Special Announcement Edition

Dear FigFamily Newsletter Subscriber,

After careful consideration, a little negotiation, and even a bit of hand ringing, I have decided to go back to running a company. But wait! There's more! This is not just any old company, in fact, it's a very "NEW" company.

(The Short Version Starts Here)

I have accepted the position as Chief Operating Officer of Softwave Media Inc. This innovative web based company provides media and advertisers with all new opportunities for additional revenue and content distribution through proprietary “real time” inventory management.

Formed in 2005, SWM is one of the first companies specifically created for a changing media world. The company currently operates SoftwaveRadio.Com. This innovative on- line software has quickly gained acceptance from leading advertising agencies, successful radio broadcasters, and savvy advertisers.

Softwave Radio™ is a smart "last minute" inventory management system linking broadcasters and ad agencies together to create specific audio campaigns custom tailored to advertisers and their customers. Softwave's roster of high quality radio stations located throughout North America have already realized significant additional revenue without compromising their current commercial limit policies. Softwave Radio advertisers can now reach specific national, regional, or local audiences using powerful local radio stations quickly and efficiently.

(Read how hundreds of radio stations are adding revenue even as you read this newsletter. Look below under "Softwave Radio - The Inside Story! - How it Works!")

More information on the company at www.softwaveradio.com. I will begin my assignment on February 1st.

The FigFamily Newsletter will continue to be published. Your response has been wonderful!

(Short Version Ends Here)

(The Story Begins Here)

The Beginning

It was August of 2004 when a then business associate (now a partner in Softwave) Chuck Omphalius (Oom- fale- e- us) drove up here to Skytop with a couple of people for me to meet. At the time, Skytop was the world headquarters of the West Region of Citadel Broadcasting. As President of 70+ radio stations from Iowa to California, my job was to grow revenue, right now!. (any of you regional managers know that story!) Chuck and I were together at CBS Radio (formerly CBS Radio, formerly Infinity, now CBS Radio again) working for Dan Mason and "Mel." I'll save the Mel, Chuck, Infinity stories for when we see/speak to you. (ask about the Chuck "plane ticket" challenge.)

Chuck shows up with a carload of people. Arriving with longtime associate Mike Caprio, (another CBS'er) were Josh Wexler & Stavros Aloizos. These two guys had a company called Zysys, a software outfit out of Irvington NY. (30 minutes north of NYC, 70 minutes from Skytop) Chuck and Mike were part of IMPS (Integrated Marketing & Promotional Solutions www.imps-inc.com ) a client who put money on radio stations. (ask about how Chuck got there. Another "story") Little did I know at the time, that my career would careen into the path of oncoming technology, a changing radio industry, an advertising opportunity, and my desire to "try something new." It was quite the crash! In August of 2004, Apple had sold LESS than one million I-Pods, XM had 2.1 million subs, Sirius had 480,000, HD was TV, Podcasting was not even a word, and radio revenues were pacing at 4% over 2003. Oh, the humanity!

The Idea

Chuck sits down at my computer and starts showing me how they have designed this software program that matches all of Citadel's unsold radio time available for the next week with advertisers willing to "fly standby" for my stations available time. No equipment needed, no obligation, no long time commitments, no problem. The GM, GSM, or even the traffic person could add "last minute" revenue by simply sitting at his/her desktop, logging in, and selecting from a list of advertisers willing to pay for my stations available unsold time. Granted, they were not paying top of the rate card, but compared to the ZERO we were getting now, it would (perhaps) be enough to pay for marketing, a raise, research, or get us over the hump on the way to making budget. And the cost of making the sale? Zero. No commissions means 100% drops to the bottom line. Point, click, cash! I loved it!

Fig - "Any chance you can pay in 30 days?"

Chuck - "Sure!"

Fig - "Would you pay us in advance?"

Chuck - "Would you lower the rate by 15%?"

By now I'm thinking, 10 unsold spots per day (M-S- 6a to mid) times $10. ($100) times 70 stations ($7,000) times 365 days a year equals $2,555,000.00.

Yikes! What if he's half right? I'm still ahead of the game! This is serious money! Right to the bottom line! Right?

