IOWA - FIRST IN THE NATION FOR HD RADIO

Cedar Rapids' Ultimate Electronics in conjunction with iBiquity Digital, Kenwood USA and KZIA-FM to record first commercial sale of an HD Radio receiver

Columbia, MD - (January 2, 2004) - iBiquity Digital, the sole developer of HD Radio™ technology, announced today that the first HD Radio receiver - a Kenwood KTC -HR 100 model - will go on sale commercially January 5th in Cedar Rapids, Iowa as part of a promotion with Kenwood USA, Ultimate Electronics and KZIA -FM Z102.9. Reflecting Iowa's tradition of being "first in the nation" as well as Cedar Rapids' significant role in broadcasting history as the home of radio pioneer Arthur Collins, the event will kick off HD Radio's commercial introduction, which will formally take place on Wednesday, January 7 during the International Consumer Electronics Show in Las Vegas, Nevada. With the anticipated first consumer purchase of an HD Radio receiver in Cedar Rapids, the city's home for today's hit music, KZIA -FM Z102.9, is expected to become the first station in the country to add the HD Radio listening public to its existing audience.


WHAT: First Retail Sale of an HD Radio Receiver in the U.S.

WHEN: Monday, January 5, 2004, 5:00 pm (CST)

WHERE: Ultimate Electronics Store
4701 First Ave Southeast
Cedar Rapids, Iowa 52402

PRESENT: The Honorable Paul D. Pate, Mayor of Cedar Rapids
Rob Norton, Executive Vice President KZIA -FM Z102.9
Dave Workman, CEO Ultimate Electronics
Dan Petersen, Executive Vice President Kenwood USA
Robert Struble, President and CEO iBiquity Digital
Eliot Keller, President and GM KZIA -FM Z102.9
Rick Sellers, Board Member of Iowa Broadcasters Association and
Owner of KMRY -AM (soon to be broadcasting in HD Radio)

HD Radio represents the radio industry's biggest leap forward since the introduction of FM more than fifty years ago and will usher in radio's digital era with unsurpassed sound quality - FM delivering CD -level performance and AM matching today's FM stereo standard - plus new data features, such as integrated datacasting that displays information as text directly on the face of the radio.

HD Radio's digital technology also paves the way for the introduction of a number of new services designed to transform the radio broadcasting industry for the digital era. These new services include interactive features supporting the on -demand delivery of audio and data programming at the press of a button, automated store -and -recall capabilities that bring television's PVR -based functionality to radio, and NPR's 'Tomorrow Radio' project, a Supplemental Audio Programming (SAP) service that will allow network affiliates to simultaneously broadcast two separate programs on the same channel. Unlike HDTV, which requires that broadcasters move to new spectrum space, the already FCC -approved HD Radio technology is designed to seamlessly integrate with the existing broadcasting infrastructure so that broadcasters simply add a new digital exciter to their existing transmissions with consumers transitioning to the new format through the use of new HD Radio receivers - similar to the way that black -and -white television gave way to living color.

Who is iBiquity Digital?
iBiquity Digital is the sole developer and licenser of HD Radio technology in the U.S., which will transform today's analog radio to digital, enabling radically upgraded sound and new wireless data services. The company's investors include 15 of the nation's top radio broadcasters, including ABC, Clear Channel and Viacom; leading financial institutions, such as J.P. Morgan Partners, Pequot Capital and J&W Seligman; and strategic partners Ford Motor Company, Harris, Texas Instruments and Visteon. iBiquity Digital is a privately held company with operations in Columbia, MD, Detroit, MI, Redwood City, CA and Warren, NJ. For more information please visit: www.ibiquity.com.

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