Welcome to RBR's Daily Epaper
Volume 22, Issue 4, Jim Carnegie, Editor & Publisher
Thursday Morning January 6th, 2005

Radio News®

Kevin Magee named SVP/Fox News Radio
Fox News has promoted VP/News Programming Kevin Magee to SVP/Fox News Radio, replacing Jack Abernethy who was recently named Fox Stations CEO. He'll be responsible for all radio expansion, including programming and new business in the radio division, reporting to Roger Ailes, Fox News CEO. In making the announcement, Ailes said, "Kevin has been instrumental in bolstering Fox News' programming and I'm pleased to have him running the radio division. He is a dedicated, experienced executive who will be an asset in heading the expansion of the Fox News brand." Magee said, "It feels great to return to my roots in radio. I look forward to bringing the network's success to radio and to increasing its presence on another platform." Magee, who will maintain his title as VP/News Programming, has also been named Chairman of the Fox News Programming Council, which is being launched to create and coordinate programming between radio and television. Before joining Fox News in 2001, he was the Executive Producer, Business News for CNBC from 1997-2001. Prior to that, Magee was the Senior Broadcast Producer for ABC's "Good Morning America" in 1991-1997, where he won an Emmy, and was also the Broadcast Producer for ABC TV in 1990. Magee was also Senior Editor at ABC Radio for ten years beginning in 1980 where he made editorial decisions for six network news operations. He began his radio career as a writer and reporter for KYW-AM Philadelphia in 1976.

Billing Stern for Sirius hype was months in the making
Howard Stern is railing at his one-time Infinity co-worker, Citadel Broadcasting CEO Farid Suleman, for sending him a bill for 200K, but it appears the idea of billing Stern for his on-air promotion of Sirius Satellite Radio actually originated with Citadel COO Judy Ellis. In fact, she proposed the idea in the group head supersession at last October's NAB Radio Show in San Diego (10/8/04 RBR #197). "I'm gonna charge them," Ellis declared, after saying she was calculating how much time Stern spent flacking for Sirius outside his show's allotted spot load. That was just a day after Stern announced that he would move from terrestrial radio to Sirius in 2006, then spent much of his show on what was essentially an infomercial for the satellite radio company.

They said it in 2004: May
As the old year exits stage right and the new year makes its way to center stage, we thought we'd string together a compendium of quotes which appeared in RBR/TVBR during the past year. Today: May 2004 satellite started to gain more attention and look it came true - "Do we want Opie & Anthony? Do we want Mancow? Do we want Howard Stern? We're talking to all of them." - Sirius Satellite Radio CEO Joe Clayton at the company's annual shareholders meeting. | More... |


21 broadcasters unveil HD Radio plans at CES
21 radio groups and iBiquity Digital announced an historic agreement at CES in Las Vegas to accelerate broadcast conversion of 2,000 AM and FM stations to HD Radio. Combined with the current 500 stations licensed, 2,500 stations have embarked on an HD Radio future, covering all of the nation's top 100 markets and beyond. | More... |

Leno rings in an f---ing New Year
NBC "Tonight Show" star Jay Leno played host to Motley Crue rocker Vince Neil during his New Years Eve broadcast, and Neil used the occasion to wish his band mate Tommy Lee a "Happy f---ing new year." The show is normally taped, but was broadcasting live on this special occasion, and a delay mechanism was not in use. The network was able to bleep out the incident on the west coast broadcast.

RBR observation: The difference between the Bono incident and the Neil incident is time of day. Neil had the good taste to wait until after safe harbor had begun - - it lasts from 10:00 PM until 6:00 AM - - whereas Bono committed his utterance during prime time.
| More... |