We didn't raise the spot load, we didn't compromise the programming (you approve the copy before you print the order) we didn't have to pay for the software, we didn't have to buy new computers, they were NOT poaching on our current customer base, we could replace cancellations within the hour, there are no commissions to pay, even the traffic department can produce revenue, and then Chuck says, "What if we could wire the money right into your station account within the hour?"

"Can I buy lunch for you guys?" I said.

The Test

In the Fall of 2004 we tested www.remnantradio.com for what was to become Softwave Radio. Todd Lawley (my replacement), Lupe Lopez, (Tucson's traffic director) the West Region's GM's and I kept watch on the ever improving software that Stavros, Chuck, Josh & Mike developed. I am not permitted to tell you the amount of revenue we realized in 2005, (both before, and after I left Citadel) but let's just say it was a VERY nice number.

During the first half of 2005, Clear Channel, CBS Radio (formerly Infinity), ABC, Entercom, Emmis, Regent, Saga, and others would log their stations on to what is now www.softwaveradio.com. This is money that did NOT exist before.

Howard signs with Sirius, Apple is selling millions of songs on-line, I-Pod is a household name, broadband is allowing people to listen to radio, watch video, read newspapers, buy and sell just about everything, cell phones are playing TV shows, and the business of the radio business is undergoing a fundamental change. I gotta be a part of it!

I don't want to be scared of change!

I want to be scary!

I resigned.

"It doesn't take a weatherman to know which way the wind blows" - Bob Dylan.

Forming FigMedia1 gave me the chance to work in the changing media world from the outside while being an "insider." Finding myself on the other side of radio station management for the first time in my career permitted me to gain a unique perspective not otherwise known. My client list quickly immersed me in banking, talent, networks, trade press, internet, national sales, local stations, producers, Wall Street, and main street.

The FigFamily Newsletter (a small letter type e-mail for GM's started while I was at Citadel.) grew to surprising numbers. The list looks like the Star Wars bar. (and will remain confidential) CEO's, Regional VP's, morning shows, researchers, publishers, GM's, PD's DOS's, lawyers, TV executives, bankers, engineers, big radio stars, ad agency presidents, small station owners, syndicators, operators, and a few outsiders all "get it." The input I receive from the writings manage to hit a nerve on a regular basis. It will continue.

I was offered station ownership, internet startups & mergers, the chance to work overseas, money to "buy" stations, commissions to "sell" stations, loan money, and even a group head job. (and a pretty big one at that!) Everything crossed my desk. GM's bitching, salespeople pitching, and talent twitching. Half the time I felt like Dr. Phil. I could have made a fortune charging by the hour for therapy.

One of my clients (the others will also remain confidential) was Softwave. Throughout all this time of change, I kept thinking of the potential of having a new revenue "pipe" into each radio station in America. Branded content with revenue attached, advertisers that have NEVER used radio ("it's too hard to buy!"), I had a dozen ideas in addition to the head full they have! As I would bring Chuck, Stav, Mike & Josh, around to meet industry leaders, each responded with their own positive ideas on this innovative, dynamic opportunity. Just about everyone who sees the Softwave presentation by these guys, also sees the potential of doing business with them. A few even wanted to buy them! "Good morning Mr. Figenshu, this is your wake up call!"

Then two significant events happened at about the same time. After receiving outside funding, Softwave needed someone to run a growing company, and I wanted to work there. How coincidental is that! The rest is, uh, ok, the rest is destiny!

Rare is the chance to create a new company that will help define the future of the medium. A company that will provide a new method of distribution for advertisers, content for consumers, and revenue for broadcasters. And here's the best part! It can be done by bringing together only the best, brightest, passionate, most creative people IN OUR BUSINESS!

Softwave Media will be a magnet for creative people with a vision. People who will not be constrained by old thinking or bottom line compromises. People at the top of their game, with their best work yet to come! Can we build a company that has a high level of expectation only to be exceeded by a high level of performance? You bet we can! And we will!

Would you like us to schedule a wake up call for you?

The future starts.....right now!

Best regards,

Fig