Revenues in the communications, information and media industries are projected to grow at a compound annual rate of 8% through 2003, among the fastest growing in the U.S. Since 1992, these industries, in aggregate, have grown at a compound annual rate of 7.2%, versus a GDP compound annual rate of 5.3%. These industries are forecast to grow to $800 billion in annual revenue by 2005.

Wicks focuses its investment activities on six sectors categorized by geographic focus or market niche. These sectors are large and rapidly growing and are driven by many of the same factors that characterize the broader industries.

Geographic markets. Wicks targets investments in mid-size and smaller geographic markets, as defined by population, consumer purchasing power and advertising potential, in the following sectors:

• Television broadcasting

• Radio broadcasting

• Newspaper publishing, shoppers, free newspapers, local yellow pages and local business publications

• Other local media, including cable systems, and outdoor advertising.

• Special interest publishing, including: (i) educational publishing (with a focus on supplemental educational material); (ii) professional publishing (including business, engineering, scientific, legal and medical); (iii) library and reference publishing; and (iv) special interest consumer and trade magazines.

• Business information services, including: (i) market information, specialized databases and knowledge research services for specific industries; (ii) marketing and consumer research databases and information; (iii) legal, tax and public record information; and (iv) current awareness news and research information.

The Wicks target industry segments can be characterized by the following:

• High operating margins. When properly managed, operating margins in these businesses range from 20% to 35% in print businesses, such as newspapers or educational and professional publications, and from 35% to more than 50% in electronic content businesses, such as television and radio stations.

• Favorable cash flow characteristics. When properly managed, businesses in these sectors generate exceptional levels of cash flow as a result of high operating margins, low variable costs, low required capital investment (these industries operate with facilities and equipment that require only occasional upgrades or contract out manufacturing), and certain tax advantages.

• Limited competitive environment. The dynamics of narrowly defined specialty markets and continuing regulatory complexities contribute to limiting the presence of head-to-head competition in these markets, in contrast to mass market communications and media, such as television networks or broad reach magazines. As such, the economics of being an early participant or "first mover" are quite favorable.

• Opportunity to charge premium prices. These businesses can charge premium prices to both customers and advertisers because they deliver high value information to local consumers or special interest markets and they develop a base of loyal customers who purchase these products on a repeat basis.

• Consolidating and rapidly changing industries. Deregulation is a major force driving consolidation in electronic media, offering the opportunity to assemble businesses and employ strong professional management. Technology developments are enhancing the attractiveness of these industries by creating new services (such as digital television), new distribution channels (such as the Internet), and reducing capital investment needs and operating costs.

• Frequently undermanaged. Businesses that exist in local or narrowly defined markets are excellent candidates for operating improvements through cost reduction and rationalization, more effective product development, stronger marketing programs, improved sales management, and better management controls and systems.

• Benefit from consolidation. Certain of these businesses can be clustered to realize savings and other benefits by consolidating back office functions, attracting and sharing strong management teams, rationalizing and consolidating facilities, and selling advertising as group buys.

• Less vulnerable to recession. Unless serious and prolonged, a recessionary economy may have little or no effect on end user spending for these industries and tends not to materially reduce local advertising spending. In the 1991-1992 recession, total advertising spending declined by only 1.8%, but then rebounded to higher levels the following year. In no other recession in the past 20 years has advertising spending declined.

• Market liquidity. Whether sold in clusters or individually, multiple exit options and numerous buyers typically exist for well managed businesses in these sectors. In addition, attractive financing is available for assets that have these liquidity features, which helps to maximize investment values.