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PRI® and Public Interactive® Approve Merger and Recapitalization Plan

MINNEAPOLIS, June 2, 2004 -- Public Interactive, public broadcasting's leading provider of online tools and services for stations, is recapitalizing under a plan whereby it will become a non-profit company and will operate in affiliation with Public Radio International. The boards of both organizations have approved the plan, as have Public Interactive's shareholders.

Public Interactive, Inc., a for-profit company whose investors included PRI, public radio and television stations, foundations, and individuals, will merge with a non-profit company organized by PRI. The merged entity will operate under the Public Interactive name and will retain its Boston staff and base of operations, providing uninterrupted service to its client stations nationwide. PRI will provide financial and marketing services to the new company, and will assist in fundraising. A new board of directors is being formed that will include members from inside and outside public broadcasting.

Making the announcement, Public Interactive President Tom Lix and PRI President Stephen Salyer said, "This merger allows Public Interactive to become stronger financially, to take full advantage of PRI's capacities in marketing, fundraising, and financial services, and to move rapidly toward financial breakeven."

Leading Public Interactive, Lix and Salyer said, will be Debra May Hughes, chief operating officer, and Cindy Shuman, acting chief financial officer. Hughes says, "Our Web tools are the best in the business, and we're excited about the opportunity to accelerate the development of signature products and services for public stations."

Lix announced that he will step down as president of Public Interactive, effective with the completion of the merger. "As founder and president of Public Interactive, I am enormously proud of all we've accomplished over the past five years. I am pleased that Debra May Hughes will continue to lead product and service development, and that PRI is providing support that will enable Public Interactive to reach greater heights."

Salyer added, "Public Interactive would not exist without Tom Lix's vision and commitment. His understanding of the Internet's potential and what it can mean for public broadcasting will continue to inspire our efforts."

Salyer also expressed his appreciation to the Ford Foundation for a new grant to Public

Interactive and to The Atlantic Philanthropies for its current funding support. Salyer said,"Both the Ford Foundation and The Atlantic Philanthropies have played substantial roles in building Public Interactive, and we are delighted by their support for the company's recapitalization."

About Public Radio International®
PRI is public radio's leading source for innovative programming and audio content. The Minneapolis-based network and managing partner of American Public Radio LLC, the satellite radio company, provides over 400 hours of programming each week, content that is broadcast and streamed online by its 743 clients nationwide, who reach 29.2 million listeners each week. PRI programming is also available nationwide via Sirius Satellite Radio. For more information on PRI and its programs, visit the PRI website at

About Public Interactive®
Public Interactive® is the leading integrated Application Service Provider (ASP) of online collaborative tools, community engagement technologies, content syndication services, and member and audience relationship management systems for the public broadcasting industry. Leveraging the on-air reach and content-focused education and information activities of community-based public radio and television stations, Public Interactive provides a modular series of advanced, interactive plug-and-play components, which enable stations to cost-effectively build and support their online initiatives.

As a station-centric and station-supported network, Public Interactive is designed to efficiently serve an extensive and rapidly expanding network of client public broadcasting stations - a cooperative and supportive network purposely designed with a distinct and advantageous value proposition for member stations.


Contact: Dan Jensen
Public Radio International