Acquisition Strategy

Television
Hoak Media Corporation has the following plans and strategy for acquisitions:

1. The primary acquisition focus will be on mid- and small-market TV stations. Mid-market is defined as markets 75 to 125, and small-markets are defined as 125 and smaller.
   
   
2. HMC will only buy one of the traditional three network affiliates in small markets. It will be more flexible in mid-sized markets.
   
   
3. The Company will only be interested in stations that have technical parity with other stations in the market, and will avoid any stations that have significant technical or market limitations.
   
   
4. HMC will try in all of its markets (especially in its smaller markets) to acquire additional stations, either as duopolies or through various local services agreements.
   
   
5. Management is very price conscious and disciplined to reasonable projections and return criteria.
   
   
6. HMC is willing to do out-of-the-ordinary transactions, and will always be opportunistic in its acquisition planning and structure.
   
   
7. HMC will only pursue acquisitions where we believe we can improve operations and financial results.
   

Radio
Hoak Media Corporation has the following plans and strategy for radio acquisitions.

1. The primary acquisition focus will be on small rated and large unrated market radio stations. Small-markets are defined as markets 100 and smaller.
   
   
2. HMC will buy multiple FM stations in each market up to the maximum allowed by FCC regulations. AM stations will be considered only if they are a strategic companion to an in-market FM. HMC will strive to be the dominant player in each market.
   
   
3. HMC will strive to concentrate its acquisitions in the same geographic region and cluster unrated market acquisitions in proximity to rated market acquisitions.
   
   
4. HMC will try to acquire radio stations in markets where it operates television properties.
   
   
5. HMC will only be interested in stations that have technical parity with other stations in the market, and will avoid any stations that have significant technical or market limitations.
   
   
6. HMC is very price conscious and disciplined to reasonable projections and return criteria.
   
   
7. HMC is willing to do out-of-the-ordinary transactions, and will always be opportunistic in its acquisition planning and structure. HMC is willing to acquire stations from multiple sellers in the same market to create a group or cluster.