma i p o
    c                o ao
  l ae terd s t n wt “ n h s r be k s s o ” k gu s meo
                                    h            es         a                 n             f
  the liners. Traffic news was the only feature to boost local speech (excepting news),
  with up to four bulletins an hour during peak periods.
 •The drive show from 3pm-7pm is not any more local than breakfast. There are still
  only a couple of located listener mentions and a couple of links where the presenter
  talks about the area. The drive show only sounds more local because the presenter
  has a strong Manchester accent.
 •Advertising is nationally biased, which also comprises presenter-read scripts for
  nationally sponsored competitions (breakfast only). Overall, the speech:music
    a n esi e h a i ifv u o mu i w i ia e s n i nl yh “ o
      a          p            l
  b l c it p d e vyn a o r f s , h hs i d i i a t b te N n
                                                 c      c     d       gf  c y
    tp s o rf c           o p o p Mu i n h o rs o p d y h p e s
                                                  c
  So Mu iH u”rm 2 m t 3 m. s i tih u itp e b te2 m n w   s




                                                                Evidence of Demand Page 71
  and broken up only by ID sweepers and jingles, with commercials tailing the hour.
  Magic mostly played 70s A/C closely followed by music from the 80s. Although it is
  different from Century in that songs representing the 80s are far more laid back and
      tr,ah rh n sh o d y n s g ” s e n t td y e tr.
                                          ai
  maue rte ta “c o l a s o tla a d mo s ae b C nuy           r
 •The percentage breakdown for Magic is as follows:
         e s a n w rl i t tei n e S oae 41
                  l        an           c                l
    •N w – l e s e t g o h le c T Attld minutes and 31 seconds:
       66.66% (two thirds) of total news output / 4.33% of all output
    •Presenter links relating to the licence TSA, including listener mentions / phoners
       totalled 9 minutes and 14 seconds: 0.96% of total output
    •Advertising concerning the licence TSA totalled 43 minutes and 10 seconds:
       4.50% of total output
    •Traffic news totalled 14 minutes and 14 seconds: 1.48% of total output
    •Total time devoted to Manchester licence TSA = 108 minutes and 09
       seconds = 11.27% of total 16 hour output
 •This illustrates that even though Magic networks 50% of the monitored period, its
    S eee c s r e r i a ma y s e tr’ h hs o n tok d t
                             y me
  T Arfrn e aen al3t s s n a C nuy w i in t ew re a          s c
  all throughout the monitoring period. However, it must be remembered that the
   a e t o tb t n o g ’p re tg r i e r o l d eti ,ah r
    r           i o            c                    ga
  l g s c nr ui t Ma is ec na eoin tsf m l a a v rs g rte   o c              in
   h n d oi. e et l s Ma is e s s v r 5 n a o r fi
            ta           he            c
  ta e i r lN v r e s, g ’ n w i o e 6 % i fv u o t g e t                         v
                                                                             me i n o
  local stories and 65% in favour of numbers of local stories across the entire
  monitoring period. Presenter links do not follow this trend at all, as the comparison
  between local information & entertainment and general entertainment & national
  information is 88% in favour of the latter. Advertising-wise, Magic represents a 63%
  bias in favour of national advertising. Finally the dominating music era and genre is
  70s adult contemporary, with 80s, 60s and soul music following.

Capital Gold:

 •The only local show on Capital Gold is breakfast, with networked programming
    o     ni rn o 0 m. ra f ts rs ne y o l e p
                                         a
  c mme c gf m 1 a Be k s i pe e tdb l a p o l –te me t n          c        e h y ni        o
   h ye r
        r o a od n a t n o t u tee ad n l lo tn i
                    f               e
  te ’ f m S l r a dS l a o ep i –b th r’h rla yo a c ne t
                                                 n               s     y        c            n
  breakfast at all. Local content involves a couple of listener mentions here and there
  and quick mentions of ticket giveaways for a local show, as well as some local
  football updates. Their accents are the only feature which give the show a local feel.
  The majority of presenter chat revolves around showbiz gossip and comment on
  national stories.
 •National bias also rules advertising. On the whole there is only slightly more national
  advertising than local, although national advertisers sponsor shows. For example
  breakfast travel is sponsored by O2, which appears to be a group-wide sponsor due
  to O2 also sponsoring travel on fellow GCap station Century. In comparison to Key
  and Magic which broadcast up to 4 traffic bulletins in peak periods, Capital Gold only
  broadcasts up to 3.
 •Networked programming from 10am makes no secret that shows are being
    ra c s f     o o d n S me rs nes ee t e te o td f a i l
  bo d a trm L n o . o pe e tr rfr ow ah r us eo C p as                      i             t’
  building and there are links where presenters discuss football in London and events
  going on in London, completely excluding their North West listenership. There are
    ca i a p o es o n 8 5 u e – 1 1 n p ls o ra f t n
         o
  o c s n l h n r (na 0 4 n mb r 0 6 o l a pe t be k s a d       y     i              a)
  listener mentions throughout the monitoring period from Manchester, but likewise
   hr r hs h h o         c             r h o t. i a s r b c n h a ”
                                       o
  teeaeto ew i c mef m teS uh Bgn me f m “a ki ted y                   o
  present on Capital; for example David Jensen and Greg Edwards, who was
  covering drive on the day of monitoring.
 •News is also nationally biased: although the Rooney story is localised, presenters
  do not localise it when discussing the story in links. However the Rooney story
      k so t p 3 m n r                o p N w iq i i a o e tr’ o i o
  ma e tpa 2 m, p a df m 5 m. e ss u es l t C nuy , wn t     t mir                  s      g
  the fact that the station is its sister station like Key 103 is to Magic. Bulletins are short
    n o c e i ie d e o tn – s o is i y o yr d n e e td
             s      ht  t
  a dc n i wt ll a d dc ne t mo t f is lc p - a a drp ae t mp               e
  throughout the day with no updates. The news schedule is straight-forward:



