Disney/ABC Group Radio Stations In Top 25 Markets Choose Audiolounge.com For Web Broadcasting.

CLEVELAND--(BUSINESS WIRE)--Sept. 30, 1997--Telos Systems Inc. and Olympia On-line Inc. have announced that 25 Disney/ABC Group radio stations in the top 25 markets, including more than a dozen stations New York, L.A., Chicago, San Francisco, Dallas, and Detroit, will broadcast their programs over the Internet using Audiolounge.com, a new service developed and operated by Olympia and Telos. Some stations, including New York's WABC-AM, have already begun transmitting their programs on Audiolounge, company officials said.

Audiolounge can be found on the web at www.audiolounge.com.

Steve Church, president of Telos Systems, which is based here, said Audioactive's professional encoding technology fully supports Microsoft's NetShow 2.0 streaming media service and that this is a major attraction to stations looking to stream, or broadcast, over the web. "Our application takes full advantage of NetShow's underlying services, which are optimized for real time media such as radio," he said. "Our ability to provide high-fidelity audio, combined with a NetShow's ability to deliver streaming programming to a large audience, should make Audiolounge broadcasters' preferred choice for Internet radio."

Bill Moir, vice president of St. Louis-based Olympia, said "Cap Cites/ABC affiliates were initially drawn to the Audiolounge service because its method of radio signal acquisition, in tandem with Audioactive's professional encoding technology, assured them of attaining the highest quality audio transmissions over the Internet. The support for NetShow made Audiolounge a complete and very attractive package."

Currently more than 500 radio stations broadcast, or "stream," their programs over the Internet as they are being aired locally, and the trend to do so is growing. To be transmitted over the Internet, a radio station audio signal must first be digitized and encoded. To be heard by the Internet user, the signals must be decoded by the user's computer. To hear radio broadcasts over the Audiolounge service, listeners can download the NetShow player from the Microsoft web site.

Mr. Church said the Disney/ABC Group FM stations that have signed up with Audiolounge are KABC, KLOS, KTZN, Y-107 (New York and Los Angelos), KBAY, KFUX, KSJO, KCXX, WKHY, WYAY, KFBQ, WJR, WPLT, KQRS, KEGE, KREV, WPLJ, WCLV, WCSB, WMJI, EDGE, and KZPS. AM stations are WLS, WMVP, and WABC.

Additional information can be obtained by contacting Telos Systems, 2101 Superior Ave., Cleveland, OH 44114 (Tel. [phone]; URL www.telos-systems.com).

CONTACT: John Casey or Miriam Carey

Telos Systems, Inc.

216/241-7225