Entercom Corp. Accused of Rico Violations by Royce International Broadcasting; Royce Claims Entercom Schemed to Defraud It In Sale of Sacramento Radio Station.

SAN FRANCISCO--(BUSINESS WIRE)--September 20, 1999--

Royce International Broadcasting Corporation, a Sacramento-based independent broadcaster, has filed suit against David J. Field, the Chief Executive Officer of Entercom Corp. (NYSE:ETM) of Pennsylvania, one of the largest owners of radio stations in the U.S., alleging violations of the Racketeer Influenced and Corrupt Organization Act (RICO). The charges are in connection with the proposed sale of Royce-owned radio station KWOD-FM to Entercom. The suit was filed in the U.S. District Court for the Northern District of California in San Francisco.

A cross complaint was also filed against Entercom in Superior Court in Sacramento alleging fraud, deceit, breach of contract and other unfair practices associated with Entercom's and Mr. Field's efforts to deprive Royce of ownership of the license of KWOD-FM, in Sacramento.

In 1996, Royce and Entercom entered into negotiations for the possible exchange of KWOD-FM for a like-kind exchange of stations from Entercom. The suit alleges that Mr. Field violated this agreement and conspired with other parties to defraud Royce and that his acts constituted a pattern of racketeering activity. According to the complaint, the purpose of this activity was to keep other buyers away from Royce so that it could only deal with Entercom on Entercom's terms.

Edward R. Stolz, II, President and General Manager of Royce, said: "Royce stands for independence, localism, and a sincere concern for the needs of the communities it serves. Entercom, a debt-ridden conglomerate, is eliminating the independents. Entercom goes beyond its competition in its arrogant refusal to accept the word "No" to a sale of KWOD-FM. Instead, Entercom has resorted to a deliberate and carefully-crafted campaign of illegal activities to pressure this independent broadcaster. Ultimately, this is a battlefield from which one of two principles affecting American media will prevail: tyranny or independence."

Victoria E. Brieant, an antitrust attorney at the international law firm Coudert Brothers in San Francisco representing Royce, said, "Royce intends to defend its right to independence in the marketplace and we will see that the court system is not abused by Entercom and its officers."

Royce is one of the few remaining privately-owned, independent broadcasting companies in the top 100 markets in the U.S. and the only one in the Sacramento market. Royce has operated KWOD-FM since 1977 and also has a license for KIOQ-AM in Sacramento.

Entercom is currently the sixth largest owner of FM and AM radio stations in the United States, and the second largest owner of radio stations in the Greater Sacramento area. Upon completion of its planned acquisition of 46 radio stations, it will be the fifth largest radio broadcast company in the U.S. with operations in Boston; Kansas City, Kansas; Portland, Oregon; Sacramento; Seattle; Washington; Florida and New York.