                                                                 Evidence of Demand Page 72
  bulletins on the hour up until 6pm and news on the half-hour at 6:30am, 7:30am,
  8:30am, 4:30pm, 5:30pm and 6:30pm. There is an IRN bulletin at 7pm and then no
  news at all after that.
 •The music on Capital Gold is very similar to the artist and song selection on Magic.
  However Capital Gold plays more 60s, but the most popular genre is adult
  contemporary like Magic, followed by soul like Magic. Overall Capital Gold played
  19 more songs than Magic.
 •The percentage breakdowns are as follows:
         e s a n w rl i t tei n e S oae 13
                  l       an            c              l
    •N w – l e s e t g o h le c T Attld minutes and 37 seconds:
       38.72% of total news output / 1.42% of all output
    •Presenter links relating to the licence TSA, including listener mentions / phoners
       totalled 5 minutes and 33 seconds: 0.578% of total output
    •Advertising concerning the licence TSA totalled 45 minutes and 30 seconds:
       4.74% of total output
    •Traffic news pertaining to the licence TSA totalled 9 minutes and 44 seconds:
       1.01% of total output
    •Total time devoted to Manchester licence TSA = 74 minutes and 24
       seconds = 7.85% of total 16 hour output
 •Capital Gold devotes more time to localness than Century and Smooth, but Key 103
  devotes almost twice as much time and has the greatest local percentage of all
  stations monitored. Capital Gold shows a 54% bias towards national advertising.
  News-wise, Capital Gold reflects a 62% bias towards the number of national stories
  and a 61% bias towards the time devoted to national stories. Presenter links show
  almost a 90% bias to general entertainment /national info in favour of local content.

105.4 Century FM:

 •Century FM is a regional (North West) station and as such, references were not
  exclusive to Manchester or its surrounding areas, although these areas were not
    xl e e h rC nuy e s o tn f trd t a t n Ma c e t s y e
      u        t             s               e           e
  e c d d i e. e tr’n w c ne t aue a l so e n h s r tr p r                   e o
  bulletin, with the exception of the 3pm and 4pm news. Stories were not endemic to
  Manchester city centre areas; Bolton frequently featured in bulletins and Stockport
  made one appearance in the 8pm news. However Century FM gave top story
  priority to national stories in every bulletin apart from 12pm, where a Preston
  mugging was top story.
 •Manchester news content comprised Bolton boxer Amir Khan campaigning against
  child deaths from playing on rail tracks; a brothel raid; an ASBO for a Stockport
  pigeon fancier and a court case involving women from different areas in the North
  West, one of which happened to be Manchester. Greater Manchester sport featured
  in a few bulletins, namely Manchester City and Bolton football. However Century
    M’e t d d e s rga
            e                         a 53 p T e yt ” ti e moe p rt
  F s x n e n w po rmme t :0 m “h Wa I s atb td r s ot      I ru                      o
  Liverpool than Manchester.
 •Overall, all news bulletins were predominantly national. The national focus of
  Century FM news could not have been more pronounced than in their coverage of
      y e o n y n r,l s d s E g n w r u u d t” i n e trF s
                    s j      a              a
  Wa n R o e ’iuyc se a “n l d olc p p ae wtiC nuy M’d                h
  running order. This is because Century focused far more on the national England
  aspect of the story, rather than taking the opportunity to localise it to Manchester.
  When Manchester United was mentioned it was incidental and located at the end of
  the story. In addition the story did not make top until 1pm, in contrast to Key 103
  which prioritised it from 6am and made it local.
 •National bias did not only prove itself on Century FM news. The entire monitoring
  period also had a strong national flavour; in terms of more national advertising than
  regional and certainly the proposed licence area. Shows, weather, travel and sports
  news (when sponsored) are sponsored by national advertisers. In addition, the main
   a i o t d yme rs nes a te 1 S n sn 0 e o d ” o ei n
     kg no               i
  tln p i fr a t pe e tr w sh “0 o g i1 S c n s c mp to ,                          ti
  which was promoted to take place from the following week. This was sponsored by




                                                             Evidence of Demand Page 73
 a national advertiser. Plus, from 8pm, Century FM is networked across the UK
 Century family, with the evening show being presented by Pat Sharp. Although from
 6am-8pm the national bias was perforated by clear regional elements, general
 entertainment; national advertising and numbers of national news stories per
 bulletin far outweighed their regional (and even more so Manchester and
 surrounding areas) counterparts. Although there are listener mentions and
 presenter chat concerning the Manchester area, most of it is confined to Breakfast.
•Although the Century FM brand proposes a respectable amount of speech output
   e d y ima e a moe f rmoi a fs v rt      o
 p r a ,t k sfr r o apo t n lu so e i mu i p ly C nuy               c i
                                                             s s oc. e tr’            s
  t pn co s h o nr s 8 s 9 s n o ”T i s s d s h t i
   r i                         y
 s a lea rs tec u t i “0 , 0 a dN w . h i u e a tes t n       s                   ao
 strapline, reiterated in jingles and also in TV advertising. The monitoring period
 however showed a predilection for 80s A/C, with almost equal amounts of 90s and
 00s in second and third place. In congruence with the strapline no songs from the
 50s or 60s were played, however 4 songs from the 70s were played across the
 monitoring period. Following A/C as the second most popular genre on the station is
 soul, then dance.
•Century FM travel tends to refer more to Liverpool areas than Manchester areas,
 with most focus placed on motorway networks in the North West region. Overall it
 does not serve Manchester and the surrounding areas well, with only passing
 mentions of a handful of familiar hotspots, being a couple of sections of the M60 and
 a couple of town centres or A roads notorious for congestion in the area.
 Manchester does not feature in every traffic bulletin either.
•The most Manchester dense category is regional entertainment. This is owed to
  Lgns h h s      c           rga
 “e e d ” w i i a po rmme a e f m 6 m-p a d i e c s e
                                           id r
                                            r     o     p 8 m n s xl i l        uvy
 speech-oriented. As a result, regional content is normally minutes long rather than
 seconds, due to lengthy discussions with callers about a particular football player or
 team from the North West.
•Century FM is loyal to Manchester United because it broadcasts every one of its
   o     a s i . o e e,L g n s i n n i e rga
                  v
 h meg me le H w v r“e e d ”sa u b s dpo rmmea dat c   a                          r s
                                                                             n ta t
 callers who support various teams across the North West. There was some
 discussion on Manchester United and Bolton related topics, but most of the
 programme consisted of speculation around whether Rooney would be fit for the
 World Cup.
   o     e i a i r t n i i a o h t-n u e h h n r d h
             o
•S merg n lnomai d g ew yt w a’ o g i sw i i ome te
                    f       o d v                    s         d      c f
  ie e o w a w s o g n th a c h ar S l r’ o r h ar n
  s                        n               a          e
 ltn r f h t a g i o a teP l eT e t , a od L w yT e t a d    f s                 e
  h      o d         tr n
 te C me y Soe i Ma c e tr Al oh r w a’ o c ne t w s
                                   n h s . l te
                                          e                      s
                                                              h t-n o tn            a
 Liverpool-oriented. There were very occasional mentions of Take That playing at
 the MEN Arena that week.
•Only Manchester, Rochdale or Bolton was mentioned in advertising, with
 Manchester United and the MEN Arena being the only advertisers with commercials
 completely based in the proposed licence TSA throughout the entire monitoring
 period. All other commercials counting as relevant to Manchester contained under 5
 second signposts to Manchester and the surrounding areas, as well as other bases
 around the North West region.
•The percentage breakdowns are as follows:
       e s a n w rl i o h le c T A oae
                l         an            c              l
   •N w – l e s e t gt tei n e S ttld9 minutes and 09 seconds:
     11.98% of total news output / 0.939% of all output.
   •Presenter links relating to the licence TSA, including listener mentions / phoners
     totalled 24 minutes and 46 seconds: 2.580% of total output.
   •Advertising concerning the licence TSA totalled 8 minutes and 31 seconds:
     0.887% of total output.
   •Traffic news pertaining to the licence TSA totalled 1 minute and 06 seconds:
     0.115% of total output.
   •Total time devoted to Manchester licence TSA = 43 minutes and 32
     seconds = 4.535% of total 16 hour output




