HD Radio Technology converts local radio broadcast programs from analog to digital, thereby providing many new benefits their listening audiences have come to expect from digital technologies. HD Radio Technology is essentially a new digital pipeline to consumers, enabling many benefits ranging from dramatically expanded radio content, noticeably better audio quality to a range of data and interactive services - identified as "HD Radio Advanced Services." (Note: The benefits of HD Radio Technology are provided free over the air to consumers using an HD Radio enabled radio receiver):

Consumer Benefits & Commercially Available Advanced Services

• Sound Quality: HD Radio digital transmissions provide consumers with FM sound quality that is equivalent to listening to a CD. There is none of the hissing, distortion or pops associated with analog transmissions. Exhaustive consumer research has documented consumer satisfaction to be quite high with HD Radio FM audio quality. HD Radio AM audio quality is also improved to the point that AM programming now sounds like traditional FM analog broadcasts.

• Program Service Data (PSD): HD Radio enabled receivers display Program Service Data (PSD) which text messages that can include, but is not limited to song & album title, artist name, and station identification. Advertising messages can also be delivered via PSD.
• HD2/HD3 Channels: Broadcasters can now add additional FM channels within their owned spectrum on the radio dial. These HD2/HD3 Channels are identified on the dial as "HD2", "HD3", etc. So, for example a radio station located at 101.1 on the FM dial can add new Channels, which are identified as 101.1-HD2 and 101.1 - HD3. These HD2/HD3 channels are giving way to a variety of new, innovative niche programming not available on analog. Consumers have a tremendous range of content from which to choose from. HD2/HD3

Channels enabled by HD Radio technology are being launched by local broadcasters at a rapid rate. Today listeners are enjoying over 1,100 new HD2/HD3 Channels in local markets across the country. New programming continues to emerge; super-serving sports fans, lifestyles, vertical ethnic markets in local communities or simply providing niche music formats not typically available in the local markets

• iTunes Tagging: Designed for the iTunes Store, iTunes Tagging provides consumers with a simple way to capture the identification of a song or other programming they hear on an HD Radio receiver for later sampling and purchase from the iTunes store. Listeners simply push a button on an equipped HD Radio receiver and the song information is stored for transfer to an iPhone or iPod. When synced to the iTunes store, the listener is presented with a listing of tagged songs.
• Song Tagging: Song Tagging works just as iTunes Tagging, however is designed for alternative devices and music stores such as the Zune HD device which interfaces with the Zune Marketplace.
• Real Time Traffic: Two HD Radio enabled Real Time Traffic services are available through Clear Channel and the Navteq division of Nokia; providing consumers with noticeably more robust traffic data - such as flow and incident data - at a significantly faster rate of delivery through the digital pipeline. Both service providers have additionally complimented their traffic data with location based services in the top US markets (for example, gas prices, store locations and weather information).

Advanced Services Under Development

• Album Art: Scheduled for launch in 2010, Album Art provides consumers with visual images on the radio display of HD Radio receivers. These images can be synchronized withaudi o programming to provide listeners with enhanced multi-media radio experience.
• Live Pause: Scheduled to launch in 2010, Live Pause will enable a listener to store approximately up to 15 minutes of live content for play back.
• Premium Content: Currently in trial phase in select markets, the Premium Content service will enable consumers to opt-in to specific, specialized programming such as concerts, sporting events or other exclusive programming. (Note: Some Premium Content may require payment of a fee.)
• Electronic Program Guide (EPG): Current and Scheduled programming guides for local broadcast stations will be available on the radio display, enabling listeners to see all options at any given time.

• Emergency Alert: Automatically programmed emergency alerts will be delivered to HD Radio receivers in both the "on" and the "off" position; thereby ensuring delivery of critical information at vital times.