DRM A Progress Report NASB Conference May 9th & 10th, 2012

DRM Progress, A History DRM Consortium started in 1997. Since then: • Nearly 100 members and supporters • Hundreds of seminars, demonstrations and trials around the world • Millions of dollars invested by transmitter, receiver, exciter and chipset companies • Millions more spent by Broadcast Organizations on purchasing new equipment or modifying older systems to DRM standard • Many hours of DRM Broadcasting • Technically speaking: DRM is a dramatic success • No other Broadcast media can accomplish what HD DRM can. Internet, FM, DAB, MW, Satellite and TV are all supplemental, not replacement solutions.

DRM Receivers, A Call For Action With all this success; where are the listeners? • Less than 4000 DRM receivers built and sold world wide • Few receiver manufacturers willing to spend their own money to develop the DRM receiver market • While many governments spent hundreds of million$ on new and upgraded transmitters, there has been practically no government support to provide receivers • A lack of vision by major broadcasters has also contributed to the lack of receiver penetration

HF and DRM • Only HF allows uninterruptable content delivery, with the broadcaster in total control, from any location to any target audience • Only DRM allows four (4) different programs on a single frequency • DRM allows the broadcast of digital content, like data and text, not just voice • DRM transmitter efficiency is greatly increased for the same received signal • DRM only works if it is received! DRM cannot be blocked like satellite or the internet. • In 2010 DRM demonstrated a live broadcast on DVIMO of video from the UK to Amsterdam at a data rate of 56 K • With millions invested in time and resources by Voice of America, BBC, DW, Radio Netherlands, Radio Canada, Radio China, Radio Spain, Radio Romania, Radio France, etc., why are these organizations not investing in receivers? I blame it on “Short Vision or No Vision” or simply trusting the receiver companies to develop markets.

Where We Stand Today The DRM community is grateful to small receiver and chipset companies! • DRM receivers are finally reaching the global marketplace • One of the latest is on display here at the NASB show, at a retail cost of about $110. That is with a production rate of less than 1000 units. • With higher demand and higher production rates the price could fall to less than $50 in a couple of years • We are working closely with chip set manufacturers as well as DAB receiver manufacturers to offer a combined DAB/DRM receiver. • Companies in Asia are now producing millions of DAB receivers that are being sold in Korea, China, U.K, Norway, Germany, Switzerland and Denmark • We have two goals: 1) Stand alone DRM receivers and, 2) DRM receivers combined with DAB (and possibly HD)

What Is Needed Today Investment in receivers • Complete evaluation of currently available receivers • Prepare final DRM specifications through receiver task force • Issue RFP for receivers, starting with a basic low cost unit • Direct investment by government broadcast organizations in DRM receiver manufacturers • Combined orders to reduce cost and receiver prices

Are You Ready? • Are you ready to see DRM all the way to the finish line? • Some broadcasters have simply lost interest, while others care less about DRM 30 and are focusing on DRM+ • Many of you have already invested heavily in DRM transmitters and have made your stations DRM Ready • What is required is a NEW Strategy - for you to invest in receivers • Only you can make DRM 30 Digital Radio a Reality! • Waiting on others is a guarantee of failure!