                                                            Evidence of Demand Page 74
    h a e t o tb t n o e tr’ o l ec na e r i e r
         r            i o                  s c
 •T el g s c nr ui t C nuy l a p re tg oin tsf m pe e tr         ga        o rs ne
  links. Nevertheless, the comparison between local information & entertainment
  versus general entertainment/non-proposed licence TSA information is a huge 87%
                           n d i n C nuy e ssu u d r 0 n a o r fme
                                 t o           s           s
  in favour of the latter. I a d i , e tr’n w ij t n e 9 % ifv u o t                i
  given to national stories and 84% in favour of numbers of stories not applicable to
  the proposed licence TSA across the entire monitoring period. Century apportioned
  just 8% of its total traffic and travel output to areas contained within the proposed
  licence TSA.

100.4 Smooth FM:

 •Although Smooth FM is a different music brand to fellow North West regional station
    e tr F i c aa t a p aso ag t d le l a C nuy oma d e .
                  t         e                         t
  C nuy M,s h rc r p e r t tre a u fma s s e tr’fr t o s     e              s
  This is further consolidated by many more females mentioned or as callers on both
  radio stations. (The last two sentences make exception to the Legends programme
  on Century). The music on Smooth is described by the name of the radio station,
  and as the name of the station is an adjective rather than a noun it can be used in
  various guises to infiltrate every link and feature. This gives the station a very strong
  identity. Throughout the monitoring period the bias leaned towards 80s soul, with a
  much lesser number of A/C and a tiny smattering of Easy Listening. Smooth also
  played a considerable amount of 70s backing up the number of 80s records played.
  There was also some 60s (Motown only); 90s; 00s and Current tracks played.
 •Smooth FM output is heavily music concentrated, with speech never going over
  35.1% (this figure applying to 7am-8am only). There is a generous concentration of
  advertising, although most of it is national, with some regional and a small amount of
  advertising from the proposed licence TSA. Most commercials comprising this
  amount were regional ones with mentions of branches in the proposed licence TSA
  at the end of the commercial. Areas with commercials entirely devoted to them
  Royton and Shaw (housing development) and Manchester itself (tailors). The
  products sold by the commercials broadcast on Smooth serve to segregate the
  adult female appeal slightly, as Smooth FM targets the higher end of the tax bracket
  than Century. Examples of ABC1-target commercials include new apartments for
  sale and a Michelin starred restaurant in Wrightington.
 •News output on Smooth FM was opposite to Century in respect of its top stories;
    mo t M l y ra c s a e i a tp h ra e tr’ o t i ee
                   w                       o
  S ohF a a sbo d a t rg n lo w ee sC nuy tps r sw r                    s       oe
  always national. Manchester made top story at 6am and from 4pm-6.30pm inclusive
  with a reference to it and Liverpool as part of the Asbestos court case story. When
  this story was not top, it was superseded by the Preston mugging or Sellafield story
  (at 7pm). Smooth also featured local stories which no other station monitored
   e trd fr x mp o u n n h s ’ i
                         e                      e s k at n rd ad h f
  faue ,o e a l fc so Ma c e tr RcyH t na dce ic r tet          o              t           .
  Nevertheless, in comparison to local Manchester stations there was no sports news
   e t g o h rp s d i n e S . mo t M’ e s i a n a o r f
     an                         c
  rl i t tepo o e le c T A S ohF sn w b sw si fv u o                  a
  national news, with only 20% making up both time and number of stories originating
  from the proposed licence area. Smooth FM news is scheduled hourly with its last
  bulletin at 7pm, to be followed by IRN news. News is on the half hour at 6:30am;
  7:30am; 8:30am; 4:30pm; 5:30pm and 6:30pm.
 •Local info in the shape of listener mentions permeated presenter links throughout
   h a , s mo t M u st 9 o l q e t mo t
                                    s           R
  ted y a S ohF rn i “ t 5Al e u s S ohWok a ”rm 9 m t                 rd y f   o a o
  5pm. Listener mentions did reflect a range of areas from the proposed licence TSA,
  for example Sale, Bury, Eccles and Stockport. Smooth FM also mentioned
      n h s e e tite Wh t n u e . o e e,n s co sh mo i r g
             e                r       s        d
  Ma c e tr v nsnh i a’O G i sH w v rlk a rs te n oi           i                      tn
  period were heavily weighted in favour of promoting the Smooth Secret Song, which
  was nationally sponsored. The drive-time presenter mentioned this competition in
  every link. There was hardly any locality in presenter links between 6pm and 9pm;
  the lack of listener mentions and local spontaneity could be because the show was
  automated during the monitoring period.
 •Traffic bulletins contained little references to the proposed licence TSA across the
  whole monitoring period.