BizWeek names best and worst
The annual listing of the best and worst managers in corporate America by BusinessWeek includes a few names you know from companies involved in broadcasting - - two of the worst, but also two on the best list. One "best" designation went to General Electric CEO Jeffrey Immelt. Among other things, the magazine gives Immelt credit for a good move in acquiring Vivendi Universal's entertainment assets to create NBC Universal. Also named one of the nation's best managers is Univision Chairman Jerry Perenchio. He's applauded for building a Spanish media colossus from a single TV station, with the recent acquisition of Hispanic Broadcasting (now Univision Radio) cited as helping to expand Univision's appeal to big advertisers with a multi-media platform. Listed as a manager "to watch," but not yet qualifying for the best list, was Tribune Co. CEO Dennis FitzSimons. Making the "worst managers" list were Sinclair Broadcast Group CEO David Smith, whom the magazine called "the bogeyman of Big Media" because of the company's airing of clips from an anti-Kerry documentary shortly before the presidential election on TV stations in all of its markets and for refusing to broadcast an ABC "Nightline" program in which Ted Koppel read the names of US service men and women killed in Iraq, and Disney's Michael Eisner, who kept his job despite 43% of the company's shareholders voting for his ouster.


Tsunami Disaster: Radio Responds
Tsunami relief brings broadcasters together
They may compete tooth-and-nail for ad buys and ratings, but Chicago broadcasters worked together yesterday to aid victims of the Asian tsunami. Nearly every radio and TV station in the market was making a pitch for aid donations, urging listeners and viewers to call a pledge number for the American Red Cross of Greater Chicago. The effort included appeals that were broadcast in every local TV newscast. | More... |

Interep donates 50K to aid victims
To assist victims of the Asian tsunami, Interep announced that it is donating 50,000 bucks to Save The Children to help fund that organization's relief efforts. "We have been touched in recent days by news of the devastation in southern Asia. On a corporate level, we wanted to do our part," said Chairman and CEO Ralph Guild.

John Tesh en route to disaster zone
Syndicated radio host John Tesh is flying to Southeast Asia this weekend, along his family, to personally assist in relief efforts. Tesh is going as a representative of Operation Blessing, a non-profit relief organization. He'll be accompanied by his wife, actress Connie Sellecca, and their two children. "We're going to not only provide support and to counsel the victims, but to raise awareness for Operation Blessing," he said.

What's happening in your market to aid tsunami victims?
Let us know by emailing [email protected].

Adbiz©

Staples abandons Sinclair
Office supply retailer Staples Inc. has said that it will discontinue buying advertising time during the local news segments of any Sinclair Broadcast Group stations on a nationwide basis. According to watchdog group Media Matters for America, which hailed the company's decision, it was reacting to the inclusion of partisan political commentary aired on the stations, and "the enormous response the company received from customers visiting the SinclairAction.com website." SinclairAction.com, a watchdog comprised of watchdogs, was formed last month to try and persuade SBG to include contrasting opinions to those expressed in "The Point," the opinion segment usually featuring SBG VP Mark Hyman. Staples sent a simple and noncontroversial explanation to consumers asking about its advertising plans. "AS a result of Staples' ongoing review of its advertising media buy activity, Staples will no longer be airing advertising on any Sinclair station's local news programs as of 1/10/05."

Sande Bovis joins Mediaedge:cia
as Managing Partner/Director National Broadcast
Mediaedge:cia (MEC) has named Sande Bovis as managing partner, director national broadcast. Reporting to MEC Chief Investment Officer Rino Scanzoni, Bovis will work on the recently won Paramount Pictures account, setting the strategic direction for all national broadcast purchases and negotiation of cross-media platforms. Prior to joining MEC, Bovis was SVP/Associate Director of National Broadcast at Universal McCann. Clients included Sony Pictures, Home Entertainment, Music and Sony Electronics. "Paramount Pictures was a huge win for this agency and represents an exciting opportunity for us," Scanzoni said. "Sande's enthusiasm, intelligence and 22 years of experience in this industry make her an ideal choice to lead the broadcast component of the account."

