Agoracom

NASHVILLE, Tenn. -- Debut Broadcasting Corporation Inc. (OTCBB: DBTB.OB), a media and entertainment company, today announced its results for its 2008 second quarter (ended June 30).

Debut Broadcasting™ generated net revenue of $726,438, an increase of $725,831 compared to net revenue of $607 for the quarter ended June 30, 2007. As a result of the increased seasonal expenses, Debut’s overall loss for the three-month period ending June 30, 2008 was $263,285, compared to $602,274 at the end of the 2007 second quarter. The second quarter 2008 loss was flat when compared on a quarter-by-quarter basis to the first quarter 2008; however, the 2008 second quarter loss also includes one-time and seasonal expenses of approximately $95,000.

For the six-month period ending June 30, 2008, Debut Broadcasting generated net revenue of $1,177,783, an increase of $913,709 or 446 percent, compared to $264,074 for the first six months of 2007. Debut’s overall loss for the first half of 2008 was $525,278, compared to $711,855 at the end of the 2007 first six-month period.

“Debut had a great second quarter of 2008 comparatively, with a quarterly increase in net revenue of more than 440 percent,” said Steven Ludwig, CEO of Debut Broadcasting. “Debut continues to see an increase in net revenue as the radio syndication arm thrives and additional radio stations are brought under the Debut Broadcasting umbrella.

“For example, we experienced a 60 percent growth in second quarter net revenue versus first quarter results. In addition, not counting one-time and seasonal expenses, our quarter over quarter losses are dropping as well.”

Syndication Revenue Shows Dramatic Increase

In the 2008 second quarter, Debut Broadcasting generated $1.32 million in gross syndication revenue, and $1.88 million total for the first six-month period of 2008, compared to a total of $1.78 million gross syndication revenue for 2007 as a whole.

Gross Revenue, Syndication

Q1

Q2

Q3

Q4

Total

2008

$550 K

$1.32 M

—

—

$1.88 M

2007

$357 K

$417 K

$464 K

$548 K

$1.78 M

“Through Impact Radio Networks™, Debut’s syndication arm, the company has already exceeded 2007 syndication revenue through the first half of 2008,” Ludwig said. “Impact Radio Networks provides syndicated content and services to over 1,400 radio stations in the U.S. and Canada, reaching more than 45 million listeners weekly.

“As Debut Broadcasting continues to add properties to its growing number of owned-and-operated (O&O) radio stations in the southeastern U.S., an opportunity is then created for additional radio programs to meet content needs. As such, we can then turn around and syndicate Debut’s original radio content to current and prospective customers, creating additional revenue streams.”

Super-Regional Cluster Update

Debut Broadcasting’s Super-Regional Cluster™ approach to radio ownership is the company’s key differentiator in the saturated radio industry. The strategy of Super-Regional Clustering extends the concept of traditional radio station clustering (networking stations in the same market to lower over all expenses), and links together clusters of stations from neighboring markets into a larger “super-regional” cluster.

Debut Broadcasting’s Mississippi Super-Regional Cluster currently consists of seven Debut Broadcasting owned or operated (O&O) radio stations. Debut purchased five Greenville, Miss. radio stations in 2007 that have been profitable and proven the traditional cluster strategy successful. In March 2008, Debut acquired the rights to manage and operate two Vicksburg, Miss. radio stations, growing its radio properties by 40 percent. The Super-Regional Cluster strategy was implemented in both markets to reduce the operational and production costs of the radio stations.

“Our belief was that we could target undervalued and underutilized media properties, acquire the radio stations, and then group them into a Super-Regional Cluster to lower overall expenses,” Ludwig said. “Upon acquiring the rights to manage and operate the stations, we improve the operating systems and generate more revenue at a decreased cost of production.

“Debut’s strategy was realized in Greenville, it was also successful in Vicksburg, and now as the seven stations operate as a single unit, revenue is continuing to increase as operational costs decrease. The seven stations form the core of the Mississippi Super-Regional Cluster and prove this approach to radio ownership and management to be successful, even in its earliest stages.”