                                                               Evidence of Demand Page 75
          •The percentage breakdowns are as follows:
                 e s l e s e t g o h le c T A oae 8
                          l         an             c              l
              •N w –a n w rl i t tei n e S ttld minutes and 21 seconds:
               20.42% of total news output / 0.87% of all output
              •Presenter links relating to the licence TSA, including listener mentions / phoners
               totalled 7 minutes and 47 seconds: 0.81% of total output
              •Advertising concerning the licence TSA totalled 8 minutes and 41 seconds:
               0.91% of total output
              •Traffic news pertaining to the licence TSA totalled 0 minutes and 59 seconds:
               0.10% of total output
              •Total time devoted to Manchester licence TSA = 25 minutes and 48
               seconds = 2.69% of total 16 hour output
          •Comparatively, Smooth devoted slightly less time to news from the proposed
            i n e ra h n e tr M v rl F r r r, mo t’ rp s d i n e
             c                                       l
           le c ae ta C nuyF o ea. utemoe S oh po o e le c  h                 s             c
           area content is just over a fifth of its total news output, making this content nearly
            wc s e s s e tr’ rp s di n e S w rn s wt nt oan w
               e                        s              c
           ti a d n ea C nuy po o e le c T Aa ae e s i ii ttle s                h s
             up tH w v rS oh rp s d i n e ra e s o tb t n s v rhe
                                       s               c
           o tu. o e e, mo t’po o e le c ae n w c nr ui io e tre             i o
           times less than that of Key 103 and Magic in consideration of the total news output.
             mo t’ o li
                     s c me ec na e s h e t fh t i s n l e . h a e t
                                                         a
          •S oh l a t p re tg i tel s o tes t n a a s d T el g s    ao          y            r
             o tb t n o mo t M’p re tg r r ta o Ma i n e 1 3 wt t
                 i o                                        r
           c nr ui t S ohF s ec na emios h t f g a dK y 0 , i i             c                   h
           owed to local advertising. However, only 6% of advertising is from the proposed
           licence TSA. Smooth is overall nationally biased in terms of commercials. Presenter
           links follow a similar pattern, where the comparison between local information &
           entertainment and general entertainment / non-proposed licence TSA information is
           86% in favour of the latter. The proportion of proposed licence TSA traffic in
           comparison to the total traffic and travel output is 7.74%, which is slightly less than
              e tr’ 82 %)
                     s
           C nuy (.7 .

A summary of figures for the monitoring period have been presented in the broadening audience
choice section of this document.

Our review of the stations' output in conjunction with their formats leads to the conclusion that
there are no stations dedicated to targeting older listeners in our area with genres that were
popular in their youth nor tracks from country and nostalgia/easy listening genres.

In addition, there is too much time given away to national news items instead of local news or
explaining the local consequences of national news for local people.

 There is considerable scope in the market for a station to provide 45-64s with music that is
 most popular to them and in-depth news that is relevant to them.

Demand
(Ipsos Demand Survey)

Ipsos interviewed 611 respondents aged 15+ and presented three music montages to them:

          •Citylife - based on a mixture of the most popular tracks amongst 45-64s from our
           tastes & interests survey, the majority of which were from the easy listening, country
           nostalgia genres and 60s & 70s eras.
          •Radio 2 - tracks taken from an hour of Radio 2 selected at random.
          •Nostalgia Only - tracks played on a 55+ targeted station.




                                                                       Evidence of Demand Page 76
Citylife's montage was the most favoured by 45-64s:
TABLE 40 : Appeal of music montages (Source: Ipsos, Demand, August 2006)

 Will Listen to Station Playing Montage                              Radio 2       Citylife      Nostaliga only
 Very likely to listen to station playing..                           17%             43%             33%
 Likely to listen to station playing..                                26%             31%             24%
 Combined very likely & likely                                        43%             74%             57%
 Montage preference                                                   17%             55%             28%
 Combined will listen & preferred montage                             12%             41%             27%
 Combined will listen & definitely, very likely or likely to
                                                                      36%             62%             48%
 listen to station concept
 Combined will listen & preferred montage & definitely,
                                                                       9%             36%             20%
 very likely or likely to listen to station concept


            •The evidence is clear that a station based on the music montage put together by
             Citylife matches the music tastes of 45-64s much more appropriately than existing
             formats targeting 45+ listeners.
            •Had Citylife been operating in the Manchester market already it would be a serious
             music competition to BBC Radio 2 and this is why our research shows that Citylife
             will convert a huge number of its listeners to ILR listeners.
            •Citylife's high preference rating shows that it has the quality to compete in a
             competitive market place and taking its lowest common denominator (final row in Table
             40) will attract a viable core listener base, something the other two montages failed
             to achieve.
            •55% of 45-64 year olds stated Citylife was their favourite format of the 3 presented
             to them, followed by Nostalgia Only with 28% and Radio 2 with 17%.
            •62% of 45-64 year olds stated they would listen to a station playing the Citylife
             montage and would listen to a new station playing that kind of music and with local
             news & information, coverage of local current affairs and comedy clips.
            •Citylife has the strongest appeal amongst all the main target listener groups:
TABLE 41 : Appeal of music montages (Source: Ipsos, Demand, August 2006)

 45-64s                                                    Radio 2             Citylife        Nostaliga only
 Males                                                         34%              72%                  49%
 Females                                                       51%              77%                  66%
 ABC1s                                                         39%              71%                  49%
 BBC Radio 2 listeners                                         50%              80%                  63%
 BBC Radio Manchester/GMR listeners                            61%              85%                  74%
 BBC Radio 5 LIVE listeners                                    29%              71%                  52%
 BBC Radio 4 listeners                                         36%              71%                  47%
 All BBC Radio listeners                                       39%              74%                  54%
 BBC Radio 2 most often listeners                              55%              94%                  73%
 BBC Radio Manchester/ GMR MO listeners                        44%              100%                 90%
 BBC Radio 5 LIVE most often listeners                         24%              62%                  35%
 BBC Radio 4 most often listeners                              40%              77%                  45%
 All BBC Radio most often listeners                            38%              78%                  55%


            •Citylife was a clear favourite amongst our target market 45-64 year old males.
            •It is the only music format attractive to the majority of ABC1s.




