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Nine analysts and top management from thirty-six sector firms examine the Media & Entertainment sector in this special 199-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info389.htm

TWST: David, begin by telling us about the area that you cover at Sutro & Co.

Mr. Miller: Our universe is centered around West Coast-based media and entertainment companies across most capitalizations, as well as other firms with significant asset bases in the Los Angeles media community, such as Viacom (NYSE:VIA), corporate owner of CBS and Paramount Pictures. Currently, we cover Disney (NYSE:DIS), Univision, Viacom, Metro-Goldwyn-Mayer (NYSE:MGM), TiVo (Nasdaq:TIVO), which is based up in San Jose, Entravision (NYSE:EVC), which is somewhat of a sister company to Univision and which is also based here in Los Angeles, Fox Entertainment (NYSE:FOX), which of course is the equity carve-out from News Corp. (NYSE:NWS), and Pixar Animation Studios (Nasdaq:PIXR), which in a very short time has built a unique brand around the theatrical feature animation business.

TWST: Are there any companies that you’re particularly excited about at the moment?

Mr. Miller: We’re pretty excited about what’s going on over at Univision (NYSE:UVN). Over the last five years, Univision has been the dominant Spanish language broadcaster in the United States, with a 97% reach and approximately an 80% viewership share on average. The nearest competitor is a private company called Telemundo, which is located in Miami. Telemundo has 20% viewership share of Hispanic homes and has recently seen an upsurge in ratings due in large part to a novella called “Betty La Fea.” But despite ratings improvements, Telemundo has never really touched Univision in terms of its appeal as an advertising platform for the Hispanic population. Univision has undergone a variety of changes over the last few months and is really beginning to transform itself into a fully horizontally integrated and vertically integrated company. They just recently closed on the purchase of the station group from USA Networks (Nasdaq:USAI) for 1.1 billion in cash, which essentially allows them an outlet for a second network to be launched in January 2002. The name of that network has not been announced yet, though most of the analyst community is dubbing it “Univision 2.” So the company will have essentially four networks; Univision 1, Univision 2, Galavision, which is their cable network, and a separate network in Puerto Rico, which will be self-programmed.

TWST: Does Univision broadcast nationally?

Mr. Miller: Yes. They are far and away the dominant Spanish language broadcaster in the United States. Some of the statistics with regard to the popularity of Univision within the Hispanic community are eye-popping. In the month of June alone, Univision’s prime-time audience share was something like 87% of the overall Hispanic audience. On a smoothed basis, Univision typically has a 90% viewership share of the teen market, which more often than not is higher than the combined teen-demo delivery of Fox and UPN. To illustrate how popular Univision is in Los Angeles, the company’s owned and operated station here in LA, KMEX, often delivers ratings points stronger than all of Telemundo combined! If you were responsible for an advertising budget at, say, Procter & Gamble, or Pepsi, or Clorox, or NIKE, where would you want to place your ad dollars?

This special issue includes:

1) Broadcasting - TV & Radio - In an in-depth (10,600 words) Analyst Roundtable, James Goss, Vice President at Barrington Research Associates, Inc. and Alissa Grahm, Media Analyst at William Blair & Company, examine the outlook for the sector including, general market radio, regulatory outlook and share specific stock recommendations.

2) The TWST confidential Off-The-Record survey of management performance at nineteen sector firms asked market insiders about the ability of management teams to create shareholder value.

3) Media & Entertainment Stocks - In an in-depth (3,100 words) Analyst Interview, Edward Hatch, Head of Media & Entertainment Equity Research Group for SG Cowen Securities Corp., examines the outlook for the sector and shares specific stock recommendations.

4) Entertainment & Media Stocks - In an in-depth (6,500 words) Analyst Interview, David Miller, Media and Entertainment Analyst at Sutro & Co., Inc., examines the outlook for the sector and shares specific stock recommendations.

5) Newspaper Stocks - In an in-depth (3,300 words) Analyst Interview, Leland Westerfield, Director in the Communications Group of UBS Warburg Equity Research, examines the outlook for the sector and shares specific stock recommendations.

6) Internet Media Stocks - In an in-depth (3,600 words) Analyst Interview, Safa Rashtchy, Vice President of U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

7) Outlook for Media & Internet Media Stocks - In an in-depth (3,400 words) Analyst Interview, Jordan Rohan, Head of Media Research at Wit SoundView Corp., examines the outlook for the sector and shares specific stock recommendations.

8) Interactive Television & New Media Technologies - In an in-depth (5,100 words) Analyst Interview, Murray Arenson, Equity Research Analyst at Morgan Keegan & Company, examines the outlook for the sector and shares specific stock recommendations.

9) Interactive Technology - In an in-depth (4,100 words) Analyst Interview, David Lee Smith, Senior Analyst covering the media sector for Dain Rauscher Wessels, examines the outlook for the sector and shares specific stock recommendations.

10) CEO interviews (average 2,500 words). Top management of thirty-six sector firms examine the outlook for their firm and the sector.