21st Century Insurance
launches new branding campaign
"The French Connection" features one of the most famous car chases in Hollywood history. At the height of the chase, the camera zooms in on a car thundering down the road and ramming into the side of a car in a crowded intersection. But a modern-day twist on the classic scene is the cornerstone of a new branding and advertising campaign for 21st Century Insurance. As the story unfolds, the reckless driver speeds away, and a young man standing next to his now damaged car dials 21st Century Insurance from a phone booth and says, "Hello, 21st? You're not going to believe this." 21st produced a TV spot to introduce its new "Good people to call" branding effort. The ad will air in markets across the West, the Midwest and Texas. Dailey & Associates Advertising handled creative. The new spot highlights 21st's experience as a trusted and reliable resource for consumers, one that understands modern life is more frustrating, complicated and unpredictable than ever before. The new effort is slated to include ads featuring sequences from recent blockbuster films, with other drivers uttering those soon-to-be famous words, "Hello, 21st? You're not going to believe this." "Humor and integrating our message into an iconic movie clip are great ways to focus consumers' attention that they can and should be getting more from their auto insurance company," said Mike Folino, Chief Creative Officer at Dailey & Associates. "We believe these ads will demonstrate that 21st understands the demands in everyday life and truly stands ready to help when the ordinary or even extraordinary happens."


February Radio & Television Business Report

"The Pros and Cons of Nielsen's Local People Meter and Arbitron's proposed Portable People Meter service"
After a rocky start, it's roll-out time of LPM & PPM. Will there be cooperation or more talk?

Engineered for Profit: "New tower standards coming: are you ready?" Did you know existing standards is currently in the midst of the biggest revision in years?

GM talkback: "How has LPM ratings changed selling in your market?" TV GMs say what they think-the good, bad and the ugly.

Media, Markets, and Money: Only one place tells it like it is with a run-down and overview of the biggest quarterly Radio and TV deals and outlook to 2005.


Media Markets & MoneyTM
Border bulks up in Austin
Tom Castro's Border Media Partners is upping its wattage in the Austin market, getting an AM and three FMs to add to the AM and two FMs it already has there. The latest deal is good for 19M, all going to four companies associated with Jose Jaime Garcia. The cash deal includes a non-compete. Here are the four Garcia companies. Pecan Radio Partners Ltd. is dealing KFON-AM Austin; Elgin FM LP is dealing KKLB-FM Elgin; Nogales Broadcasting LC LP is dealing KTXZ West Lake Hills; and Dynamic Radio Broadcasting Corp. LP is dealing KELG-AM Manor. The foursome will join a threesome coming in the multistation deal with Amigo Radio which includes KHHL-FM Leander, KOKE-AM Pflugerville and KXXS-FM Dripping Springs.

Price revealed: Nassau into Hagerstown
Paperwork has arrived at the FCC with details on the transfer of WARK/WARX Hagerstown MD from Manning Broadcasting to Nassau Broadcasting (12/29/04 RBR #251). The deal, Nassau's second in that general part of Maryland, comes in at 18M plus LMA fees. The deal is basically structured at 14M, which includes two 500K escrow deposits, a 9.5M cash payment at closing and a 3.5M note. The contract also provides for employment contracts for two members of the Manning family valued at a total of 4M. An LMA pending closing which began 1/1/05 will cost 50K a month. Nassau's prior deal was the 15.7M acquisition of WAFY-FM in the neighboring Frederick market from the Marmet family.

DirecTV links up with TV One
TV One, the cable network launched a year ago by Radio One and Comcast, has a new equity investor in DirecTV. Perhaps more importantly, the satellite TV service is now offering the network nationwide to more than 13.5 million subscribers. Also, indirectly, that makes News Corporation an investor in the cable network targeting African Americans. TV One also announced over the holidays that it had launched on additional Comcast and Cox cable systems that added one million subscribers as 2004 came to a close.

Emmis on deck this morning
The quarterly conference call season kicks off this morning with Emmis Communications reporting results for its fiscal Q3 which ended in November. Jeff Smulyan's target - - the analysts' consensus from Thomson First Call - - is to report revenues of 171 million and earnings per share of 28 cents.


Washington Beat
Broadcast Decency Enforcement Act to get a new suffix
It used to end with "2004." Now it may well be called the "Broadcast Decency Enforcement Act of 2005." All we know is its coming back, and sponsors in the House and the Senate aren't going to wait around to get the ball rolling in the newly-seated 109th Congress. Sen. Sam Brownback (R-KS) announced his intention to reintroduce the measure back when it was excised from a defense appropriations measure late last year (11/18/04 RBR #226), saying he'd get to it right away in January. Now numerous reports reveal similar plans from the bill's original originator, Rep. Fred Upton (R-MI). The House and Senate versions of the bill differed in many particulars, especially after both went through the respective amendment processes in committee. In the Senate, Byron Dorgan (D-ND) was able to attach anti-ownership consolidation language which did not sit well with House Republicans. However, both bills are the same when it comes to their main thrust, which is to increase the FCC's maximum single-incident indecency fines from 32.5K all the way up to 500K.