                                                                                       Evidence of Demand Page 77
           •46% of 45-64 year old non-radio listeners stated they would listen to our station
            concept.
           •94% of BBC Radio 2 and 100% BBC Radio Manchester/GMR most often listeners
            will listen to Citylife, this compared to only 73% and 90% respectively for the
            Nostalgia only station.
           •In fact, a key indicator in the station's ability to attract loyal BBC Radio 2 listeners to
            its music is that 94% of BBC Radio 2's 45-64 most often station listeners will listen
            compared to 80% of BBC Radio 2 listeners, displaying a greater increase in the
            core. Compare this to 73% and 63% respectively for the nostalgia only station and
            from 50% to 55% for the BBC Radio 2 montage itself. Understanding the music
            tastes of core BBC Radio 2 listeners is key to winning its listeners.
           •Of the three montages, Citylife is really the only attractive option for BBC Radio 4
            and BBC Radio 5 listeners, a station which also enjoys an above average following
            in our area.

Those respondents who indicated a preference towards Citylife were asked how long they
intended to listen to the station for each day:
TABLE 42 : Daily Listening Habits to Citylife (Source: Ipsos, Demand, August 2006)
                                      Less     30' to
 45-64 listeners                                        1-2 hrs   2-3 hrs   3-4 hrs   4-5 hrs   5+ hrs
                                    than 30'    1 hr
 Males                                7%       21%       25%       25%       8%        4%        10%
 Females                             10%       35%       18%       9%        13%       2%        13%
 BBC Radio 2 most often listeners     2%       39%       17%       17%       4%        4%        17%
 ABC1s                               10%       34%       24%       14%       9%        3%         6%



           •Citylife's core listeners (those aged 45-64 who prefer the station above the other
            two) will tend to listen up to 3 hours each day.

They were also asked how often they would listen each week:

           •Most listeners to Citylife will tune in each weekday or everyday of the week.
           •In theory, Citylife's core audience will listen for roughly 2 hours a day, 5 or 7 days a
            week, this represents an average of around 12 hours a week per listener, this has
            been reflected in our audience projections, albeit conservatively, as we have
            assumed 8.9 average listening hours from 45-64s in year 3.




                                                                                Evidence of Demand Page 78
           •The proportion of respondents who stated they would listen to Citylife at certain
            times of the day was as follows:
CHART 6 : Numbers of Listeners by Age Bands that will listen to each Daypart on Citylife (Source:
Ipsos, Demand, August 2005)

    35,000
                                                              15-24       25-34       35-44
    30,000
                                                              45-54       55-64       65+
    25,000

    20,000

    15,000

    10,000

     5,000

          0
              Before 6am 6am to 9am 9am to 1pm 1pm to 3pm 3pm to 7pm                 7pm to
                                                                                     midnight


           •Citylife can expect a weekday breakfast audience of around 120,000 listeners.
           •Due to the lifestyle habits of the station's target market, there is a clear benefit in
            attracting older listeners during daytime when there are more available. However,
            our research found that 65+s show a huge reluctance to change their listening
            habits at breakfast, with the same pattern displayed for the nostalgia product tested.

The same process was performed on potential listening patterns for the weekend:
CHART 7 : Numbers of Listeners by Age Bands that will listen to Citylife at Weekends (Source:
Ipsos, Demand, August 2006)


    35,000
                       Daytime        Evenings         Overnight
    30,000

    25,000

    20,000

    15,000

    10,000

     5,000

          0
                  15-24       25-34         35-44        45-54         55-64          65+



           •Citylife can expect a weekend daytime audience of around 93,000 listeners,
            peaking amongst 55-64 year olds.




                                                                        Evidence of Demand Page 79
       Our demand research provided us with extensive evidence that 45-64s like our product and
       will be loyal listeners to Citylife.

      Effect on Listening Habits

      Of all the 45-64s that found the Citylife music montage appealing and will listen to a new radio
      station for Greater Manchester which had speech output aimed at them with local news and
      information, presenters with personality, coverage of local current affairs and comedy clips:

                •52% said they would listen longer to the radio.
                •32% said they would listen less to their existing stations.
                •16% said they would stop listening to some stations.

      Once the results of our demand research had been processed through our market place model
      we were able to determine that Citylife would have the following impact on 45-64 year olds
      listening on Greater Manchester.

      The individual stations that are likely to contribute the most listening hours to Citylife by year 3
      are as follows:
      CHART 8 : Major Contributors of 45-64 Listening Hours to Citylife by Year 3 (Source: Ipsos, August
      2006 based on Qtr 2, 2006 RAJAR RSL-Ipsos)

            125,000




            100,000




             75,000




             50,000




             25,000




                  0



      BBC Radio 2 will suffer the greatest losses, along with BBC Radio Manchester/GMR. Because
      Citylife has been specifically designed to appeal to 45-64s, it is natural that BBC Radio stations
      will suffer the greatest loss of audience.

      Citylife will gain 82% of its year 3 listening hours from respondents who will increase their overall
      radio listening, switch listening from BBC Radio and from brand new listeners to radio. Only 18%
      of its listening hours will be derived from ILR stations in the area. This means Citylife will bring in
      nearly 1.8 million new hours to Local Commercial Radio listening within three years. This will
      redress the current imbalance and reduce BBC Radio's overall market share to below 50%.



(g)   Full Data Tables
      See Appendix 4 - Research Data Tables.




                                                                                 Evidence of Demand Page 80
7.   EVIDENCE OF SUPPORT

     This section should provide evidence of support, where appropriate from the applicant's
     potential audience or from prospective local advertisers.

     Potential Audience

     In an effort to gauge support for our programming plans for Greater Manchester and the
     surrounding area, Citylife commissioned independent research amongst 15+s across the area
     to ascertain the level of demand for such a service.

     As alluded to previously in this application, 74% of the 45-64 year old respondents we surveyed
     across the area stated they would listen to our station concept and one of the three music
     montages we tested. This is the equivalent to an audience level of over 319,000 of 45-64 year
     olds in our TSA supporting the concept of a new station for Greater Manchester.

