About the Broadcast Group

The Jim Pattison Broadcast Group is Western Canada's largest privately owned radio and television group, comprised of 28 radio stations and three television stations serving the needs of 17 markets in British Columbia and Alberta. With a focus on our people and a commitment to Total Team Involvement, our Group has successfully pursued an exciting expansion strategy in recent years.

Looking back over the past year, the Jim Pattison Broadcast Group, Western Canada's largest privately owned radio and television group, has continued to grow. Our stations continue to be leaders in their markets by being "in-tune" with each city they are so proudly licensed to serve in Alberta and British Columbia. Over the past year, we achieved strong performance on many fronts. As we continued to roll-out our strategic growth plan for the Group, our integration of eight new FM radio stations on Vancouver Island into our broadcast family proceeded extremely well. We welcomed all of our new team members from Victoria, Nanaimo, Parksville/Qualicum, Courtenay/Comox/Campbell River and Port Alberni with great enthusiasm and a commitment to grow the stations and our people, both now and into the future.

The broadcasting business is fun, creative and rewarding. In the 17 markets in which we live and work, we allow our stations and formats to be similar in nature, and yet, at the same time, very different and distinct depending on the competitive environment. Having said that, all stations in our Group also exhibit many core foundations of the Broadcast Group in regulatory matters, corporate philosophy, continuous improvement, community involvement and, most importantly, "TTI" or Total Team Involvement. We truly value the professionalism, dedication, expertise and passion that each of our 500 team members brings to our stations every day, and that is reflected in our commitment to them in TTI! Total Team Involvement is at the centre of our success, with each team member encouraged to get involved and contribute their ideas for continuous improvement. As we always say... "working together, we're stronger than ever"! The cornerstone of who we are and what we stand for can also be found in our six Guiding Principles: Trust, Integrity, Quality, Innovation, Commitment and Customer Service. By faithfully adhering to these principles, we have earned a winning reputation, recognized throughout the broadcast industry and beyond.

2007 was a year of celebration for our television division as both CFJC TV in Kamloops and CHAT TV in Medicine Hat commemorated 50 years of television. Along with a handful of other larger stations, CFJC and CHAT are considered two of Canada's first heritage television stations, providing both Canadian Broadcasting Corporation (CBC) and local programming when they signed on the air in 1957. Over the years, both stations continued to be innovative as "local" stations and increased the diversity of their programming with a substantial amount of truly local reflection in news, entertainment and variety programming.

CFJC TV in Kamloops kicked off its 50th anniversary by becoming one of Canada's six new E! Entertainment stations on September 1, 2007. The new station offers a terrific program schedule, including 19 hours weekly of award winning local news, information and leisure programming, combined with a very strong schedule of reality, sitcom, drama and entertainment programming such as Deal or No Deal, Boston Legal, Bionic Woman, Biggest Loser, etc., from our partner, Canwest Global Television. As we look to the future of our other two television stations, CKPG TV in Prince George and CHAT TV Medicine Hat, an agreement has been finalized to disaffiliate both stations from the CBC effective August 31, 2008 (pending Canadian Radio Television and Telecommunications (CRTC) approval). Effective September 1st, both stations will join CFJC TV and become E! Entertainment stations.

Our radio division has once again been very busy growing our business over the past year. As one of Canada's top ten radio groups, we continue to focus our attention on growth and acquisition opportunities that would enhance our market share on a going-forward basis. As part of our long term strategic plan, in 2007 we agreed to purchase CKIZ FM (KISS FM) in Vernon from Rogers Media, and CIGV FM in Penticton from the Ralph Robinson family, to allow us to compete on a level playing field with our competition in the Okanagan Valley. These acquisitions are subject to CRTC approval.

In April 2007, CRTC approval was received to convert one of BC's last remaining heritage AM stations, CKOV Kelowna, to the FM band. On August 17th, the Broadcast Group proudly launched central Okanagan's newest radio station, B103, Kelowna's Best Country". Early indications show the station is being very well accepted by the audience and advertisers alike. Our radio division is also focused on growing the Group through new applications to the CRTC. We recently responded to two calls for new licenses in both Vancouver, BC and Edmonton, AB, with hearings set for early spring and summer of 2008. We have put together very strong, compelling applications that would have a positive material impact on each city, as well as the listeners, the communities and emerging Canadian talent development as a whole.

The Jim Pattison Broadcast Group continues to fulfill its very important commitment to each community we are licensed to serve by providing over $12 million, in the last year alone, in partnerships and sponsorships with hundreds of worthwhile organizations, clubs and community groups to make those communities better places to live, work and raise a family. Whether it be Relay for Life, Basics for Babies, Dreams Take Flight, Cars for a Cause, Cops for Cancer, West Coast Women's Show, Sam Steele Days or Spirit of the North Telethon, our stations play a leadership role in each of our markets to ensure the operating and financial success of each worthwhile event we support.

As we look to the future, we see a bright outlook for our Group as we continue to grow as a conventional radio and television broadcaster. To ensure success in the short and long term, we will continue to create an environment of winning and achievement, while operating creative workplaces that allow our teams to have input, make decisions and create award-winning programming. Our mission statement... "The Spirit to win, the spirit to succeed, the spirit to grow, leads to success for a committed team" is truly what we are all about and is reflected in our everyday business practices. We're very proud members of the entire Jim Pattison Group!