Ted Stevens takes the helm at Commerce
As expected, Ted Stevens (R-AK) is taking over the gavel wielded over the past few years by John McCain (R-AZ) at the front-and-center seat on the Senate on Commerce, Science and Transportation Committee. He will also continue as Senate President Pro Tempore and will also maintain his seat on the Appropriations Committee, the chair of which he is concurrently relinquishing. He was a sponsor and negotiator on the far-reaching Telecommunications Act of 1996, and has been awarded the NAB's Legislative Achievement Award. He is also a huge backer of noncommercial broadcasting, and last year received the Public Radio Leadership Award from National Public Radio (5/14/04 RBR #95).


Programming
Stern pushing the indecency envelope again
Howard Stern made a joke Tuesday on his show of the indecency law test that Viacom employees are required to take as part of the deal it recently struck with the FCC: "This is so dumb," he muttered, calling the quiz "condescending." When Stern learned last month of the possible discipline he faces, he threatened to play only music during his four-hour, five-day-a-week morning show. But in two live broadcasts since returning this week from a two-week vacation, Stern has been just as feisty as before. In addition to the employee quiz, he detailed a company description of the words and sounds that might run afoul of FCC rules. Stern said possible profanity includes 'go to hell,' 'g-damn you,' and any "personally reviling epithets." As for sounds, Stern said banned intonations include flatulence and heavy breathing. His staff then played a few examples. Stern's overall take on the matter? "I would so love to be thrown off the air for saying 'go to hell,'" he told listeners.

New slot for Dave Ross
Having come up short in his run for the US House of Representatives, Dave Ross has been back on the air for several weeks at KIRO-AM Seattle - - and is now moving to afternoon drive, 3pm-6pm, from his former 9am-noon slot. "By moving 'The Dave Ross Show' to afternoon drive, more people will be able to listen to this premier news and talk show, which provides an in-depth analysis of the news of the day as well as a discussion forum and education on world events," said Dave Pridemore, Vice President/General Manager. The new "Allan Prell Show" will air 9am-noon, the "Dori Monson Show" will air 12noon-3pm and the new "Tony Ventrella Show" will air 6pm-9pm.


Engineering
CC Radio offering RDS traffic system
Also announced at CES in Las Vegas: CC Radio announced a new service that delivers real-time local traffic data directly to vehicles. Beginning immediately, traffic data authored by Clear Channel Radio's network of reporters, traffic cameras, helicopters and airplanes and will be offered via an annual subscription to owners of vehicles equipped with Audiovox Radio Data System Traffic Message Channel (RDS-TMC) equipment.
| More... |

Wi-Fi access to be offered in cars
The Wall Street Journal reports RaySat Inc., a Vienna, VA-based company, says it has developed a satellite antenna that can turn a moving car into a rolling "hot spot" -- with Internet access for any onboard laptop or pocket computer equipped with the wireless-networking technology known as Wi-Fi. | More... |


Transactions
WRSC-AM, WBLF-AM, WBUS-FM, WQWK-FM & WJHT-FM State College PA (State College, Bellefonte, Boalsburg, University Park & Port Matilda PA) and WQKK-FM, WYSN-AM, WGLU-FM & WCCL-FM Johnston PA (Johnstown, Somerset, Ebensburg & Central City PA) from Dame Broadcasting LLC to 2510 Licenses LLC.

KFJZ-AM Dallas-Ft. Worth (Ft. Worth TX) from Garden City Broadcasting Inc. to Border Media Partners.

| More... |


Stock Talk
Three in a row - - all down
The stock market kept its 2005 streak going - - falling for the third straight day on inflation worries and a lower revenue projection by a tech stock - - chip maker Xilinx. The Dow Industrials fell 33 points, or 0.3%, to 10,598.