     As shown previously (in Table 40) the Citylife montage is best equipped to deliver a popular format
     for 45-64s and represents ILR's best chance of growing audience in this last, and largely lost,
     financially viable element of the population. 62% of 45-64s indicated they would be very likely or
     likely to listen to a station with Citylife's music policy and also confirmed they were definitely, very
     likely or fairly likely to listen to a station with Citylife local speech format. This represents a 45-64
     audience potential of 267,500.

     We consider this to be extremely strong evidence of support for our station's programming
     proposals by our target audience.

     Prospective Advertisers

     Citylife commissioned formal evidence based research to ascertain evidence of demand from
     the advertising fraternity for our product and we have been fortunate to receive firm support from
     prospective advertisers, especially their advertising and design agencies.

     We commissioned an advertisers' survey among 100 of the top 200 advertisers in the area, the
     objective being to interrogate them as to their views on a new station targeting 45+s, their
     likelihood of advertising on such a vehicle thus providing evidence of support for our product
     entering the marketplace.

     We found that 58% of advertisers signified their willingness to advertise on a new station for the
     area targeting 45+s. This is an extremely promising response from an industry that does not
     currently consider radio as the primary medium to access 45+s. As Table 44 shows, radio is
     considered a poor conduit for reaching 45+s. This is despite the high proportion of advertisers
     that wish to attract 45-64 year olds to their products and services.

     Evidence of the huge gulf in supply and demand in the Manchester commercial radio sector is
     revealed by the fact that although 81% target 45-54s and 67% target 55-64s, only 60% believe
     radio targets 45-54s well and 12% believe radio is good for accessing 55-64s (see Chart 9).

     This compares to only a deficit of 18% for 65s, whereas although only 10% of advertisers believe
     radio is good for attracting 65+s only 20% actually want them, just one-third of those who target
     55-64s.




                                                                                 Evidence of Demand Page 81
CHART 9 : Manchester Advertisers' Targets v Commercial Radio in Manchester Best Delivery
(Source: CN Research, July 2006)

 100%
                                                                           Targets
   80%
                                                                           Radio best for
   60%

   40%

   20%

    0%
               15-24           25-34     35-44         45-54         55-64           65+


A review of Qtr 2, 2006 RAJAR information shows that 47% of 45-54 year olds exert a business
influence over their companies and 23% of 55-64 year olds, this is an important statistic for
business to business advertisers who want to reach decision makers in local businesses. This
compares to only 3% of 65+s have similar influence.

Of the 100 companies contacted amongst the Top 200 advertisers in Greater Manchester, radio
is already a reasonably well used medium in the area:

           •78% use newspapers
           •49% use radio
           •29% use TV
           •28% use online
           •23% use outdoor
           •21% use magazines
           •18% use cinema
           •5% use door drops

Although the ranking of radio is not entirely unexpected (our MMS runs for the year to May 2006
show the North West region to be outperforming nearly all other regions as a source of revenue
for Commercial Radio, see Confidential Financial Appendix) the level of usage at 49% is lower
than other regions we have tested where commercial radio's share of advertising revenues
would indicate a higher usage of the medium.

Radio is a complementary medium and is often used as a reinforcer or even a pointer towards
other media messages. In terms of performance, the North West is the 2nd highest contributor of
radio revenue to the UK commercial radio market and ranked 2nd in revenue per listening hours,
dispelling the myth that this is a deprived economic area.

The current advertising patterns for radio spend on the main stations that include all or some
45-64 year olds within their target market are:
           •42% use Key 103,
           •37% use 105.4 Century FM,
           •36% use 100.4 Smooth FM,
           •29% use Magic 1152AM,
           •28% use Capital Gold
           •54% do not spend on Manchester radio stations at present




                                                                     Evidence of Demand Page 82
The current target market of all advertisers, and by medium spend, is as follows:
TABLE 43 : Age Targets of Greater Manchester Advertisers (Source: CN Research July 2006)

                                  All           Radio         Newspapers           TV            Other
   15-24s                        68%             67%              67%             72%            73%
   25-34s                        82%             80%              85%             83%            84%
   35-44s                        87%             86%              91%             90%            92%
   45-54s                        81%             82%              86%             86%            84%
   55-64s                        67%             71%              71%             83%            69%
   65+s                          20%             12%              23%             14%            22%
(Note: the heavily shaded area denotes which media over-deliver on the all adults average)

            •Advertisers that use traditional media outlets such as newspapers, TV and radio are
             targeting 15-54 year olds, however TV is considered the most appropriate for
             accessing 55-64 year olds.
            •The media with the highest percentage targeting 65+s was online (36%), the rest of
             the advertising market are not really interested in 65+s at all.

The view of all advertisers on the effectiveness of radio, by age band, is as follows:
TABLE 44 : What Age Bands is Commercial Radio in Greater Manchester Best for Targeting by
Advertisers (Source: CN Research July 2006)
                                  All           Radio         Newspapers           TV            Other
   15-24s                        81%             86%              80%             83%            75%
   25-34s                        93%             94%              91%             86%            88%
   35-44s                        80%             80%              77%             83%            73%
   45-54s                        60%             51%              62%             48%            55%
   55-64s                        12%              4%              11%              3%             8%
   65+s                          10%              2%               9%               -             6%
(Note: shaded area denotes the age bands where radio is deemed to over-deliver)

            •Advertisers in the Greater Manchester market place are well adverse to using radio
             to target 15-44 year olds, however it universally accepted that commercial radio is
             not so good at accessing 45+s.
            •When comparing the prime age targets of Manchester's advertisers against the
             delivery perception of radio there is a stark void in the market, starting with 55-64s
             (55% difference between target and delivery), followed by 45-54s (21%) and then
             65+s (10%).
            •Clearly 45-64s are the most commercially attractive listeners that commercial radio
             in Manchester is not meeting delivery expectations.

Radio advertisers also use the following media:
            •Newspapers, 67%
            •TV, 51
            •Outdoor, 41%
            •Cinema, 33%
            •Magazines, 24%
            •Online, 22%
            •Door drops 8%.




