Operating Strategy

Hoak Media seeks to increase its cash flow through revenue and audience growth and the continued implementation of effective cost controls. The principal components of this strategy are to:

1. Create, Develop and Maintain Local News Franchises. The Company believes that successful local news operations have been and will remain critical in taking advantage of the increasing importance of local advertising revenue to the television industry. In addition, news audiences generally have the best demographic profiles for advertisers, serve as strong lead-ins for other programming and foster a high profile and the development of a strong local station brand in the community.
   
   
2. Capture Disproportionate Revenue Share. The Company's goal is to capture revenue share greater than its audience share in each of its markets. Given the strong local news and sales efforts, the stations seek to continue to convert the audience share into a disproportionate share of advertising revenues.
   
   
3. Maintain Strict Cost Controls. As it grows, the Company will achieve operating efficiencies by applying scale in the purchase of programming, capital equipment and vendor services. Hoak Media emphasizes strict cost controls on all operating expenses.
   
   
4. Expand Aggressively Through Selective Acquisitions. Hoak Media seeks to grow aggressively through acquisitions, mergers and station swaps. The Company targets opportunities where it can leverage its ability to establish a leading news franchise, create additional duopolies and reduce costs.