Summary

“Debut Broadcasting’s 2008 second quarter gross and net revenue are up significantly, both year-over-year and quarter-over-quarter,” Ludwig said. “After discounting one-time or seasonal expenses, Debut has also seen a quarterly decrease in ordinary loss. Additionally the company’s assets are significantly higher since the 2007 fourth quarter. Accounts receivable have doubled, syndication revenue has grown dramatically, and Debut is making conscious strides to hit its mark in the radio industry during challenging economic times.

“We are pleased with the results we’ve seen so far as a company, but we’re not done. We realize the areas we need to improve upon and make a continued effort to improve our strategy to see success in the future. The company has come a long way in a limited amount of time, but our successes have not been positively reflected in Debut’s stock price – yet.”

Analysts at Rubicon Global Research and Dutton Associates are convinced that Debut’s stock is significantly undervalued. Through “initiating coverage” research reports released earlier this year by each firm, Rubicon reported a target price of $1.58, while Dutton Associate’s reported a stock target price of $2.88, an average target price of $2.23.

“As we continue to grow all facets of Debut Broadcasting, including syndication and O&O radio stations, we are confident that current investors will grow with us, and potential investors who will join us as we continue our venture upward through tough economic times,” Ludwig added.

This press release is available on the company's official online investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://agoracom.com/ir/debutbroadcas... and view the Debut Broadcasting Investor Contact & Information Centre. Alternatively, investors may e-mail questions and correspondence to DBTB@Agoracom.com

About Debut Broadcasting Corporation, Inc.

A media and entertainment company, Debut Broadcasting Corporation, Inc. (OTCBB: DBTB.OB) supports its clients throughout North America while also improving shareholder value through targeted turnaround opportunities in the southeastern United States. Through its entertainment arm, Impact Radio Networks, Debut sells pre-recorded radio programs and related services to more than 1,400 AM and FM stations in the U.S. and Canada, and reaches more than 45 million listeners per week, making it one of the leading syndicators in the industry. The company also provides marketing, consulting and media buying for its radio broadcast stations. Through its media division, Debut identifies and acquires (or manages) underperforming and undervalued media properties in the southeastern U.S., and its first five acquisitions have given Debut radio dominance in the greater Greenville, Mississippi marketplace. For more information about Debut Broadcasting, please visit www.debutbroadcasting.com or email ir@debutbroadcasting.com.

Debut Broadcasting, Super-Regional Cluster and Impact Radio Networks are trademarks of Debut Broadcasting Corporation, Inc. All other trademarks are property of their respective owners.

Forward-Looking Statements

Certain statements contained in this news release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by reference to a future period or by the use of forward-looking terminology, such as “expect,” “anticipate,” “believe,” “estimate,” “foresee,” “may,” “might,” “will,” “intend,” “could,” “would,” “plan,” “forecast” or future or conditional verb tenses and variations or negatives of such terms. These forward-looking statements include, without limitation, those relating to the services provided by our Chief Financial Officer, our entry into new markets and fields and our earnings potential.

We caution you not to place undue reliance on the forward-looking statements contained in this news release because actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. These factors include, but are not limited to, our ability to provide and market competitive services and products, our ability to attract, train and retain qualified personnel, our ability to operate and integrate new technology, changes in consumer preferences, changes in our operating or expansion strategy, changes in economic conditions, our ability to identify and effectively integrate potential acquisitions, FCC and government approval of potential acquisitions, geographic concentrations of our assets and susceptibility to economic downturns in that area, our ability to compete with other companies that produce and distribute syndicated radio programs and/or own radio stations, other factors generally understood to affect the financial condition or results of companies that produce and distribute syndicated radio programs and/or own radio stations and other factors detailed from time to time in our press releases and filings with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements to reflect the occurrence of changes or unanticipated events, circumstances or results that occur after the date of this news release.

Investor Contact at Politis Communications
for Debut Broadcasting:
David Politis, 801-523-3730 (wk), 801-556-8184 (cell)
dpolitis@politis.com
or
Investor Contact at AGORACOM Investor Relations
for Debut Broadcasting:
Email: DBTB@agoracom.com
Web site: http://agoracom.com/ir/debutbroadcas...
or
Media Contacts at Politis Communications
for Debut Broadcasting:
Jonathan Bacon, 801-523-3730 (wk), 801-660-7820 (cell)
jbacon@politis.com
Lindsay Thomson, 801-523-3730 (wk), 973-224-2569 (cell)
lthomson@politis.com