                                                                                    Evidence of Demand Page 83
The best media for reaching their target, by single medium advertisers:

              •Newspapers, 77%
              •Radio, 44%
              •TV, 24%
              •Outdoor, 22%
              •Cinema, 16%
              •Magazines, 15%
              •Online, 15%
              •Door drops, 2%

With regard to a new entrant in the Greater Manchester market:
              •61% of advertisers would consider advertising on a new station covering
               Manchester.
              •94% of those that would advertise on a new station for Manchester felt that targeting
               45+s, would be useful to them.
              •91% of those that felt 45+s were a useful target market for the new station stated
               they would advertise on such a station and 9% said they would possibly advertise.
              •That means that 52% of the top 200 business advertisers in the area would
               advertise on Citylife and a further 6% possibly.

How advertisers would fund advertising on the new station:

              •Surprisingly for large financial institutions and top local advertisers, not very many
               had a preordained strategy for dealing with the additional budget required to use the
               new station.
              •A reflection of the tough advertising climate; only 12% stated they would increase
               their advertising spend immediately, 69% said they would reallocate from an
               existing budget and 19% were undecided.
              •Not surprisingly 50% of that reallocation would come from radio and 43% another
               medium (mainly newspapers, TV and outdoor), the remainder are unsure.
              •Those advertisers that are already converted to radio are naturally the most
               enthusiastic about the prospects of a new station.

The introduction of Manchester Citylife into the market will have a tremendously positive effect
on the advertising market in Greater Manchester:

              •During our monitoring period, only 2 hours and 8 minutes across the five stations
               were dedicated to local commercials. This represents 16% of the total time
               allocated across these five stations to spot airtime (see Table 45).

TABLE 45 : Commercial Minutage (Source: Monitoring, 06.00-19.00, July 2006)

                                                                       Total Spot
                              Local       Regional      National                    Local Element
                                                                        Airtime
   Capital Gold              00:41:00        -          00:47:05        01:28:05         47%
   Magic 1152AM              00:31:40        -          01:05:01        01:36:41         33%
   Key 103                   00:42:23        -          02:01:33        02:43:56         26%
   100.4 Smooth FM           00:07:21     00:40:39      01:16:09        02:04:09         6%
   105.4 Century FM          00:05:54     00:25:29      01:45:19        02:16:42         4%
   Citylife                  01:13:08        -          00:08:08        01:21:15         90%




                                                                           Evidence of Demand Page 84
          •The existing local airtime usage on these main 5 ILR stations equates to 256, 30
           second adverts played each day during daytime programming. Bearing in mind a
           standard package would allow for most campaigns to play 5 or 6 adverts a day, this
           means that approximately only 45-50 local businesses are advertising on local
           Commercial Radio at any one time.
          •The introduction of Manchester Citylife into the market, being more reliant on local
           revenue and not just a vessel to appease national clients, will increase airtime
           supply to local advertisers by 50% (based on Citylife selling 64% of its inventory in
           year 3 of operations).

Support from Agencies

In our previous application for Manchester (February 2005) we solicited many letters of support
from the design/advertising agencies who shape a brand and who are responsible for deciding
the direction a marketing campaign should go, be it television, newspaper or radio. This we
hoped would register awareness of our product at the inception stage of any campaign.
Between Jon Hewson and Bryan Burgess, agencies responsible for the larger North West
advertisers and corporate companies were again contacted. They shared our disappointment in
not being awarded a licence back in 2005 and are happy to continue to support our submission
for a station targeting 45+s (see Appendix 5) as the extractions below demonstrate:

Steve Evans, Managing Director, TCS Media North

I think the ideas you have for the station offer something different and can attract a new
audience. A commercial alternative to BBC Radio is long overdue in the region. I like the idea
of music and talk combined in this way. I see lots of applications for either talk or music but too
few that combine both! My clients such as The Co-operative Bank, David Mclean Homes and
Cheshire Building Society have long needed an alternative station to either Key 103 or
Century.

Martin Carr, Managing Director, True North

I am impressed by your clear identification of an unfulfilled need left by the current media
offerings in the city. As a creative, rather than media agency, it is refreshing for us to hear of
new yet credible ways that we can advise relevant clients to get their message across. As
advisers to a bank, an airline and a number of blue-chip business-to-business clients, I can
see great benefit to them in using a channel like Citylife to reach their target audiences.

Steve Cranshaw, Managing Partner, Cranshaw Middleton Advertising

As a regional design agency we are always looking for new opportunities on behalf of our
many clients in Manchester. This new service will offer our clients the opportunity to deliver
and target their messages directly to this critical audience grouping. Cranshaws has a wide
range of clients ranging from voluntary to public and private sector and I have no doubt they
would look forward to forging a strong working relationship with Citylife.

Steve Blakeman, Managing Partner, PHDCompass

If the remit of Citylife follows the proposal Bryan outlined then I believe that this should offer
listeners a genuine alternative to existing formats within the Manchester radio marketplace.
This may also be of interest to our portfolio of clients if it provides them with a commercial
alternative to what is currently available.




                                                                         Evidence of Demand Page 85
Steven Frith, Managing Director, Propaganda Advertising Ltd

It would be nice to tune into a radio station that broadcasts to people in my age bracket. The
BBC stations hark on about not having any adverts to interrupt the music but they have never
thought that people might like the adverts. I find them a constant source of information
regarding services and products in my local area.

Daniel McGowan, Head of Media Buying, Jupiter Advertising Ltd

 Many of our clients have call centres in the city. Our clients are telling us that the best kind of
 people to recruit for call centre vacancies are 'returners to work'. These kind of workers have
 an 'old fashioned' hard work ethic which is not easy to find in today's younger generation. At
 the moment, Manchester has no radio station on an FM frequency which transmits exclusively
 to Greater Manchester and the M60 orbital where clients can target more mature listeners.
 Citylife's proposal to deliver a combination of music, debate and in-depth local news, similar to
 the successful combination currently used on the BBC would help many Manchester call
 centre clients to reach an audience which is currently out of reach.