Virtually all radio stocks were lower. The Radio Index fell 4.403, or 2%, to 220.572. One exception to the down trend was Viacom. Its Class A shares rose 1.5% and Class B 1.8%. Leading the much larger group of declining stocks were Entravision, down 5.4%, and Westwood One, off 3%.


Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

37.94

-0.06

Jeff-Pilot

JP

50.48

-0.36

Beasley

BBGI

17.27

-0.25

Journal Comm.

JRN

17.71

unch

Citadel CDL
15.00 -0.30

Radio One, Cl. A

ROIA

15.62

-0.29

Clear Channel

CCU

31.80

-0.75

Radio One, Cl. D

ROIAK

15.65

-0.19

Cox Radio

CXR

15.99

-0.28

Regent

RGCI

5.25

-0.11

Cumulus

CMLS

14.03

-0.36

Saga Commun.

SGA

16.82

+0.06

Disney

DIS

27.40

-0.15

Salem Comm.

SALM

23.90

-0.62

Emmis

EMMS

18.49

-0.30

Sirius Sat. Radio

SIRI

7.64

+0.13

Entercom

ETM

33.93

-0.55

Spanish Bcg.

SBSA

10.06

-0.17

Entravision

EVC

7.75

-0.44

Univision

UVN

27.62

-0.68

Fisher

FSCI

47.98

-0.76

Viacom, Cl. A

VIA

37.90

+0.57

Gaylord

GET

39.69

-0.77

Viacom, Cl. B

VIAb

37.41

+0.67

Hearst-Argyle

HTV

25.80

-0.23

Westwood One

WON

25.77

-0.80

Interep

IREP

0.73

-0.03

XM Sat. Radio

XMSR

34.56

-0.79

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to [email protected]

We're getting lots of feedback on NOW's complaint about Clear Channel's multi-market give-away of breast implants (1/5/05 RBR #3).

Breast Christmas Ever is one of the best promotions I've heard in a while. NOW should lighten up. I've talked to women who have participated in the contest and they love it! Good job Clear Channel!

Kent Smith
WMJZ
Gaylord, MI

Radio stations have been giving away plastic surgery for DECADES. Nose jobs, tummy tucks, boob jobs, complete makeovers, etc. are not uncommon media promotions. Major Cable and TV networks regularly air shows which make "ugly" people into "swans". Where is NOW outcry in regards to these makeover programs? Answer: Silent. Clearly, NOW is 'selective' in their concerns, which dilutes the validity of their rage to 'political posturing'.

Jobi Kay


Upped & Tapped

CC Radio ups
Jeff Littlejohn
Clear Channel Radio has promoted SVP/Engineering Jeff Littlejohn to Executive SVP of Distribution Development: "I'm going to be overseeing engineering, as well as many new distribution methods, specifically things like HD Radio and some other new technology initiatives. I'm going to be taking a less active roll in the day-to-day station engineering. We're going to bring up some duties for some other people as well. There will be a release on that in a week."

Arbitron fills new post
Arbitron has named Julian Davis to the new position of Director/Urban Media Services. He will work closely with urban media and advertising agencies to ensure that Arbitron provides services to address their expanding business goals and be the main liaison working with agencies and advertisers targeting Black communities as well as the Black/African American-owned radio stations and networks for several urban market initiatives.

Rooney returns
Beasley Broadcast Group announced that former KMXB-FM Las Vegas personality Leah Rooney has returned to radio as mid-day host for KSTJ-FM Las Vegas.


Stations For Sale

Rated Market AM Coverage
Bristol, TN (#98) and adjacent Western Virginia Coverage with two great AM's. Priced to Sell!
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

Tennessee / Alabama Border AM
2.5 KW AM on border with Rated Market Coverage (#118). Motivated Seller! Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

10 Station (One State) Cluster
Four Markets with $900K Trailing Cash Flow. Excellent Management. Located in Far Northwest.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]


More News Headlines

TVBR - TV News

"Desperate" tops
TiVo ratings

Once again, the one-day difference in reporting weeks has produced very different results in viewing popularity for TiVo owners, vs. the weekly Nielsen ratings. ABC's "Desperate Housewives," which didn't air this past Sunday and thus wasn't in the week's Nielsen ratings, was the #1 program with TiVo users, but for the 12/26 airing. | More... |






RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
Do you believe Clear Channel's brass on the alibi that they?
1 - Didn't know a thing
on the contest
2 - They new well in advance
about the contest
3 - Just hoped it wouldn't
get caught

Clear Channel contest condemned
"The Breast Christmas Ever" has put Clear Channel back in the news. A contest which will award breast implants to women contestants was run on four stations, including WKQI-FM Detroit, WFKS-FM Jacksonville, KSLZ-FM St. Louis and WFLZ-FM Tampa. The National Organization for Women has been leading a campaign protesting the contests. NOW encouraged an email campaign directed at both CCU CEO Mark Mays and the FCC. According to reports, Clear Channel HQ disavowed any knowledge of the contest, saying such decisions are made by local programmers.
RBR observation: It seems that the local decision alibi is a little weak when such a distinctively entitled contest shows up in four very different, geographically diverse cities. Maybe this contest didn't originate in San Antonio, but sure doesn't look like an entirely local operation, either. Executives at CCU's HQ - the word the industry would speak is not called Disavowed - but called Accountability.
01/05/05 RBR #3

2004: Tough year for TV stocks
Political and Olympic revenues filled the coffers of TV companies in 2004, but investors are always trying to look ahead, so most TV stocks fell in 2004 as Wall Street anticipated slower growth in the future. Of the 35 TV stocks in TVBR's daily chart, only 11 were up for the year and not one of them was a pure-play TV group owner. Michael Eisner announced plans to leave Disney - Don Cornwell sought to reorganize the company's holdings - Paxson struggled to find a new buyer to replace NBC and to win digital must carry, Paxson Communications fell 64%.
TVBR observation: See the charts and hold on to your hair because the site is not a pretty one as this year someone best order from e-bay an extra supply of life vests.
01/05/05 RBR #3

They said it in 2004: April
Responsible programming was on the hit list and this is one of many great liners - "I don't think anybody came here today expecting to walk out with a firm imperative. It's not going to be resolved in 30 days or even 60 days." - - NAB President/CEO Eddie Fritts on the Summit on Responsible Programming. 01/05/05 RBR #3

Nielsen withholds ratings
for 12 markets
Citing "an unusual set of hardware failures," Nielsen Media Research says local ratings information for 12 western markets is being withheld for Friday, December 31st while the company determines whether the data can be recovered and reprocessed. The markets affected are Los Angeles, Los Angeles Hispanic, San Diego, Denver, Sacramento, Salt Lake City, San Francisco, Phoenix, Seattle, Las Vegas, Albuquerque and Portland, OR. What happened? Nielsen says the hardware failures disrupted the calling-in process from sample households in the 12 markets. TVBR observation: Well, that's on advantage that old-fashioned diaries have over their high-tech successors. Unless, of course, they're lost in the mail. 01/05/05 TVBR #3

2004: Tough year for radio stocks
If you bet on a long-awaited revenue recovery to boost radio stocks in 2004, you may want to look into getting a new crystal ball. As we all know now, the tough times continued and investors turned away from radio stocks in droves. RBR's Radio Index fell 20% for the year and virtually all pure-play radio stocks finished 2004 down from where they began the year. RBR observation: This is not a pretty sight. Worth saying again - tough times continued and investors turned away from radio stocks in droves. See the charts and hold on to your hair because if there is a reason to Go Private the numbers do not lie.
01/04/05 RBR #2

Radio's JSAs have a
short while to file
The Third Circuit, while at the very least delaying most of the FCC's 6/2/03 ownership ruling, did allow a few things to go into effect. One such new rule is making radio station joint sales agreements (JSA) attributable when calculating allowable cluster size caps in Arbitron-rated markets. The FCC is now calling in the paperwork on such agreements. All contracts concerning JSAs must be submitted to the Media Bureau by 2/22/05, where it will be placed in the appropriate license files.
RBR observation: If you snooze you loose. 01/04/05 RBR #2

They said it in 2004: March
And you just thought kids only said the silly things. This one was not said by either Rodney Dangerfield or Red Buttons - "I think Michael Eisner did some great things for the company, but there are some not so great things." 01/04/05 RBR #2


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