CHUM LIMITED AND ASTRAL MEDIA INC. JOINED BY CHIN RADIO, CJRT-FM INC., FAIRCHILD RADIO GROUP LTD., O.K. RADIO GROUP LTD., NEWCAP INC., LARCHE COMMUNICATIONS INC., ABORIGINAL VOICES RADIO INC., ROCK 95 BROADCASTING LTD., EVANOV RADIO GROUP INC. AND RADIO-NORD COMMUNICATIONS INC. FILE NOTICE OF APPEAL ON SATELLITE RADIO DECISIONS

CNW

CHUM Limited and Astral Media Inc joined by Radio 1540 Limited (CHIN Radio Television International), CJRT-FM Inc. (Jazz.FM91), Fairchild Radio Group Ltd., O.K. Radio Group Ltd., Newcap Inc., Larche Communications Inc., Aboriginal Voices Radio Inc., Rock 95 Broadcasting Ltd., Evanov Radio Group Inc. and Radio-Nord Communications Inc. announced today the filing of a Notice to Appeal to the Governor in Council to set aside Decision CRTC 2005-246 and Decision CRTC 2005-247 (the "Decisions") in which the Canadian Radio-television and Telecommunications Commission (the CRTC) granted licences to operate satellite subscription radio undertakings to Canadian Satellite Radio Inc. and SIRIUS Canada Inc.

The appellants are broadcasters serving large and small markets, English and French language, ethnic and aboriginal audiences. In their Notice of Appeal, the broadcasters argue that the conditions of licence outlined in the Decisions to licence U.S. supported satellite services are inconsistent with the broadcasting policy for Canada outlined in Section 3(1) of the Broadcasting Act, and in particular:

• Section 3(1)(f), which requires broadcasting undertakings to make "maximum use, and in no case less than predominant use, of Canadian creative and other resources, in the creation and presentation of programming";

• Section 3(1)(d), which states that the Canadian broadcasting system should "through its programming and the employment opportunities arising out of its operations, serve the needs and interests, and reflect the circumstances and aspirations, of Canadian men, women and children, including equal rights, the linguistic duality and multicultural and multiracial nature of Canadian society and the special place of aboriginal peoples within that society"; and

• Section 3(1)(a), which states that the "Canadian broadcasting system shall be effectively owned and controlled by Canadians".

"Irrespective of CHUM and Astral Media's interests as licensees, we do not believe that the regulatory framework created by these decisions allows for a sustainable broadcasting system", said Paul Ski, Executive Vice President Radio, CHUM Limited. "The low threshold of Canadian content requirements imposed on the U.S. supported satellite licensees is a dramatic departure from historical broadcasting precedent. If allowed to stand, this will inevitably cause significant harm to not only Canadian artists and radio broadcasters, but to the Canadian broadcasting system as a whole."

"With the very low level of French-language programming (2.5%) and no specific expectations regarding ethnocultural and/or aboriginal services, it is hard to understand how these decisions reflect Canada's linguistic duality and cultural diversity," said Jacques Parisien, President of Astral Media Radio.

The appellants believe the decisions present potential implications for more than just audio services as at least one of the U.S. parents of the satellite licensees has announced its intention to begin providing video services. This establishes a precedent for the entire audio visual sector in Canada as new wireless entertainment devices emerge.

A full appeal will be filed with the Privy Council before the July 31,2005 deadline.

This is the third appeal filed against the ruling following the appeal launched by a coalition of French-language cultural groups, including ADISQ, APFTQ, ARRQ, la SARTEC, SOCAN, SODRAC, la SPACQ and UDA and another broad-based coalition of English-language culture and labour organizations including Friends of Canadian Broadcasting, CRIA, CIRPA, ACTRA, Writers Guild, Directors Guild and member groups of the Canadian Labour Congress.

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