Karen Gillooly, Marketing Director, Carcraft

As one of the largest radio advertisers in the North West of England we would strongly support
your application to Ofcom for the new Manchester City FM radio licence. Your proposals for
 Cti ma e l fe s t u a d h a d n e e ga h o ae i g t o l o
    yf e
“ il ” k ao o s n e o s n te u i c d mo rp iy u r a n a w u n t
                   t                             e                 c          mi           d
only extend choice for listeners but importantly for us would provide an advertising opportunity
we currently do not have. The over 40 year old car buyer is a key target market for us which we
can not effectively cover at the moment with radio advertising as the majority of Manchester
stations have polarised towards a younger demographic. I have no doubt that with your
experience and expertise together with the resources of the CN Group you would deliver a first
class commercial radio station if you were successful. Good luck and I hope we will be able to
do business together if you win the licence.

Neil Webster, Managing Director, First Radio Sales

It was really interesting to hear of your plans for the station as an addition to the CN Radio
Group. As discussed, we have given the proposed station some thought in the context of
national and regional revenues. As you know, we have managed to develop significant
revenue increases from agencies. The programme output that you are proposing will certainly
increase choice for advertisers and offer them cost effective opportunities to reach a desirable
audience.

Cathy Lower, Head of Radio, phd

phd and its clients would welcome a new radio station in the North West and feel that the
proposal CN Radio is submitting is a sound one. A station like Manchester Citylife targeting
45+s with 50:50 music and the relevant local speech would fill the gap in the marketplace and
meet the needs of the target listener. I also believe that with your experience and that of your
management team, in launching large-scale radio stations that Manchester will get not only a
great sounding station but a successful one that will compete admirably with BBC Radio 2.

Pauline Hackett, Managing Director, Hackett Media Services

Just wanted to congratulate you on your vision for Manchester's new commercial radio station.
You have definitely identified a gap in the local marketplace which is in dire need of some
attention and the format that you're proposing will undoubtedly fill that gap. Not only will it do
this but it will also attract new listeners to ILR from the BBC rather than just moving around
those that currently listen and this has got to be good for listeners and advertisers alike!




                                                                          Evidence of Demand Page 86
Rob Whittingham, Account Director, Connectpoint

Thank you very much for your presentation and for sharing with me your views and aspirations
for the development of a new radio station for Manchester. Your research quite clearly shows
the opportunity for a station that focuses on the commercial reality of life in Manchester. The
mix of music and speech with the programme content that you propose fills a gap in the market
for reaching a 40+ audience in the region. As a potential listener I look forward to this style of
broadcasting dedicated to Manchester. As an advertising agency with a range of clients that
would benefit from the ability to reach a greater proportion of the proposed audience,
Connectpoint would have no hesitation in recommending the use of Citylife as part of a
promotional campaign.

Tracey Hughes, Media Director, Unit Communications Group

As we are one of the leading agencies outside London specialising in the leisure and
entertainment markets we found the content most interesting and very relative to our clients
targeting of core audiences. A mix of greater local and business news alongside a strong
music format is certainly a gap in the current Manchester Commercial Radio market, though it
is served well by Radio 2 and Radio 4. The Citylife research would indicate that you would be
producing a real alternative for listeners in the Manchester area. If the Citylife application is
successful we would certainly recommend to our clients that it should be included as part of
their promotional activities.

Howard Newlands, Managing Director, The ComFederation

Radio as we know is a vibrant and important part of a balanced media mix. Local and business
news when executed well, provides a sound foundation for listeners and advertisers, this
combined with a sensible 40+ playlist, will provide Citylife with both a loyal audience and
advertising base. I look forward to the success of your application and the opportunity to
negotiate founder discounts for my clients!

Michael Charnley-Heaton, Managing Director, Radio Works

Knowing your past experience and ability in large radio licences and the commitment by CN
Group to its radio business, I am sure Manchester Citylife will be a successful City station that
will prove attractive to potential advertisers. As you know we currently represent over 180
advertisers and agencies across the UK and we always find that extending listener choice in a
given area leads to an upsurge in new business. We've had several successful campaigns
with all the stations in your Group and Manchester would be no different.

Helen Keable, Head of Radio, Manning Gottlieb OMD

Radio 2's almost flawless performance resulting in record audience levels over the past few
years has proven that the demand for this format exists - the only element currently lacking is
the 'localness' that brings the much needed edge to any station. As the Head of Radio at
MGOMD, I appreciate too the value of this in advertising terms. Last year, we invested £1.5m
in the north of the country, the greater part of this in the Manchester area given its obvious
urban appeal. No existing service provides what Citylife promises to deliver; we would
therefore welcome its appointment both in consumer and marketing terms.


Citylife concludes that Manchester businesses are underserved by local stations and there is
a lack of stations targeting 45-64 year olds. Citylife's sales management expertise in the MD
designate, Jon Hewson, Strategic Director designate, Julie Fair and Mark Wright means
Citylife will be able to take advantage of this promising support.




                                                                        Evidence of Demand Page 87
DECLARATION

Applicants are required to conclude their submission by responding to the following question:



        Do you confirm that, to the best of your knowledge and belief:

        (i) the applicant is not a disqualified person in relation to the licence by virtue of the
        provisions of section 143(5) of the Broadcasting Act 1996 (relating to political objects);

        I can confirm that the applicant is not a disqualified person.



        (ii) no director or person concerned directly or indirectly in the management of the
        company or the applicant group is the subject of a disqualification order as defined by section
        145(1) of the Broadcasting Act 1996;

        I can confirm that no director or person is the subject of a disqualification order.



        (iii) no person involved in the application has been convicted within the past five years
        of an unlicensed broadcasting offence and that the applicant will do all it can to ensure that no
        person so convicted will be concerned in the provision of the service, the making of programmes
        included in it, or the operation of a radio station if the applicant is granted a licence; and

        I can confirm that no person involved in this application has been convicted of an unlicensed
        broadcasting offence.



        (iv) any matters which might influence Ofcom's judgement as to whether the directors
        and substantial shareholders involved in the application are fit and proper persons to participate
        in a radio licence have been made known to Ofcom.

        I can certify that, to the best of my knowledge, that the directors and shareholders are fit and
        proper persons to participate in a radio licence.




                                             Signed ..................................................................................
                                                                                                                     Alec Craig
                                                                                                                      Chairman
                                                                                          Manchester Citylife Limited
                                                                                                           3rd October 2006




                                                                                                           Declaration Page 88

				
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